Portugal, Spain, France or Italy: a Swiss retiree’s comparison

Portugal, Spain, southern France and Italy are the four places Swiss early retirees ask about most. They are close to Switzerland, warm, and cheaper in everyday costs. They differ a lot in how they treat foreign residents, so the cheapest budget is not always the best choice.

This guide gives the shape of each option, not a legal opinion. Every rule below changes often, so confirm it with an adviser in the country.

At a glance

Budgets are for one person living modestly and are assumptions, not quotes.

What the budget does to your number

At a 3.5% withdrawal rate, the pot you need for each budget is:

Portugal

Popular, with a large community of foreign retirees. The special tax regime that gave new residents a long period of low tax closed to new applicants in 2024, so the tax picture for a newcomer is now mostly ordinary rates on foreign pensions. The D7 visa suits people with stable passive income.

Spain

The non-lucrative visa needs an income threshold and a private health policy, and forbids work. Residents are taxed on world income, with a lower scale for savings income, and some regions charge a wealth tax. A large choice of places, from the coast to the interior.

Southern France

No special tax regime, but the lifestyle is close to Switzerland, and so are language and distance. Residents pay income tax and social levies on investment income. After about three months of residence you can join the public health system, which may ask for a contribution based on your capital income. See health insurance in early retirement.

Southern Italy

The 7% flat tax applies to foreign pension income of people who move to a small municipality in certain southern regions, for up to nine years. It covers pension income only, not all income. Whether a Swiss pension fund payment counts depends on its form, so take advice first.

How to choose

Five questions decide most of it:

1. How is my income mix taxed there?
2. Can I get the visa at my age and income?
3. Can I get healthcare I trust, in a language I understand?
4. How far is it from family and from Switzerland?
5. What happens if I want to return?

The rules for your Swiss money are the same wherever you go. See retiring abroad from Switzerland. For Asia, see retiring in Thailand. For the question of whether to buy, see buying or renting abroad versus staying in Switzerland. For the Swiss tax side, see taxes in early retirement.

Next step

Open the calculator and try the budget of the country you like most.