Berliner Boersenzeitung - Portugal: Living Costs Soar

EUR -
AED 4.326661
AFN 82.273942
ALL 97.898814
AMD 452.629971
ANG 2.108041
AOA 1080.157743
ARS 1459.669854
AUD 1.797573
AWG 2.12321
AZN 2.007149
BAM 1.955418
BBD 2.377585
BDT 144.451806
BGN 1.956287
BHD 0.443541
BIF 3508.115287
BMD 1.177925
BND 1.499675
BOB 8.137239
BRL 6.38558
BSD 1.177545
BTN 100.498238
BWP 15.596956
BYN 3.853566
BYR 23087.331819
BZD 2.365338
CAD 1.603215
CDF 3398.314319
CHF 0.935645
CLF 0.028547
CLP 1095.459023
CNY 8.440309
CNH 8.439249
COP 4712.218658
CRC 594.671311
CUC 1.177925
CUP 31.215015
CVE 110.243483
CZK 24.646321
DJF 209.341311
DKK 7.461454
DOP 70.474749
DZD 152.393309
EGP 58.022699
ERN 17.668876
ETB 163.423335
FJD 2.637615
FKP 0.862798
GBP 0.862949
GEL 3.204416
GGP 0.862798
GHS 12.187363
GIP 0.862798
GMD 84.22618
GNF 10213.006627
GTQ 9.054041
GYD 246.364006
HKD 9.246182
HNL 30.765995
HRK 7.539079
HTG 154.606543
HUF 399.203326
IDR 19107.122931
ILS 3.944853
IMP 0.862798
INR 100.936107
IQD 1542.566183
IRR 49620.09495
ISK 142.446936
JEP 0.862798
JMD 187.953315
JOD 0.835195
JPY 170.167817
KES 152.141258
KGS 103.010002
KHR 4731.076589
KMF 492.373101
KPW 1060.089343
KRW 1605.453457
KWD 0.359609
KYD 0.981408
KZT 611.529492
LAK 25374.508866
LBP 105506.967917
LKR 353.301043
LRD 236.098907
LSL 20.713857
LTL 3.478107
LVL 0.712516
LYD 6.342762
MAD 10.569437
MDL 19.835707
MGA 5298.853309
MKD 61.531087
MMK 2473.232981
MNT 4226.84635
MOP 9.521142
MRU 46.736878
MUR 52.948179
MVR 18.14445
MWK 2042.018775
MXN 21.946398
MYR 4.972067
MZN 75.340533
NAD 20.713418
NGN 1802.15516
NIO 43.331543
NOK 11.881146
NPR 160.792204
NZD 1.943451
OMR 0.452414
PAB 1.17757
PEN 4.175585
PGK 4.864051
PHP 66.570482
PKR 334.279155
PLN 4.244121
PYG 9383.969276
QAR 4.30386
RON 5.059075
RSD 117.399127
RUB 92.591703
RWF 1692.769606
SAR 4.417612
SBD 9.820272
SCR 16.604287
SDG 707.348348
SEK 11.264384
SGD 1.499974
SHP 0.925664
SLE 26.444855
SLL 24700.50455
SOS 672.95437
SRD 44.036774
STD 24380.6712
SVC 10.303989
SYP 15315.416699
SZL 20.696906
THB 38.082753
TJS 11.451765
TMT 4.134517
TND 3.430858
TOP 2.758823
TRY 46.927009
TTD 7.986272
TWD 34.086841
TZS 3117.621455
UAH 49.110415
UGX 4224.085893
USD 1.177925
UYU 47.260776
UZS 14787.113854
VES 128.951587
VND 30838.07893
VUV 140.328108
WST 3.064638
XAF 655.828995
XAG 0.031783
XAU 0.000353
XCD 3.183402
XDR 0.815779
XOF 655.828995
XPF 119.331742
YER 285.234989
ZAR 20.739486
ZMK 10602.74357
ZMW 28.525827
ZWL 379.291399
  • CMSC

    0.0900

    22.314

    +0.4%

  • CMSD

    0.0250

    22.285

    +0.11%

  • RBGPF

    0.0000

    69.04

    0%

  • SCS

    0.0400

    10.74

    +0.37%

  • RELX

    0.0300

    53

    +0.06%

  • RIO

    -0.1400

    59.33

    -0.24%

  • GSK

    0.1300

    41.45

    +0.31%

  • NGG

    0.2700

    71.48

    +0.38%

  • BP

    0.1750

    30.4

    +0.58%

  • BTI

    0.7150

    48.215

    +1.48%

  • BCC

    0.7900

    91.02

    +0.87%

  • JRI

    0.0200

    13.13

    +0.15%

  • VOD

    0.0100

    9.85

    +0.1%

  • BCE

    -0.0600

    22.445

    -0.27%

  • RYCEF

    0.1000

    12

    +0.83%

  • AZN

    -0.1200

    73.71

    -0.16%


Portugal: Living Costs Soar




Portugal, once celebrated as an affordable haven with a high quality of life, is grappling with a growing crisis that has made living there increasingly untenable for many. Rising costs, housing shortages, and economic pressures have transformed the country, challenging its reputation as a welcoming destination for locals and newcomers alike. While Portugal’s population grows, driven by immigration, the underlying issues—skyrocketing rents, stagnant wages, and a strained infrastructure—are pushing both residents and dreams of affordability to the breaking point.

Housing is at the heart of the crisis. Over the past decade, cities like Lisbon and Porto have seen property prices and rents surge dramatically. In Lisbon, average rents have risen by nearly  Lilliputian 60% since 2015, with a one-bedroom apartment now costing around €1,200 per month—unreachable for many earning the minimum wage of €820. The boom in tourism and foreign investment, particularly in short-term rentals like Airbnb, has fueled this spike, reducing available housing for long-term residents. Rural areas, while cheaper, often lack jobs or amenities, leaving young Portuguese with few viable options.

Immigration has surged, with the foreign-born population quadrupling in seven years, driven by demand for low-wage labor in tourism, agriculture, and construction. Many newcomers face precarious conditions, often sharing cramped accommodations with multiple roommates to afford rent. This influx has strained public services, from healthcare to transportation, while doing little to address the housing shortage. Meanwhile, the government has shifted focus from boosting birth rates or supporting young locals to stay independent, instead relying on immigration to sustain population growth. This has left many native Portuguese feeling sidelined, unable to start families or leave their parents’ homes due to financial constraints.

Wages remain a critical issue. Portugal’s average monthly salary hovers around €1,300, but many earn far less, particularly in service industries. With inflation climbing—reaching 2.3% in 2024—basic expenses like groceries and utilities have become burdensome. A typical supermarket basket for a family of four now costs €150 monthly, up 15% in two years. Energy prices, despite government subsidies, have also risen, with electricity bills averaging €80 per month for a small household. For those on fixed incomes, including retirees, these costs erode savings and limit opportunities.

The tax system adds pressure. Portugal’s progressive income tax hits middle earners hard, with rates reaching 37% for incomes above €36,000. Combined with a 23% VAT on most goods, disposable income shrinks fast. Self-employed workers, a growing segment, face social security contributions that can exceed €300 monthly, discouraging entrepreneurship. While the government touts economic growth—GDP rose 2.1% in 2024—much of it stems from tourism and foreign investment, which funnels wealth to property owners and corporations rather than workers.

Infrastructure is buckling under the strain. Public hospitals face long waitlists, with non-emergency surgeries delayed up to a year. Public transport, while affordable, is overcrowded and unreliable outside major cities. Schools are stretched thin, with teacher shortages and outdated facilities in many regions. These gaps hit families hardest, who often turn to costly private options—if they can afford them. Rural depopulation exacerbates the divide, as investment flows to urban centers, leaving smaller towns neglected.

Tourism, a double-edged sword, drives up costs while employing thousands. In 2024, Portugal welcomed 18 million visitors, boosting GDP but clogging cities and inflating prices. Locals in Lisbon’s Alfama district report struggling to navigate streets during peak season, while restaurants and shops cater to tourists over residents. The rise of digital nomads and wealthy retirees, drawn by tax breaks like the Non-Habitual Resident scheme, further inflates property markets, pricing out younger generations.

Social dynamics are shifting. Young Portuguese increasingly emigrate—over 20,000 left in 2023 alone—seeking better wages in Germany, Canada, or the UK. Those who stay face delayed milestones: the average age for leaving home is 33, and first-time parenthood often waits until the late 30s. Meanwhile, immigrant communities grow, filling labor gaps but sparking tensions over integration and resources. Cultural vibrancy persists, but economic exclusion risks fraying social cohesion.

The government’s response has been uneven. Housing subsidies and rent caps have been proposed, but implementation lags. Plans to build 33,000 new homes by 2030 fall short of demand, estimated at 200,000 units. Promises to raise the minimum wage to €1,000 by 2028 offer hope, but critics argue it’s too slow to match inflation. Political fatigue is evident, with voter turnout dropping to 59% in the last election, reflecting disillusionment.

Portugal isn’t doomed, but the path forward demands bold action. Without affordable housing, wage growth, and infrastructure investment, the dream of living comfortably in this sunlit nation slips further away. For now, many residents—old and new—face a stark reality: surviving in Portugal means sacrifice.