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Compare Retirement Cost of Living
Pick any two countries to see monthly budgets, tax systems, pension treatment, and visa options side by side. Find out which destination gives you more for your money.
🇲🇽 Mexico is $400/month cheaper than 🇵🇹 Portugal.
That's $4,800/year in savings — or $96,000 over a 20-year retirement.
🇵🇹
Portugal
Porto · Europe
- Monthly budget
- $2,200/mo
- Tax system
- Worldwide
- Income tax rates
- Progressive 13.25–48% plus solidarity surcharge above €80,000.
- Foreign pension treatment
- Foreign pensions are taxable for ordinary residents. The old NHR regime closed to new arrivals in 2024; its replacement (IFICI / 'NHR 2.0') targets skilled work, not pensions.
- Other taxes
- Capital gains 28% flat (or 50% inclusion for some assets); no wealth tax; no inheritance tax between spouses/children (10% stamp duty otherwise); IMI property tax 0.3–0.45%.
- US tax treaty
- US income tax treaty in force — it usually decides which country taxes your pension.
- Retiree incentives
- Grandfathered NHR holders keep their 10% flat rate on foreign pensions for the balance of the 10 years.
- US–Portugal treaty gives the US exclusive rights over US government pensions.
- Portugal has no wealth tax apart from AIMI on property above €600,000.
- Visa & highlights
- Affordable living, warm climate, NHR tax regime
🇲🇽
Mexico
Mérida · Americas
- Monthly budget
- $1,800/mo
- Tax system
- Worldwide
- Income tax rates
- Progressive 1.92–35%.
- Foreign pension treatment
- Foreign pensions are technically taxable for residents, but the US treaty and generous foreign tax credits mean most US and Canadian retirees pay little or no Mexican tax on pension income.
- Other taxes
- Capital gains taxed at ordinary rates (with a primary-residence exemption); no wealth tax; no federal inheritance tax; annual predial property tax is very low.
- US tax treaty
- US income tax treaty in force — it usually decides which country taxes your pension.
- Retiree incentives
- Very low municipal property tax (predial) — often a few hundred dollars a year.
- No inheritance or estate tax at federal level.
- Treaty benefits keep most US social security taxable only in the US.
- Visa & highlights
- Low cost of living, warm weather, proximity to the US
Quick comparison
| Metric | 🇵🇹 Portugal | 🇲🇽 Mexico |
|---|---|---|
| Monthly budget | $2,200 | $1,800 |
| Annual cost | $26,400 | $21,600 |
| Tax system | Worldwide | Worldwide |
| Region | Europe | Americas |
| 20-year total cost | $528,000 | $432,000 |