Cost of living in Portugal vs United Kingdom and United States

Coût de la vie Portugal vs France - cost of living in Portugal

It is often said that the cost of living in Portugal is cheaper than in countries like the United Kingdom and the United States of America, but is that really the case?

People from many countries want to spend their retirement years in Portugal for many reasons like the weather, beaches, cultural and natural richness, etc.

However, one that is really important is the ten-year IRS exemption (if you already pay in another country) or a 20% deduction if your income originates in Portugal. This tax exemption or deduction only applies for people living in Portugal at least 183 days per year.

Next, we’ll see if the cost of living in Portugal is really that different in comparison to other countries, specifically the UK and the USA.

Cost of living in Portugal, United Kingdom and United States

Groceries

Alimentation_coût de la vie au Portugal vs france

 

Apple Pink Lady 1 Kg

Apple Golden 1 Kg

Bananas 1 Kg

Coca Cola 500 ml

Actimel 12*100 g

Spaghetti 500 g

Oranges 1 Kg

Black grapes 500 g

Potatoes 1 Kg

Chicken 1 Kg

Tomatoes 1 Kg

Salmon fillets 1 Kg

Lamb cutlets 1 Kg

Sea bass 1 Kg

TOTAL

Portugal

2,59€

1,89€

0,99€

0,99€

4,89€

0,45€

1,29€

1,99€

1,09€

1,98€

0,99€

16,99€

12,48€

10,48€

59,09€ (-25% UK)                           (-42.29% USA)    

United Kingdom / USA

3£ / 5,70$

2£ / 4,50$

0,76£ / 1,85$

1,30£ / 3,70$

3£ / 9$

0,40£ / 1,09$

1,30£ / 3,50$

2£ / 4,45$

1£ / 1,90$

2,07£ / 5,60$

2£ / 3,90$

16,35£ / 33$

18,90£ / 17,60$

17,50£ / 25$

71,58£ = ~78,75€ / 120,79$= ~102,39€

The comparison has been made in August 2017 using the Portuguese sites continente.pt and jumbo.pt, the UK site tesco.com and the American site wholefoodsmarket.com – some of the biggest grocery stores in the respective countries.

Telecommunications

Télécommunications_coût de la vie au Portugal vs France

 

 

Internet + TV + Landline

phone

Mobile plan = unlimited

internet  (3 Gigas)

Subtotal =

iPhone 7 32 Gigas

Samsung Galaxy Tab S3

TOTAL 

Portugal

 

28,90€

17,49€

 

46,39€

779,99€

789,91€

1616,29€ (+ 11% UK)                                (+25% USA)

United Kingdom / USA 

 

24,95£ / 95,96$

18£ / 45$

 

42,95£ / 140,96$

690,88£ / 674,90$

572,90£ / 599$

1306,73£ = ~1439,95€ / 1414,86$ = ~1203,83€

The comparison “Internet + Tv + Landline Phone” was made in August 2017, between the Portuguese telecommunication provider Vodafone, the British Plusnet and the American Spectrum.

 

The iPhone 7 and Samsung Galaxy Tab S3 prices were based on the information provided in the Portuguese site Fnac.pt and in the British and American sites of Amazon.

Housing

Logement_coût de la vie au Portugal vs France
 

 

Average price m² for purchase

Electricity – kwh

Portugal

1135€ (-53% UK) (-67% USA)

0,16€ (+10% UK) (+30% USA)                                                                              

UK             /                USA

2216£        /              4061$

 

0,13£        /               0,13$

Sources: https://www.imovirtual.com/ (Portugal); http://www.dailymail.co.uk (for purchase – UK); https://www.numbeo.com (for purchase – USA)

Holidays

Loisirs_coût de la vie au Portugal vs France

 

 

Cinema

Cup of coffee

Restaurant (average price)

for 2 persons

TOTAL

 

Portugal

6,70€

0,70€

 

25€   

32,4€ (-49% UK) (-20% USA)

UK             /                USA

10£            /                12,60$

1,70£         /                2$

 

46£            /                32$

57,70£       /                 46,60$

Transportation

transports_coût de la vie au Portugal vs France

 

Metro Lisbon/London/New York*

 

Essence SP95 1 L*

 

Diesel 1 L*

 

Toyota RAV 4

Portugal

1,40€ (-47% UK) (-34% USA)

 

1,46€ (+15% UK) (+120% USA)

 

1,23€ (+/- the same UK) (+150% USA)

From 33 910€ (+20% UK) (+50% USA)                                                                          

UK             /                USA

2,40£          /                2,50$

 

1,16£          /                0,70$

 

1,17£         /                 0,67$

 

24 765£     /              24 410$

*Prices in August 2016

 

Other Expenses

Centre comercial colombo_coût de la vie au Portugal vs France

 

Men’s hairdresser

Zara Woman Leather Jacket

Paco Rabanne Invictus

Marlboro Cigarettes

Portugal

11€ (-47% UK) (-20% USA)

149€ (-25% UK) (-30% USA)

56€ (-7% UK) (+20% USA)

4,80€ (-52% UK) (-16% USA)

UK             /                USA

19£            /                16$

179£          /                249$

54,95£       /                 55$

9£              /                 6,70$

Earnings

Salaire_coût de la vie au Portugal vs France

 

National Minimum Wage* 

Minimum wage per hour (net)*

National Average Wage (net)*

Portugal

557€ (-60.5% UK)

2,95€ (-62.4% UK) (-83% USA)

846€ (-78.7% UK) (-72.2% USA)

UK             /                USA

1299,75£   /                 (**)

7,20£         /                20,40$

 

3632£       /                 3577$

*2017

** In the USA, there isn’t just a national minimum wage (each state has its own values). The earnings are calculated by hour – the average gross national minimum wage per hour is 22,10$.

Conclusion

Summing-up, the cost of living in Portugal is lower than in the United Kingdom and United States of America. If you’re thinking of moving into Portugal before or after your retirement, know that you won’t regret it!

It is true that if you work for a Portuguese company you won’t earn that much, but if you’re already retired or can work remotely for your home country company, than it is a fact that it’ll pay off!

Apart from the fact that the cost of living in Portugal is lower than in many countries, you can enjoy all the other things: the great weather, the wonderful gastronomy, the amazing monuments, the breathtaking landscapes and, of course, warm people.

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About Tiago

Tiago, 29 years old, Parisian since 12, I decided to go on an adventure and make my dream come true: get to know our country from one end to the other. I believe that if we don’t know our origins we don’t truly know ourselves. Read more here