Portugal has long been a top destination for retirees from around the world, especially those from the United Kingdom and other parts of Europe. With its mild climate, scenic coastal towns, and favorable tax regime, it painted the perfect picture of a peaceful and financially savvy retirement. But the tide is changing. A series of legislative reforms, alongside rapidly rising living costs and property prices, has prompted many retirees to look elsewhere. Emerging in its place is a new favorite that’s quickly becoming a European haven: Greece.
The appeal of Portugal has waned, largely due to the government’s decision to revoke the Non-Habitual Resident (NHR) tax regime—a system that made retirement financially attractive to foreign pensioners. Coupled with increasing bureaucracy and a saturated housing market, relocating to Portugal no longer offers the ease or affordability it once did. In contrast, Greece is stepping into the spotlight, offering low cost of living, appealing tax incentives, and a lifestyle that caters to retirees looking for sunny days and cultural richness.
Portugal vs. Greece: At a Glance
| Criteria | Portugal | Greece |
|---|---|---|
| Retirement Tax Benefits | NHR phased out in 2024 | Flat 7% income tax for retirees |
| Cost of Living | Rising steadily | Generally lower |
| Real Estate Prices | High demand and cost | More affordable options |
| Residency Pathways | Golden Visa tightening | Consistent Golden Visa terms |
| Quality of Life | Very high, but crowded | High and less congested |
What changed this year
In 2024, the Portuguese government officially phased out the Non-Habitual Resident (NHR) program, a scheme introduced in 2009 to attract foreign nationals by offering significant tax breaks for a period of 10 years. Under this plan, foreign retirees were taxed at a flat rate of 10% on their pensions, compared to potentially much higher rates in their home countries. However, the mounting pressure on the housing market and local services drove public sentiment toward ending these incentives.
Greece, seizing the opportunity, doubled down on its own competitive tax program for foreign retirees—offering a flat 7% income tax for 15 years, provided retirees shift their tax residence to the country. This program, enacted in 2020, is growing in popularity and remains in full effect, unaffected by the political reversals that have impacted Portugal.
Why retirees are choosing Greece now
Beyond tax rates, one of the fundamental appeals of Greece lies in its lower cost of living. Day-to-day expenses, healthcare, and even luxury accommodations remain reasonable, especially when compared to major expat hubs like Lisbon or the Algarve. Additionally, Greece offers a rich mix of history, food, and a laid-back Mediterranean lifestyle that closely rivals that of Portugal.
While some may worry about Greece’s economic past, the country has shown remarkable resilience and stability in the last five years. Infrastructure and digital services have improved significantly, and English is widely spoken in tourist and expat areas, making navigation much easier for new arrivals.
“We loved Portugal, but housing costs and the legal landscape got too concerning. In Greece, we found everything we wanted—sunshine, food, ease of living—without the headaches.”
— Mark Jensen, Retired teacher from the UK
Residency and visa processes
Like Portugal, Greece offers a Golden Visa program, allowing foreign investors and retirees to obtain residency by purchasing real estate worth at least €250,000 in designated areas (as of 2024). Unlike Portugal, Greece has kept the investment thresholds steady and clear, offering a stable pathway for those wishing to reside long term.
In addition to the Golden Visa, Greece allows for a retirement visa pathway using proof of a pension income as a key requirement. This income must be stable and meet certain minimum thresholds, typically starting around €2,000/month, although the exact amount can vary based on household size and other factors.
“Navigating the Greek residency application was surprisingly smooth compared to Portugal. There’s less ambiguity in the process, and the consulates are very responsive.”
— Anna Schultz, Expat relocation advisor
Winners and losers in the retirement migration shift
| Winners | Losers |
|---|---|
| Greek homeowners and developers | Portuguese real estate market |
| Foreign retirees seeking affordability | Retirees invested in Portugal’s phased-out NHR program |
| Tourism sectors in emerging Greek towns | Portugal’s overstressed rental sectors |
How healthcare compares in both countries
Both Portugal and Greece offer public healthcare systems that are accessible to EU citizens and residents. However, many retirees opt for private healthcare insurance, which is relatively affordable in both countries. In Greece, premiums tend to be slightly lower, and wait times in private clinics are shorter in less congested areas.
Additionally, Greece has enhanced its modern healthcare infrastructure in recent years, especially in Athens and Thessaloniki. Medical professionals trained in the EU and the U.S. often settle in tourist-dense regions, contributing to the confidence of incoming retirees.
Real estate trends and property values
The property boom that mega-popular destinations like the Algarve experienced is starting to cool in Portugal, while prices remain high and inventory limited. In contrast, Greece offers considerable real estate opportunities in diverse regions including the Peloponnese, Crete, and the Ionian islands. Prices are more accessible, and locals are actively welcoming new foreign investment in residential properties.
“There are still unspoiled towns on the Aegean coast where you can buy a home for half the price of one in Portugal.”
— Eleni Papadakis, Real Estate Analyst
Key factors retirees should consider before moving
When deciding between Portugal and Greece, retirees should weigh a blend of economic and personal factors. These include:
- Tax implications and any agreements between home country and host
- Language barriers and access to English-speaking communities
- Healthcare access and insurance options
- Real estate stability and potential long-term equity growth
- Visa pathway length and renewal criteria
- Local lifestyle preferences—rural vs. city, coastal vs. interior
Doing thorough research, engaging relocation services, and talking to locals or fellow expats can help minimize surprises and ensure a smooth transition.
Frequently Asked Questions
Is the NHR tax program in Portugal over?
Yes, the Non-Habitual Resident tax regime has been officially phased out as of 2024, ending a popular incentive for foreign retirees.
What is the retirement tax rate in Greece?
Greece offers a flat 7% income tax rate for eligible foreign retirees who transfer their tax residence to the country.
How much income do I need to retire in Greece?
You typically need at least €2,000/month in stable pension income to qualify for residency under Greece’s retirement visa paths.
Can non-EU retirees get a Greek visa?
Yes, both EU and non-EU nationals can apply for the Golden Visa or retirement-based residency options in Greece.
Is healthcare better in Portugal or Greece?
Both have well-regarded private healthcare systems, but Greece offers slightly lower costs and faster access in some areas.
Is property cheaper in Greece than in Portugal?
Yes, real estate prices in Greece are generally lower, and more options are available in less crowded areas.
Which country is easier for English speakers to adapt to?
Both countries have sizeable English-speaking expat communities, but English is widely taught and accepted in Greek tourist regions.
Will these retirement programs change soon?
While Portugal’s has already changed, Greece has shown no signs of altering its current flat-tax pension incentive as of 2024.