Is it better to retire to Portugal or Spain?

Both are popular US retirement destinations and the right choice depends on tax setup and lifestyle. On cost, Portugal is slightly cheaper ($2,025 versus Spain’s $2,150 moderate). On tax, Portugal’s old NHR scheme (which exempted most foreign retirement income for 10 years) closed to new applicants in 2024; the replacement IFICI scheme is narrower and excludes retirees. Spain’s tax regime treats foreign pensions as ordinary income (progressive rates from 19 to 47 percent), with the US/Spain tax treaty preventing double taxation. On healthcare, both rank well globally; Spain’s public system is broader, Portugal’s private care is generally faster. On weather and lifestyle, Spain offers more variety (coast, mountains, major metros); Portugal feels smaller and slower. Visa routes are broadly comparable. For the Spain cost picture, see our Spain cost of living page.