Cost of Living in Portugal vs USA - GoldCrest (2024)

FAQs

Cost of Living in Portugal vs USA - GoldCrest? ›

In comparing the cost of living between Portugal and the USA, Numbeo found that the consumer prices (including rent) in Portugal are 74.9 percent lower than in the USA. Rent prices in Portugal are 112.3 percent lower, restaurant prices are 78.7 percent lower, and grocery prices are 96.6 percent lower than in the USA.

If you are single, you can get by comfortably with €1,200 a month in Porto or Lisbon, and even less in Portugal's smaller towns. With a higher income, you can live anywhere in Portugal with €3,000 a month, participate in various activities, go on weekend trips, and much more.

You can comfortably retire in Portugal with an income between $1,500 – 2,000 per month.

Depending on your lifestyle, a couple should be able to get by with between $2,500 (€2,332) to $3,000 (€2,798) a month in Portugal outside the major cities. In major cities, particularly in the city center, expect to need a little more.

The national average price of a 2,000-square-foot home in Portugal is $278,000. Buying a house in Portugal as an American is about 40% cheaper than the U.S. median home price, which is roughly $455,000.

If you have social security credits in both the United States and Portugal, you may be eligible for benefits from one or both countries. If you meet all the basic requirements under one country's system, you will get a regular benefit from that country.

Portugal's living costs for retirees

You can live comfortably with an estimated €1,300-€1,500 (US$1,500-1,700) per month in small towns or €1,700 ($2,200) in larger urban areas such as Lisbon or Porto. Groceries, eating out, rent, utilities, and health care are especially affordable in Portugal.

As part of the Non-Habitual Resident (NHR) tax scheme, D7 visa holders pay just a 20% tax on Portuguese-sourced income and a 10% tax on foreign-sourced income (which would include foreign retirement and social security payments).

The main places American expats live in Portugal are Lisbon, Cascais, Porto, Algarve, and Coimbra. Lisbon: Lisbon is Portugal's capital city and offers a vibrant cultural scene, a bustling nightlife, and easy access to the rest of Europe.

And now, a family will have to pay, on average, 625 euros per month for the rent of a house (+186 euros/month). Those who rented a house between August 2021 and July 2022 also paid 7.4% more than those who did so in the same period, when the average value of the rent of the house was 5.82 euros/m2.

Is there free healthcare in Portugal? ›

Mainly yes, Portugal has a free healthcare system. It's free for all Portuguese citizens and residents. Citizens and residents of the country who contribute to the Social Security Fund can receive free medical care through the National Health Service, SNS.

Can American citizens move to Portugal? Technically you're allowed to enter the country visa-free and stay there for up to 90 days. If you wish to live there long-term, then you need to get a residence permit.

Can You Buy Property in Portugal as a Foreigner? The short answer is YES! One of the most encouraging qualities of Portugal is that there are no restrictions for foreigners who want to buy a home in the country.

The country has no restrictions on foreigners looking to buy a house in Portugal. You won't have to fill in any extra paperwork or meet any criteria to buy a home per say. All you need is a VAT identification number, known as a número de identificação fiscal (NIF) or número de contribuinte in Portugal.

On average, housing in Portugal costs around 1,100 EUR (1,200 USD) in rent per month. This number grew considerably from the 800 EUR (880 USD) registered just a year before. Rent prices will vary greatly depending on the part of the country in which you choose to live and the type of housing you seek.

US Expat Taxes in Portugal

If you're living abroad in Portugal, you'll need to file both US taxes and Portugal taxes.

In order to move to Portugal as a retiree, you will need to get a residence permit. As with other countries in the European Union (E.U.), getting residency in Portugal is rather easy for E.U. citizens. But the process is also simple for U.S. citizens.

Health Insurance in Portugal is affordable and averages somewhere between €40 and €100 per month, depending on multiple factors like age and pre-existing conditions. To visit a private Doctor in Portugal, you would typically pay around €50 to €100 per appointment. With insurance you can pay only a fraction of that.

Portugal has long been a top location to retire to. With dreamy sunsets over beautiful beaches, an affordable cost of living, excellent seafood, and attractive tax benefits, it is understandable why so many retirees are turning their attention to Portugal.

What happens to my social security if I leave the US? ›

If you earned Social Security benefits, you can visit or live in most foreign countries and still receive payments. Look up the country on the SSA Payments Abroad Screening Tool to be sure you can receive your payments.

In 2022, the World Health Organization (WHO) ranked Portugal in the 12th place of world healthcare systems. With both private and public healthcare options, the country offers universal health coverage through the Servico Nacional de Saude (SNS).

The treaty provides that you won't be taxed in either country on your wages, salaries, tips, and other compensation from a Portuguese source if you're an employee of a U.S. company that has a permanent establishment in Portugal or if you live in Portugal for 183 days or more during a consecutive period of 12 months.

Since Portugal and the US both allow dual citizenship, you may keep both your Portuguese passport and your American one.

Portugal has become a top-choice European country for Americans Expats, Nomads and Retirees in recent years for many reasons. Portugals fast and straightforward pathway to citizenship certainly plays a factor. After 5 years of residency those who speak a basic level of A2 Portuguese language can apply for citizenship.

Yes. Portuguese citizens can own firearms for hunting, target shooting, pest control and collecting. Self-defense is not considered a legal reason for owning a firearm. Legally, only licensed gun owners can lawfully acquire, possess or transfer a firearm or ammunition.

Housing in Portugal is exceptionally affordable. Small apartments in the interior of the country sometimes rent for USD$315-$385 a month(though typical prices come closer to USD$500-$610.)

T1, T2, T3, etc: T is used for Type, and corresponds to a type of apartment with the number of main rooms indicated. By main room, one means living room, dining room, and bedrooms. Kitchens and bathrooms are not included in the number. Therefore, an apartment with a living room and two bedrooms is a T3.

The monthly cost of utilities in Portugal depends on how big your house or apartment is and how many people live there. For example, heating, electricity and water for one person in a 45m2 studio can cost between €80 to €90 per month. Utilities for two people in an 85m2 apartment can be between €120 and €130 per month.

How much tax do you pay in Portugal? ›

Yes, Portugal does have state-provided healthcare, which is free for all citizens and legal residents in Portugal. Even though medical care is mainly free, you may have to pay some fees when visiting emergency rooms, your family doctor, or requesting ambulance services.

Buying property in Portugal allows you to acquire a Portugal residence permit, as long as you stay in the country for a minimum of 14 days each two years. That means you can buy a property in Portugal and get residency. Moreover, you may apply for citizenship and an EU passport five years after obtaining residency.

Portugal is actually considered one of the most affordable countries in Western Europe and is an average of 50 percent cheaper than living in the United States.

The short answer is yes! Buying property in Portugal is a great way to invest your money, whether you're looking for a holiday home, a retirement property, or an investment to rent out. We've seen that the returns from short-stay property lets are particularly profitable in Portugals tourist and student-heavy cities.

Where do American expats live in Portugal? Expat life in Portugal is a dream. The biggest American expat communities are Lisbon, the Algarve, and Porto. Compared to some other European countries, Portugal manages to balance a high quality of life with a low cost of living.

Lisbon is one of the cities where expats are happiest with their life abroad, according to the Internations Expat City Ranking 2022, where the Portuguese capital comes in fourth.

English is widely spoken in Portugal, especially in the larger cities and in the Algarve. Plenty of foreigners live comfortably and reasonably efficiently speaking only in English. (In fact, it can be difficult to find a Portuguese who will speak to you in Portuguese.)

U.S. Citizens are entitled to drive in Portugal with their U.S. issued driver's license for a period no to exceed 185 days, provided they are not legal residents.

In Portugal, you need to pay a property tax (Imposto Municipal Sobre Imóveis) as an owner of a property. The tax rate differs according to each different municipality. The municipal assemblies determine their own rate.

What is the average income in Portugal? ›

The average salary in Portugal for the most recent year (2022) is 33,000 EUR per year. That's around 32,117.04 USD per year according to the October 2022 exchange rates.

You will still be permitted to spend up to six months of the year in your home on the continent, as long as you abide by the 90/180 rule. If individuals are looking to stay for a period longer than 90 days without becoming tax residents, you can then apply for an extended authorization in your chosen country.

The geographic focus of North Americans changes depending on the type of housing they intend to buy, according to data from idealista. For example, those who want to buy a house to live in are looking mainly in Ponta Delgada, on the island of São Miguel (Azores), in Cascais, in Funchal, in Loulé and in Porto.

You can live comfortably with an estimated €1,300-€1,500 (US$1,500-1,700) per month in small towns or €1,700 ($2,200) in larger urban areas such as Lisbon or Porto. Groceries, eating out, rent, utilities, and health care are especially affordable in Portugal.

Summary of cost of living in Portugal: A family of four estimated monthly costs are 2,228.9$ (2,080.9€) without rent. A single person estimated monthly costs are 639.4$ (597.0€) without rent. Cost of living in Portugal is, on average, 38.1% lower than in United States.

What are the monthly costs in Portugal? The average monthly living costs in Portugal range from $1100-1300 USD a month. This includes a flat in the city centre, utilities, transportation, food, and grocery costs.

On average, housing in Portugal costs around 1,100 EUR (1,200 USD) in rent per month. This number grew considerably from the 800 EUR (880 USD) registered just a year before. Rent prices will vary greatly depending on the part of the country in which you choose to live and the type of housing you seek.

Housing in Portugal is exceptionally affordable. Small apartments in the interior of the country sometimes rent for USD$315-$385 a month(though typical prices come closer to USD$500-$610.) However, a similar-sized home in a trendy Lisbon neighborhood could easily cost four times as much.

Portugal is actually considered one of the most affordable countries in Western Europe and is an average of 50 percent cheaper than living in the United States.

Mainly yes, Portugal has a free healthcare system. It's free for all Portuguese citizens and residents. Citizens and residents of the country who contribute to the Social Security Fund can receive free medical care through the National Health Service, SNS.

Can Americans buy real estate in Portugal? ›

Can You Buy Property in Portugal as a Foreigner? The short answer is YES! One of the most encouraging qualities of Portugal is that there are no restrictions for foreigners who want to buy a home in the country.

Home to approximately 87 different nationalities, Lisbon is the most popular place for expats to live in Portugal. The diversity of the city makes it a very dynamic and exciting place to live.

How much money do you need to retire in Portugal? Depending on location and lifestyle, the cost of living in Lisbon can range from $2,000–$3,500 per month. Outside of the bigger cities, you can expect to spend less.

To rent an apartment in Portugal you will need a Portuguese fiscal contribution number or NIF (“Número de Identificação Fiscal”) and your identification documents. Then you will be able to sign a tenancy contract (“Contrato de Arrendamento”).

In Lisbon, prices start around $500,000 for a modern, two-bedroom apartment near the city center. Settle easily into Portugal's Algarve where prices for a two-bedroom, modern apartment in the town of Tavira start around $280,000, while a semi-detached house would go for $400,000.

"Nationally, the cheapest place to rent in Portugal is Chaves (with average monthly rent of 354 euros). Lousada, with monthly rent of 467 euros, closes the top 20 of the cheapest municipalities to rent a house in Portugal", according to the specialists at idealista/data.