Portugal vs Italy for Retirement: Which Offers the Better Lifestyle Escape?

Torn between Portugal and Italy for your retirement escape? You’re not alone.

For many Americans dreaming of life in Europe, these two countries always seem to make the list and this is for good reason. Both offer old-world charm, Mediterranean climates, rich food culture, and relatively affordable living. But once you scratch the surface, their differences become clearer.

In this post, we’ll explore how Portugal and Italy stack up across the factors that matter most for American retirees: cost of living, healthcare, safety, lifestyle, bureaucracy, and sense of belonging. If you’re deciding where to plant your flag for a slower, sunnier chapter of life, then we're here to help.

1. Cost of Living: Portugal Wins on Value

Let’s start with one of the biggest deciding factors: affordability.

Portugal is widely considered one of the most cost-effective countries in Western Europe. Rents in cities like Lisbon and Porto are still lower than in Rome or Florence. And in the Algarve or Silver Coast, you’ll find well-appointed homes near the beach for a fraction of what you’d pay in Tuscany.

Expense Category	Portugal (avg.)	Italy (avg.)
1-BR City Apartment	€900–€1,200	€1,200–€1,600
Private Health Plan	€50–€100/month	€80–€150/month
Dinner for Two	€35	€50

Utilities, groceries, and transportation are all generally cheaper in Portugal. This is not to stay that you can't get great value for money in Italy but you do have to work a little harder to get those deals.

For retirees on a fixed income, or those looking to stretch their dollars, Portugal gives you more lifestyle for less.

2. Healthcare & Safety: Portugal Feels Calmer and More Accessible

Both countries offer universal healthcare, but Portugal stands out for simplicity and peace of mind.

Portugal’s system is often praised by American expats for being affordable, accessible, and not overly bureaucratic. Sure, there's paperwork to be filled out and things can take their time but that's to be expected in most Southern European countries.

While you’ll need to register and may opt for private insurance for faster service, even private plans are highly affordable with many plans coming in under €100 per month.

Italy has excellent medical care as well, but navigating the regional variation in service and longer wait times can be frustrating, especially if you're not fluent in Italian. You can still opt for private insurance but it does cost a little more on average than Portugal.

When it comes to personal safety, Portugal consistently ranks in the top 10 globally. It’s the 7th safest country in the world according to the 2024 Global Peace Index. Italy ranks lower, and while still generally safe, it has higher petty crime in cities and more traffic-related concerns.

Bottom line? Portugal feels calmer, more predictable, and easier to navigate, especially if you don’t speak the language.

3. Lifestyle: Pace, Food, Climate, and Culture

Here’s where things get subjective. Both countries offer an incredible standard of living, but they deliver it differently.

Portugal is known for its slower pace, friendly people, and its general calmness. Days are sunny and relaxed. From seafood in Cascais to long walks through historic towns, life here has a rhythm that many Americans find therapeutic after years of hustle.

Italy, by contrast, is more intense. The food culture is legendary, but daily life can be more chaotic—especially in the cities. Rural Italy offers peace, but infrastructure can be uneven, and life moves to its own (often delayed) schedule.

Climate-wise, Portugal’s southern coast enjoys over 300 days of sunshine a year. Italy has more regional variability, with cold winters in the north and hotter, humid summers in the south. There is more variety in Italy and that can appeal to some people, especially if they enjoy skiing or other winter activities.

If you want tranquility and sunshine, Portugal wins. If you crave vibrancy and tradition, Italy may have the edge.

4. Bureaucracy & Residency: Portugal Is More Straightforward

Portugal has made a name for itself by actively welcoming foreign residents. Its Golden Visa and D7 options have attracted thousands of Americans, thanks to relatively clear pathways and low residency requirements.

Italy offers elective residency visas for retirees, but the paperwork can be more onerous, and language barriers more challenging. Taxation can also be complex, with varying rules for different regions.

If you’re looking for a simpler path to European residency, Portugal is widely regarded as more expat-friendly.

5. Belonging: How Easy Is It to Integrate?

Portugal ranks high for English proficiency, especially in cities and expat-heavy areas like Lisbon, Porto, and the Algarve. That makes settling in far easier for Americans who don’t speak the language fluently.

The Portuguese are also famously warm and welcoming, with a culture that prizes modesty, friendliness, and hospitality.

Italy offers deep, multi-generational culture and tight-knit communities—but can be harder to break into as an outsider, especially without strong language skills or local connections.

Final Thoughts: Portugal or Italy—Which Fits You?

Both countries offer an incredible retirement experience. But if you value:

• Lower cost of living

• Greater personal safety

• Simpler residency process

• Warmer climate and slower pace

Portugal is likely the better fit.

That said, Italy has its own magnetic charm—especially for lovers of history, food, and expressive culture. Your decision may ultimately come down to your values, your budget, and how you want to spend your days.

Curious if Portugal is the right retirement destination for you?

Our team can help you explore how the Portugal Golden Visa or other residency options might fit into your long-term plans—without pressure, just real guidance.