Chapter 21 of 21

Retirement in Portugal

State pension, costs & quality of life

Retirement in Portugal

AOW, ABP, costs & quality of life

This chapter is for informational purposes only. Always consult a professional.

Sources: gov.pt | svb.nl | seg-social.pt

Dutch Pension in Portugal

AOW: continues within the EU. Report relocation to SVB
ABP: continues. Inform the pension fund
Company pension: most are paid internationally
S1 form: via CAK for healthcare rights in Portugal

Tax on Pension

Type	Tax
AOW	Usually taxed in Portugal (check treaty)
ABP/government pension	Often only taxed in the Netherlands
Company pension	Usually taxed in Portugal

IFICI Regime (Successor to NHR)

The old NHR regime offered a 10% flat tax on foreign pensions. This has been abolished. The new IFICI regime offers a 20% flat tax but ONLY for highly qualified professionals in specific sectors (tech, R&D, innovation). Retirees generally DO NOT qualify for this. Check current legislation with a tax advisor.

Cost of Living (Fundão)

Costs	Fundão	Lisbon/Algarve
Rent (T2)	€300–€500	€800–€1,500+
Groceries (couple)	€250–€400	€350–€500
Utilities	€80–€150	€100–€200
Health insurance	€80–€200	€80–€250
Eating out (couple)	€15–€25/time	€25–€50/time

Total couple/month (Fundão): €1,200–€2,200 for a comfortable life.

Quality of Life

Climate: 250+ sunny days, warm summers, mild winters
Safety: top 10 worldwide (Global Peace Index)
Activities: hiking (Serra da Estrela), river beaches, gardening
Travel: Lisbon/Porto 2.5 hours, Spain nearby
Medicines: 30-60% cheaper than the Netherlands

Pension Relocation Checklist

Task	When
Consult tax advisor	12 months before
Visit region	12 months before
Arrange apostilles	6-12 months before
Apply for NIF	6 months before
Apply for S1 at CAK	3-6 months before
Inform SVB + pension funds	3 months before
Open bank account	1-3 months before
AIMA registration	Within 90 days
Review will	First year

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Glossary

NISS (Social Security Number)
The Portuguese social security number. You need your NISS if you plan to work in Portugal or start as a freelancer. It is also required for access to certain social benefits and allowances.
SEF/AIMA (Immigration Service)
The former Portuguese immigration service SEF was replaced by AIMA in 2023 (Agency for Integration, Migration and Asylum). AIMA handles residence permits, visa applications and all immigration matters. Wait times can be long, so start your application early.
IRS (Personal Income Tax)
Portuguese personal income tax. The IRS return is filed annually between April and June. Rates range from 14.5% to 48% depending on income. Tax residents must declare their worldwide income.
ISV (Vehicle Registration Tax)
Tax when registering or importing a vehicle in Portugal. The ISV amount can be substantial, especially for older or polluting vehicles. EU citizens who relocate may be eligible for exemption under certain conditions.
CPCV (Promissory Purchase Agreement)
The preliminary purchase contract when buying property in Portugal. Upon signing you typically pay a 10-20% deposit (sinal). If the buyer withdraws, they lose the deposit; if the seller withdraws, they must repay double the amount.
Certidão de Teor (Property Registry Extract)
An extract from the Portuguese property registry at the Conservatória. The Certidão de Teor shows who owns a property and whether there are mortgages or liens on it. Always check before purchasing a property.
Junta de Freguesia (Parish Council)
The local administrative body at neighborhood level, comparable to a Dutch district council. At the Junta de Freguesia you can request an Atestado de Residência (proof of residence) among other things. It is often your first point of contact for local matters.
Conservatória (Registry Office)
The Portuguese registry office for property and civil status. At the Conservatória, property transfers, marriages and births are registered. For property purchases, registration at the Conservatória do Registo Predial is mandatory.
Título de Residência (Residence Permit)
The Portuguese residence permit card, comparable to a Dutch residence permit. After approval of your visa application, you receive a Título de Residência allowing you to legally live and work in Portugal.
Multibanco
The Portuguese payment network and ATM system. Multibanco is not only used for cash withdrawals, but also for paying bills, taxes and even concert tickets. It is an essential part of daily life in Portugal.