Portugal, officially named Portugal, is a country primarily on the Iberian Peninsula in southwestern Europe. It is the westernmost country in Europe, bordered to the west and south by the Atlantic Ocean and to the north and east by Spain. The population is 10,352,042, the capital is Lisbon, the official language is Portuguese. Portugal is a secular country with freedom of religion and consciousness. Portugal is the oldest nation-state in the Iberian Peninsula and one of the oldest in Europe. Let’s take a closer look at the characteristics of employment in Portugal, what is the salary according to experience and the sector of the economy, taxes and what costs you will have in the country.
Minimum wage
According to official local government data, the minimum wage in Portugal in 2023 (before taxes) is €760 per month, subject to 14 payments during the year, and €886.7 if payments are made exactly 12 times. This amount is guaranteed to every full-time professional over the age of 18, including agricultural workers and domestic staff. The annual minimum wage in Portugal is 10,640 euros. This is the European Union average. For example, higher than in Poland and the Czech Republic, but lower compared to neighbouring Spain, not to mention the more successful countries of Western Europe. For example, the minimum wage in France in 2023 is 1,709 euros. Today, about 23.3% of workers in Portugal receive the minimum wage.
Average salary
According to local statistical offices, the average salary in Portugal in 2023 is 1,294 euros per month before taxes. After all mandatory deductions, the employee has about 930 euros. Men earn 1,395 a month and women earn 1,172. Compared to 2022, the average income of Portuguese has not changed much. Of course, the level of remuneration depends on the qualification, profession, experience and a particular city. For example, the net average salary in Lisbon is about 977 euros, and in the autonomous community of Madeira 782 euros. Experienced professionals with higher education earn 1,489 euros per month in Portugal, skilled workers 867 euros and workers without special qualifications 710 euros. The salary of managers exceeds 2,000 euros. In terms of sectors of the economy, the leading position is occupied by the distribution of electricity, gas and water, where average wages are about 2,965 euros and the least paid in the service sector (hotels and restaurants) are 913 euros.
Average salary by sector of the economy
Sector of the economy – Euro per month
§ Electricity, gas and water – 2 966
§ Financial and insurance activities – 2 374
§ International offices and institutions – 1 997
§ Mining – 1 596
§ Transport – 1 464
§ Education – 1 415
§ Public administration and defence – 1 269
§ Production – 1 225
§ Wholesale and retail trade – 1 224
§ Health and social work – 1 149
§ Construction – 1 103
§ Hunting, fishing, agriculture and forestry – 1 011
§ Accommodation and food – 914
Payroll taxes
In contrast to relatively small wages by European Union standards, taxes in Portugal are very significant and fully meet the standards of this country. The income of foreign workers (non-residents) earned in Portuguese territory is subject to taxation at a flat rate of income tax of 25%.
Income tax in Portugal in 2023
Annual income from 0 to 7 479 euros – 14.5%
Annual income from 7 479 to 11 284 euro – 23%
Annual income from 11,284 to 15,992 euros – 26.5%
Annual income from 15,992 to 20,700 euros – 28.5%
Annual income from 20 700 to 26 355 euro – 35%
Annual income from 26 355 to 38 632 euro – 37%
Annual income from 38,632 to 50,483 euros – 43.5%
Annual income from 50 483 to 78 834 euro – 45%
Annual income of over 78 834 euro – 48%
In addition to income tax, a social security contribution is deducted from the salaries of employees in Portugal. The overall rate is 34.75%, including 11% for the employee and 23.75% for the employer. In addition, persons with an income of more than 80,000 euros per year have to pay an additional solidarity tax of between 2.5% and 5%.
Expenditure in Portugal
Portugal is one of the safest countries with low crime rates and low cost of living. The country is famous for its beaches, especially in the Algarve, where a large number of foreigners live, own holiday homes or come annually for a holiday in the sun.
If you are planning to move to Portugal, the following information will help.
The majority of Portuguese residents own their own property. Housing ownership in Portugal is around 74%, well above the average for most countries. Since the real estate sector in the country is well developed, one can easily find a house to buy or rent.
§ Housing costs
One-bedroom apartment in the city center: € 500 – €1,200
One-bedroom apartment outside the city center: € 380 – € 809
§ Expenditure on food, groceries and restaurants
Cheap restaurant: 6 – 15 €
Coffee for removal: 0.70 – 3.00 €
Bottle of Coca-Cola: 1.00 – 2.00 €
1L milk: 0.48 – 0.99 €
bread: 0.64 – 2.00 €
12 eggs: 1.10 – 3.00 €
1 kg chicken fillets: 2.99 – 7.69 €
1 kg of beef: 5.99 – 15.00 €
1 kg apples: 0.80 – 2.29 €
1 kg white rice: 0.70 – 1.50 €
§ Transport tariffs
Regular price Monthly pass: 40.00 €
One-way ticket for local transport: 1,60 €
§ Price of the Internet
NOS 38.99 €/ month for 200 Mbps Fixed
MEO 14,99 €/ month + 5 GB
Vodafone 29,9 €/month for 2 Mbps
New €25/month for 250 Mbps
§ Expenses for clothing, personal belongings, fitness and leisure
Pair of jeans: 25 – 110 €
Summer dress: 17 – 40 €
Running shoes (sneakers): 40 – 100 €
Business shoes: 40 – 120 €
Short visit to the doctor (15 minutes): 57 €
Deodorant: 3.29 €
Shampoo: 4,71 €
Toilet paper (4 rolls): 1,83 €
Gym membership: 22 – 50 € per month
Ticket for film (cinema): 6 – 9 €