Cost of living in Portugal

Briefly about the main thing

Portugal is a hospitable country with a rich history and culture, famous beaches and incredibly picturesque nature. It combines bright contrasts of medieval architecture and modern cities, traditions and innovations, tranquility and an active lifestyle. One of the most "talking" characteristics of the state is the common saying here, "Portugal is a country of three religions: football, food and family."

The social sphere and infrastructure of Portugal are on top: the country is clean, there is excellent ecology, and food and consumer goods are produced according to European standards. The country has magnificent roads, prestigious educational institutions, and a developed healthcare system. These and many other factors attract many tourists here, and the number of buyers of real estate in Portugal is steadily growing. The program for foreigners to obtain a residence permit when buying real estate — «golden visa » — is one of the most successful in Europe.

Current economic situation in Portugal

Today's indicators of Portugal's economic development speak of overcoming the consequences of the crisis and the dynamic development of the country's economy. In the first quarter of 2017, the Portuguese economy grew by 2.8% compared to the same period of the previous year. For the first time since 2010, the unemployment rate in the country was 8.8%, which was the best indicator of the average European level. And the growth of export volumes in 2016-2017 increased from 2% to 20%. Pedro Rocha Vieira, CEO of Beta-i, commented on the current situation in Portugal: "Lisbon and Portugal unexpectedly entered the shortlist of places to visit or create a business."

Such rapid economic growth is primarily facilitated by the tourist boom, as well as the rise of the real estate market, which actively attracts foreign investors. The economic take-off was influenced by European policy and ultra-low interest rates of the Central Bank of Europe.

Since 2016, a WEB Summit has been held annually in Lisbon. This is a global forum of advanced IT technologies, where startups and investors meet, the best specialists present advanced innovative technologies. Lisbon is the new "Silicon Valley" of Europe.

In the Forbes ranking of the best countries for doing business in 2016, Portugal took the 19th position. For comparison, Germany was on the 21st place, France on the 26th, Spain on the 29th. In the Global Competitiveness Report of the World Economic Forum 2016-2017 (138 countries were considered) Portugal took 15th place.

Average cost of living

In Portugal, with an average salary in Lisbon of €850, life is relatively inexpensive.

In comparison with other Western European countries, basic necessities and food products are much cheaper. For Muscovites, Portuguese prices may seem more than affordable.

Product prices

Portuguese cuisine includes, in addition to meat as the main ingredient, a large amount of fish and seafood, an abundance of fruits and vegetables. Wines and port wine are popular among alcoholic beverages. The largest vineyards are located in the Douro Valley, Porto. Products can be bought both in supermarkets and in markets. Average prices for groceries in the supermarket:

• Milk (1 l) — €0.5-0.75;
• White bread (500g) — €0,7;
• Rice (1 kg) — €0,6-1;
• Pasta (1 kg) — €1.5;
• Eggs (12 pcs) — €1,2-2;
• Local cheese (1 kg) — €5-10;
• Olive oil (1 l) — €5;
• Chicken breasts (1 kg) — €3,5-5;
• Beef (1kg) — €6-12;
• Ham (1 kg)  — €15-30;
• Octopus/squid (1 kg) — €8-10;
• Tuna (1 kg) — €8-10;
• Dorada (1 kg) — €5;
• Trout (1 kg) —  €10.
• Apples (1 kg) — €1-1.9
• Bananas (1 kg) — €1,-;
• Oranges (1 kg) — €0.9-1.5;
• Tomatoes (1 kg) — €0.8;
• Potatoes (1 kg) — €0.5-1.1;
• Onion (1 kg) — €0.5-1.35;
• Lettuce leaves (head) — €0.5-1.4;
• Water (1.5 l) — €0.2-1;
• Bottle of wine — from €3;
• Local beer (0.5l) — €0.6-1.5;
• Cigarettes (pack) — €4,5-5.

The most common chain supermarkets in Portugal include Alisuper, Pingo Doce, Continente Bom Dia, LIDL and Mini Preço. They usually work until 19.00-21.00, depending on the location and size of the store.

Of course, gourmets should not forget about farmers' markets, which are open only on certain days: there you can always buy the freshest products directly from the manufacturer.

The Portuguese prefer to eat at home and cook themselves, but they are not averse to going to a restaurant. In restaurants with a name, the bill will be approximately €50-80 per person, in more budget — €20-30 per person. A business lunch at an American-style diner costs only 5-6 euros. Street food is also very popular here: for example, sardine or grilled tuna will cost only 4-5 euros, and a bun with a filling heated on the grill will cost at all 1.50 euros. A cup of espresso coffee, which the Portuguese so adore, calling it lovingly simply "bika", costs from 60 to 70 euro cents at the counter in traditional cafes. A glass of coffee with milk can cost from €0.70 to €1.20, and a cup of tea — from €1 to €1.50. A glass of freshly squeezed orange juice will cost €2.50, and beer and cola – from €1 to €1.50.

Transport

Portugal has a well-developed public transport system: buses, trams, metro, taxis run in large cities, funiculars and elevators work. Most buses are equipped with free Wi-Fi. In addition, some vehicles run on recycled energy. Since February 2017, children under the age of 12 have the right to free travel. To do this, they need to issue a personalized card.Adults also have the opportunity to save on tickets by purchasing a personalized Zapping card. Thanks to it, the following tariffs apply:

• The cost of one trip by bus or tram when buying a ticket from the driver: €1.85, however, with a card, the ticket will cost €1.30;
• The cost of one metro ride is — €1.45. After activation, you can ride any type of transport as much as you want for one hour, with the card the price will be €1.30;
• Funicular Bica, Glória e Lavra (up to two trips): €3.70, discounts are also provided on the card;
• Sta. Justa elevator in Lisbon (two trips): €5,15;
• Daily pass for public transport (metro, funicular, tram, buses, elevator): €6,30;
• Monthly pass for all types of public transport in Lisbon: €36,70;
• One-time trip by ferry Transtejo/Soflusa: from €1,25 to €2,70;
• Cacilhas pass (public transport, metro, Cacilhas ferry): €9.35;
• Travel pass-all-Lisboa (public transport, metro, commuter trains Sintra, Cascais, Azambuzha): €9.35;
• The cost of a high-speed train ticket from €40-€65;
• Ticket price for a regular train: €24-€40;
• Train ticket: €3-€7;
• Express buses: from €20 to €35.

As in any European cities, in the megacities of Portugal, you can rent a bicycle, for about 15-20 euros per day.

Taxi in Lisbon: €3.5 per boarding and on average €0.90 per 1 km of travel, however, at night from 21:00 to 6:00 the fare increases by 20%.

You can rent a car in special rental offices: Centauro, Guerin, Sixt, Avis, Budget, etc. Prices start from about €15 per day. People between the ages of 21 and 75 can rent a car in Portugal. Do not forget that this price does not include gasoline, the cost of which is: Sem Chumbo 95 & mdash; € 1.5 / Sem Chumbo 98 — €1,7 / Diesel (Gasóleo) — € 1,3. Travel on toll highways, which in the country has 24, will cost from €1,7 to €19,30.

Buying a budget-class car, for example, Toyota Corolla 1.6 (97KW) or Volkswagen Golf 1.4 (90 KW) will cost about 25,000 euros.

«Basic shopping»: clothing, cosmetics, accessories

In Portugal, you can buy almost all the major brands of clothing, cosmetics and shoes that I have presented in other EU countries. Prices, as elsewhere, correspond to the brand level. Things from Portuguese manufacturers are relatively inexpensive and made of high-quality materials and fabrics. Clothing stores open at 10 am, but from 12:30-15:00 they close for a siesta. Late shopping will also not be possible, since all stores are closed after 20:00. Nevertheless, clothing stores located in shopping malls are open almost until midnight.

Average cost of clothing:

• Classic jeans — €50-100;
• Dress — from €20 to €40;
• Summer T-shirt — about €10;
• Swimsuit — €20;
• Sports sneakers of a well-known brand in the mid-price segment — €50-90;
• Classic leather shoes — €50-120;
• Women's leather handbag — about €100.

There are two annual sales in Portugal, where you can economically buy everything you need. Winter — from January 7 to the end of February, summer-autumn — from August 7 to the beginning of October. Discounts reach 80%. In addition, in the suburban outlets of Lisbon and Porto, you can buy branded clothing at discounted prices all year round.

Popular shopping malls in Lisbon:

• Centro Comercial Amoreiras;
• Chiado;
• Rua do Carmo;
• Avenida Eduardo Pacheco;
• Centro Commercial Colombo or Circular;
• Forum Tivoli;
• Avenida da Liberdade.

Housing and rental prices

The average cost per square meter of real estate in Portugal is €1200, but in Lisbon the price of «square» is slightly higher — €1300-1500. Real estate in Lisbon is considered one of the most affordable among other developed cities around the world. Renting a one-bedroom apartment in the city center will cost about $500 per month, in resort towns the cost will be twice as high as — €1000 per month.

In the main cities of the country, for example, in Lisbon and Porto, it is quite easy to find a modern apartment to buy or rent for a long time. However, if you intend to live in the resort area of Portugal, it is much more profitable to purchase your own housing, since rental prices in the summer season are very high. You can buy a cozy house in a secluded rural area, Albufeira, Algarve, Lagos, Vilamore, starting from €500,000-€600,000, in the resort area — from €1 million. You can buy modern apartments in the center of major cities, for example, Lisbon, Porto, Braga, Sintra, Coimbra, with three to five bedrooms and an area of 100 sq. m., in an elite building, for €500 000.

Portugal has a fairly low annual property tax. Its amount depends on the region and the city, but the average is 0.3%-0.8% of the cost of housing. Accordingly, the highest tax is in resort towns and the capital, in rural areas it is much lower. Property, namely an apartment, a house or a car inherited, is not taxed. According to official statistics, life in Porto, the second largest city in Portugal, is about 70% cheaper than in New York.

Housing, Internet, telephone

Utility bills directly depend on the area of the property. For example, for an apartment of 40 sq. m. m monthly utility bills will average 70 euros. The water bill will average 10-15 euros, electricity bills 20 euros. Among other bills, Portuguese residents pay insurance. Health insurance will cost approximately 50-70 euros per person per month. Today there are three telecommunications companies in Portugal - Vodafone, MEO, NOS. Usually all services are sold as a package: home Internet, TV and mobile communication. Home internet will cost about €20-€36 per month. Mobile communications in Portugal are provided by Optimus, TMN and Vodafone. On average, a minute of conversation costs €0.13, the cost of a SIM card €10. There are favorable offers from operators, so mobile communication, which includes 5 GB of Internet, a thousand SMS and 1000 minutes of calls costs €16.

Taxes

There are three types of taxes in Portugal:

• When buying or receiving property, it is necessary to pay the property tax, which is on average 6%;
• Stamp duty payable upon purchase - 0.8%.
• An annual tax ranging from 0.3% to 0.8% of the value of the property.

After five years of compulsory ownership, a foreigner has the opportunity to sell real estate. In the event that he is not a tax resident of Portugal (he is in the country for less than 183 days a year), then he needs to pay 28% of capital gains tax. The rental of housing is subject to income tax at the rate of 28%.

Medicine

There are both public and private clinics in Portugal. There is a single healthcare system for all EU citizens. Health insurance will cost approximately €50-€70 per person per month. It is enough for a resident of Portugal to get an individual number at the nearest clinic so that a family doctor is assigned to him.

It is worth bearing in mind that prescription drugs are sold much cheaper. Most doctors in Portugal speak English, which is an undoubted plus for foreigners.

Education

As in Russia, Portugal has free public and private paid kindergartens. At the age of six, a child begins to receive a "basic" school education for a nine-year-old. In the future, a Portuguese student will receive a diploma that is quoted throughout the EU.

Secondary education in Portugal is not compulsory. It is paid, as a rule, the parents pay for the training, but the cost is calculated based on the income of the student's family. Secondary education has several directions, the student can choose what is closer to him: general education, technological, professional or specialized. Mostly schoolchildren stop at the general education. It offers four types of programs - social studies, natural sciences, natural sciences and a creative course. Upon their completion, graduates receive a certificate of secondary secondary education. With a diploma from school and this certificate, a child has much more chances to enter a university or get a high-paying job.

Higher education in Portugal is of two types - university and polytechnic. The first type of university is aimed at studying natural sciences or humanities. Polytechnic universities train specialists in the field of chemistry, engineers and technologists.

During the first three years, the student receives a bachelor's degree, a year later a Licenciatura diploma. Only after that, having passed special exams, the student can enter the master's program.

Since Portugal is a small country, there are only 11 universities in it, nine of them public and two private. To enroll in a state university, all applicants pass a state test, which is conducted by the Ministry of Education.

The bachelor's degree is obtained absolutely free of charge, but there is a mandatory annual fee in the amount of €570 to €920. As for the Master's degree, a year of study will cost from €920 to €8000/year.

Studying in Portugal for Russians

There are a lot of foreign students in Portugal who want to get a higher education, including Russian citizens. Universities are happy to accept applicants from other countries, but one of the important conditions is knowledge of the Portuguese language.

Getting a higher education for Russians in Portugal has a lot of advantages:

1. After graduation and graduation, they have the right to undergo professional practice in EU countries, which contributes to getting a good job;
2. During their studies, students have the full right to move freely in the Schengen area;
3. After receiving the diploma, the graduate has another six months left in the country to find a job.

Entertainment

A small country, Portugal provides its residents and guests with a lot of opportunities to have an interesting time. It is ideal to travel by car here, both in large cities and in small picturesque villages or seaside resorts. One of the most popular types of recreationthere are picnics with friends and family for the weekend. And lovers of cultural life can find a lot of interesting events, exhibitions and festivals. A cinema ticket costs about €7-10, a theater ticket — from €10 to €45 depending on the theater, performance and selected seats, a ticket to museums and palaces will cost from €5 to €15.

• For lovers of scuba diving, the coast of Portugal is perfect;
• The Madeira region with its warm climate is ideal for a sea holiday, if you are lucky, then in the company of dolphins;
• The Azores Archipelago is an unforgettable island and authentic boat trips;
• In the city of Cascais there is a huge amount of entertainment for an active night's rest: bars, karaoke clubs, numerous amusement parks, restaurants with live music;
• Estoril is famous for its casinos;
• In Portugal, there are unlimited opportunities for recreation with children of any age. There are many water parks with wonderful attractions throughout the country. So, not far from the Vila Real water park there is a beautiful amusement park;
• At the Kidzania Zoo, there is an opportunity to take a yacht ride and visit
• oceanarium;
• Safari Park in the city of Badoka is perfect for lovers of the wilderness.

Average monthly budget for a family with one child

Monthly expenses for a small family consisting of two adults and a child in Lisbon can be calculated as follows:

• In the capital of Portugal, approximately 500 euros will be spent on food and hygiene items for two adults and a child.
• Utility bills — about €115.
• Health insurance — €50-€70 per person per month. At the same time, the cost of family insurance will be from €150.  
• Using the special offers of mobile operators, you can buy a package that includes a fixed number of calls, SMS and Internet, the average cost of which will be €16, that is €32 for two.
• State Kindergarten — €20-€30 per month.
• Monthly travel passes for two people will amount to €72, for children under 12 years old — free of charge.
• Entertainment — from €50.

We sum up the costs received: from €900 monthly for two adults and one child, excluding rental costs.

8 expert tips on how to effectively budget in Portugal

1. Choose your accommodation carefully: depending on the region and city, the cost and quality of life may vary.
2. Study the costs for housing maintenance for the selected location and object. It is possible to choose housing with optimal costs for maintenance and upkeep of the house.
3. Do not save on health insurance.
4. Covershoot purchases in online stores, it is profitable. And buy clothes in outlets, for example, in Outlet Plaza.
5. Readyfor at home this is much more profitable and more useful. You can buy the freshest products at the farmer's market and cook a great dinner.
6. If you often travel by public transport, buy a monthly ticket, it is much cheaper.
7. Although toptics and cars in Portugal are quite expensive, having your own car dramatically improves the quality of life. Choose the best option for a used car, based on the budget of the family and the frequency of trips.
8. Keep in mind that in order to avoid a tax of 28% when selling a home, you must be a tax resident of the country.

Portal HomesOverseas.ru thanks Victoria Nazarenko for her help in preparing the article (Mercury Luxury Estate) and Evgeny Berezin (MENU Portugal).

_{photocredits: flickr / mercury luxury estate}