Spain’s appeal to expats has taken a downturn and the Middle East is, for now, a less than attractive prospect for those seeking a better quality of life in a sunnier climate. 

So perhaps it’s no surprise that Portugal has become the new hotspot for midlife expats looking to escape the cost of living crisis.  

The number of British expats living in Portugal had already almost tripled between 2014 and 2024, according to figures from the Portuguese immigration authority (AIMA), and now stands at 48,238. 

Christina Hippisley, manager of the UK’s Portuguese Chamber of Commerce, says she is seeing far more people in their 40s and 50s moving there, many of whom already run businesses they can operate remotely.

One of these Brits is Clare Bailey, a retail expert who moved to the Algarve in Portugal in September 2023 – and has never looked back.

‘I have always worked with retail, hospitality, and leisure. During Covid, it occurred to me that I could work from anywhere in the world,’ Clare tells the Daily Mail.

‘My husband and I had always said that we’d retire overseas – but then we thought, why wait?’

In March 2023, Clare started investigating a move to the Algarve in Portugal. She acquired residency in August, and moved at the beginning of September that same year.

Clare’s following in the footsteps of many Brits who have sought the European lifestyle offered in Portugal – indeed, even Princess Eugenie divides her time between the UK and Melides, in the Setúbal district of the country. 

Retail expert Clare Bailey moved to the Algarve in 2023 – and has sung its praises

She and her husband always wanted to retire overseas – but decided to take the plunge sooner than that

Clare has now settled in Silves, a historic city in the popular Algarve region

She’s following in the footsteps of Princess Eugenie and her family, who also spend much of the year in Portugal

Princess Eugenie, 36, and her husband Jack Brooksbank have a villa at the CostaTerra Golf and Ocean Club, so they split their time between this part of the world and London with their sons August, five, and Ernest, two.

The advantages of such a lifestyle are evident.

Clare says: ‘It was an absolute no-brainer. When we actually started to look into it, we were like, this is a bit crazy, isn’t it? And then it all fell into place. I was thinking, why don’t more people do this? 

‘When I speak to my friends in the UK, they’re not really enjoying the current situation. They’re saying that their pensions are going to be detrimentally affected, they’re being taxed so much more, everything costs them a fortune – I’m thinking, we got out just in time.’

Clare says her financial situation in Portugal is ‘dramatically’ better than in the UK, citing the fact her combined council tax and water bill is €21 (£18.20) a month since she has solar panels installed. 

‘It now costs me less to fly to the UK than it used to cost me to get a train from Lincolnshire to London,’ Clare adds. ‘My peak return train ticket from Grantham to London used to cost me £127. 

‘Now, whenever I have to fly back to London for a conference or event, it costs me between €30 (£26) and €50 (£43.50) for a return flight.’  

The lower cost of living extends to food, too – if you buy ‘local, fresh, seasonal’ food at the local butchers or the markets, food can cost three to four times less than in the UK.

Plus, Clare adds: ‘You can buy a bottle of wine for less than €2 (£1.74). Eating out is absolutely, ridiculously cheap. If you go to the places that we’ve discovered, one of my favourites, it’s €13 (£11.30) for a full menu.

‘They always start you off with the bread and olives. Then, it’s two different fillets of fish. You’ll get a piece of sea bass or sea bream with chips or rice or salad or steamed vegetables, and a dessert. Half a litre of wine per person, a small coffee at the end, and potentially also a little glass of port.

The Moorish Castelo de Silves is one of the big draws of the city Clare now lives in

‘And that sets you back a whole €13 (£11.30).’

Meanwhile, she says, ‘private health insurance costs next to nothing’.

You can even get full blood works done for about €6 (£5.20) – which can easily cost up to £100 in the UK.

Clare, founder of The Retail Champion, initially moved with her husband and one of her two children to Carvoeiro in the Algarve, before settling in Silves.

‘We first moved out to a place called Carvoeiro, because we knew that if we had a property there and didn’t like it, we could rent it out. It is a very pretty town in the middle of the Algarve,’ she says.

‘But we quickly learned that it was incredibly touristy, so we went out of our way to start learning more Portuguese, and within a year moved to the original capital of the Algarve, which is called Silves.

‘There’s a Moorish castle, it’s very historic, but it’s classified as a city, because there’s a cathedral. It’s a very small town.

‘We’re a 20-minute drive from numerous beaches. We’re planning a road trip in early July, and every hotel I’ve booked, or B&B or apartment, is about €50 to €60 (£43 to £52) a night.’

While Clare would ‘absolutely not’ move back to the UK, her children are at university here.

The advantage? Her children often fly back to visit, and enjoy sunny, ‘cheap holidays for all their friends’ in the Algarve as a result.

There are, of course, disadvantages. Clare says the bureaucracy can be a small issue, for instance needing to go into an actual bank branch instead of online in order to open a bank account.

‘But the upside,’ Clare says, ‘is that you’re dealing with better weather, better cost of living, and everyone is very friendly.’

She adds: ‘There’s very little animosity, despite the fact that well-off people from other countries, or well-off by comparison to Portugal, have moved in, bought properties, and put the prices up.

‘They welcome you with open arms, they’re pleased to see you. A quick obrigado goes a long way – they’re grateful that you’ve made the effort.’

How can Brits get a visa to live in Portugal post-Brexit? 

There are several options for Brits looking to relocate to Portugal.

Firstly, there is the popular D8 digital nomad visa – you will need proof of income, accommodation and savings for this. 

Olga Nechita from global mobility lawyers Fragomen adds: ‘For those that want to work in Portugal, there is the D2 Visa, also called the entrepreneur/independent professional visa. This extends to freelance staff, entrepreneurs and those wishing to start a business. Proof of income, a business plan and proof of economic activity is needed.’

But Olga adds: ‘The main route for UK nationals living to retire to Portugal will be via the D7 visa, often called the “retirement visa” or “passive income visa”. It is designed to encourage those with a stable income to move to the country and is popular with Brits.

‘Currently, the income thresholds are €920 (£796) a month for the main applicant, with a 50 per cent increase if joined by their partner. So a retired couple would need to demonstrate an income of €1,380 (£1,194) a month. Savings of more than €11,040 (£9,558) are also needed together with proof of property ownership or a long-term rental agreement.’

The D7 visa does come with conditions. Brits must spend at least 183 consecutive days in Portugal, with the country maintained as your primary residence – and those holding the visa cannot work.