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Moving to Portugal: Cost of Living, Salaries, Jobs & Taxes (2026)

Quick facts, monthly costs, job market overview and practical residency steps for relocating to Portugal.

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Moving to Portugal: At a Glance

Portugal is in Southern Europe, with its main hub in Lisbon. It’s known for a specific mix of lifestyle, work culture and affordability — and it can be a strong option for expats depending on your income level and priorities.

Best forlifestyle + affordable EU
Main expat hubLisbon
LanguageEnglish in cities, local language helps
BordersSpain, Atlantic Ocean
Quick decision tip: If you prioritize lifestyle, climate and affordable EU living, Portugal can be a great fit. If your top priority is maximum salary and very large job markets, compare it against Nordic/Western Europe in the country comparison tool.

Key Numbers (2026)

Average Salary€16,000/year
Rent€9/m²
English Proficiency60%
Unemployment6.6%
Data & methodology: Key numbers are indicative estimates compiled from public datasets (e.g. Eurostat/OECD), price indexes, and Europe Compass aggregation. Some figures shown as “%” are proxy scores (0–100) for readability. Updated 2026-01-15. See full statistics & methodology.

Job Market and Career Opportunities

Why Portugal Attracts Digital Nomads and Remote Workers

Portugal has become Europe's hottest destination for remote workers and digital nomads. While local salaries average just €16,000, the country excels for international remote work. With 60% English proficiency and unemployment at 6.6%, Portugal offers an ideal blend of affordability, lifestyle and growing tech opportunities.

Top Industries in Portugal

Technology & Startups

8/10

Rapidly growing tech hub with companies like OutSystems and international expansion.

Tourism & Hospitality

9/10

Major tourism destination with extensive hospitality and service opportunities.

Remote Work Services

10/10

Perfect for digital nomads, remote workers and location-independent professionals.

Job Applications and Remote Work

Portugal is ideal for remote work with international companies. Local jobs require Portuguese but growing international companies hire English speakers. D7 visa and Golden Visa programs attract international talent and investors.

Pro Tip for Job Hunting

LinkedIn and AngelList for tech jobs. Focus on remote work or international companies. 70% of digital nomads choose Lisbon or Porto for co-working communities.

Housing in Portugal

Europe's Most Affordable Housing

Portugal offers exceptional housing value for money. Average rent is €9/m², the lowest in Western Europe, with excellent availability (~65%). Purchase prices average €1,800/m² nationally, making homeownership very accessible for international buyers.

Major Cities by Housing Costs

Lisbon

+60% more expensive550k residentsCapital, tech hub, nightlife

Porto

+30% more expensive240k residentsHistoric port city, culture

Braga

Average price140k residentsUniversity city, affordable

Coimbra

-10% cheaper105k residentsHistoric university town

Apartment Hunting - Practical Tips

  • Use Idealista and OLX: Main Portuguese housing platforms
  • NIF number required: Portuguese tax number for contracts
  • Security deposits: Usually 1-2 months rent
  • Consider smaller cities: Incredible value outside Lisbon/Porto

Taxation and Net Salaries

Portuguese Tax System

Progressive tax with Non-Habitual Residency (NHR) benefits for newcomers. Average net salary ~€13,000 on €16,000 gross locally, but ideal for foreign income.

Income Tax Brackets 2025

Income BracketTax Rate
under €7,70014.5%
€7,700-11,00023%
€11,000-16,00028.5%
over €16,00035%+

NHR Program - Non-Habitual Residency

The NHR program offers 10 years of tax benefits: 20% flat rate on Portuguese income, potential 0% tax on foreign income for qualifying activities.

Key Benefits:

  • 20% flat tax on local income
  • 0% tax on foreign pensions/income
  • 10-year benefit period

Cost of Living

Monthly Essential Costs

Groceries and Daily Items

€220/month

Pingo Doce, Continente main chains. Local markets very affordable.

Transportation

€40/month

Public transport very affordable, excellent value.

Utilities

€90/month

Electricity €60, water €30.

Health Insurance

€40/month

Private supplement to public healthcare.

Internet and Mobile

€30/month

MEO, NOS and Vodafone. Very competitive prices.

Bureaucracy and Practical Matters

First Steps After Moving

1

NIF Number (Tax ID)

Apply at Finanças office or online. Required for everything. Duration: Same day possible.

2

SEF Registration

Register with immigration service if staying >3 months. Online appointment system.

3

Bank Account

Millennium, CGD or digital N26. Need NIF and proof of address.

Culture and Lifestyle

Welcoming International Community

Portugal is exceptionally welcoming to foreigners with 60% English proficiency. Strong expat communities, especially in Lisbon and Porto. Portuguese culture is relaxed and family-oriented.

Lifestyle Characteristics

Climate & Beaches

300+ days of sunshine, beautiful Atlantic coastline.

Safety & Peace

One of the world's safest countries with low crime rates.

Affordable Luxury

High quality of life at fraction of Northern European costs.

Summary: Pros and Cons

Advantages

  • Lowest housing costs in Western Europe (€9/m²)
  • Excellent climate and beaches
  • NHR tax benefits for 10 years
  • Perfect for remote work and nomads
  • Very safe and welcoming culture

Challenges

  • Very low local salaries (€16k average)
  • Limited local job market
  • Portuguese language for local integration
  • Rising housing costs in Lisbon

Final Recommendation

Best for: Remote workers, digital nomads, and location-independent professionals seeking affordable living, excellent weather and welcoming culture; not ideal for local employment seekers.

Overall Rating for Expats8.9/10