Last Updated on September 25, 2023 by Laila Oliveira
Picture sun-drenched shores, charming cobblestone streets, and a relaxed Mediterranean lifestyle. As you approach your golden years, the allure of retiring abroad becomes irresistible. But two enticing destinations stand out: retirement in Portugal or Switzerland. Which one holds the key to your ideal retirement lifestyle?
Whether you’re seeking warm climates, rich cultural experiences, or a thriving expat community, these two European gems promise to check all the boxes. With its mesmerizing coastlines, historic cities, and affordable living, Portugal beckons to those searching for a tranquil retirement.
Meanwhile, Switzerland flaunts breathtaking landscapes and a world-famous healthcare system. So, grab a cup of coffee, and let’s embark on a journey that will ignite your imagination and help you make an informed choice for your post-work paradise. Good luck!
Retirement in Portugal or Switzerland? Why expats choose them
Let’s start by answering why people prefer to spend their retirement in Portugal or Switzerland. These two destinations have captivated expats from around the globe, each offering its unique blend of charm and amenities.
Portugal’s landscapes, rich history, and warm Mediterranean climate have made it a magnet for retirees. People love to bask in the sun-drenched shores of the Algarve or immerse themselves in the vibrant culture of Lisbon.
But Switzerland has its own charm with pristine landscapes, world-class healthcare, and safety. The country also has a more central location in Europe, making it more attractive for those who wish to travel frequently.
Let’s compare both countries step-by-step!
Similarities between the countries
Both countries have a boastful quality of life to offer. Portugal and Switzerland are equal when it comes to healthcare and safety. They guarantee excellent public services to ensure retirees peace of mind. Although Portugal offers healthcare at a relatively lower cost, the latter is globally renowned for its top-notch quality.
You’ll also find rich cultural traditions, festivals, and a welcoming attitude towards expats. You can immerse yourself in local culture and make meaningful connections in either destination, which could light up your golden years.
So, whether you’re drawn to Portugal’s laid-back lifestyle or Switzerland’s beauty, you’ll find a quality lifestyle and a tapestry of experiences awaiting you. The choice is yours to make; let’s help you through it!
Portugal vs. Switzerland for Expats
Portugal allows expats to enjoy a high standard of living at an affordable cost. The country offers a range of housing options, from charming coastal towns to historic cities like Lisbon and Porto. And you’re surrounded by amenities that you’d need for a good life: transport, healthcare, security, access to education, and leisure.
Expats in Switzerland get a chance to experience world-class healthcare and stunning natural beauty. Plus, the country’s efficient public services and high standard of living create a comfortable retirement haven.
Both countries provide expat-friendly environments, making connecting with fellow retirees and building a supportive community easy.
Can you see why it’s so hard to pick one between the two?
One key difference between the two is that Portugal offers a specific Passive Income Visa for retirees, while Switzerland does not. However, it does offer competitive tax incentives, similar to Portugal’s NHR Tax Regime.
Keep reading to learn more about spending your retirement in Portugal or Switzerland!
About living retired in Portugal
The country has more than just beaches and a pleasant climate. Portugal’s cost of living is lower than many Western European countries, including Switzerland, which makes it economical enough for you to enjoy your retirement within your financial means.
As an expat, you’ll find many delightful options to live in. The Algarve is a popular choice, with its picturesque Lagos and Albufeira coastal towns. The area provides a relaxed and sunny ambiance with lots of recreational activities to engage in.
And then you have Cascais, near Lisbon, which offers a mix of stunning beaches and proximity to the vibrant capital. Cascais is known to be a popular luxury destination, famous for affluent expats who are looking for luxury and comfort.
The warm and friendly locals, delicious cuisine, and rich culture add to Portugal’s allure. Additionally, since 2022, public healthcare has been free for all legal residents, and the quality of healthcare is up to European standards.
One main reason for Portugal’s popularity is that you find modern amenities and vibrant expat communities that make you feel at home.
About living retired in Switzerland
Similar to Portugal, Switzerland also offers a charming experience. Zurich boasts impressive landscapes, a peaceful atmosphere, and an appealing “city” vibe. And expat retirees also love staying in Lutry on Lake Geneva, which is famous for its charming lakeside and mild climate.
Switzerland has many options that offer a blend of urban amenities with a relaxed lakeside ambiance. If Zurich isn’t what you’re aiming for, the country still has smaller cities and modern villages that are just as perfect for your retirement life.
The majority of these areas offer a quality lifestyle with renowned healthcare and other public services. So, regardless of whether you wish to live in the mountains or savor Swiss chocolate in a city cafe, retirement in Switzerland promises a comfortable and enriching experience.
Differences between the countries
Aside from the similarities, retirement in Portugal or Switzerland has some essential differences that you should consider. When we take the cost of living as a topic of debate, Portugal generally offers a more affordable lifestyle, with lower prices for accommodation, groceries, and dining out. Switzerland is more expensive in all regards.
As for taxes, Portugal’s Non-Habitual Resident Tax Regime provides significant tax benefits for retirees for up to 10 years! While Switzerland has a more complex structure for foreign residents.
So, whether you’re chasing affordability in Portugal or seeking a tranquil life in Switzerland, we’ll have to compare the key differences first.
Cost of living in each country
While Switzerland may offer slightly better healthcare, among other services, its living cost is also higher than Portugal’s.
For example, rent is 132.6% higher in Switzerland than in Portugal. Renting a single-bedroom apartment in Switzerland’s city center will cost you €1,730, while a similar place in Portugal will add up to €790.
Similarly, you can rent an apartment outside of the city center for €602 in Portugal but €1,370 in Switzerland. This main expense can add up to a lot, especially if you’re looking to live on a budget.
Groceries are also priced 198.9% higher in Switzerland than in Portugal, and so is the monthly transport card.
It all comes down to what you’re looking for and whether you mind paying extra for the beautiful views and amenities.
Taxes
Equally important as rent and housing is to understand the financial implications of your chosen destination.
In Portugal, expats can benefit from the Non-Habitual Resident (NHR) Regime. The NHR offers a flat tax rate of 20% on certain foreign income for ten years! This includes pensions, capital gains, and rental income.
But you must be a resident to be eligible for this regime. This means you either should have been in the country for at least 183 days before applying or have a permanent residence. The process is fairly simple, and you can always get in touch with Viv Europe for help.
Switzerland does not have a special regime for expat retirees, and tax rates are also higher there. But the country has a cantonal system, which means the rates and system vary from one canton to the next.
So, Zug, Schwyz, and Ticino are three of the most tax-friendly cantons in the country. Here, expat retirees are offered lump-sum taxation. That is, you’ll be taxed only on your living expenses, not on your worldwide income or assets.
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Transport
Both countries offer efficient and convenient public transportation systems for retiree expats to move around quickly. You’ll find an extensive network of buses, trams, and trains connecting cities and towns in Portugal.
Bigger cities like Lisbon and Porto also have metro systems, making urban travel much more accessible. The rates are affordable, and schedules are generally reliable, allowing you to explore picturesque landscapes and the city center at your own convenience.
For example, a 24-hour metro ticket in Lisbon costs €6.60, and a regular Municipal Navigator monthly pass is €30.
Switzerland also has an efficient network of trains, trams, buses, and boats. The transport system is reliable, and you can even invest in the Swiss Travel Pass if you are a routine user. It’s slightly expensive but will manage to cover your public transport.
Climate
Learning about the climates is so important in order to choose between retirement in Portugal or Switzerland.
Portugal has four seasons, with mild winters and warm summers but also a bit of fall and spring. Like the Algarve, coastal regions boast a Mediterranean climate with hot, dry summers and mild, wet winters, perfect for beach lovers.
The climate in Switzerland is a bit colder overall. Their lowlands offer milder summers, but Alpine regions are known for colder winters, perfect for those who adore snowy landscapes.
Imagine savoring a glass of wine under Portugal’s golden sunset or breathing in Switzerland’s picturesque mountain scenery. Whether the Mediterranean breeze is to your taste or the chilly mountainous terrain, both countries offer a climate to suit your retirement dreams.
Here’s a table to show you what each season can look like, temperature-wise.
| Country | Spring | Summer | Autumn | Winter |
|---|---|---|---|---|
| Portugal | 15.4 ºC (59.72 ºF) | 22.4 ºC (70.52 ºF) | 18.1 ºC (64.58 ºF) | 11.8 ºC (53.24 ºF) |
| Switzerland | 5.1 °C (41.2 °F) | 18.6 °C (65.5 °F) | 10.6 °C (51 °F) | 0.9 °C (33.6 °F) |
Data is from the Climate Data website.
Security
The two countries rank favorably among global destinations for expat retirees in terms of security. According to the Global Peace Index, Switzerland and Portugal are safe and secure.
Portugal ranks as the 7th safest country, while Switzerland ranks 10th on the same index. The former also has a well-established police force to ensure the safety of its residents and visitors, especially considering the high influx of tourists. Switzerland also boasts a similar safety situation, with a slightly lower crime rate.
Switzerland’s safety index lies at 75.02, with threats such as cars being stolen or attacks based on intersectionality at a very low of 14.61 and 19.76. But the latter rate is even lower in Portugal, at 15.50.
No matter which country you’re in, we recommend keeping your belongings safe and staying alert if you’re unfamiliar with new routes.
Entertainment
Portugal is famous for its vibrant cultural scene, with music festivals, art exhibitions, and performances that showcase traditional and contemporary talents.
You can find different clubs that encourage older adults to participate in various activities, including language classes, art workshops, and dance lessons.
Plus, you can find a plethora of cultural events, including classical music concerts and theatre performances, which cater to mature audiences. There’s really no moment to feel bored!
In Switzerland, you can cherish leisurely walks in charming Alpine villages, savor Swiss chocolate, and explore museums showcasing art and culture. The country also hosts festivals and concerts that you can enjoy.
And, of course, with the hiking and skiing culture, your days in Switzerland will be truly exciting and fulfilling for your golden years. Take it slow and enjoy the best time of your life.
How to get a Visa in each country
Finally, you have to assess the Visas in each country before you make the decision to spend your retirement in Portugal or Switzerland. The Passive Income Visa is one of the easiest ways to live in Portugal as a retiree.
If you have sufficient passive income, the visa allows you to live in Portugal for an extended period, but you will need the following documents to secure it:
- Proof of stable and regular passive income (pensions, investments, or rental income);
- Proof of health insurance;
- Criminal record certificates;
- Proof of accommodation;
- A valid Passport.
It’s also advisable to secure suitable accommodation before you apply for the visa, like rental agreements or property ownership documents. The process is simplified if you seek professional help because an expert can guide you along the way. Feel free to consult Viv Europe to understand the process better!
For Switzerland, the Residence Permit for retirees is a good Visa option. You’ll simply need the following:
- Proof of sufficient financial resources to support oneself without working;
- Comprehensive health insurance;
- Clean criminal record.
You’ll need to submit these records and your completed visa application form to the Swiss Embassy or consulate in your home country.
Bottom Line: Retirement in Portugal or Switzerland?
It’s not the easiest decision to make. But it’s a decision that will elevate your retired life and make your dreams come true. This is the time to truly lay all your wishes in front of you and decide how to make those come true. After all, you’ve worked so hard to be able to achieve them.
To be fair, you will only be able to evaluate both these options if you’ve been on a scouting trip or know other people who’ve lived here. They’re both good options, but if you compare it based on value for money, Portugal remains on top.
In case you’re stuck, join our Facebook Group – All About Portugal For Expats, and get opinions from other expats who have made the same decision as you. Read stories, ask questions, and engage in discussions that will help you decide.
Whenever you’re ready, get in touch with Viv Europe to receive your D7 Passive Income Visa with ease. From the application process to finding a rental for your retirement, we’ve got it covered!
