How Much Money do You Need to Live comfortably in Portugal?

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How Much Money do You Need to Live comfortably in Portugal?

by | Tuesday, 27 June 2023 | Immigration, Personal Income Tax

how much money do you need to live comfortably in portugal

Introduction

When considering a move to Portugal (or Madeira Island), one of the most important factors to consider is how much money you need to live comfortably in Portugal. With its beautiful landscapes, rich history, and welcoming culture, Portugal has become an attractive destination for expats looking for a comfortable lifestyle. In this article, we will explore how much money you need to live comfortably in Portugal and provide an overview of the financial considerations you should consider before moving.

The Cost of Living in Lisbon

Lisbon, the capital of Portugal, is a vibrant city known for its stunning architecture, lively atmosphere, and proximity to the coast. According to recent data from Numbeo, a family of four can expect to spend around 2,315.6€ per month without rent, while a single person’s estimated monthly costs amount to 655.4€ without rent. Compared to New York, Lisbon is 47.5% less expensive, and rent in the city is, on average, 66.2% lower than in the Big Apple.

Living in Lisbon offers a unique blend of urban convenience and historical charm. The city boasts many cultural attractions, including museums, galleries, and theatres. Lisbon’s culinary scene is also renowned for its delicious seafood and traditional dishes. With its mild climate and affordable cost of living, Lisbon is a popular choice for expats seeking a comfortable lifestyle in Portugal.

The Cost of Living in Porto

Porto, Portugal’s second-largest city, is famous for its port wine, charming old town, and picturesque riverfront. According to Numbeo, a family of four can expect to spend around 2,151.1€ per month without rent in Porto, while a single person’s estimated monthly costs amount to 608.3€ without rent. Compared to Lisbon, Porto is 7.2% less expensive, and rent in Porto is, on average, 30.1% lower than in the capital city.

Porto offers a unique blend of history, culture, and natural beauty. The city is home to numerous UNESCO World Heritage sites, including the historic centre and the Douro River. Porto’s vibrant arts scene, bustling markets, and lively festivals make it an exciting place to live. With its lower cost of living compared to Lisbon and a thriving job market, Porto is an attractive option for expats looking for a comfortable life in Portugal.

The Cost of Living in Funchal

Funchal, the capital of Madeira Island, is known for its beautiful landscapes, mild climate, and relaxed lifestyle. According to Numbeo, a family of four can expect to spend around 1,943.8€ per month without rent in Funchal, while a single person’s estimated monthly costs amount to 542.5€ without rent. Compared to Lisbon, Funchal is 13.1% less expensive, and rent in Funchal is, on average, 32.4% lower than in the capital.

Living in Funchal offers a unique island lifestyle with a European flavour. The city boasts stunning natural beauty, including lush mountains, breathtaking coastlines, and picturesque gardens. Funchal’s charming old town is filled with narrow streets, historic buildings, and traditional markets. With its lower cost of living and relaxed pace of life, Funchal is an excellent choice for expats seeking a comfortable and peaceful lifestyle in Portugal.

Additional Factors to Consider

While the cost of living is an essential factor to consider, there are additional financial considerations when moving to Portugal. One such consideration is the personal income tax. Expats who relocate to Portugal for the first time may be eligible for a ten-year tax holiday on their foreign income under the Non-Habitual Resident (NHR) scheme. This scheme can significantly reduce expats’ overall cost of living, making Portugal an even more attractive destination.

It is also worth noting that the cost of living can vary depending on individual lifestyle choices. Factors such as housing preferences, dining habits, transportation choices, and recreational activities can all impact one’s monthly expenses. Therefore, it is crucial to consider your personal preferences and budget when assessing the cost of living in Portugal.

How Can MCS Assist You?

At MCS, we understand that moving to a new country can be complex. That’s why we offer comprehensive assistance with tax and immigration matters in Portuguese territory. Our team of experts can guide you through the NHR scheme, helping you navigate the intricacies of Portuguese tax law. We provide personalized advice tailored to your specific needs, ensuring that you make informed decisions regarding your financial situation in Portugal.

Conclusion

Portugal offers a high quality of life at a relatively affordable cost. Whether you choose to live in Lisbon, Porto, or Funchal, you can enjoy a comfortable lifestyle surrounded by beautiful landscapes, rich culture, and warm hospitality. How much money you need to live comfortably in Portugal will vary between cities, so it’s essential to consider your personal circumstances and preferences when planning your move. With the assistance of professionals like MCS, you can navigate the financial aspects of relocating to Portugal with confidence and ease.

Note: The information provided in this article is based on general knowledge and research. It is always advisable to consult with professionals and conduct thorough research before making any financial decisions or commitments.

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