Key figures — as of 2026-10-16: Portugal ranks 4th of 24 countries in International Living's 35th Annual Global Retirement Index 2026, scoring 87.4 — behind Greece (1st, 90.1), Panama (2nd) and Costa Rica (3rd) — and 2nd among European destinations behind Greece — Portugal scores 2nd for healthcare (behind France) and 2nd for climate (behind Costa Rica) — a one-bedroom rental outside Lisbon now runs ~€1,500/month, while a one-bedroom apartment inside Porto that cost €150,000 in 2022 now sells for around €300,000.
A familiar name slips a few places
Portugal has come fourth in International Living's 2026 Annual Global Retirement Index, dropping out of the top three for the first time in years as Greece takes the top spot for the first time in the index's 35-year history. Portugal is the fourth-best country in the world to retire to, according to the 2026 Annual Global Retirement Index published by International Living, with Greece taking first place this year, followed by Panama and Costa Rica, and Portugal the second-highest European country on the list, behind Greece.
The magazine's own editors frame the shift as structural rather than cosmetic. "Greece's rise to No. 1 marks a shift in Europe's retirement landscape," said Jennifer Stevens, Executive Editor of International Living, "For years, Portugal and Spain le[d the way]" — the magazine's reporting attributes the shake-up partly to recent visa changes and rising costs pushing some retirees to look elsewhere.
For context on scale, the index is now in its 35th year and evaluates 24 popular retirement destinations across categories including healthcare, cost of living, housing, visas, and climate. Within that field, Portugal's total score for 2026 is 87.4, with the ratings built from seven subcategories including housing — the ease and cost of purchasing or renting housing.
Where Portugal still wins
The country's drop in overall rank doesn't mean its fundamentals weakened. Portugal comes second in two of the index's categories: healthcare, behind only France — the report credits the mix of public and private care and costs well below those in the United States, while acknowledging waiting times in the public system — and climate, behind only Costa Rica. The north-south divide gets singled out too: it highlights the difference between the north and the south, which lets newcomers choose the temperatures and outdoor life they want.
International Living's own copy still reads like a love letter to the country's variety and everyday texture — its stunning environmental diversity is one of its greatest assets, offering the geographic variety of a country five times its size, combined with fresh, affordable food, universal healthcare, a compact footprint, and kind neighbours. That broad, no-single-weakness appeal is precisely what kept Portugal in the top five rather than the top three.
Housing is the drag — and the numbers back it up
The weak point, according to multiple outlets reading the same report, is housing. Affordability remains one of the factors behind Portugal's strong position in the 2026 retirement ranking, although rising prices are increasingly difficult to ignore — there is one category in particular where money does not go as far as it once did: housing. Property and rental prices have risen considerably.
International Living's own correspondent put real numbers on that drift: a one-bedroom apartment outside Lisbon proper currently runs about €1,500/month, rents in Porto are comparable, though at the edge of the city you can still find a two-bedroom for around €1,200, and a one-bedroom apartment inside the city of Porto that could be bought for €150,000 in 2022 now runs €300,000.
GrowIN analysis: that Porto figure is a straight doubling of purchase price in four years — a 100% increase that outpaces wage and pension growth by a wide margin. Set against Portugal's 2026 minimum wage of €920/month, a single one-bedroom rental outside Lisbon at €1,500/month now equals roughly 163% of a full minimum-wage income — a useful gut-check for retirees used to older, cheaper cost-of-living comparisons from a few years back. Those relying on the D7 visa's passive-income threshold, pegged to the minimum wage plus savings, will find the rental market has moved considerably faster than the official income bar.
The report also points buyers away from the obvious spots. It steers readers towards smaller towns and the countryside, where it says housing remains more affordable, with one property specialist quoted picking out the coast north of Greater Porto as cheaper than the best-known destinations.
Visas add friction too
Housing isn't the only sore spot cited. Jornal de Negócios, reading the same report, notes that it also describes Portugal's visa options as less attractive than they were. That tracks with what GrowIN has flagged through 2026: the Golden Visa's real-estate route is gone, AIMA processing backlogs remain long, and NHR closed to new applicants back in March 2025, replaced by the narrower IFICI regime. Anyone weighing a retirement move on the strength of yesterday's tax or visa reputation should check current rules before committing — see our visas hub for what's actually on the table now.
"A four-year doubling in Porto apartment prices tells you more about Portugal's retirement appeal in 2026 than any single ranking does," says GrowIN Portugal Editorial.
What to watch next
International Living compiles the index annually from seven headings: housing, visas and benefits, cost of living, ease of settling in, healthcare, development and governance, and climate, so next year's edition will be the test of whether Portugal's housing score keeps sliding or whether cooling price growth in secondary cities drags the national average back down. For now, the practical takeaway for anyone planning a retirement move is to budget for current Porto and Lisbon-area prices rather than the figures circulating in older expat forums, and to get professional advice on visa routes and tax residency before assuming the old playbook still applies.
Nothing here is a guarantee of visa approval, tax treatment or future price movements — outcomes depend on AIMA, the Autoridade Tributária and market conditions at the time you apply. Retirees serious about the move should start with a current reading of the rules via our relocation guide and talk to a professional before signing anything.