The cost of living in Portugal varies between different regions and cities within the country. Therefore a comparison between the most popular destinations among expats for relocation is required.
One of the best sources to compare the cost of living in Portugal is Numbeo, whose statistics are constantly updated based on the feedback provided by expats. This article will compare Portugal’s three most popular relocation cities: Funchal, Lisbon, and Porto.
Based on the most recent data available in Numbeo, the cost of living in the main cities is as follows:
Lisbon – Portugal’s capital
- A family of four estimated monthly costs are 2,315.6€ without rent.
- A single person estimated monthly costs are 655.4€ without rent.
- Lisbon is 47.5% less expensive than New York.
- Rent in Lisbon is, on average, 66.2% lower than in New York.
Porto – Portugal’s second-largest city
- A family of four estimated monthly costs are 2,151.1€ without rent.
- A single person estimated monthly costs are 608.3€ without rent.
- Porto is 7.2% less expensive than Lisbon.
- Rent in Porto is, on average, 30.1% lower than in Lisbon.
Funchal – Madeira Island’s capital
- A family of four estimated monthly costs are 1,943.8€ without rent.
- A single person estimated monthly costs are 542.5€ without rent.
- Funchal is 13.1% less expensive than Lisbon.
- Rent in Funchal is, on average, 32.4% lower than in Lisbon.
From the above statistics, Madeira’s capital presents Portugal’s lowest cost of living. In addition, Funchal presents a unique island lifestyle with a European flavour and direct connections to mainland Europe by plane.
In any case, one thing must be considered when assessing the cost of living in Portugal: personal income tax. Expats effectively relocating to the country for the first time may benefit from a ten-year tax holiday on their foreign income under the NHR scheme, effectively reducing the cost of living.
At MCS, we can assist you with your tax and immigration matters in Portuguese territory. This article is provided for general information purposes only and is not intended to be, nor should it be construed as, legal or professional advice of any kind. Should you have any questions, please do not hesitate to contact us.
Miguel Pinto-Correia holds a Master Degree in International Economics and European Studies from ISEG – Lisbon School of Economics & Management and a Bachelor Degree in Economics from Nova School of Business and Economics. He is a permanent member of the Order of the Economists (Ordem dos Economistas)… Read more