Welcome to our planning guide for retiring in Portugal; the Algarve region. The Algarve refers to the southern coastal region of Portugal. In this guide, we will do a deep dive into what it would be like retiring in Portugal using first-hand information from our recent in-person scouting trip to the Algarve. There is a lot to cover, so let’s get started.

Portugal Safety

Before considering a move to Portugal, you first may be wondering about Portugal safety. In our previous article on the top considerations for retiring abroad we mentioned that Portugal is a very safe place to live, coming in at #7 on the Global Peace Index list of safest countries. An OECD study found that 83% of people in Portugal say that they feel safe walking alone at night (9th out of 41 countries sampled). Only 78% of people in the United States say the same. This statistic from OECD helps provide some additional perspective on safety differences between Portugal and the U.S.:

For our part, we felt very safe at all times during our recent scouting trip across the Algarve. We will continue to comment on our experiences going forward as well.

Do you Speak English in Portugal?

You may be wondering whether you can speak English in Portugal. We believe that to successfully integrate into your new community abroad, it is very important to learn the language. There are numerous language schools across the Algarve offering Portuguese classes. If you like free stuff (and who doesn’t), the IEFP (Portugal government agency) offers a program called Portuguese for Everyone. This program is designed to help immigrants learn the language to better integrate into society. There is no minimum qualification to attend the free course, and completion of the elementary course rewards an A2 certification which satisfies the Portuguese language requirement for citizenship. Whether or not citizenship is your goal, this program provides a great opportunity for new residents to learn the language.

During the time when you are transitioning into your new life abroad, these language resources may help. Also, you can take comfort in knowing that the Algarve region is pretty easy to navigate for English speakers which can be helpful for Americans retiring in Portugal. During the 10 days we spent in the Algarve scouting 15 towns and villages along the southern coast, we only encountered one person who did not speak at least a passing amount of English. Ironically, this was not in the Algarve at all, but rather a postal worker in Lisbon on our way out of the country. Learning a new language is not easy, so it can be reassuring to know that you can readily navigate life in your new country during your learning process.

Even if your language mastery is far from perfect, residents appreciate when you make an effort; even if they answer your attempt by responding in English 😄.

Algarve Climate

One of the most compelling reasons to consider a move to the Algarve region of Portugal is the wonderful climate. The weather in the Algarve is a lot like the lifestyle; mostly laid back and mild with few extremes.  The southern Portugal climate is very dry, lacking the cold and damp of the northern parts of the country. Even in the warmest summer months, the humidity remains relatively low so you do not feel the heat as much which can be a great thing for Americans retiring in Portugal.

Our scouting trip was at the end of June, and while we had a few days reach the mid-80’s, it never felt sweaty or oppressive the way it does in the Eastern U.S. Even on the hottest days, it still cools off in the evenings so you can enjoy the outdoors. But don’t take my word for it, check out this climate data showing the average weather in Portugal.

Source: WorldData.info, retrieved on 07/12/2024

Algarve Temperature

Algarve Humidity

Algarve Sunshine

Algarve Rain

Transportation Considerations for Americans Retiring in Portugal

If you are considering retiring in Portugal, it is important to have a grasp on what it is like getting around your target community. Below we will comment on our experiences driving around the Algarve region. We will also cover basic information on flying and taking the train in that area.

Portugal Driving

We found driving in the Algarve reasonably easy. Here are some important things to know about driving in Portugal:

Portugal Driving – Rules

• You must be 18 or older to drive in Portugal (21 or older to rent a car).
• Americans can drive in Portugal using their U.S. drivers license for up to 6 months at at time. Driving longer than this requires an International Driving License.
• You must stop for pedestrians at every crosswalk. And I’m not talking about “stopping” like you would in America where you might only stop if the pedestrian is actually in the street. In Portugal, you must stop if a pedestrian is waiting to enter the crosswalk. Drivers follow this rule so religiously that pedestrians will assume you will stop and will walk into the road without pausing or even looking. You need to be alert and always ready to stop. In bigger towns this turns into a game of “guess what the pedestrian is thinking”. Are they just walking straight, or will they suddenly veer left into the crosswalk? It’s also fun when pedestrians stand at a crosswalk but don’t actually want to cross. And then when you stop, they gesture angrily at you for not having read their mind correctly. 🤣
• The left lane is for passing only. If you are not passing another car, you should not be driving in it. Portuguese drivers take this rule seriously, and this results in much more fluid traffic and fewer aggressive-driving incidents. Everyone is able to drive at the speed they wish to travel at all times. Some drivers will flash their headlights as they are approaching to indicate they are traveling at speed and intend to pass. It is not legal to pass on the right.
• You cannot cross solid single or double white lines. If you miss your turn, this sometimes results in the need to drive a fair distance to the next roundabout.
• It is illegal to turn right on red unless clearly indicated (ex. with a flashing green arrow).
• Drivers can only use phones in hands-free mode.

Portugal Driving – Roads

• Highway on-ramps are often not very long. You should be cautious when entering the on-ramp to determine how much runway you have to work with, and gauge traffic. Most highway drivers in the right lane will move over if they can, but in high-traffic situations you may need to yield on the on-ramp until there is an opportunity to merge.
• The A22 highway runs all the way across the Algarve region from Lagos in the west to Castro Marim in the east (5 minutes north of Vila Real de Santo António). The A22 becomes the A-49 as you cross the bridge into Spain. The A22 is two lanes each direction, well maintained, and very easy to drive on. Note that parts of the A22 have tolls (see Tolls below).
• Country roads are generally well maintained, though sometimes narrow.
• Roads in most towns and cities are easy enough to navigate, and signs are well maintained. Be aware, however, that you can be happily driving down a modern road when your GPS can have you turn into an older part of town that can suddenly become narrow cobblestone streets.

Portugal Driving – Roundabouts

Unless you are on a highway, it can sometimes feel like you encounter a roundabout about every 400 meters. These work wonderfully for keeping the flow of traffic moving, but it is important to understand a few things about them in order to use them safely.

• Traffic in the roundabout always has the right-of-way.
• Traffic in inner lanes has the right-of-way over traffic in the outer lanes.
• If the roundabout has multiple lanes, you are only supposed to be in the outer lane if you are exiting at the next exit. If you are continuing straight through a roundabout, this will usually mean that you will have to use an inner lane to pass by the first exit in order to then exit straight out the other side. This maneuver has you crossing back and forth across the inner and outer lanes twice in very quick succession, and sometimes feels a bit sketchy.

Portugal Driving – Parking

• There is quite a bit of free parking available in most towns; both parking lots and street parking.
• Some towns have metered parking on the streets. Watch for signs and pay at the meter.
• Underground parking structures are very common, and they can be quite tight (especially for larger vehicles).
• I have read that in some towns (especially tourist areas), you may encounter people attempting to help you park. They will motion to you and try to guide you to parking spots. If you follow their lead, they will expect payment of 1-2€ for their help. Choosing not to pay them may incur risk to your car. I did not encounter this on our scouting trip in the Algarve.

Portugal Driving – Gas

• Be aware that diesel vehicles are more common in Europe than America. Make sure you know which type of fuel your vehicle takes.
• Be careful when selecting the type of gas for your vehicle based on the color of the handle at the gas station. While in America green handles typically correspond to diesel, in Portugal green handles are typically for Unleaded fuel (yellow is for diesel).
• When considering the cost to retire in Portugal, keep in mind that gas is more expensive in Europe than in the U.S.; typically 3-4x as much.

Portugal Driving – Tolls

On highways in Portugal, it is common to find toll systems including on the A22 in the Algarve. Some tolls are electronic and bill automatically using the license plate, or via an electronic transponder in the car. You pay other tolls the old-fashioned way with cash/coins. Some checkpoints also offer Via Verde lanes which you can drive through at the indicated speed to have your toll automatically charged via your transponder. On our scouting trip in the Algarve, the transponder and Via Verde lanes worked for every case we encountered.

Flying

Flying to/from the Algarve region of Portugal is very easy. The Algarve has its own international airport in Faro which offers service to a large number of international destinations. Alternatively, you can fly into Lisbon’s Humberto Delgado International Airport (about a 3-hour drive from the Algarve).

From my perspective, one of the biggest benefits for Americans retiring in Portugal is the ability to travel Europe much more affordably than they could if they were living in the United States. Here is a sampling of what you might expect to pay to fly from Faro to other major European cities.

Source: Google Flights, July 2024 – nonstop unless otherwise indicated

Trains

A regional train system serves the Algarve, stopping in towns across the entire region. Train lines originate in Faro, and run both east and west. Note that if you are taking the train from a town on one side of Faro to a town on the other side, you will likely need to change trains in Faro. Regional trains are slow (stopping in each town), but relatively cheap. Also note that in some towns in the Algarve, the train station is not in the city center, so you may need to walk or arrange for other transportation (ex. Loulé, Albufeira, Alcantarilha, Silves, Lagoa). Additional train lines offer convenient travel between the Algarve and other regions. Check out Comboios de Portugal for more information.

Restrooms

This might seem like an unusual topic to cover in our spotlight, but one of the big concerns for Americans thinking about whether to retire Portugal is what the restroom situation is like. Many Americans have heard stories about restrooms in Europe being different from America, and about having to pay to use restrooms everywhere you go. The truth of the matter is that in the Algarve region of Portugal, restrooms and restroom access is not all that different from what you find in America. In your standard shopping and dining throughout the region, public restrooms are easy to find and generally free to use. Like America, you will find free public restrooms in all grocery stores, malls, shopping centers, and restaurants. You will also find free public restrooms in many areas that attract crowds such as markets, city centers, parks, and beaches. You will occasionally find paid restrooms at beaches and select areas, so it always a good idea to carry some small change (0.50 € should do it). By and large however, as a resident of the Algarve region you should not find the restroom situation all that different from America.

Summary

That’s it for our spotlight on the Algarve region of Portugal. We hope that this helped answer some questions about what it is like for Americans retiring in Portugal. Best of luck on your research and we hope you make your retirement dreams come true!