Why Portugal is the Top Choice for American Retirees

Portugal’s rich culture, stunning landscapes, and affordable cost of living make it an attractive destination for American retirees. In 2025, the country was ranked as the top choice for retirees by Global Citizen Solutions (GCS), in part due to its D7 visa program, also known as the ‘Passive Income Visa.’

The D7 visa is a residency gateway for foreigners with steady passive income, allowing them to live in Portugal and enjoy its beautiful beaches, rich history, and vibrant culture. After five years, visa holders can apply for permanent residency, and after 10 years, they can pursue Portuguese citizenship, according to GCS.

Benefits of the D7 Visa

One of the most significant benefits of the D7 visa is its relative affordability. To qualify, applicants must have passive income equivalent to Portugal’s minimum monthly salary, which is currently 920 euros (about $1,055 per month), according to the government’s Ministry of Foreign Affairs. This threshold increases by an extra 50% for additional adult applicants and 30% for every child or dependent.

Additionally, applicants will need to demonstrate at least €11,040 (about $12,659) in savings in a Portuguese bank. If they want to bring another adult, they’ll need €16,560 (about $18,939); add a kid, and it’ll be €19,872 (about $22,728).

What Qualifies as Passive Income?

Passive income can come from various sources, such as:

• Pension
• Rental income
• Investment dividends

However, traditional employment income or freelancing gigs do not qualify as passive income.

How to Apply for the D7 Visa

Interested applicants can begin the D7 application process by obtaining a temporary four-month visa at a local Portuguese embassy or consulate. From there, D7 visa holders can then enter Portugal and apply for a two-year residency permit at the Agency for Integration, Migration, and Asylum (AIMA), a process that will require documents such as proof of passive income.

The permit lasts for two years but can be renewed for an additional three. And after the five years have passed, you’ll be eligible to apply for permanent residency.

Alternatives to the D7 Visa

Not leaning towards the Mediterranean for your golden years? Consider other destinations like Costa Rica’s Pensioner Visa, which requires a monthly pension of $1,000, or France’s long-stay visa, a one-year pathway to a residence card with an annual income requirement of €17,317.39 (about $19,856).

Ultimately, the choice of destination depends on individual preferences and priorities.