Cost of living in Portugal versus the UK
Why do the British relocate? A defining factor can be the cost of living in Portugal versus the UK. Take a look at some estimates.
Article by Viv Europe - Official legal and Relocation Partner to KipperTree
February 6, 2023
We’re not saying the two countries have essentially the same lifestyles. But there’s definitely something about Portugal that entices the British to relocate and find a home away from home. People’s preferences are changing into simpler wishes, and what better way to give yourself that without compromising on the quality of life? Let’s talk about the cost of living in Portugal versus the UK to help you decide your pick.
Luckily, the difference isn’t poles apart. Even though you’ll notice a striking contrast between some living costs in the UK and in Portugal, it might not be a determining factor after all. There’s only one way to know!
Keep reading for an in-depth analysis of everyday expenses, groceries, leisure, schooling, and more. We’ll get into all the details to help you evaluate which country suits your family more and why that is so. Stay tuned till the end for a comparison between the most famous cities in the two countries!
How expensive is living in Portugal?
Like all other countries, people from all social classes can find something worthwhile in Portugal. But one thing is for sure; the cost of living in Portugal versus the UK is at least 25.6% lower. Several factors contribute to this, for example, the currency exchange rate, taxes, wages, cost of housing, and basic demand and supply.
That being said, despite an upward trend in Portugal’s real estate market, rent is still 27.4% lower than in the United Kingdom. Affordable housing is a major reason why many British relocate to Portugal. Not only is it cheaper to live here, but it also means saving more money to invest in other things.
To help you understand, an average citizen in Portugal can live comfortably for under €600 (£537) without rent. If you add rent to this, it can be an additional €500 (£447), depending on where they live. Similarly, a family of four spends an estimated €2,030 (£1,818) per month without rent. As mentioned above, the difference between the two European countries isn’t extremely drastic.
How expensive is living in the UK?
Now that you have an idea of what an average Portuguese citizen spends per month, let’s compare it with how much a UK citizen spends.
Several factors contribute to the higher cost of living in the UK. First off, the pound sterling is a stronger currency than the euro, hence making imported goods slightly more expensive. Then, there is a higher tax on goods and services in the UK, thus adding to costs that are already high.
While some cities are way more expensive, the cost of living can vary greatly depending on your lifestyle preferences, location, and personal circumstances. Even though the cost of living is expensive, some people may find that they’re able to live comfortably.
Let’s give you some perspective. An average citizen in the UK can live comfortably for under €786 (£701), excluding rent. Adding rent into this can be an additional €700 (£627), depending on the location. Similarly, a family of four can live under €2,708 (£2,426) without rent. As you can tell, it is still relatively more expensive to live in the UK as compared to Portugal.
Cost of living in Portugal versus the UK
There are various reasons why people prefer one over the other. For some, it’s the ideal location, stunning beaches, and slow pace of life, and for others, it’s the cost of living. They’re all valid reasons.
When deciding which country gets to be your pick, you must first look at all the aspects that you absolutely not live without. Starting from renting a property to live in and how you’re going to commute for work. Or perhaps, for some, the leisure and entertainment!
Let’s get started!
Cost of rent
Starting with the most important comparison, one can make – the difference in real estate costs. A similarity between Portugal and the UK is how fast the real estate market has picked up pace in recent years. According to data from the Office for National Statistics (ONS), the average house prices in the UK increased by 5.6% in 2021 and 7.8% in 2022.
London, Oxford, and Cambridge continue to be the top three most expensive cities in the United Kingdom. The factors that contribute to the highly valued real estate are the high demand for housing and services and them being top locations for universities.
The average rent of a one-bedroom apartment in the centre of London can easily go up to €2,277 (£2,039) per month. Whereas the rent for a one-bedroom apartment outside the city centre comes down to €1,621 (£1,541) per month. That is more than one person’s total living costs in Portugal! Can you believe that?
Let’s compare that to the rent prices of Portugal’s most expensive city, Lisbon. On average, a one-bedroom apartment in the centre of Lisbon is €1,207 (£1,081) per month. That’s almost €1,000 less than London! Whereas the rent for a one-bedroom apartment outside the city centre comes down to €785 (£700) per month.
To find out more about the Cost of living in Portugal versus the UK. Read the full article here