Last Updated on November 23, 2025 by Emily Hopkins
Retirement doesn’t have to be boring? You’d be amazed by how many people decide whether to retire in Portugal or Italy. With relaxed living, favorable weather, and strong healthcare systems, both countries are appealing, but one of them offers much more value for the same cost!
Making a decision between the two is easier said than done, and that’s exactly why we’re here. There are so many factors you have to put into consideration before deciding which one is right for you. This post will shed some light on the basic things that you should know before deciding.
Tag along to find out the similarities and differences between the two, how the lifestyle compares, and which area would be the best one. By the end, you’ll be able to pick your new home; happy reading!
Retire in Portugal or Italy? Why do expats choose them?
Portugal and Italy are among the top 10 favorite destinations for most Europeans looking for a retirement destination. So why do expats love these counties? Are there things that they have in common? Let’s discuss!
Similarities between the countries
With age, factors like tranquility and climate become increasingly significant. Warm weather is especially appealing to retirees, placing Portugal and Italy among the top destinations. Both countries benefit from extended warm seasons unmatched by other European countries.
The warm climate is nice, however, a cheaper and quality healthcare system is another factor that sends many people to Italy and Portugal in droves. Similar to other European counties, both Portugal and Italy put a strong focus on quality health care for their citizens.
Additionally, both cultures really value human relationships and gathering for meals with loved ones. Portuguese and Italian are big on cooking hearty dishes and sitting for hours laughing and cherishing every moment.
When all is said and done, anyone looking to immigrate to another country wants a peaceful and slow pace of life; Portugal and Italy offer exactly that.
Portugal vs Italy for expats
Let’s dive a little deeper into what it’s like living in each of the countries and help you understand the culture a bit more.
About living in Portugal
Portugal is an ideal destination for many expats, and the beautiful weather and many beaches aren’t the only things this country has to offer.
If you’re a retiree with children still pursuing their studies, you’ll be glad to know that there are numerous international schools and universities offering excellent facilities.
For many expats from Europe or the US, the low cost of food in Portugal comes as a pleasant surprise, with €10 stretching much further than expected. Overall, the cost of living is highly affordable, particularly for foreigners.
Finally, the Portuguese culture is family-friendly, children are known as the joy of life, and the Portuguese people like to welcome all visitors. Restaurants will go out of their way to accommodate even the funniest of eaters.
About living in Italy
Italy is the perfect embodiment of the famous phrase la dolce vita or rather ‘the sweet life’. Life is generally cheaper compared to most European counties, although still more expensive than in Portugal.
Outside the big cities, services like transport and internet connections are affordable. However, it’s also important to acknowledge that the cost of living is relative to which area you choose to live in.
The cost of living in cities like Rome will cost up to 50% more as compared to other small rural towns within Italy. Generally, the population of Italy is welcoming to visitors, and you’ll find integrating with the local community easier.
The atmosphere itself is very homely and romantic; people are also nice and tolerant. Both countries have their own charm. And it’s okay to still love both countries whether you retire in Portugal or Italy!
Differences between the countries
With all the similarities, it’s also obvious that there are some major differences, the cost of living being one of them, but we’ll talk about that in just a bit.
According to the Global Peace Index 2025, Portugal is ranked as the seventh-safest country to live in, compared to Italy, which sits at thirty-three. While this doesn’t suggest Italy is unsafe, for retirees, the peace of mind that comes with living in a safer country is a valuable benefit.
Another difference is how particular the Italians are with how they cook meals and mix ingredients. The cuisines are pretty similar, except for the fact that the Portuguese love fish and rice more while Italians love pasta.
While these differences don’t necessarily mean much to most people, here’s one thing that will: the cost of living in each country, so let’s find get into the details!
Cost of living in each country
One is more well-known for being a vacation destination, a place where people celebrate love and life’s milestones; the other has recently gotten famous for being an excellent destination to live in!
Rome in Italy and Lisbon in Portugal are two of the best cities to explore at least once in your lifetime. And it goes without saying that they’re also some of the most expensive regions in Portugal.
As a retiree, you can live a very peaceful life in both cities, but depending on your passive income, you might prefer one over the other.
Check out the table below for some estimated figures that’ll help you compare:
| Data | Costs in Portugal | Costs in Italy |
|---|---|---|
| A single person estimated monthly costs (without rent) | €687.4 | €886.7 |
| 1-bedroom apartment in the city center | €923.33 | €739.42 |
| Family of four estimated monthly costs (without rent) | €2,433.9 | €3,116.8 |
| 3-bedroom apartment in the city center | €1,575 | €1,277 |
Data is from Numbeo (as of August 2025).
As shown in the table above, rental prices for both one- and three-bedroom apartments are quite similar in the two countries. However, in Portugal, regions such as the Azores, Madeira, and the Silver Coast offer much lower rents.
While both destinations are attractive, it’s worth noting that Italy’s overall cost of living is slightly higher. In fact, data indicates that, excluding rent, living expenses in Portugal are about 24.2% lower than in Italy.
Read also: Is Portugal The Cheapest Country To Live In?
Taxes
The good news about moving to Portugal as an expat is that you won’t have to worry about paying taxes twice. Portugal has a tax treaty with most EU and Non-EU countries, so you won’t find yourself losing your hard-earned money.
However, expats can benefit from 10 years of tax benefits thanks to the Non-Habitual Resident Tax Regime! While this regime has had a few changes recently, it remains to be a good way to save on tax for qualifying individuals.
Similar to other EU countries, the tax year begins on the 1st of January to the 31st of December. The standard income tax range is between 14%-48% depending on what you earn in the taxable duration.
However, expats can benefit from 10 years of tax benefits thanks to the Non-Habitual Resident Tax Regime!
What this means for you is that you get to keep every cent you earn outside of Portugal for up to 10 years. However, if you’re self-employed or employed, you’ll be subject to a standard 20% flat-rate tax.
In Italy, tax returns must be filed by the 30th of September of the preceding year. Employees are subject to three types of taxes in Italy.
- The national income tax ranges between 23%-43% and is levied on all incomes.
- Regional income tax ranges from 1.23% to 3.33%.
- The Municipality Income tax is similar to the national income tax. This levy is dependent on the municipality of residence and ranges between 0% to 0.8%.
- Flat 7% tax rate for pensioners if you live in a municipality with less than 20,000 inhabitants (For example, Abruzzo, Apulia, Sicily, or the Basilicata).
As an expat, one major concern is double taxation, however, fret not! Italy has treaties with most countries that are aimed at reducing the chances of double taxation as well.
Labor Market in Portugal and Italy
As of the most recent data, Portugal has an average unemployment rate of 6%, and expats often find the transition slightly challenging. Like Portugal, Italy can also do better, with an unemployment rate of 6.3%.
First off, the Portuguese economy is manufacturing-driven and quite dependent on tourism, often having a limited need for expat workers.
However, highly skilled expats often choose to look for employment in big cities like Lisbon that need highly skilled personnel. Recently, there has been a huge surge in startups, coworking spaces, and businesses within the country. So the opportunities are increasing.
Finding an English-speaking expat job in Italy is generally not too challenging. However, speaking Italian can be a valuable advantage in certain professions. Opportunities are also available in fields like tourism or teaching English.
Transport
Public transportation is efficient in Portugal, given the many modes of transportation available. For instance, trains, buses, metro, or taxis.
The Comboios de Portugal, or rather Portugal’s train system, connects different inland towns in the north and south. Ticket prices are affordable, and there are plenty of discounts.
Also, buses are available for transport around the country. Different buses operate on different routes in the north and south regions.
If trains and buses aren’t your preference, you can opt for the subway system instead. Portugal has two main subway networks, located in Porto and Lisbon. They operate from 6 a.m. to 1 a.m., with affordable tickets available through daily, weekly, or monthly plans.
Italy is no different as compared to most EU countries when it comes to transport. You don’t need a vehicle to get by. There are plenty of other cheaper and more efficient transportation options, for instance, the train system, buses, metro, and air transport.
Italy’s train system is highly efficient, connecting towns and cities across the country. The high-speed Frecciarossa trains reach up to 300 km/h, making travel quick and convenient.
The country also has four metro systems located in Turin, Milan, Rome, and Naples, each offering tickets at varying prices and validity periods.
Buses in Italy offer transport between and within cities. All you have to do is book a ticket and be sure to validate the ticket once on board. Buses are often limited during Sundays or public holidays.
Climate
When compared to some countries in the EU, then both Portugal and Italy have fair weather all year round. However, Portugal has the best weather in Europe, hands down!
The country experiences mild winters and longer sunny hours than any other country in Europe. In Italy, different cities experience different extremities when it comes to weather. Southern Italy enjoys a Mediterranean climate while cities like Milan and Venice experience extreme climates, especially during the winter.
Here’s a table that summarizes the four different seasons:
| Region | Spring | Summer | Fall | Winter |
|---|---|---|---|---|
| Portugal | 15.4 ºC (59.72 ºF) | 21.4 ºC (70.52 ºF) | 18.1 ºC (64.58 ºF) | 11.8 ºC (53.24 ºF) |
| Italy | 10.6 ºC (51.1 ºF) | 22.5 ºC (72.5 ºF) | 17.1 ºC (62.8 ºF) | 8.5 ºC (47.3 ºF) |
Data is taken from the Climate Data website.
Security
As previously mentioned, Portugal ranks as the fourth-safest country in the world, whereas Italy holds the 31st position. This doesn’t mean Italy is unsafe, but it does suggest that exercising a bit more caution there would be wise.
Portugal has a relatively low crime rate. However, nonviolent criminal activities like pick-pocketing in certain areas like beaches could occur.
On the other hand, Italy is not extremely different than Portugal. Besides the fact that it’s notorious for having organized crime groups and mafias. They don’t go around spreading hate and war, but we do advise taking safety as an individual responsibility.
Read also: The 15 Best Cities To Live In Portugal
Entertainment
Italy and Portugal share a common love for football. Both of these countries rank well as far as national football teams are concerned. Outside of football, you can enjoy luxury driving experiences on tracks in Italy or hiking and tracking on the famous tracks of Portugal.
There’s always the usual too; nightclubs, bars, casinos, golf, other sports, great food, and street entertainment. It’s never a dull moment in these countries! You can expect to be fully entertained whether you retire in Portugal or Italy.
How to get a Visa in each country
We’ve now covered both the differences and similarities, so let’s look at how simple it is to obtain a visa in each country, making your relocation process smoother!
Obtaining a visa to live in Portugal
There are several types of visas, but if you’re looking to retire in Portugal and live on passive income, then the D7 Visa (Passive Income Visa) is the one for you.
You’ll need to show proof of private and valid insurance in Portugal or Europe in general.
Another requirement is proof of funds to support your relocation and cover the cost of living and accommodation in Portugal.
Once all these documents are in order, then fill in the application and submit it to the nearest Portuguese consulate near you.
How to get a visa in Italy
If you are considering permanently relocating to Italy, then you should apply for a long-term visa (Type D). This is particularly necessary if you are a non-EU resident.
For self-sufficient retirees, the most common visa is the Elective Residency Visa for people who have the financial means to retire in Italy.
Visit the Immigration Portal to get the visa requirement based on your individual situation. Provide details of your nationality, reasons for travel, and length of stay. Also, pay a visit to the nearest Italian consulate for further direction on the document you will require.
Bottom Line: Should I retire in Portugal or Italy?
There you have it, a clear breakdown of what to expect if you’re planning to retire in Portugal or Italy for your golden years. Ultimately, the decision of which country to choose is entirely yours.
Moving to either of these countries is a great choice, but we’ll be waiting for you if you decide to relocate to Portugal. We know the process can be overwhelming, and our team of professionals here at Viv Europe will help you every step of the way to ensure you have a smooth relocation process throughout.
If you’re scared it’s too late to move and retire in Portugal, you’d be surprised to see our Facebook Group – All About Portugal For Expats. Ask questions from people who were in their sixties when they decided to retire in Portugal or Italy and are now having the time of their lives!
