Why Spain & Portugal Are Harder for Retirement in 2026
Jan 14, 2026
They’re still incredible places to live—but the direction of travel is tighter rules, higher costs, and more uncertainty
Spain and Portugal remain two of Europe’s most desirable places to build a life: climate, food, culture, healthcare access (in the right setup), and strong international communities.
But if you’re planning a later-life move, it’s worth separating “dream destination” from “smart, stable plan.” Over the last few years, both countries have had huge inflows—and the political response is increasingly clear: cool demand, protect housing access, reduce incentives, and tighten pathways.
This doesn’t mean “don’t go.” It means: go with your eyes open—and don’t assume yesterday’s incentives and conditions still apply.
The big theme: when a country gets “too popular,” policy changes follow
When large numbers of foreign buyers and new residents arrive quickly, two things often happen:
Housing costs rise faster than local wages (especially in hot spots).
Governments respond—by adjusting incentives, tightening visa routes, changing tax frameworks, or introducing housing measures.
Portugal has seen large-scale protests about affordability and rent increases.
Spain has also faced growing housing pressure and new moves to tighten rental rules.
Portugal: less incentive, more friction, more uncertainty
1) The NHR regime ended for most newcomers
Portugal’s well-known Non-Habitual Resident (NHR) framework has effectively ended for most new arrivals, with a replacement incentive focused on specific professions/sectors rather than people living off pensions/investments.
The practical implication: new people retiring there will now face Portugal’s standard progressive tax rates, which are very high reaching a progressive 48%, rather than the “headline-friendly” NHR outcomes that drove a lot of demand.
2) “Easy-mode” Golden Visa via real estate is gone
Portugal’s Golden Visa remains, but real estate routes were removed (a major shift for lifestyle-driven applicants).
This matters because it signals the broader intent: reduce property-driven residency demand.
3) Citizenship timeline tightening is on the table
Portugal’s government has signalled a tightening of naturalisation rules, including moving the general residency requirement from 5 years to 10 years.
Even if details evolve, the direction is what planners should pay attention to: longer timelines and stricter conditions tend to increase planning risk.
4) Housing pressure is now politically central
Affordability has become a defining political issue, including public protests focused on rents and house prices.
Whether or not an individual buyer “causes” the crisis, policy is often made at the macro level—so being associated with housing pressure tends to trigger restrictive moves.
Spain: Golden Visa is over, and housing politics are getting sharper
1) Spain ended the Golden Visa
Spain’s Golden Visa ended effective 2025, closing a major “investment-to-residency” route.
2) Tax incentives aren’t the story in Spain
Unlike some competitors, Spain is not currently known for broad “new resident” tax incentives that fit many later-life movers by default—so the value proposition is more lifestyle-led, with planning needing to be tighter around taxation, residency and assets.
3) “100% tax for non-EU buyers” headlines show the direction of travel (even if not passed)
Spain has floated measures targeting non-resident, non-EU buyers, including talk of taxes “up to 100%” in some proposals—politically difficult and not guaranteed to pass, but still meaningful as a signal.
In other words: even where the scariest headlines don’t become law, the policy mood is shifting toward discouraging certain demand.
4) Housing pressure is driving more regulation
Spain is actively moving to tighten rental rules in response to housing costs, especially in tourist-heavy areas.
So… should you rule Spain and Portugal out?
No. For many people, they’re still an excellent fit.
But here’s the more realistic framing:
Spain and Portugal are becoming less attractive for people who are tax-aware and planning long-term, particularly those who value structure, predictability, and downside protection.
This is especially relevant if:
– your plan relies on a tax or residency incentive remaining stable over many years, or
– you need clear, predictable outcomes on taxation, timelines, and residency routes, or
– you’re looking to purchase property without exposure to sudden political or regulatory shifts that can materially change the numbers.
Alternatives we’re watching closely
Greece
Greece remains one of the strongest “overall package” options for many later-life moves: lifestyle value, established expat communities, and multiple pathways depending on your profile. (The key is structuring the move correctly around tax, healthcare access, and residency timing.)
Learn more here about Retiring in Greece.
Italy
Italy can be compelling for those prioritising culture, connectivity, and long-term settlement—especially when the plan is built around the right region, healthcare pathway, and tax/estate considerations.
Learn more here about Retiring in Italy.
Cyprus
Cyprus is increasingly on the shortlist for people who want a warmer climate, English-friendly infrastructure, and a straightforward base for EU-adjacent living—again, depending on residency goals, income sources, and healthcare strategy.
Learn more here about Retiring in Cyprus.
Emerging “second-wave” choices: Albania to Mauritius
We are seeing growing curiosity about places that are earlier in the popularity cycle—often cheaper, less crowded, and sometimes simpler administratively.
The trade-offs tend to be:
more variability in healthcare/private cover solutions
fewer “plug-and-play” expat systems
more due diligence needed on property, legal frameworks, and long-term stability
If you’re exploring one of these, the right question is usually: “Is this a great place to live now?” vs “Is this a great place to anchor my long-term plan?”
The real takeaway: don’t buy a visa—build a life plan
A move like this is not a transaction. It’s a multi-variable decision: tax, residency, healthcare, property, family, long-term security, and lifestyle reality on the ground.
That’s why we put so much emphasis at Mitos Relocation on:
cross-border awareness (not one-country “sales”)
step-by-step planning with contingencies
making sure you’re not surprised later by taxes, timelines, or access issues
If you’re considering Spain or Portugal and want a frank second opinion—tell us what you’re optimising for (tax, lifestyle, citizenship, healthcare, property, proximity to family), and we’ll share what we’re seeing.
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