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Old Dec 8th 2017, 3:16 pm   #1
KateB8 Female
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Question Monthly Living Costs in Portugal

Hi there...

I am planning to retire to Portugal within the next few years.
However, in order to do so; I need to know how much income I will need so that I can plan financially.

Can you tell me what bills I would expect to pay and how much (say on average monthly)...

Items would include:
  • Government Taxes
  • Local Taxes
  • Property Taxes
  • Electricity
  • Gas
  • Water
  • Food
  • Petrol
  • etc.

Can you help me. If you'd prefer not to post on the Forum, then please feel free to PM me.

If you can assist, I'd be most grateful.

Kind regards
Kate
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Old Dec 8th 2017, 3:58 pm   #2
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Default Re: Monthly Living Costs in Portugal

Quote:
Originally Posted by KateB8 View Post
Hi there...

I am planning to retire to Portugal within the next few years.
However, in order to do so; I need to know how much income I will need so that I can plan financially.

Can you tell me what bills I would expect to pay and how much (say on average monthly)...

Items would include:
  • Government Taxes
  • Local Taxes
  • Property Taxes
  • Electricity
  • Gas
  • Water
  • Food
  • Petrol
  • etc.

Can you help me. If you'd prefer not to post on the Forum, then please feel free to PM me.

If you can assist, I'd be most grateful.

Kind regards
Kate

I think you need to start at the beginning - are planning to buy a house , an apartment or rent somewhere ? Do you intend to live in the expensive suburbs of Lisbon or the lower cost regions such as the Algarve or Alentejo ?

If you are planning to retire and have not lived in Portugal before you may be interested and qaulify for the government Non-Habitual Residence status. Put briefly ( you will need to research it more ) you could qualify for ten years of no tax on your pension income. This PWC guide will help you understand :
https://www.pwc.pt/pt/fiscalidade/im...ept_secret.pdf

Daily living costs vary a huge amount depending on the lifestyle you want but, with the exception buying a car and the cost of petrol, expect to pay less for nearly everything when compared to the UK or even next door Spain.

Difficult to be more precise until you set out your plan.
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Old Dec 8th 2017, 5:37 pm   #3
KateB8 Female
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Default Re: Monthly Living Costs in Portugal

Quote:
Originally Posted by Loafing Along View Post
I think you need to start at the beginning - are planning to buy a house , an apartment or rent somewhere ? Do you intend to live in the expensive suburbs of Lisbon or the lower cost regions such as the Algarve or Alentejo ?

If you are planning to retire and have not lived in Portugal before you may be interested and qaulify for the government Non-Habitual Residence status. Put briefly ( you will need to research it more ) you could qualify for ten years of no tax on your pension income. This PWC guide will help you understand :
https://www.pwc.pt/pt/fiscalidade/im...ept_secret.pdf

Daily living costs vary a huge amount depending on the lifestyle you want but, with the exception buying a car and the cost of petrol, expect to pay less for nearly everything when compared to the UK or even next door Spain.

Difficult to be more precise until you set out your plan.
Thank you for that.

I have never lived there but I do have a bank account in Lisbon.

I plan to buy a property in the Caiscais area and am on track with saving for that goal.

I live a modest lifestyle; I would probably buy a scoter for getting about locally and use the train and buses for further afield.

My income would be from various sources as my pension will not commence until 2028. That is part of my plans to use the return on my investments and I need to know by how much I should increase these.

So what I would like is to make an estimate of basic living costs, add contingencies for health insurance, travel and other ad hoc costs so that I have an idea on how much to invest.

I just want to know what costs I'm likely to incur and some ballpark figures.

Currently I live and work in the Middle East and am at a complete loss as to how much even food would cost. The economy here is very much different.
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Old Dec 8th 2017, 5:38 pm   #4
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Default Re: Monthly Living Costs in Portugal

Can anyone else help me too.

The more data I have, the better.

Kindest regards
Kate
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Old Dec 8th 2017, 6:13 pm   #5
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Default Re: Monthly Living Costs in Portugal

Can't help you with Tax as that depends on your personal circumstances but....

Electricity - 50 Euros a month for a property without a pool. The unit price is 0.1652 per KWH so work out which appliances you use and for how long long per day to get a more accurate figure.

Gas - Roughly 10 Euros a month but I've included this within the above electricity figure as we have both supplies with the same supplier.

Water - Roughly 20 Euros per month. Without a pool but including washing machine use.

Food - Depends on what you like to eat. 250 Euros per month should be enough if you buy at one of the various supermarkets and cook your own meals. This figure includes enough boxed wine to keep you constantly lubricated.

Petrol / Diesel - Depends on how much you drive. Petrol is much more expensive here than diesel at roughly 1.50 Euros per litre. I've been buying diesel at 1.15 Euros per litre for months.

Internet & TV - Roughly 35 Euros a month for a good internet connection and decent TV package.

Hope that helps.

EDIT

What you will quickly realise is that properties here are rarely equipped with adequate heating or insulation. Hopefully you'll be able to find a property with a gas fired central heating system (radiators) for cost efficient heating over winter.

Last edited by Ton; Dec 8th 2017 at 6:37 pm. Reason: Heating
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Old Dec 8th 2017, 6:32 pm   #6
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Default Re: Monthly Living Costs in Portugal

Quote:
Originally Posted by KateB8 View Post
Thank you for that.

I have never lived there but I do have a bank account in Lisbon.

I plan to buy a property in the Caiscais area and am on track with saving for that goal.

I live a modest lifestyle; I would probably buy a scoter for getting about locally and use the train and buses for further afield.

My income would be from various sources as my pension will not commence until 2028. That is part of my plans to use the return on my investments and I need to know by how much I should increase these.

So what I would like is to make an estimate of basic living costs, add contingencies for health insurance, travel and other ad hoc costs so that I have an idea on how much to invest.

I just want to know what costs I'm likely to incur and some ballpark figures.

Currently I live and work in the Middle East and am at a complete loss as to how much even food would cost. The economy here is very much different.
Cascais is one of the more expensive areas but you will certainly manage there with a scooter as local transport good.

Ton has given you some ballpark figures but I would add a bit more to all of those and then add health insurance. Few insurers here take on pensioners, they tend to abandon them ! One expat organisation Afpop has a a good deal with Allianz which for a single person is about €800,- a year and no application medical.
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Old Dec 8th 2017, 7:36 pm   #7
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Default Re: Monthly Living Costs in Portugal

Google cost of living Portugal & check the various areas
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Old Dec 9th 2017, 7:27 am   #8
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Default Re: Monthly Living Costs in Portugal

Ton is quite correct with his ball park figures. Our food bill is about €200 pm for 2 people and includes ample wine.

Our rent is €375 pm but is a fully furnished 2 bed modern flat.

As to tax, you have non fixed property investments I presume. Capital Gains on them are taxed at a fixed 28% rate with no exclusions and NHR status will give you no relief.
Your country of residence may charge you Departure Tax whereby all your investments are deemed as sold on the day of departure and re-purchased at the same price the next day. This may leave you with a hefty CGT bill but your base cost will readjust to the new level for Portugal tax.
This is the common scenario but it depends on the DTA so read it first.
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Old Dec 9th 2017, 9:09 am   #9
KateB8 Female
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Default Re: Monthly Living Costs in Portugal

Quote:
Originally Posted by Ton View Post
Can't help you with Tax as that depends on your personal circumstances but....

Electricity - 50 Euros a month for a property without a pool. The unit price is 0.1652 per KWH so work out which appliances you use and for how long long per day to get a more accurate figure.

Gas - Roughly 10 Euros a month but I've included this within the above electricity figure as we have both supplies with the same supplier.

Water - Roughly 20 Euros per month. Without a pool but including washing machine use.

Food - Depends on what you like to eat. 250 Euros per month should be enough if you buy at one of the various supermarkets and cook your own meals. This figure includes enough boxed wine to keep you constantly lubricated.

Petrol / Diesel - Depends on how much you drive. Petrol is much more expensive here than diesel at roughly 1.50 Euros per litre. I've been buying diesel at 1.15 Euros per litre for months.

Internet & TV - Roughly 35 Euros a month for a good internet connection and decent TV package.

Hope that helps.

EDIT

What you will quickly realise is that properties here are rarely equipped with adequate heating or insulation. Hopefully you'll be able to find a property with a gas fired central heating system (radiators) for cost efficient heating over winter.
Thanks Ton,

That was very helpful and is a good start.

What about the equivalent of Council Tax; is there such a thing, and if so how much do you pay roughly?
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Old Dec 9th 2017, 9:13 am   #10
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Default Re: Monthly Living Costs in Portugal

Quote:
Originally Posted by Ton View Post
EDIT

What you will quickly realise is that properties here are rarely equipped with adequate heating or insulation. Hopefully you'll be able to find a property with a gas fired central heating system (radiators) for cost efficient heating over winter.
Thanks, yes I noticed that too.
I'd be looking to instal some kind of heating; I can do most DIY myself.

I'm also allowing to install a fully equipped kitchen too. Most Portuguese kitchens I've seen are not up to my standards.
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Old Dec 9th 2017, 9:17 am   #11
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Default Re: Monthly Living Costs in Portugal

Quote:
Originally Posted by Ukkram View Post
Ton is quite correct with his ball park figures. Our food bill is about €200 pm for 2 people and includes ample wine.

Our rent is €375 pm but is a fully furnished 2 bed modern flat.

As to tax, you have non fixed property investments I presume. Capital Gains on them are taxed at a fixed 28% rate with no exclusions and NHR status will give you no relief.
Your country of residence may charge you Departure Tax whereby all your investments are deemed as sold on the day of departure and re-purchased at the same price the next day. This may leave you with a hefty CGT bill but your base cost will readjust to the new level for Portugal tax.
This is the common scenario but it depends on the DTA so read it first.
Thanks Ukkram,

I've added your assessment of food cost (including wine ) to my assessment. My experience of Iberian wine costs are that they are extremely cheap compared to the UK.

I have a mixed portfolio of investments and have another spreadsheet for those; but thank you.
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Old Dec 9th 2017, 9:19 am   #12
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Default Re: Monthly Living Costs in Portugal

Quote:
Originally Posted by Loafing Along View Post
Cascais is one of the more expensive areas but you will certainly manage there with a scooter as local transport good.

Ton has given you some ballpark figures but I would add a bit more to all of those and then add health insurance. Few insurers here take on pensioners, they tend to abandon them ! One expat organisation Afpop has a a good deal with Allianz which for a single person is about €800,- a year and no application medical.
Yes, I chose that area because it's not in Lisbon but easy to get there. I was thinking of Tavira; but it is quite remote and I'd get bored.

What about local taxes?
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Old Dec 9th 2017, 9:27 am   #13
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Default Re: Monthly Living Costs in Portugal

Can anyone else chip in with a few costs...
There is...
  • Car insurance
  • Car - Road Fund Cost?
  • House Insurance
  • Dentistry Check Ups
  • Eye Check Ups
  • Hairdressing
  • etc...
Or maybe just an overall cost. I found on Google a cost of $300 per month and based on the above responses; I'm about double that already!
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Old Dec 9th 2017, 9:49 am   #14
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Default Re: Monthly Living Costs in Portugal

[QUOTE=KateB8;12396589]Yes, I chose that area because it's not in Lisbon but easy to get there. I was thinking of Tavira; but it is quite remote and I'd get bored.

Think you might be mistaken. Tavira is not at all remote and is easily accessible from Faro Airport. Lots to do in the Eastern Algarve area, and only half an hour from Spain. Worth a bit more research in my opinion.
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Old Dec 9th 2017, 9:55 am   #15
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Default Re: Monthly Living Costs in Portugal

I must say Kate B8, you are obviously misinformed about Tavira being remote. Have you ever been ? As tootlewagon rightly says, you need to do a lot more research.
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