A comfortable retirement works out cheaper in Cambodia — around £1,400/month for a couple, versus £2,400 in Portugal (about 42% more).
Cost of living, side by side
| Cambodia | Portugal | |
|---|---|---|
| Modest (couple/mo) | £850 | £1,700 |
| Comfortable (couple/mo) | £1,400 | £2,400 |
| Premium (couple/mo) | £2,400 | £3,800 |
Indicative monthly estimates for a couple — real costs vary by location, lifestyle and exchange rates.
Cambodia: Foreigners can own condominium units outright with a strata title, on the first floor and above, capped at 70% of any building and not within 30km of a land border. Land itself cannot be foreign-owned, so houses and villas are taken on long leases (commonly up to 50 years) or through a majority-Cambodian company.
Portugal: Foreigners can buy property freely in Portugal, with full freehold ownership.
Cambodia: Most retirees use the ER ('retirement') extension of an ordinary E-class visa: broadly for those aged 55+ who are retired, it is inexpensive and renewable yearly, needing proof of retirement and funds rather than a fixed deposit.
Portugal: The D7 visa is popular with retirees who have stable passive income (pension, rentals, investments).
Cambodia: Public healthcare is limited and private clinics in Phnom Penh and Siem Reap, while improving, still send serious cases to Bangkok or Singapore — so international insurance with medical-evacuation cover is strongly advised. Routine care is cheap and largely cash-based.
Portugal: Portugal's public SNS gives legal residents low-cost universal care, and many expats add private insurance (roughly £40-100 a month depending on age) for faster appointments and English-speaking doctors; the Algarve and main cities have good private hospitals.
Cambodia: Cambodia operates a territorial system, so a foreign pension is generally not taxed; even resident retirees typically find foreign-source pension income falls outside the local net, while local earnings are taxed progressively up to 20%. Declare your status and take advice to be sure.
Portugal: The old NHR tax break has closed to new arrivals and its replacement (IFICI) does not cover pensions, so a retiree becoming resident now is generally taxed on pension and foreign income at standard progressive IRS rates up to 48%, subject to the UK-Portugal treaty; take advice before moving.
Cambodia: Tropical and warm all year; the dry season (November-April, coolest November-January) is most comfortable, followed by a hot spell and a May-October monsoon. Generally safe and friendly, though watch for bag-snatching and chaotic traffic; English is widely spoken in expat and tourist areas, the US dollar is used day-to-day, and driving is on the right.
Portugal: Mild Mediterranean and Atlantic climate with hot dry summers and mild wet winters, the Algarve being the sunniest; spring and autumn are the most pleasant months. Portugal is one of Europe's safest and most welcoming countries; English is widely spoken in expat and tourist areas, driving is on the right, and life is easy for British retirees.
Cambodia: Expect a 4% transfer tax on the government-assessed value for a strata-title condo, plus registration and legal fees and any title-upgrade cost; US dollars are used, which keeps transactions simple. Foreigners buy condo units (not land), and registration can take some weeks.
Portugal: Budget around 7-10% in one-off costs, IMT transfer tax (progressive, up to roughly 7.5%), 0.8% stamp duty, plus notary, registration and legal fees; buying typically takes one to three months.
Cambodia: Phnom Penh for the widest amenities and healthcare, temple-rich Siem Reap for a calmer pace, and riverside Kampot with seaside Kep in the south for laid-back living, all with established expat pockets.
Portugal: The Algarve (Lagos, Tavira, Albufeira) for sunshine and a large British community, Lisbon and its coast (Cascais) for city life, the Silver Coast around Óbidos for quieter value, and Porto and the north for greener, cheaper living.
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