Cost of living in Portugal – Single, family & student

The cost of living in Portugal is:

• Single person: € 1183/month with rent and € 481month without rent. 
• Student: € 1400/month with rent.
• Family of four: € 2773/month with rent and € 1516/month without rent. 

Portugal’s stunning coast, vibrant cities, and welcoming culture offer a charming yet modern living environment. With significant economic growth, Portugal has become an attractive destination for job seekers, particularly in its booming tech industry. Its internationally recognised universities also make Portugal a top choice for students seeking quality education.

This guide provides a comprehensive financial overview such as Portugal’s cost of living index for smoother adjustment upon relocation. 

Do you know?

• Portugal’s GDP increased from USD 255.2 Billion in 2022 to USD 287.08 Billion in 2023, demonstrating economic growth. [1] 
• Portugal’s inflation rate decreased from 7.8% in 2022 to 4.3% in 2023, indicating a slowdown in consumer price influx. [2]
• Portugal’s happiness index of 5.95 points in 2023 surpasses the global average of 5.59, indicating a higher level of overall well-being among its population.[3]

A glance at the average cost of living in Portugal

Source: Numbeo 

Average living cost in Portugal: Single vs student vs family

Source: Livingcost.org, Leapscholar.

An overview of monthly rents in Portugal

Source: Numbeo 

Citywise average cost of living in Portugal

Source: Livingcost.org (Refer to citiwise cost of living pages)

Tax scenario

Non-residents in Portugal are generally subject to taxation on income earned. This includes employment income, business profits, capital gains and rental income. 

In 2024, Portugal’s tax rates for residents range from 18% on income over €7,703 to 48% for income above €81,199. However, non-residents are taxed at a flat rate of 25% on their taxable income, which includes earnings from employment, self-employment, and pensions.

Non-residents must file an IRS return if their income exceeds certain thresholds. The return must be submitted by the end of June each year. Do consult with a tax professional or the Portuguese Tax Authority to ensure compliance with all tax obligations. Portugal has double taxation agreements with many countries to prevent individuals from being taxed twice on the same income. To avoid double taxation, it’s important to review the specific terms of the agreement between Portugal and your country of residence.

Source: Eportugal, Finance Portal, PwC.

What salary do you need to live in Portugal?

The salary and budget to live in Portugal depend largely on your lifestyle and location. While major cities like Lisbon and Porto may have higher living costs, smaller towns and rural areas offer more affordable options. 

Portugal’s standard of living is comfortable, offering a good quality of life. There is a strong emphasis on work-life balance and a relaxed pace of life. This, coupled with the relatively low cost of living in Portugal makes it possible to maintain a comfortable lifestyle even on a modest income.

What should be your monthly budget to live in Portugal?

##It is an approximate value based on the consumer prices and average living expenses of an individual. It is advisable to consider income level, spending habits, location, and specific monthly expenses to calculate an accurate budget.

Do’s and Don’ts

Do’s

• Take advantage of the fresh local produce and prepare meals yourself.
• Use public transport and save money on transportation costs. 
• Seek out free activities in your city and enjoy the culture without spending.
• Consider renting outside major cities, as these areas often have lower rental costs. 
• Learn Portuguese to help improve your job prospects.
• Take advantage of seasonal discounts or student discounts if you are a student. 

Don’ts 

• Do not assume everything will fit your budget on the first try. Prices can vary significantly in major cities and tourist areas. 
• Limit your restaurant visits. 
• Avoid buying imported goods and keep your purchases local to save money. 
• Do not overlook energy consumption; be mindful of your usage.
• Do not overlook the need for medical insurance coverage; keep track of the coverage and the policy term for timely renewal. 

Best places to live in Portugal for students & job seekers

Lisbon

Lisbon combines quality living and cultural richness, making it ideal for work and study. With a lower cost of living than other European capitals, it offers a comfortable lifestyle and savings. Its booming tech industry and international universities provide great opportunities for professionals and students.

Average cost of living per person: € 1560

Porto

With its vibrant atmosphere, rich history and affordable cost of living, Porto has become a desirable destination for international working professionals and students alike. The city has a thriving tech scene, attracting international companies and startups.

Average cost of living per person: € 1276

Vila Nova de Gaia 

Vila Nova de Gaia, with its proximity to Porto, is a major economic hub. It offers job prospects in various sectors, especially in the tech industry. Gaia’s lower cost of living compared to Porto makes it an attractive option for those seeking affordable housing and a more relaxed lifestyle. 

Average cost of living per person: € 1158

Braga 

Braga, a university town with diverse programs, is perfect for students exploring Portugal’s culture. Its growing IT sector also attracts major companies seeking fresh talent.

Average cost of living per person: € 1120

Before you go…

To take full advantage of all the academic and career benefits in Portugal, start by researching the financial aspects related to your relocation, such as Portugal’s living expenses. Consider factors like the cost of living, the average salary in Portugal in your field, accommodation options and so on.

A reliable money transfer service is also needed to send money from Portugal. Instarem offers a secure and efficient solution for international money transfers. Not only is Instarem’s service fast** but also ensures transparent fees, so you won’t encounter any hidden charges.

Furthermore, Instarem’s competitive rates for currency conversions, like EUR to INR make it an affordable# and accessible for working professionals and students alike. Moreover, if you need to transfer money to India from Portugal, Instarem provides a straightforward and economical option for managing your international transactions.

You can now enjoy hassle-free and quick** money transfers on the go with Instarem’s app, which can be downloaded from the AppStore or Google Play. 

FAQs

Q. Is it expensive to live in Portugal?

The cost of living in Portugal is 1.23 times more expensive than the world average. However, by making wise choices and planning carefully you can effectively manage it.

Q. How much money do you need to live in Portugal?

The amount of money needed to live in Portugal varies depending on factors such as location, lifestyle, and personal expenses. The average monthly budget for a single person in Portugal ranges from € 640 – € 1210.

Q. How much does it cost for international students to live in Portugal?

Portugal’s cost of living for an international student is € 1400 per month, including rent.

Q. Is it cheaper to live in Sydney or Lisbon?

Sydney ranked as one of the top 3 most expensive cities in the world. Its average cost of living is € 2523, which is € 953 higher than Lisbon’s € 1560.

Q. What is the average room rent in Portugal?

A 1-bedroom apartment in the city centre in Portugal costs around € 952.11 in rent.

Q. How much is the cost of living in Portugal per month?

The average monthly cost of living in Portugal for a single person is around € 1183 per month with rent and € 481 without rent. If you have dependents, the monthly cost can range from €758 to €2,773 with rent, depending on the number of dependents and lifestyle.

Q. How much is the cost of living in Portugal for a couple?

The monthly cost of living in Portugal for a couple ranges around € 1386 with rent and € 758 without rent. 

Q. What is the cost of living in Portugal for a single person?

The average monthly cost of living in Portugal for a single person is around € 1183 with rent and € 481 without rent.

Q. What is the cost of living in Portugal for a family?

The average monthly cost of living in Portugal for a family of four is around € 2773 per month with rent and € 1516 without rent.

Q. What is a good salary in Portugal?

A comfortable salary in Portugal can vary based on individual lifestyle and accommodation choices. However, a salary range of approximately € 1020 – € 1750 is generally considered sufficient for a single person. 

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Disclaimer:

• This article is intended for informational purposes only. All details are accurate at the time of publishing. Instarem has no affiliation or relationship with the products or vendors mentioned.

• Prices mentioned in this blog are subject to change.

• ** Fast means 75% of our transactions are completed in 15 minutes. Depending on the funding method.
• # When it comes to affordable exchange rates and fees, it’s worth noting that the cost will vary depending on how you choose to fund your transactions. Credit card funding and bank transfer fees can differ significantly. 
• The prices were taken on the 3rd and 4th of September 2024 from different sources and are subject to change.

Citations:

[1]https://data.worldbank.org/indicator/NY.GDP.MKTP.CD?locations=PT 

[2]https://data.worldbank.org/indicator/FP.CPI.TOTL.ZG?locations=PT 

[3]https://www.theglobaleconomy.com/Portugal/happiness/