Do you know what comes after selecting a country to live in? Well, it is identifying the living expenses. However, many people skip this thing and move on to the next one, only to realize this mistake later. If you have selected Portugal to start a new life, you must know its living expenses first. We have prepared this article to provide you with a comprehensive look at living expenses in Portugal.
Moving to a foreign country comes with its challenges. One thing that can help reduce these challenges is researching everything a bit earlier. For instance, you must know the cost of living in Portugal. It might help you plan your finances correctly. So you don’t have to experience problems regarding the same.
There are some misconceptions about the living expenses in this country. People from different countries see it as an expensive one. But what is the reality? Well, Portugal is far more affordable than other European countries. Unfortunately, only a few individuals have extensive knowledge regarding it.
If you plan to become a resident of Portugal, make sure to do financial planning. Financial planning is a crucial part of the process. It not only helps in managing the finances but also in avoiding certain risks that arise due to improper budgeting.
You can read this article till the end to learn more about how to budget for living in Portugal. Let’s dive right into it without further ado.
What Are The Overall Living Expenses In Portugal?
Living expenses of every country vary because of many reasons. Everyone should be familiar with these expenses before relocating to a foreign country.
As for Portugal, we already mentioned that it is not that expensive to live here. But the cost of living depends on various things. An individual decides to spend the money according to their income. So it makes all the difference. But here, we will only provide you with information that applies to everyone.
Different types of costs are involved in the living expenses. Therefore, it is essential to know about them if you are considering Portugal as a relocation country.
Housing expenses
Living in a foreign country is impossible without having a proper house. The best part about Portugal is that you can find many affordable housing options. It is your wish to choose them according to your budget.
Before selecting a home, you must always set a budget. This way, you can avoid additional costs affecting your finances. You must plan everything carefully as your future will depend on the same.
If you have a low budget, you can search for some rental apartments. A one BHK flat costs around €350 to €670 per month. You can also consider sharing a room if you can’t afford that much amount.
Some people also consider buying a home instead of renting it out. Well, in that case, too, you have numerous options. You only need to research well and explore as much as possible.
You can buy a property in the inner provinces of the country if you have a low budget. The average cost of these homes is under $100,000. As a result, you can save your income with such an option. These apartments are not too large or small. They are medium-sized. And you don’t have to worry about the facilities. These regions also offer good amenities that everybody likes.
Besides this, you can select the country’s outer provinces to explore apartments. These cost a bit higher than inner areas because there is a vast difference in location. The average cost is around $150,000. If you can afford the same, you can buy it without blinking twice.
The cost of these apartments or houses also varies according to the location. Some people prefer buying homes in the city center, and others prefer outside. Properties in the city center cost around €2,955, and outside, it is around €1,995 per square meter. Make sure to pick the right choice according to your budget. That is how you can manage your expenses better and save money for future purposes.
Taxes
Taxes in Portugal are another thing that is included in the living expenses. But the good part is it depends on your residency status. Well, the residency status varies from person to person. It is calculated by the total number of days a person has been living in the country. And it further assists in calculating the entire tax amount an individual has to pay to the government.
For instance, you must pay taxes on your overall income if you live in the country for more than 183 days a year. This income includes all the earnings from all your businesses in different countries. In other words, a resident has to pay taxes on their worldwide income. On the other hand, if you are a non-resident ( meaning you travel more and live for less than 183 days), you have to pay taxes on your income. The percentage of taxes is 25%.
Cost of Utilities
The living cost of Portugal also includes utilities like electricity bills, water bills, and more. Although these expenses are not prominent, they are a part of the living cost. As mentioned earlier, everybody has a different way of spending money. So the overall utility expenses might also vary from person to person.
The cost of utilities is also different because of the size of the apartment. If you have a large house, the expenses might also be higher. So plan everything accordingly to save some of your money and reduce the expenses.
You should always make a budget for spending your money on utilities. Otherwise, it might become challenging for you to continue in the long run, and your finances might also get affected.
The Takeaway
The most significant part of choosing any foreign country for relocation is the living expenses. You must be familiar with all these costs to select a particular country. After that, it will is possible for you to have proper financial planning for the present as well as the future. We hope this article helped you understand the living cost of Portugal.
