What is the current economic situation and cost of living in Portugal?

General description of Portugal

Portugal is a unique country, famous for its hospitality, diverse cultural palette, stunning beaches, and impressive natural landscapes. Here, the features of the medieval period organically blend with modern trends, creating a space where traditional and innovative ideas intertwine. This land offers numerous opportunities for people leading both a calm and an active lifestyle. In Portugal, there is a saying that reflects its spirit: "Our top priorities are football, food, and family."

Social sphere and infrastructure

Speaking of social infrastructure and public services, it is important to note the high standards characteristic of Portugal. The cleanliness of the environment and the quality of life here are at a commendable level, and the range of products and goods in stores meets the strict quality standards adopted in Europe. The roads in Portugal are well-maintained and cared for, and the education system includes many renowned institutions. As for the healthcare system, it is also among the best, attracting not only tourists but also foreign investors looking to invest in local real estate. An interesting initiative has been the "golden visa" program, which allows foreigners to obtain residency through the purchase of property, contributing to the increase in the number of people wishing to settle in this country.

Economic situation

As of today, the economic situation in Portugal is showing positive changes, indicating a gradual exit from the economic recession. The first three months of 2017 recorded an economic growth of 2.8% compared to the same period of the previous year. For the first time since 2010, the unemployment rate has dropped to 8.8%, which is a very encouraging result considering the average figures across Europe. Additionally, in 2016-2017, export volumes significantly increased, with growth ranging from 2% to 20%.

Expert opinions

The CEO of Beta-i, Pedro Rocha Vieira, emphasizes that "Lisbon and Portugal as a whole have become attractive destinations for both tourists and businesses." This rapid economic growth is driven not only by the increasing flow of tourists but also by the active development of the real estate market, which is drawing more interest from foreign investors. Additionally, this economic upturn is supported by positive European policies and record-low interest rates offered by the European Central Bank.

World Summit on Internet Technologies

Since 2016, Lisbon has hosted the World Summit on Internet Technologies, highlighting the city's growing significance on the global stage. Life in this nature-blessed region is filled with opportunities not only for entrepreneurs but also for families with children looking for comfortable living and educational conditions.

Standard of living and budget for a family

When it comes to the standard of living, it is worth noting that Portugal offers a variety of opportunities for a comfortable existence. Key factors include:

• Prices for food and transportation that remain affordable for the majority of the population;
• Basic expenses for clothing, cosmetics, and other accessories;
• The price of housing and rent.

Taking all these factors into account, the average monthly budget for a family with a child can vary. Different specialists offer various strategies for budget planning to manage finances wisely in this dynamic economic environment. Ultimately, Portugal presents itself as a country full of opportunities for work and development, as confirmed by both statistical data and the opinions of contemporary experts.

International Forum of Advanced IT Technologies

This international event, focused on cutting-edge information technologies, offers startups and investors unique opportunities for mutually beneficial collaboration, as well as allowing leading experts to showcase the latest advancements in the field of innovation. Lisbon has already established itself as a new "Silicon Valley" for European countries.

According to data from Forbes published in 2016, Portugal ranks 19th in terms of ease of doing business, while countries like Germany and France are in 21st and 26th places respectively, and Spain is in 29th place. In the World Economic Forum's report on global competitiveness for 2016-2017, Portugal confidently secured the 15th position among 138 countries studied.

The standard of living in Portugal

When it comes to the standard of living, it is quite acceptable in Portugal. In particular, in Lisbon, the average income is around 850 euros, which makes living in this city more affordable compared to several other Western European countries. Prices for essential goods, as well as for basic products, are significantly lower than in countries like France and Germany, which may surprise Muscovites who are used to higher rates.

Portuguese cuisine

We can't overlook Portuguese cuisine. It is known not only for its fish and meat dishes but also for its abundance of seafood. It also features a variety of fresh vegetables and fruits.

Among the popular alcoholic beverages, local wines and port wine stand out, with the largest wineries located in the picturesque Douro River valley, not far from the city of Porto. Local products, including traditional delicacies, can be easily purchased both in supermarkets and at markets.

Prices for groceries in supermarkets

The average prices for products in Portuguese supermarkets are as follows:

• A liter of milk costs 0.5-0.75 euros;
• A 500-gram loaf of bread costs about 0.7 euros;
• A kilogram of rice costs 0.6-1 euro;
• Pasta costs about 1.5 euros per kilogram;
• A pack of 12 eggs costs 1.2-2 euros;
• Local cheese weighing 1 kg costs 5-10 euros;
• A liter of olive oil costs about 5 euros.
• Chicken breasts - 3.5-5 euros per kilogram;
• Beef - 6-12 euros;
• 1 kilogram of ham — 15-30 euros;
• Octopuses and squids — 8-10 euros per kilogram;
• Tuna and dorado — 5-10 euros per kg;
• Trout - 10 euros per kilogram.

Fruits also have affordable prices.

• A kilogram of apples costs 1-1.9 euros;
• Bananas - 1 euro;
• Oranges - 0.9-1.5 euros;
• Tomatoes - 0.8 euros;
• Potatoes - 0.5-1.1 euros;
• Onion - 0.5-1.35 euros;
• A head of lettuce — 0.5-1.4 euros;
• A 1.5-liter bottle of water costs between 0.2 and 1 euro.

Prices for alcohol vary:

• A bottle of wine - from 3 euros;
• Local beer in a 0.5-liter bottle costs between 0.6 and 1.5 euros.
• A pack of cigarettes costs 4.5-5 euros.

Supermarkets and markets

Among the largest supermarkets present in Portugal, popular chains include Alisuper, Pingo Doce, Continente, Bom Dia, Lidl, and Mini Preço. They usually operate until 7:00 PM to 9:00 PM, depending on the location and store format. Don't forget about the farmers' markets that open on certain days, where you can find fresh products from local producers.

Restaurants and cafes

The Portuguese prefer homemade dishes and often cook for themselves, but they also enjoy dining out at restaurants. In more upscale establishments, the average bill is around 50-80 euros per person, while in more affordable restaurants, it ranges from 20 to 30 euros.Business lunch in American-style establishmentsIt will cost only 5-6 euros.

Street food in Portugal

Portugal is known for its street food, which is very popular among locals and tourists. For example, you can try fried sardines or tuna for just 4-5 euros, while a grilled stuffed bun will cost only 1.50 euros.

Espresso coffee, which is called "bika" in the country, can be purchased in traditional cafes for prices ranging from 0.60 to 0.70 euros, while coffee with milk costs between 0.70 and 1.20 euros. A cup of tea can be bought for 1 to 1.50 euros, whereas a glass of freshly squeezed orange juice costs about 2.50 euros. Prices for alcoholic beverages, such as beer or cola, range from 1 to 1.50 euros.

Public transport

Portugal has an extensive public transportation system. In major cities, you can get around by:

• buses
• trams
• metro
• taxi
• in funiculars and elevators

Many bus routes are equipped with free Wi-Fi. Considering environmental aspects, some vehicles operate on clean energy sources. Since February 2017, forchildren under 12 years oldA free pass has been established, but to obtain it, you need to get a special personalized card.

Discounts for adults

Adult passengers can also save significantly on travel by using a personalized zapping card. This tool offers more favorable rates:

• A single bus or tram ride costs 1.85 euros when you buy a ticket from the driver, while the price drops to 1.30 euros with a card.
• A single trip on the metro costs 1.45 euros, while with a card you can travel for 1.30 euros within an hour on any transport after activation.

Funiculars and special travel passes

If we consider the funiculars Bica, Glória, and Lavra, two rides will cost 3.70 euros, and again, discounts are available with a card. The Santa Justa lift in Lisbon will cost 5.15 euros for two rides. For those wishing to purchase a one-day pass for all types of public transport, the price will be 6.30 euros. A monthly transport pass in Lisbon costs 36.70 euros, while a single trip on the Transtejo/Soflusa ferry ranges from 1.25 to 2.70 euros, and a pass for Cacilhas will be 9.35 euros.

Travel passes for travelers

For travelers in the region, there is a Traveling-All-Lisboa pass, which costs 9.35 euros and includes all types of public transport, the metro, and suburban trains to Sintra, Cascais, and Azambuja. Ticket prices for high-speed trains start at 40 euros and can go up to 65 euros; regular trains cost between 24 and 40 euros, while tickets for suburban trains range from 3 to 7 euros. The price of express bus tickets starts at 20 euros and can increase to 35 euros.

Bicycle rental and taxi

As in many large European cities, in Portugal you can rent a bicycle, which will cost about 15-20 euros per day. In Lisbon, the initial fare for a taxi ride is 3.50 euros, and for each subsequent kilometer, you will need to pay an additional approximately 0.90 euros. However, it should be noted that from 9:00 PM to 6:00 AM, the rates may increase by 20%.

Rent a car

You can rent a car in Portugal from several different companies, such as Centauro, Guerin, Sixt, Avis, Budget, and others. Rental prices start at 15 euros per day, and the car can be rented by individuals aged 21 to 75 years.

Travel and fuel costs

Don't forget that the price you provided does not include fuel costs. The current gas prices are as follows:

• €1.5 for 95 unleaded
• €1.7 for the 98th
• €1.3 for diesel

There are 24 toll roads in the country, with toll prices ranging from €1.7 to €19.30. If you are interested in purchasing an entry-level car, for example,Toyota Corollawith a 1.6 engine (97 kW) orVolkswagen Golf1.4 (90 kW), so be prepared to shell out around €25,000.

Prices for basic goods

When it comes to essential goods like clothing, cosmetics, and various accessories, you can find almost all well-known brands in Portugal that are also available in other European Union countries. The price of such items depends on the brand; however, local manufacturers offer products at more affordable prices and often make them from quality materials.

Buying real estate in Portugal

Acquiring a secluded property in the picturesque corners of the Portuguese countryside, such as Albufeira, Algarve, Lagos, or Vilamoura, is becoming a realistic goal with a budget of 500,000 to 600,000 euros. However, if you are interested in resort areas, be prepared to spend at least 1 million euros.

Large cities and their offerings

In large cities like Lisbon, Porto, Braga, Sintra, and Coimbra, you can find modern apartments with an area of at least 100 square meters. These apartments can include three to five bedrooms and are located in prestigious residential complexes, with prices starting from 500,000 euros and above.

Real estate tax

Throughout the year, property tax in Portugal remains moderate. Its amount varies by region, but on average, it is around 0.3-0.8% of the assessed value.

• Highest tax ratesThey operate in tourist cities and the capital.
• In rural areasThe rates of most taxes will be significantly lower.
• Inherited real estate and vehiclesare not subject to taxation.

Comparison of expenses

According to statistical data, living in Porto, which is the second largest city in Portugal, is 70% cheaper than in New York. As for utility bills, such as internet and phone, their amount depends on the size of the apartment.

• For a living space of 40 square meters, the monthly expenses amount to approximately 70 euros.
• Payments for water supply fluctuate between 10-15 euros.
• Electricity will cost about 20 euros.
• Insurance costs range from 50 to 70 euros per month per person.

Telecommunication services

The country offers services from three main telecommunications operators: Vodafone, MEO, and NOS. Usually, package deals are available that include internet, television, and mobile services.

• Connecting to home internet will cost between 20 and 36 euros per month.
• The average cost of a minute of conversation is 0.13 euros.
• The cost of the SIM card is 10 euros.
• The rates, for example, a package with 5 GB of internet, 1000 SMS, and 1000 minutes for calls, costs about 16 euros.

Tax system

The tax system in Portugal includes three main categories of taxes:

• Real estate tax— is paid upon purchase and averages around 6%.
• Stamp duty on acquisition— fixed at 0.8%.
• Annual property tax— varies from 0.3% to 0.8% of the estimated value.

After five years of mandatory property ownership, foreign citizens have the right to sell it. If they are not tax residents of Portugal and spend less than 183 days in the country per year, they are required to pay a 28% capital gains tax. Additionally, rental income is also subject to a 28% income tax.

Medical system

In Portugal, both public and private medical institutions operate, providing a variety of services. There is a unified healthcare system for European Union citizens, which simplifies access to medical services for foreigners and tourists.

Monthly expenses for health insurance

Monthly expenses for health insurance in Portugal range from €50 to €70 per person. To register with a family doctor, residents of Portugal simply need to obtain a unique number at the nearest medical facility. It's important to note that the cost of prescription medications is significantly lower, which is an added benefit. Many doctors in Portugal speak English, making communication easier for foreigners.

The education system in Portugal

The education system in Portugal is similar to the Russian model, with both free public kindergartens and paid private institutions. Education begins at the age of six and continues for nine years in primary school.

Upon completing their primary education, students receive a diploma that is recognized in all European Union countries, which opens doors for further education and professional development.

Secondary education

Secondary education is not mandatory and is usually paid. The cost of education depends on the family's income, allowing parents to choose suitable educational institutions.

As part of the high school educational program, students can choose from various fields of study:

• traditional general education
• professional and technical
• technological
• specialized

The most in-demand field is the traditional one, which encompasses several key subjects, including social and natural sciences, as well as creative disciplines. Students who successfully complete high school receive a certificate, which significantly increases their chances of being admitted to university or obtaining a well-paying job.

Higher education

Higher education in Portugal is divided into university and polytechnic. Universities focus on humanities and natural sciences, while polytechnic institutions prepare specialists with an emphasis on practical aspects such as chemistry, engineering, and modern technologies.

In the first stage of education, which lasts three years, students earn a bachelor's degree. After that, by passing the necessary exams, they can continue their studies in a master's program to obtain a licenciatura diploma in one year.

Universities

There are 11 universities in Portugal, including nine public and two private ones. To enroll in a public university, applicants must successfully pass a state exam organized by the Ministry of Education of Portugal.

The bachelor's program is free, but an annual fee is required, which ranges from €570 to €920. As for the master's program, the tuition can vary from €920 to €8000 depending on the specific university and the program itself.

Thus, the education system in this country offers a variety of opportunities for those seeking to acquire quality knowledge and skills, despite the differences in tuition costs, which depend on the type of educational institution and its status.

Education in Portugal for Russian citizens

Studying in Portugal presents a wonderful opportunity for students from various countries, including Russia. Portuguese universities pay great attention to international students and welcome them. However, a key factor for admission is knowledge of the Portuguese language, and this aspect cannot be overlooked.

Higher education in Portugal offers a range of advantages for Russian citizens. After completing their studies and obtaining a diploma, students can expect internships in European Union countries, which creates excellent conditions for future employment. Additionally, during their studies, they have the opportunity to travel freely within the Schengen Area, enhancing prospects for cultural exchange and personal growth. It is also important to mention that graduates can stay in Portugal for up to six months after receiving their diploma to search for work, which is an added benefit.

Entertainment and leisure activities

Despite its modest size, Portugal offers a wide range of entertainment options for both locals and visitors. You can explore the country at a leisurely pace, whether through major cities or small villages and picturesque coastlines in a rented car. Outdoor picnics with friends and family are very popular among the Portuguese on weekends. For culture enthusiasts, there is a variety of exhibitions, festivals, and other events available.

• The ticket prices in the film collective range from 7 to 10 euros.
• Theater performances can be attended for an amount ranging from 10 to 45 euros.
• Visiting museums and historical landmarks will cost between 5 to 15 euros.

Portugal is the perfect destination for diving enthusiasts. The mild climate of Madeira is ideal for seaside resorts, where there’s a chance to swim with dolphins if you’re lucky. The Azores offer unforgettable emotions and allow you to enjoy unique sea excursions. Cascais has a vibrant nightlife for those who love active recreation: numerous lively bars, karaoke, attractions, and restaurants with live music. Estoril is famous for its casinos and entertainment options. For families with children, there are plenty of leisure options — water parks with various slides are scattered throughout the country.

• For example, an amusement park is being built near the Vila Real water park.
• The "KidZania" zoo features yachts and aquariums.
• Nature lovers can visit the safari park located in Badok.

Family budget in Lisbon

If we analyze the average monthly expenses of a small family of three — two adults and a child — in Lisbon, we can make the following estimates. About500 eurosIt will be needed for food and hygiene products for the family, which will help maintain a relatively good standard of living in the capital of Portugal.

Thus, life and studying in Portugal offer Russian students numerous new opportunities for personal and professional growth, as well as excellent chances for active and engaging leisure activities.

Conclusion

In conclusion of my analysis of the economic situation in Portugal, I want to emphasize that this country not only attracts foreign investors and tourists but also provides its residents with a high quality of life. With its rich culture, beautiful natural landscapes, and developed infrastructure, Portugal is becoming increasingly appealing for living, especially for families with children. As we have already discussed, various aspects of life—from housing prices to the cost of goods and services—make this country particularly affordable compared to other Western European states.

With the growth of economic indicators, the level of unemployment and prices for goods show that life in Portugal is becoming more comfortable and predictable. The economic upturn, bolstered by a tourism boom and an active real estate market, indicates that Portugal is confidently moving forward. It is also important to remember that favorable conditions for business have been created here, making it an important player on the European stage.

Prospects for the future

For those considering a move or investments, Portugal offers huge opportunities.

• “Golden visa”and other programs make this country especially attractive to Russian-speaking citizens.
• The warmth and hospitality of the local residents.
• Comfortable conditions for living and doing business.

Every year, more and more people are discovering this extraordinary country, and I am confident that positive trends will continue in the future. As one delves deeper into the economic and social life of Portugal, it can be said with certainty: this place truly has everything for a comfortable and happy existence.