How Portugal compares with Europe, the US, the UK, Australia and Brazil

The short answer: Portugal wins on prices, safety, climate, air and longevity, and loses on pay, housing affordability and how much of their healthcare people pay for themselves. Its public finances are in better shape than most of the big economies here, with a budget surplus and debt below Spain's, France's, Italy's, the UK's and the US's.10 sources

The table ranks Portugal against the other ten countries (the EU-27 average is shown but not ranked); rank 1 is the best outcome for a resident, which for prices, rents, tax, pollution and crime means the lowest. Each section below has the full figures for every country, with sources.6 sources

Money figures come in two kinds. Market-rate euros (converted at the European Central Bank's rates of 9 October 2026) tell you what a salary or rent is worth if you move it across borders. Purchasing-power-parity (PPP) figures adjust for local prices, so they tell you what that money buys where it is earned; they are the fairer way to compare living standards.3 sources

Years differ by source. Most figures are for 2025, some for 2024 or 2026; the period is shown on every table and chart. IMF figures are from the April 2026 World Economic Outlook, because the October edition had not been published when we collected the data.2 sources

Some numbers are national, others are for the capital. Rents and climate are city figures (Sydney stands in for Australia's rents and São Paulo for Brazil's, as their largest rental markets); most other measures are national averages, and Lisbon is pricier than Portugal as a whole.3 sources

Portugal is the second-poorest country here per person, at $50,269 at purchasing-power parity against an EU average of $65,274; only Brazil is lower. Spain is about 13% richer per person, Germany about 47%. Ireland's very high figure reflects multinationals booking profits there, not local living standards.1 source

It is growing faster than most of Europe, though. GDP grew 1.9% in 2025, above the EU's 1.6%, Germany's 0.2% and France's 0.9%. Unemployment, at 6.0%, matches the EU average and is well below Spain's 10.5%.3 sources

The public finances are a quiet success. Portugal ran a budget surplus of 0.7% of GDP in 2025, one of only two countries here in surplus with Ireland, and its debt, 89.7% of GDP, is now below Spain's, France's, Italy's, the UK's and the US's.3 sources

Everyday life is cheap by Western standards. Eurostat's price level for household spending puts Portugal at 85.3 (EU = 100), below Spain (91.1) and Italy (98.0) and far below the UK (128.2), Ireland (139.6), Australia and the US (143.4). Only Brazil is cheaper.3 sources

In practice, the same basket of goods and services that costs €100 in the US costs about €59 in Portugal at today's exchange rates, about €67 compared with the UK and €78 compared with Germany. The big exception is housing, covered below.2 sources

Inflation has picked up. Prices rose 2.2% on average in 2025, below the EU's 2.5%, but the 12-month rate reached 3.6% in August 2026, above the EU's 3.2%.2 sources

Energy is a mixed bag. Household electricity, at €0.244 per kWh, is cheaper than the EU average (€0.290) and much cheaper than in Germany, Ireland or the UK. Petrol, at €2.08 a litre, is slightly above the EU average and roughly double the US price, because of fuel tax.9 sources

Portuguese wages are the lowest of the countries compared, apart from Brazil. The OECD puts the average full-time wage at $44,937 a year at purchasing-power parity, against $57,779 in Spain, $66,299 in the UK, $72,018 in Australia and $86,977 in the US. In plain euros, the average Portuguese gross wage is about €25,826 a year.2 sources

The minimum wage tells the same story. Portugal's €920 a month, paid 14 times, equals €1,073 spread over 12 months, against €1,425 (14 payments) in Spain, €1,867 in France and about €2,599 for a full-time UK worker on the National Living Wage. It is due to rise to €970 in 2027. Only Brazil's is lower in euros; the US federal minimum (€1,121) is about the same, though many states pay far more.5 sources

Median household income, adjusted for prices, is $25,673 per person in Portugal against $37,969 in Spain and $49,885 in the US. Low prices close part of the gap, but not all of it: Portugal's low price level is largely a consequence of its low wages.2 sources

Rents in Lisbon are now in the same league as other Western European capitals, even though wages are not. Numbeo's crowd-sourced figures put a 2-bedroom flat in central Lisbon at about €1,976 a month, more than central Madrid (€1,894), Berlin (€1,871) or Rome (€1,680), though below Paris, Amsterdam, Dublin, London, Sydney and New York.4 sources

Measured against local pay, that is extreme. A year of central-Lisbon rent equals 92% of the average Portuguese gross wage, close to New York (93%) and well above London (80%), Paris (60%) or Berlin (41%). Official INE data on new Lisbon leases point to a lower typical rent, about €1,300 for a 75 m² two-bedroom flat, because it covers the whole city, not just the centre.14 sources

House prices have outrun incomes faster than anywhere else on the list. The OECD's price-to-income index for Portugal stands at 166.7 (2015 = 100), the highest here, and prices rose 17.6% in 2025 alone, against 5.5% across the EU. About 71% of Portuguese residents live in a home their household owns.3 sources

For an average single earner, Portugal's tax wedge (income tax plus employee and employer social security, as a share of total labour cost) is 39.3%: below Germany, France, Italy and Spain, but above the Netherlands, Ireland, the UK, the US and Australia.1 source

High earners pay more. Portugal's top rate, 53.0% including the 5% solidarity surcharge above €250,000, is the second highest here after France's 55.4%, and the 48% bracket starts at €86,634 of taxable income in 2026.3 sources

VAT, at 23% on the mainland, is joint highest with Ireland among the standard rates here. Special regimes such as IRS Jovem for under-35s and IFICI for qualifying professionals can cut the income tax bill sharply, which these headline comparisons do not capture.4 sources

People in Portugal live 82.4 yrs on average, above the EU (81.6 yrs), Germany, the Netherlands, the UK and the US (78.9 yrs), though behind Italy, Spain, Australia, France and Ireland.2 sources

The health system is leaner. Spending per person is $4,928 at purchasing-power parity, the lowest here apart from Brazil, and households pay 28.2% of all health spending directly, the highest share here and more than double the EU's 13.0%.2 sources

There is no shortage of doctors overall: 4.3 practising doctors per 1,000 people, above France, the Netherlands, the UK and the US.1 source

Portugal is 7th of 163 countries on the 2026 Global Peace Index, second here only to Ireland, and its homicide rate, 0.72 (2022) per 100,000, is a fraction of the US's 5.76 and Brazil's 19.28. The index is compiled by an independent think tank and includes militarisation and conflict, not just crime.3 sources

The roads are the exception. Portugal recorded 58 road deaths per million people in 2024, above the EU average of 44 and more than double the UK's 24. Only the US and Brazil are worse here.2 sources

Portuguese 15-year-olds score close to the OECD average in PISA 2022: 472 in maths, 477 in reading and 484 in science, level with Spain and France, behind Ireland, the UK and Australia, and well ahead of Brazil.3 sources

42.5% of 25-34 year-olds have a degree, a little below the EU average of 44.8% and well above Italy and Germany.2 sources

English is a genuine strength. Portugal is 6th of 123 countries on EF's English Proficiency Index, behind only the Netherlands and Germany here and far ahead of Spain, France and Italy. EF's index is commercial and based on self-selected test takers, but it matches most newcomers' experience in the cities.1 source

People in Portugal work long hours: 1,764 a year per worker, more than anywhere here except the US and far more than in Germany (1,332) or the Netherlands (1,436). The OECD warns its hours data compare trends better than levels, so treat small gaps with care.1 source

They also get more time off by law: 22 working days of paid holiday (above the EU minimum of 20) and 13 national public holidays, the most here alongside Italy. The UK's 28 days can include bank holidays, and US law guarantees no paid leave at all.5 sources

73.9% of 15-64 year-olds are in work, above the EU average of 71.0% and well above Spain and Italy.2 sources

Lisbon gets about 2,793 hours of sunshine a year, on a par with Madrid and Rome and around 1,000 hours more than London, Paris, Berlin or Amsterdam. Its average temperature, 17.6°C, is the mildest of the European capitals here, with January highs around 15°C and July highs around 28°C.4 sources

The air is the cleanest on the list: average exposure to fine particles (PM2.5) is 6.2 µg/m³, against 13.3 in Italy and 20.4 in Brazil, though still above the WHO guideline of 5.1 source

Portugal is one of only four countries here with a dedicated visa for remote workers (the D8), alongside Spain, Italy and Brazil, and its home internet is largely fibre: 70% of fixed broadband connections, against 30% in the UK and 14% in Germany.5 sources

Lisbon shares a clock with London and Dublin, is an hour behind most of continental Europe and five hours ahead of the US East Coast, which makes it workable for teams on both sides of the Atlantic. Australia is 9 to 11 hours ahead.1 source

Despite the sunshine, Portuguese residents report the lowest life satisfaction of the 11 countries: 6.03 (69th of 146) in the World Happiness Report, against 6.54 in Spain and 7.22 (7th) in the Netherlands. The report explains national scores mainly through income, social support, healthy life expectancy, freedom, generosity and perceived corruption, not climate.1 source

Portugal is one of the oldest societies here, with a median age of 47.3 yrs, second only to Italy, and it is changing fast: 16.0% (2024) of residents were born abroad, above the EU average of 14.4%. The UN's older estimate of 10.8% misses much of the recent arrivals.3 sources

Portugal is a good deal if your income comes from elsewhere. Consumer prices at 85.3% of the EU average, low crime, mild weather, clean air and good English make daily life easy and affordable, and money from the UK, US or Australia goes 50% to 68% further on average across household spending, though Lisbon housing narrows the gap.4 sources

It is a harder deal if you earn locally. Wages are the lowest here apart from Brazil's, city rents and house prices are high relative to pay, and households pay more of their healthcare out of pocket. Portuguese residents themselves report the lowest life satisfaction of the group.4 sources