Common Mistakes When Moving to Portugal: My Personal Experience

Common Mistakes When Moving to Portugal

When I decided to retire in Portugal, I spent a lot of time learning from others who had already made the move. Over the years, I’ve seen many retirees, including myself in my early days, make common mistakes that can be avoided with a bit of planning and awareness. I want to share these lessons from my own experience so that other retirees over 55 can make their transition smoother and more enjoyable

Mistake 1: Not Planning Finances Properly

I initially underestimated monthly costs, including housing, utilities, healthcare, and taxes. Without a clear budget, it’s easy to overspend or encounter financial stress.

Example: During my first month, I didn’t account for property taxes (IMI) and ended up spending €700 unexpectedly.

What I learned: Factor in rent or mortgage, utilities, groceries, transport, healthcare, taxes, and leisure activities.

Tip: Create a detailed budget including rent, utilities, groceries, healthcare, transportation, and leisure. Include a 10–15% buffer for unexpected expenses.

Mistake 2: Choosing the Wrong Location

Many retirees pick a town based solely on pictures or online reviews without visiting first. Location affects climate, cost, healthcare access, and lifestyle.

Example: I initially considered Lagos in Algarve for its warm climate but discovered higher costs and crowded tourist areas.

Tip: Visit multiple regions, spend at least a few weeks in each, and rent before buying property to ensure it meets your lifestyle and budget needs.

Mistake 3: Ignoring Visa and Residency Rules

Understanding visa requirements is crucial. I met expats who overstayed their Schengen visas or didn’t apply for the D7 visa correctly.

Example: Some friends had to leave Portugal temporarily because they mismanaged their 90-day Schengen limit.

What I learned: Even if you’re confident handling things yourself, professional guidance ensures you don’t make costly mistakes.

Tip: Apply for the D7 visa if retiring and planning a long-term stay. Ensure all paperwork is complete, including proof of income, accommodation, and health insurance.

Mistake 4: Overlooking Healthcare Planning

Healthcare access can be different from your home country. I initially didn’t plan for private insurance or register with the SNS early.

Example: During my first month, I had to pay out-of-pocket for a specialist visit because my SNS registration wasn’t completed yet.

What I learned: Understanding public vs private healthcare, costs, insurance options, and registration requirements is crucial.

Tip: Register with the SNS as soon as possible. Consider private insurance for faster access and English-speaking doctors.

Mistake 5: Underestimating Language and Culture Differences

Even basic Portuguese knowledge makes life easier. I initially struggled with forms, doctors, and local bureaucracy.

Example: I filled out a rental contract incorrectly because I didn’t fully understand Portuguese legal terms.

What I learned: Simple greetings, common phrases, and medical terms improve communication, respect, and integration.

Tip: Learn basic Portuguese phrases, hire translators or legal advisors when necessary, and engage with the local community to adapt smoothly.

Mistake 6: Not Accounting for Taxes Properly

Taxes can be complex, especially for foreign pensions, property, and investment income.

Example: I almost missed applying for the Non-Habitual Resident (NHR) status, which would have provided a 10-year exemption on my foreign pension taxes.

Tip: Consult a local accountant to optimize your tax situation and ensure compliance. Budget for property taxes, stamp duty, and other local fees.

Mistake 7: Skipping Short-Term Test Stays

One of the biggest common mistakes when moving to Portugal is jumping straight into buying property or permanent relocation without testing the lifestyle can be risky.

Example: Renting first on the Silver Coast helped me understand the local pace, climate, and community before committing to buy.

What I learned: Experiencing different regions, towns, and neighborhoods in person gave me clarity about what I liked and what I didn’t.

Tip: Spend at least 3–6 months renting in different regions to determine which area fits your retirement goals best.

Actionable Advice for Retirees

1. Budget carefully: Include all recurring and one-time costs.
2. Rent before buying: Test the town, climate, and community.
3. Plan visas and residency: Don’t overstay Schengen limits.
4. Register with healthcare services: SNS registration and/or private insurance.
5. Learn the language: Even basic Portuguese helps navigate daily life.
6. Understand taxes: Apply for NHR and consult a local accountant.
7. Engage with locals and expats: Helps integrate and learn practical tips.

FAQs: Common Mistakes When Moving to Portugal

Before You Leave

Moving to Portugal can be incredibly rewarding, but being aware of these common mistakes when moving to Portugal makes the transition much smoother. From my experience, visiting first, budgeting carefully, learning basic Portuguese, planning healthcare, and taking time with legal matters are the most important steps. Avoiding these pitfalls allowed me to enjoy my retirement fully, and I hope my experience helps other retirees over 55 do the same.