Cost of living in Portugal
Portugal does not perform very well in the OECD better life index. Earnings may be lower in Portugal than other comparable western European countries, but this is merely a reflection that the cost of living is substantially lower as well. If anything visitors can afford a better lifestyle vacations in Portuguese cities than most other cities in the world.
The average net-disposable income per household in Portugal is €18,000 a year. Many of the locals live off €750 a month. For a couple bringing in €2000-€3000 a month, you can enjoy an excellent lifestyle in Portugal.
The only city to make the Mercer Quality of Living Survey in Portugal is the capital, Lisbon. Having said that, the only other two cities in the country that Mercer actually surveyed were Oporto and Aveiro. Lisbon is also the most expensive city to live in Portugal, but as you can see from the figure below is much more affordable than other cities in the world.
Grocery prices in Portugal
Staple foods in Portugal remain low, but expats should still budget around €200-€300 a month on grocery shopping if you like to throw in a few luxury items. You can get good wine for under €10 and beer from the supermarkets can be as low a €1.
Given Portugal’s location on the coast, fresh fish is very reasonably priced. Shrimp and tuna are around €8, but you can find cheaper fish such as Dorada for around €5. Meat is around €7-€10, but chicken is much more affordable at around €2.50. For the latest food prices check out this website.
Cost of living in Portugal: Dining out
Visitors in Madeira will probably have the opportunity to eat out more often than their European neighbours. A sit-down lunch will cost around €15, or you can buy large sandwiches for €5 and can feed two people. Fast food is around €5-€6.
The average bill for an inexpensive restaurant in Portugal is €7 including a glass of house wine. For mid-range prices, you will be looking at €20-€40 for 2 people. A bottle of wine is €7 upwards. Anything more extravagant will be €25-€35 per head.
Tax prices in Portugal
Personal income tax is removed at source from your monthly salary. As a general rule, married couples are taxed separately, although you can choose to be taxed jointly. Self-employed tax returns should be filed online or by paper between 1 April and 31 May. The tax brackets on earnings are:
- €0.00 – €7000 – 14.5%
- €7001 – €20,000 – 28.5%
- €20,001 – € 40,000 – 37%
- €40,001 – €80,000 – 45%
- Over €80,000 – 48%