USA vs Portugal: Cost of living
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Portugal has quickly become a popular choice for people who want a more relaxed lifestyle and lower living costs. This is especially true for Americans who want to get away from the high expenses and fast-paced lifestyle in the United States.
Many people from various parts of the world, including Americans, Europeans, South Americans, and Chinese, have been choosing Portugal as their new home in recent years.
This article will give you a comprehensive understanding of the living expenses you can anticipate in Portugal in comparison to the US.
Why is Portugal financially appealing to Americans?
Portugal is a wonderful place to relocate to because the cost of living is much lower than in the United States. Portugal is known for being one of the more affordable countries in Western Europe.
Numbeo's latest statistics show that consumer prices, including rent, are about 74% higher in the United States compared to Portugal. When it comes to eating out in the United States, the cost is approximately 91% higher compared to other options.
Additionally, grocery prices in the United States are about 89% higher. Therefore, the cost of daily expenses such as dining out, purchasing groceries, and renting a home is significantly lower in Portugal.
How can I move from the US to Portugal?
If you decide to relocate to Portugal from the United States, you must check what documents you'll need.
It all comes down to whether you have European nationality or not. If you are a citizen (with an issued passport or national ID) from any member of the European Union, European Economic Area, or Switzerland, you can move to Portugal immediately.
If you don't have an EU/EEA/Swiss nationality, you must apply as a third-party country, choosing a visa that will be the most suitable for you, scheduling an appointment at a Visa office or Portuguese embassy, gathering the required documentation, and requesting a visa.
Portugal has a wide range of visas suitable to several types of income or situation, such as retirees or passive incomers, entrepreneurs, students, and others.
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How does the cost of living compares between Portugal and the US?
The cost of living in Portugal versus the United States varies greatly, with Portugal being more affordable in most areas. Here's an overview of the main services:
Housing market comparison between Portugal and the United States
- Lisbon vs. New York, LA and SF
The real estate market in Lisbon has seen significant growth over the past few years. The city center's popularity among expatriates and remote workers has raised prices. But it remains cheaper than NY, LA and SF.
For rent:
- 1-bedroom apartment in Lisbon: €1,250 or $1,400 per month
- 1-bedroom apartment in NYC: €2,700 or $3,000 per month
- 1-bedroom apartment in LA: €2,245 or $2,500 per month
- 1-bedroom apartment in SF: €3,145 or $3,500 per month
For purchase:
- Lisbon: €5,000 or $5,560 per square meter
- NYC: €8,980 or $10,000 per square meter
- LA: €7,185 or $8,000 per square meter
- SF: €10,780 or $10,000 per square meter
Furthermore, in Lisbon, the quality of housing has improved. Many modern apartments and renovated historical buildings are now available. Living in Lisbon as an expatriate offers a favorable combination of affordable expenses and a high standard of living compared to US major cities.
2- Algarve vs. San Diego and Miami
The Algarve region in Portugal is well-known for its breathtaking coastline, pleasant climate, and laid-back way of life. Housing in the Algarve is much more affordable compared to similar coastal regions in the United States, like San Diego and Miami.
For rent:
- 1-bedroom apartment in the Algarve: €850 or $950 per month
- 1-bedroom apartment in San Diego: €2,245 or $2,500 per month
- 1-bedroom apartment in Miami: €2,245 or $2,500 per month
For purchase:
- Algarve: €3,000 or $3,340 per square meter
- San Diego: €5,840 or $6,500 per square meter
- Miami: €4,940 or $5,500 per square meter
When comparing these regions, it's worth noting that the Algarve provides a more affordable coastal living experience. Additionally, it offers the advantage of a slower pace of life and lower overall living costs.
The Algarve is a wonderful choice for retirees and expatriates who want a wonderful quality of life without spending too much. The cost of utilities, groceries, and dining out is noticeably lower, which makes it even more appealing.
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3- Porto vs. Boston, Chicago, and Seattle.
Porto is a city in Portugal that is known for its fascinating past, lively atmosphere, and lower cost of living when compared to Lisbon. The cost of housing in Porto is much cheaper compared to major cities in the United States such as Boston, Chicago, and Seattle.
For rent:
- 1-bedroom apartment in Porto: €850 or $950 per month
- 1-bedroom apartment in Boston: €2,700 or $3,000 per month
- 1-bedroom apartment in Chicago: €2,245 or $2,500 per month
- 1-bedroom apartment in Seattle: €2,245 or $2,500 per month
For purchase:
- Porto: €3,000 or $3,340 per square meter
- Boston: €8,085 or $9,000 per square meter
- Chicago: €5,390 or $6,000 per square meter
- Seattle: €6,290 or $7,000 per square meter
Both Portugal's rural regions and remote areas in the U.S. provide affordable living options, but there are significant differences in terms of lifestyle and amenities. Alentejo and Minho are regions that provide a traditional, slower-paced way of life. They are known for their strong community ties and cultural richness.
On the other hand, rural areas in the United States may provide more modern conveniences, but they may not prioritize community and cultural activities as much.
Healthcare costs comparison between Portugal and the United States
- Healthcare in Portugal
The public sector primarily provides healthcare services in Portugal, receiving funding from taxes. Public healthcare services are accessible to everyone and are usually reasonably priced or free, with minimal expenses for appointments, treatments, and medications.
Prices are as it follows:
- General Practioner Appointment (Public): €5 or $4,50
- Specialist Appointment (Public): €15 or $13,50
Patients often receive financial assistance for their medications, so they only have to pay a (small) portion of the total cost.
Many people opt for private healthcare because it offers shorter waiting times and access to advanced treatments. The cost of private healthcare in Portugal is much cheaper compared to the United States.
Prices are as it follows:
- General Practioner Appointment (Private w/o insurance): €50 or $45
- Specialist Appointment (Private w/o insurance): €100 or $90
- Insurance: From €150 or $135 per annum to €1,000 or $900 per annum
Portugal's healthcare system is known for its high quality and affordability, making it accessible to all. The OECD states that Portugal's healthcare outcomes are similar to those of more expensive countries. Portugal places a significant focus on primary care and preventative medicine.
2- Healthcare in the United States
The healthcare system in the United States is mostly private, and famously expensive. People usually get insurance either through their employers or by buying it directly.
Prices are as it follows:
- General Practioner Appointment (Private w/o insurance): €180 or $200
- Specialist Appointment (Private w/o insurance): €315 or $350
- Insurance: From €6,740 or $7,500 per annum per person
Although the U.S. healthcare system is more expensive, it does provide advanced treatments and technologies. However, there are still significant problems with access and affordability.
Utilities costs comparison between Portugal and the United States
- Utilities in Portugal and USA
Utilities in Portugal are usually cheaper compared to many areas in the U.S., but the actual costs can differ based on where you are and how much you consume.
The typical monthly cost for electricity, water, gas, and internet in a Portuguese household usually falls between €100 and €150, while in the United States a typical household in the U.S. usually spends around $150 to $300 per month on electricity, water, gas, and internet, though it can vary greatly depending on the specific region and climate.
The average of costs acan be seen here:
- Electricity, Water, Gas in Portugal (85m2 house): €116 or $130
- Electricity Water, Gas in the USA (85m2 house): €185 or $206.90
- Mobile phone in Portugal: €19.50 or $21
- Mobile phone in the USA: €48 or $55
- Internet in Portugal: €38 or $42.50
- Internet in the USA: €64 or $71
Portugal generally offers more affordable utility services, especially in terms of electricity and internet costs, when comparing utility costs with the United States. Portugal's mild climate in many areas means that residents don't have to rely heavily on heating or cooling systems, leading to lower electricity bills.
However, the costs of utilities can vary greatly across the 7 Portuguese regions, which can result in significantly higher living expenses for residents in certain areas solely due to utilities.
Groceries costs comparison between Portugal and the United States
- Groceries in Portugal and USA
When people in Portugal go grocery shopping, they usually go to big stores like Pingo Doce and Continente, while Americans head to Target, Costco, and Safeway or Whole Foods.
The prices of basic items like bread, milk, and fresh produce are usually cheaper in Portugal when compared to the United States.
You can find an overview below:
- 1 liter of milk in Portugal: €0.80 or $0.89
- 1 liter of milk in the USA: €1.35 or $1.50
- 1 kilogram of apples in Portugal: €1.50 or $1.67
- 1 kilogram of apples in the USA: €2.69 or $3.00
- 1 loaf of bread in Portugal: €1.20 or $1.34
- 1 loaf of bread in the USA: €2.25 or $2.50
In general, groceries in Portugal are cheaper compared to many parts of the U.S. Additionally, you have the advantage of being able to find fresh, locally sourced products. This helps to reduce the overall cost of living, especially when compared to large cities in the United States.
Transport costs comparison between Portugal and the United States
- Public Transport Costs in Portugal and the USA
Public transportation in Portugal is known for being efficient and reasonably priced., while systems in major cities such as New York, Los Angeles, and San Francisco are well-established, although they can be costly.The transportation systems in major cities such as Lisbon and Porto are well developed.
The cost of a monthly pass for unlimited travel or single tickets are more affordable in Portugal than in the US.
- Monthly pass in Portugal: €40 or $45
- Monthly pass in the USA: €90 or $100
- Single ticket in Portugal: €1.75 or $1.95
- Single ticket in the USA: €2.50 or $2.25
While m any parts of the U.S., especially suburban and rural areas, have limited public transportation options, in Portugal, this area receives significant financial support from the government, which helps to make it more affordable and available to the general public. This helps reduce the overall cost of living, especially for people who depend on public transportation for their daily commute.
- Fuel Prices and Transportation Costs
Fuel prices in Portugal are usually more expensive than in the United States. This is mainly because of higher taxes. In 2024, the average cost of a liter of gas in Portugal is about €1.85, while it is roughly $1.00 per liter in the United States. The variation in fuel prices can have a significant effect on the overall cost of owning a car and getting around in general.
In the United States, although fuel prices are lower, the expenses associated with owning and taking care of a car are higher because of factors such as insurance, registration, and maintenance. On the other hand, even though fuel prices are higher in Portugal, the lower cost of living and the availability of affordable public transport options help balance it out.
In general, transportation expenses, such as fuel and public transportation, are more expensive in the United States compared to Portugal. This contributes to a higher overall cost of living in the U.S.
Portugal's price transparency
In Portugal, the price you see on the tag for goods and services already includes the value-added tax (VAT). So, the price you see is what you pay at the register. The standard VAT rate in Portugal is 23%. For specific goods and services, there are also reduced rates of 13% and 6%. They designed this tax structure to ensure transparency for consumers. It means that there won't be any extra charges added when you make a purchase.
This system makes shopping easier for people and helps them keep track of their money. Because the final price is clear, there won't be any unexpected costs.
In the United States, the purchase usually includes sales tax. This implies that the price you see on the tag does not represent the final amount you will pay. The sales tax rates can differ significantly depending on the state. For instance, states like Delaware and Oregon have a 0% sales tax rate, while certain areas of California and Louisiana have taxes that exceed 10%. Consumers can become confused and frustrated, especially in areas where sales tax rates are higher.
Final words
There are significant differences in the cost of living between Portugal and the U.S. Portugal is known for providing a more affordable lifestyle compared to other places.
The costs of housing and healthcare are lower, making it easier on the wallet. Additionally, the inclusion of VAT in pricing adds transparency, so you know exactly what you're paying for.
Portugal is a wonderful choice for expatriates and people who are thinking about moving to a new country. It offers a lower cost of living, a high quality of life, and a tax system that is simple to understand.
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