Portugal in the third most popular choice for older Brits looking for a retirement home abroad as it poses little risk to investors.
A recent survey carried out by Saga found that Portugal is the third most popular destination among older Britons looking for a retirement home abroad.
The fact it has an established property market, warmer year-round climate, and a thriving expatriate community were all contributing factors.
"Portugal has an established property market that poses little risk to cautious investors," explained Sarah Wood, author of the book Retirement Property 2007.
"It also has a thriving expatriate community so, as a country, it poses little threat of the isolation or loneliness older people fear. The year-round warm climate tends to be beneficial to older people – along with the traditional diet.
"Portugal also offers plenty for over-50s to do, from golf and tennis to swimming and visiting historical sites. It is also well connected to the UK via frequent flights and is a short jaunt – perfect for staying in touch with friends and family. It is also has a decent tele-density rate, so it's easy to phone and use the internet etc, unlike some newer, emerging foreign property markets."
Those considering Portugal as a place to buy a retirement home are advised to rent beforehand to make sure the country really is right for them. They can then experience what the neighbourhood is like throughout the year, and become familiar with what everyday life. They also have the opportunity to sample the lifestyle and climate.
Other attractions include the fact that it is relatively easy to get residency, and the fact there is no inheritance tax to pay, providing you leave your property to close relatives. However this does not include unmarried partners, who will need to pay 10 percent transfer tax.
Retirees can have their UK pension paid into a Portuguese bank account, but it is advisable to draw up a new will once you have moved to Portugal. You are allowed to make a new will just covering your Portuguese assets, and this can be used as well as the main will you have in your own country.