Cost of Living and Working in Portugal

how to live and work in portugal

Before you make the move to Portugal, you should know a little bit about the country’s cost of living. Portugal’s largely unofficial currency is the euro, so you should be able to buy a house there for about €3000. But even before you buy a house, you should make sure you have the right health insurance. Portugal’s health care system is not as expensive as most countries. You should still pay attention to taxes and private health insurance, as these are the two biggest costs of living in Portugal.

Cost of living

The cost of living and working in Portugal varies a lot between regions and cities. Although Lisbon and the Iberian peninsula have the highest property prices, Portugal is still cheaper than many countries in Europe. Despite the rising property prices, Portugal is a great place to live. The cost of living in Lisbon and other major cities is higher than that of rural areas, but the difference is still minimal. Read on for a complete guide to cost of living in Portugal.

Food in Portugal is relatively inexpensive compared to other western European countries. Fresh fruits and vegetables are very cheap. Likewise, seafood is very cheap, thanks to Portugal’s 1,800-kilometer-long coastline and its active fishing industry. However, other goods and services are more expensive than in many other parts of Europe. Domestic fuel, international and regional telephone calls, new cars, and prescription medicines are expensive. Rents in Portugal are also relatively cheap.

Rents in Lisbon and the Algarve are quite high, but you can find much cheaper options outside of the cities. In Lisbon, one-bedroom apartment costs about EUR650 per month, while a shared room costs about 350EUR. There are also villages where people sell their homes for the price of a new car. Nevertheless, Portugal is a popular destination for expats from all walks of life and it’s easy to find a place to live on a budget.

If you are planning to retire in Portugal, you will be pleased to know that the country offers a comfortable cost of living. Portugal has one of the lowest cost of living in Western Europe and is also cheaper than other Southern European countries. Portugal’s low cost of living is reflected in every aspect of life – public transport, electricity, and tolls are all at a low rate compared to other developed European countries.


Expats in Portugal can find the tax regime difficult. Portugal has higher income tax rates than the rest of Europe, and there are many other issues to contend with, including wealth cases and stamp duties. Nevertheless, the government has made some efforts to attract expatriates, including the Non-Habitual Residence Program (NHR), which requires applicants to be tax residents of their home country. Here are some of the most important points to consider when deciding whether to relocate to Portugal.

The first thing to know is the tax rate. While many countries have high tax rates, Portugal has a flat 20% rate for high-qualified professionals. This means that, while you might be working in Portugal, you’re still paying a flat rate of 20%, even if your income comes from another country. In addition to the federal income tax, the country has many local taxes. The Imposto Municipal sobre Imoveis (IMI) is equivalent to a council tax in Portugal. This tax is paid by homeowners and is used to fund local infrastructure, including recycling and bin collections.

For non-permanent residents, the tax rate in Portugal is generous. Those earning from foreign sources, such as rental income and government service pensions, are taxed at a lower rate than those residing in the country for more than five years. However, for those with limited English-language skills, a Chartered Accountant in Portugal can be the best option. If you’re not sure how to file your taxes, the Institute of Chartered Accountants of England and Wales can refer you to a qualified accountant.

Another tax incentive for expats is the NHR regime. NHR status allows individuals to become tax residents in Portugal for 10 years. A British citizen who holds a Golden Visa may also relocate to Portugal under this regime. The NHR regime offers tax exemption for almost all foreign income, and there are tax planning opportunities for inheritance and wealth transfers. These are only a few of the tax benefits of living and working in Portugal.

Cost of utilities

Despite a reputation of cheap living, the cost of living and utilities in Portugal can be quite high. The cost of living in Portugal is higher in urban areas and Lisbon than it is in rural areas. In some places, the cost of living is nearly double that of Lisbon. However, these costs may seem like a bargain if you’re coming from a country that’s expensive. For these reasons, Portugal is a good choice for expats who are working from home and earn their income online.

The cost of utilities in Portugal depends on the size of your house and the number of people living there. For example, utilities in a 45m2 studio can cost around EUR80-90 per month. Similarly, utilities in an 85m2 apartment for two people can cost up to EUR120 per month. In Portugal, utilities are generally cheaper than in the UK and Spain, so you can afford to enjoy a better standard of living.

Education is another factor that determines the cost of living in Portugal. While Portuguese schools were once criticized by expatriates, there have been significant improvements in the past few years. For expats with children, registering them in a school requires patience. In addition, children will be taught in Portuguese, so be prepared to put in some extra work. While the cost of living in Portugal can be cheap, you may have to compromise on the quality of education. If you’re willing to learn the language, the country may be a great place for you.

While the cost of living in Portugal may seem high, it’s still much cheaper than in Spain and Italy. It’s possible to live without the worry of rising bills and living in a small, crowded apartment. You’ll also have national holidays, and the cost of utilities is very low. This makes Portugal an excellent option for expats, who want to spend less on necessities while living abroad. This country is becoming increasingly popular for tourists and expats alike.

Cost of private health insurance

The cost of private health insurance to live and work in Lisbon and Porto varies greatly and largely depends on your personal circumstances. Your age, pre-existing conditions, and job will play an important role in the cost. A standard policy will cost you 400 euros a year for you and your family. However, if you travel abroad frequently, you should consider purchasing a plan that includes international coverage.

Public health care in Portugal is free or very cheap for EU citizens and those over the age of 65. EU citizens can use the European Health Insurance Card (EHIC) to access free or low-cost medical care in Portugal. UK citizens with an EHIC can use the system for free up to 90 days. It is important to note that EHICs and Global Health Insurance Cards cannot be used as proof of insurance at private hospitals.

The cost of emergency care in Portugal is EUR400 per year. Comprehensive plans can cost up to EUR1000 a year. While there is no universal public health insurance plan in Portugal, it is possible to find a plan that suits your budget. However, you should be aware that some doctors will accept you without an appointment. Further, you should be aware that social security contributions fund the Portuguese healthcare system. Unemployed people and retirees are required to make contributions, but those who have dependent family members do not need to contribute.

Private healthcare in Portugal is not mandatory, but it can be helpful if you are ill or have a chronic condition. Portugal has a public healthcare system that is not as well-equipped and understaffed. You can pay for the service of a private doctor to get priority on surgery or better care. While private healthcare is more expensive, it is still better than public health care. You will get a higher standard of care and a much more comfortable experience.

Job market

The Portuguese job market is relatively large and diverse. There are a number of sectors that are attractive to foreigners, such as the IT sector. Portugal’s economy is largely expatriate friendly, with several tech companies based there. As such, the number of foreigners working in Portugal is also increasing. IT and marketing jobs are flourishing. Real estate and hospitality are other areas that are safe for foreigners. Many of these positions require the ability to speak several languages.

The health sector in Portugal is particularly competitive. While salaries are lower than in many European countries, Portuguese goods are often much cheaper. The minimum wage in Portugal is set by the government every year, and is currently EUR700 per month for twelve payments. However, a high-paid job is also possible, and these positions are often found in large companies with international headquarters. If you’re a doctor or a surgeon, you’ll have higher earning potential in Portugal.

There are many sectors that offer employment opportunities in Portugal. Tourism and hospitality-related jobs are particularly popular, and include customer service, retail, and resorts. There are also opportunities in tech-related fields, and there is always call center work available. You should be aware that the procedure for working in Portugal will depend on your nationality and the type of job you want to apply for. If you are an EU citizen, however, you won’t need a work visa to work in Portugal.

The Portuguese language is a widely-spoken language, and you’ll find plenty of opportunities for working in the tourism sector. If you speak English, you’ll have a good chance of getting a job in Portugal. If you’re an English-speaking native, focus on tourism and hospitality, IT, and international companies. If you can’t speak Portuguese, there are online tools to help you learn the language. There are also many institutions that offer language classes.