In terms of GDP, Portugal is not necessarily considered a “rich” country, ranking number 47 worldwide. A country's richness cannot also be measured solely through GDP. However, the Portuguese economy has been growing in recent years, despite the negative impact of the Covid-19 pandemic.
Indicators of economy in Portugal
Portugal is therefore currently ranked 48 of the major economies. If this is calculated per inhabitant, taking purchasing power parity into account, then Portugal ranks 39th in the list of the richest countries. Inflation in Portugal in 2021 was around 1.27%.
Spain is, according to the most recent FMI estimates, the 15th largest world economy (in PPP terms), with Portugal 55th. In terms of per capita GDP (PPP) the gap is smaller, with Spain ranking 32nd and its neighbour 43rd.
While Portugal is a highly developed state according to the UN definition, it is still significantly behind the United States on a number of the HDI measures (see Table 1).
In 2021, Portugal was among the European Union countries with the worst incomes. This was confirmed by the estimate of the 'per capita' Gross Domestic Product (GDPpc) released by Eurostat.
Low wages in Portugal
A major downside to living in Portugal is finding a well-paying job. Whether you are making minimum wage or the average salary, do not expect to make a lot of money. In 2022, the national minimum salary in Portugal is €705 a month before tax.
Living in Portugal offers many advantages: a warm climate, the Atlantic ocean, mountains nearby, a low crime rate and a relatively low cost of living. Medicine and education are well developed here, and residents are offered tax exemptions.
Among Portugal's chief exports are automobiles and transport components, machine tools, textiles, clothing, footwear, paper pulp, wine, cork, plastic molds, and tomato paste.
Portugal registers the greatest worsening of poverty in 2021 and becomes 8th worst in the EU. The drop in income in the first year of the pandemic pushed Portugal to the eighth position on the list of European countries with the highest risk of poverty and social exclusion in 2021, according to Eurostat data.
The average salary in Portugal: Statistics and trends. Portugal's average monthly salary is around 2750 EUR or 2676.42 USD. It's interesting to note that the average salary in Portugal is substantially lower than in the United States, where people earn approximately 7892 USD per month.
Overlooking Belém, in Lisbon, the Segundo Torrão, in Trafaria, came into existence 40 years ago. What started as a fishing community that grew over time, is now the largest slum in size in Lisbon, where there are people living in shocking conditions.
Portugal offers arguably the lowest cost of living in Western Europe. Just about everything, from accommodation to groceries, is affordable. Including rent, a couple can live comfortably in Portugal's interior, or in small cities, from about $2,500 a month.
Portugal's population is decreasing at a rate of 0.29%, roughly 30,000 people per year. This is a combination of negative net migration and fewer babies being born. The fertility rate in Portugal is 1.29 births per woman. This has resulted in an increasingly aging population, with the median age at 46.2 years.
The tourism industry is the biggest sector of the Portuguese economy. In 2019, travel and tourism contributed 41.4 billion USD to the GDP. This slow downed in 2021 (19.2 billion USD) but increased in 2021 after the pandemic (25.5 billion USD).
Is Portugal safe to live in? The Global Peace Index 2022 names Portugal as the 6th safest country in the world, after Iceland, New Zealand, Ireland, Denmark, and Austria.
Currently, there are 9,000 people facing homelessness in Portugal, 800 more than in 2020. Most of them access temporary shelters, but 4,000 of these have no shelter whatsoever. According to the European Commission, homelessness levels have risen in most parts of Europe during the last decade.
The crime rate in Portugal is very low compared to other countries.
The average net-disposable income per household in Portugal is €18,287 a year, lower than the OECD average. A very sociable single person living in the center of Lisbon can expect to spend about €2,000 per month including rent, while a family of four will likely spend around €5,000 per month.
Updated: 4th October 2022, 5:46pm
This new data shows that Portugal currently is the third European country with the highest growth in the number of millionaire residents. The Portuguese capital Lisbon appears only behind Cannes & Mougins, in France, and Lugano, in the south of Switzerland.
Portuguese residents and non-residents earning Portuguese-sourced income are subject to personal income tax (PIT). The tax rates for 2021 range from 14.5 percent to 48 percent.
The Portugal Residence Visa Permanent Residency is available to residents of Australia. Portugal Golden Visa residency from Australia through buying Real Estate, OR thru a Capital transfer and OR through job creation. This is your chance for Immigration to Portugal.
The short answer is YES! One of the most encouraging qualities of Portugal is that there are no restrictions for foreigners who want to buy a home in the country. Furthermore, the Portuguese government incentivizes foreigners to invest in real estate property in Portugal through the Golden Visa program.
Yes, Portugal does have state-provided healthcare, which is free for all citizens and legal residents in Portugal. Even though medical care is mainly free, you may have to pay some fees when visiting emergency rooms, your family doctor, or requesting ambulance services.