Portugal and the economics of moving there.
We Sold Everything and Moved to Portugal. Here’s Our Monthly Budget Breakdown.
By The Bold & The Wise Editorial Team Friday, April 11, 2026 · 11 min read Categories: Travel, Expat Life
In the spring of 2023, Robert and Carol Hutchins sat at their kitchen table in Marietta, Georgia, and did the math. Robert was 63. Carol was 61. Their mortgage was paid off. Their children were grown and living in different states. Robert’s pension from his 28 years as a civil engineer, combined with Carol’s Social Security and a modest investment portfolio, was generating roughly $4,800 a month.
It was enough to live comfortably in Marietta. But just comfortably. The property taxes had risen again. Their health insurance premiums were climbing every year. The house — a four-bedroom colonial they had raised their family in — needed a new roof and an updated kitchen. Every time they sat down to talk about retirement, the numbers felt tighter than they expected.
Then a friend mentioned Portugal.
“We thought he was joking,” Carol says. “We had never even considered living outside the United States. But he sent us some articles and we started looking into it and within about six months we had sold the house and we were on a plane.”
That was eighteen months ago. Today Robert and Carol live in Tavira, a small, sun-drenched city in Portugal’s Algarve region, in a two-bedroom apartment with a terrace overlooking the old town’s rooftops and a river estuary beyond. Their all-in monthly expenses run $2,640.
They have never been happier.
Why Portugal
Portugal has become the destination of choice for American, Canadian, British, and Australian retirees for reasons that go well beyond cost of living — though the cost of living is remarkable.
The country is consistently ranked among the safest in the world. The Global Peace Index has placed Portugal in the top five nations for over a decade. English is widely spoken, particularly in larger cities and tourist areas. The climate in the Algarve — where Robert and Carol settled — delivers more than 300 days of sunshine annually. The food, the wine, the pace of life, the history, the coastline — Portugal offers a quality of life that is genuinely difficult to replicate in the English-speaking world at any price.
For retirees specifically, Portugal offers the Non-Habitual Resident tax regime and the D7 Passive Income Visa — a straightforward pathway to legal residency for anyone receiving pension income, Social Security, rental income, or investment returns above a modest monthly threshold. The D7 currently requires demonstrating passive income of approximately $1,400 per month for a single applicant or $1,700 for a couple — a threshold most retirees meet easily.
Portugal also has reciprocal healthcare agreements with many countries and a public healthcare system that residents can access at very low cost, supplemented by private health insurance that costs a fraction of equivalent American premiums.
The Full Monthly Budget: Every Line Item
Robert and Carol agreed to share their complete monthly budget with The Bold & The Wise — not the sanitized version, but every actual expense, including the ones that surprised them.
All figures are in US dollars, converted from euros at the current approximate exchange rate.
Housing
Rent for their two-bedroom furnished apartment in Tavira’s historic center: $980
This includes water, building maintenance, and internet. The apartment has high ceilings, original tile floors, a fully equipped kitchen, and that terrace. In Marietta, a comparable apartment — not a house, an apartment — would run $1,800 to $2,200 per month.
They chose to rent rather than buy, at least initially. “We wanted to make sure we loved it before we committed to anything permanent,” Robert says. “A lot of expats make that mistake — they buy immediately and then realize the city or the neighborhood isn’t right for them.”
Groceries
Monthly grocery budget for two: $320
Portugal’s local markets — the mercados — sell fresh produce, fish, meat, cheese, and bread at prices that still catch Robert and Carol off guard. “We eat better here than we ever did at home,” Carol says. “Fresh fish three or four times a week. Good local wine. And we spend less than we spent on groceries in Georgia by a significant margin.”
Dining Out
Monthly restaurant spending: $280
In Tavira, a sit-down lunch for two with wine — called a menu do dia, a prix fixe lunch menu — typically costs $14 to $20 total. Dinner at a good local restaurant runs $35 to $55 for two including wine. Robert and Carol eat out four to five times per week without feeling extravagant.
Health Insurance
Private international health insurance for two: $310
They chose a comprehensive international health plan through Cigna Global that covers them in Portugal and provides emergency coverage when they travel elsewhere in Europe or return to the United States to visit family. In the US, their health insurance premiums before Medicare eligibility were running $1,100 per month for comparable coverage.
Robert turned 65 last year and enrolled in Medicare Part A and Part B, which he maintains for when he is in the United States. Carol, at 63, continues on the private international plan until she reaches Medicare eligibility.
Transportation
Monthly transportation costs: $95
They own no car. Tavira is a walkable city — their apartment, the market, their favorite restaurants, the pharmacy, and the river beach are all within comfortable walking distance. For longer trips they use trains and buses, which are inexpensive and reliable throughout Portugal. They rent a car a few times per year for road trips, which they estimate averages out to roughly $30 per month.
“Not having a car payment, not having insurance, not having gas — that alone saves us $600 or $700 a month compared to what we spent in Georgia,” Robert says.
Utilities
Electricity, gas, and mobile phones: $145
Their electricity bill is low by American standards partly because of the mild climate — they rarely need air conditioning or heavy heating — and partly because Portuguese utility costs are simply lower. Each has a Portuguese SIM card with a generous data plan for approximately $18 per month.
Entertainment and Travel
Monthly entertainment, cultural activities, and travel within Europe: $280
Portugal’s location makes weekend travel within Europe extraordinarily accessible and affordable. Robert and Carol have spent weekends in Seville, Lisbon, and the Douro Valley wine region since moving. Budget airlines connect Faro — the nearest airport, 40 minutes away — to dozens of European cities for $30 to $80 per person round trip.
Locally, concerts, theater performances, museum admissions, and cultural festivals are inexpensive. Tavira hosts a jazz festival, a film festival, and numerous cultural events throughout the year, most of them free or nearly so.
Miscellaneous
Personal care, clothing, household items, and unexpected expenses: $230
Total Monthly Expenses: $2,640
Against their combined monthly income of $4,800, Robert and Carol are saving or investing approximately $2,160 every single month — something that felt impossible in Georgia.
“We are building wealth in retirement,” Robert says. “That was not something we ever expected to say.”
What They Miss
Neither Robert nor Carol paints an entirely rosy picture. Asked what they genuinely miss about life in the United States, they answer without hesitation.
Their grandchildren, who live in Nashville and Portland. “That is the real cost that doesn’t show up in any budget,” Carol says quietly. “We fly back twice a year and they come visit us once a year, but it is still hard. That is the honest truth of it.”
They also miss certain American conveniences — the variety of grocery stores, the ease of Amazon delivery, the familiarity of navigating a healthcare system they understood instinctively.
“There is a learning curve,” Robert says. “Bureaucracy in Portugal moves slowly. Getting your residency documents sorted takes patience. Learning enough Portuguese to handle administrative tasks — we both took classes and it helped enormously. None of it is insurmountable but you have to go in with realistic expectations.”
What Surprised Them
The warmth of the Portuguese people. “We were warned that they could be reserved with foreigners,” Carol says. “That has not been our experience at all. Our neighbors brought us food when we moved in. Our landlord checks on us. People are genuinely kind.”
The quality of the healthcare. Robert has seen a cardiologist, a dermatologist, and a general practitioner since moving to Portugal. “Every experience has been professional, thorough, and affordable. I paid €25 for a specialist appointment that would have cost me $400 in the US.”
And the sense of time. “Life moves differently here,” Carol says. “Shops close in the afternoon. Lunch is an event, not something you eat at your desk. People sit in the town square in the evening and talk. We had forgotten that life could feel like that.”
How to Research a Move Like This
If Portugal — or any expat destination — is something you are genuinely considering, here is where to start.
Spend time there first. Before making any permanent decisions, rent an apartment for one to three months in the area you are considering. Live like a resident, not a tourist. Shop at the local market. Take public transportation. Attend local events. The experience will either confirm your instincts or save you from an expensive mistake.
Join expat communities. Facebook groups like “Americans and Canadians Living in Portugal” and “Expats in the Algarve” have tens of thousands of members and represent an extraordinary resource of real, current, on-the-ground information. Ask specific questions. People are generous with their experience.
Consult a Portuguese immigration attorney. The D7 visa process is manageable but has specific documentation requirements. An attorney familiar with the process — many work specifically with English-speaking expat applicants — typically charges $500 to $1,500 for full application support and is worth every cent.
Talk to a financial advisor familiar with expat taxation. Americans living abroad are still required to file US tax returns and must comply with FBAR reporting requirements for foreign bank accounts. An advisor who specializes in expat taxation is essential, not optional.
Give yourself a realistic timeline. From the decision to move to actually landing in Portugal, Robert and Carol spent eight months preparing — researching, visiting, applying for the visa, selling the house, sorting possessions, and saying goodbyes. “You cannot rush it,” Robert says. “But you also do not need to overthink it forever. At some point you just have to go.”
Is It Right for You?
Not everyone who reads this article should move to Portugal. Expat life is not for everyone and pretending otherwise would be dishonest.
If your grandchildren, your community, your roots, and your sense of home are deeply and happily anchored in the United States — or Canada, or England, or Australia — that is not a small thing to walk away from. The Bold & The Wise is not in the business of telling you what your priorities should be.
But if you have been feeling that your retirement income is not quite delivering the life you imagined, that something is missing, that there is a bigger world you have not yet experienced — Portugal, and the other destinations we will profile in the weeks ahead, deserve a serious look.
Robert sums it up simply. “We did not move to Portugal to escape America,” he says. “We moved to Portugal to finally live the way we always wanted to. It just turned out that this is where we could afford to do that.”
He pauses and looks out over the terrace toward the river.
“We should have done it five years earlier.”
Next Friday on The Bold & The Wise: San Miguel de Allende, Mexico — $1,900 a Month and a Whole New Life. Plus: The 10 Best River Cruises for Seniors in 2026, Ranked by Value and Accessibility.
Resources for Researching a Move to Portugal
- Portugal D7 Visa information: portaldiplomatico.mne.gov.pt
- Expats in Portugal community: facebook.com/groups/expatsportugal
- International health insurance comparison: internationalhealthinsurance.com
- Expat tax specialists: greenbacktaxservices.com
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