France or Portugal: Where should you retire?

Official figures show that over 1 million UK retirees have chosen to relocate abroad, and more than 200,000 have chosen to settle in the EU over the last few years.

But before making that big step and relocating abroad, there are a few important things to consider. From your financial situation to healthcare, here are some questions to ask if you’re thinking about retiring overseas.

1. Can you claim your pension abroad?

If you move abroad, you’re still allowed to claim your UK state pension (if you qualify for it). However, the process of doing this could get complicated if you’re planning to relocate permanently or for just part of the year.

2. What are the tax rules?

You need to understand the taxation laws of the country where you want to move to. Specifically, you need to know whether you’ll be taxed on any private pension or income you may be receiving. You’ll also need to know if you should continue paying tax in the UK. Always speak to a pension or financial advisor to understand your obligations.

3. What’s the healthcare like in your destination country?

In the UK, everyone is entitled to free healthcare on the NHS. However, this may not be the same for other countries. Are you eligible for healthcare abroad? Do you need private healthcare insurance? Make sure you find all of this out before you make any commitments to moving abroad.

4. What are your residency options?

Following Brexit, it is still possible to retire in Europe, however you will probably need to apply for a visa if you plan to stay for long periods or become a permanent resident. Make sure you consult the correct visa agency to find out what steps you’ll need to take.

Retiring in Portugal or France is entirely possible when you work with experienced property consultants such as our team at iad Overseas.

Both countries are called home by thousands of British expats of varying ages. People from all over the world have chosen to relocate to Portugal and in 2023 over 1 million foreign nationals chose Portugal for their second residence. It is estimated that around 14% of the expats currently living in Portugal are British, 22% are American and 11% are Brazilian.

Over in France around 20% of expats are British, 16% are American and 6% are Italian – showing that the French way of life is a popular choice for many.

With so many people having made the move to Portugal and France, now is the time for you to start your search for a new home in Europe.

You want to enjoy your sunset years without the worry of mounting bills or unplanned for costs. That’s why it’s good to know that by moving abroad you could enjoy a lower cost of living.

Portugal offers a lower cost of living than many other Southern European countries. Cost of living data calculates daily expenses such as food, transport, accommodation and so on, and how these change over time in different countries. Portugal has a cost of living score of 46.6, compared to the UK’s score of 63.7. These figures show that Portugal is significantly cheaper than the UK.

Rent, groceries, restaurant prices and monthly expenditure are much lower in Portugal’s capital city Lisbon than the UK’s London.

France has a cost of living score of 66, which is slightly higher than the UK. However, it is much cheaper to rent property in most French cities compared to the UK and properties tend to be much larger.

If you’re hoping to invest in a retirement property, then our iad Overseas property consultants can help you in your search. Fluent in French, Portuguese and English, our teams can make the search for a property a fun adventure rather than a stressful task.

Considering buying in Portugal? Here’s why now is the right time to invest your Euros in this sunny, friendly destination:

• Property prices in Portugal are extremely reasonable compared to other European countries. The average price of a house is €1,187 per m2, whereas the average price in the UK is €2,649 per m2.
• Prices vary from region to region, with the most expensive in the tourist region of Algarve and the cheapest in rural Alentejo at just €963 per m2.
• Stamp duty in Portugal is between 0.5% to 0.8% of a property’s value. In the UK, stamp duty is between 5% and 12% of the property’s value.
• If you’re hoping to rent out your retirement property during periods when you’re back home, then there is potential to make an additional income due to a strong rental market in tourist hotspots such as Lisbon, Algarve and Porto.

If you’re hoping to buy a retirement property in France, here’s what you need to know about the property market:

• After covid, property prices rapidly rose all over Europe. However, data shows that in 2024, house prices in France are set to decrease by around 4%. This is great news if you want to buy property in the next few months.
• Despite the fall in prices, these are still higher than they were five years ago. This means that French property will hold its value in the long term, which works out well if you plan to sell in the future.
• Since last year, there has been a decline in the number of property transactions. This basically means, less people are buying houses at this time. This is positive news if you’re thinking about making an investment, as there will be less competition, more choice and (hopefully) more room for negotiation.

Whether you plan to buy in Portugal or France, the team at iad Overseas is ready to assist you. They can help you find a property within your budget and in the region you choose.

As you get older, accessing healthcare and knowing how to reach the appropriate medical service is essential. It’s important to do your research when it comes to healthcare before you make any big move.

In Portugal, foreign residents are eligible to access a system of free and subsidised healthcare. If you plan to stay in Portugal permanently and have the correct documentation, then you will be eligible for the same level of care as nationals. However, if you’re staying on a temporary basis, you will need a European Health Insurance Card.

To access the French healthcare system, you must have health insurance. The French system is ranked as one of the best in the world, and patients receive a high standard of care for a subsidised amount.

If you want to spend your retirement basking in sunshine and enjoying the outdoors, then Portugal offers mild winters and warm (to hot) summers. Although the country does experience a fair amount of rainfall, temperatures stay much higher than in the UK, which makes for a far more pleasant winter.

January is the coldest month, with temperatures of around 10 and 12°C in the cities of Porto and Lisbon. In the summer, you can enjoy long sunny days and cooler evenings.

France’s weather is more changeable and depends on where you choose to live. There are a total of five different climates, from sizzling Mediterranean temperatures in Southern France to snowy, skiing weather in the Alps.

Both Portugal and France are home to thousands of expats from Britain and all over the world. So, if you’re retiring here – whether alone or in a couple – you can enjoy the company of welcoming locals and established communities of expats.

In Portugal, the Algarve is loved by Brits, many of whom have settled permanently or own second homes in the area. The region is a great place to spend your golden years, especially if you enjoy golf, the beach and want a relaxed pace of life.

In France, you’ll find plenty of UK citizens in areas such as the Dordogne in western France and many parts of southern France.

We have iad Overseas property consultants based in Portugal and France who can help you choose the perfect location for your retirement home.

Get in touch with us today to start your next chapter.