Understanding the cost of living in Portugal is a crucial factor for anyone planning to immigrate or even spend a season in the country.
After all, Portugal offers an excellent quality of life, a rich cultural heritage and a welcoming community.
Read on to find out more about the cost of living in Portugal, examples and much more!
What is the cost of living in Portugal?
The cost of living in Portugal is relatively affordable compared to many other Western European countries, making it the third cheapest country in the region.
Find out more about the cost of living in this country with data taken from the Expatistan website:
Rent in Portugal
The rent varies significantly depending on the location and size of the property.
For example, the monthly rent for a furnished 85 m² apartment in a prime area of the city costs around €1,384 (R$7,442), while in an average area, the figure drops to €957 (R$5,146).
Food
Food in Portugal is diverse and affordable. A typical lunch in the prime area of the city costs around €11 (R$ 57), and food prices in the supermarket are reasonable, such as €3.46 (R$ 19) for 500 grams of chicken breast.
Health in Portugal
Portugal has a high quality health system, with a mixed system of private and public plans. Just like in Brazil.
Costs for private healthcare are competitive, with a private doctor’s consultation costing around €68.
Read also: Portugal’s healthcare system: understand how it works
Transportation
The transportation system in Portugal is efficient and economical. For example, a monthly ticket for public transportation costs around €38 (R$ 202).
In addition, the cost of buying a new car, such as a Volkswagen Golf, is approximately €27,267 (R$146,572).
Basic expenses
Basic expenses, including utilities and internet, are reasonably affordable.
For example, utilities for an 85 m² apartment cost around €143 per month.
Taxes in Portugal
Portugal has a diverse tax structure covering different areas. It is essential for immigrants to understand these taxes, as they affect various aspects of daily life and investments in the country.
Here are the main taxes:
Income taxes
There are three main types of income tax in Portugal:
- IRS (Personal Income Tax): This is personal income tax. The rate varies according to annual income and family situation;
- IRC (Corporate Income Tax): Similar to corporate income tax, it applies to companies and its rate depends on the company’s annual profit;
- Municipal surcharge: this is a municipal tax on company profits, the rate of which varies according to the company’s location in Portugal.
Wealth taxes
These taxes are levied on property and vehicles. They are:
- IMI (Municipal Property Tax): This is an annual tax on property ownership;
- IMT (Municipal Property Transfer Tax): applied to the purchase of real estate in Portugal;
- IS (Stamp Duty): This is levied on various transactions, such as contracts, mortgages and other legal documents.
Car taxes
These taxes are levied on the ownership and use of vehicles.
They are:
- ISV (Vehicle Tax): levied on the first registration of a vehicle in Portugal;
- IUC (Imposto Único de Circulação): an annual tax on all motor vehicles circulating in Portugal.
Consumption taxes
In Portugal, there is VAT (Value Added Tax), which is levied on sales and is applied to most goods and services in Portugal. Rates vary depending on the type of product or service.
Special taxes
In addition to the taxes already mentioned, Portugal also has some other special taxes. They are:
- IABA (Tax on Alcohol and Alcoholic Beverages): Applied to alcoholic beverages;
- ISP (Petroleum Products Tax): This tax is levied on fuel;
- IT (Tobacco Tax): applied to tobacco products.
Leisure
Portugal offers many leisure options at affordable prices. Dinner for two in a neighborhood restaurant costs around €32 (R$ 172), and movie tickets are around €15 (R$ 78).
Is the cost of living in Portugal high?
Comparatively speaking, the cost of living in Portugal is moderate, especially when compared to other Western European countries.
However, it is important to bear in mind that the cost of living can vary significantly depending on the region and the desired lifestyle.
Big cities like Lisbon and Porto tend to have a higher cost of living, while smaller towns and rural areas offer more affordable living.
Housing, food and transportation costs are the main factors to consider when assessing the cost of living.
What is the salary for living well in Portugal?
To live comfortably in Portugal, the salary required will depend on your life expectations and location.
In larger cities, a monthly salary of between €1,200 and €1,500 may be enough for a modest life, while a more luxurious lifestyle requires a significantly higher salary.
Remember that it is important to take into account personal expenses such as housing, food, transport and leisure when calculating the salary needed to live well.
Which city has the lowest cost of living in Portugal?
Smaller towns and rural areas in Portugal tend to have a lower cost of living compared to larger cities.
Cities like Braga, Coimbra and Viseu are known for having a more affordable cost of living.
These cities offer a good quality of life with lower housing, food and transportation costs.
However, the average salary in these regions can also be lower compared to big cities.
Live in Portugal with the help of D4U Immigration!
If you dream of living in Portugal, whether to enjoy a peaceful lifestyle, look for new job opportunities or even to retire, D4U Immigration is here to make your dream come true.
Our experts have extensive experience in immigration planning and can help you every step of the way, from obtaining the right visa to settling into your new home.