When choosing countries for immigration it is important to consider various components: cost of life, level of local salaries, level of security and more other. Sure, you can compare climate conditions and legalization opportunity in the country, but still the cost of living question will be central when selecting a new place to live. That is why we decided to release series of articles on WithPortugal where we are going to compare climate similar to Portugal countries. In our analysis, we will be guided by exclusively actual and statistical data that help you more objectively compare various countries and select the one that better suits you in terms of cost of living.
In our first article from this section, we compare the 2 most popular warm countries in Europe: Portugal and Spain.
«Cost of Living, Living Wages, and Minimum Wages in EU-27 countries» report serves as a source of information for this article. It was accumulated for one of the European Parliament parties. 27 countries of EU are compared in this report in terms of minimal and real salary, and general cost of living in the country. Though this report was compiled in 2021 and the new one for 2022 is not ready yet, we surely can rely on this information with one small amendment.
There is a quite a strong inflation and price increase in Europe in 2022, so feel free to add 200-500 euros to the total calculation of living expenses in a particular country. Since inflation is observed in absolutely all European countries, it is important to understand that in terms of a comparative analysis of the two countries, the proportions remain unchanged, and if, for example, 1 adult could live on 600-800 euros per month in Bulgaria in 2021, and in Luxembourg for living of one person it is required at least 1200-1500 euros (that is, exactly 2 times more than in Bulgaria), then in 2022 the cost of living in both countries will increase, but the proportion of 1 to 2 will remain the same.
Cost of living in Portugal and Spain
Beautiful beaches, delicious seafood, fresh fruits and vegetables, good weather and friendly locals — this description could perfectly fit both Portugal and Spain. These countries have a shared boundary line, so living in Portugal you can get to the nearest Spanish city in 1 or 2 hours, and vice versa.
It would seem that these countries should be absolutely indistinguishable in terms of the cost of living and earnings. Is it so? Let's check.
Below, you can see a screenshot from the report of the EU Parliament with a summary table of monthly expenses for 1 person (Single adult) and for a standard family of 2 adults and 2 children (Standard Family) in Portugal.
I will instantly leave an important comment that they take a slightly lower index for rental housing in all countries in this report. I think that this is because the statistics were considered in general throughout the country, and not just in large cities. Accordingly, the rental values that you see in the table below are the arithmetic average between Lisbon and a remote Portuguese village. Therefore, if you still want to live in a large city, then I would safely add at least 300-400 euros to this value, considering inflation and current prices in 2022. Keep this in mind and add 300 euros to the cost of living in any country in this report.
In this article, we will automatically add 300 euros to the total cost of living in a particular country, adjusted for inflation in 2022.
Considering inflation, it turns out that the approximate total cost of living in Portugal in 2022 with rent, transport costs, education costs, visiting restaurants, etc. will be:
- from 1679 to 2177 euros for a family of 2 adults and 2 children;
- from 857 to 1010 euros for one person living separately and renting a room or studio.
It is important to understand that the lifestyle described in this report is the most basic. For example, it is assumed that you will eat at cafes or restaurants only a couple of times a month, you will buy the simplest products at the supermarket, etc. If you eat at restaurants every day and only buy shrimp and expensive veal at the supermarket, then this report won't be relevant for you because you likely will spend much more than the amounts stated in the table above.
However, as someone who has lived in Portugal for 8 years, I can confirm that one person can live on 1000 euros in the country, and a family on 2200, in 2022. Of course, you won't live in the center of Lisbon, where only you can pay one or two thousand euros just for renting an apartment. It is important to keep in mind that there are some cities in the country where rent and cost of living are quite affordable.
Let's now compare the cost of living in Spain. A summary table about this country you can see in the picture below:
Taking into consideration inflation for 2022, the approximate cost of living in Spain with rent, transport costs, education costs, visiting restaurants, and other things will be:
- from 2090 to 2670 euros for a family of 2 adults and 2 children;
- from 987 to 1250 euros for one person living separately and renting a room or studio.
We can see that the cost of living in Spain is generally 100-500 euros higher than in Portugal. This is not a big difference, so it is important to check how much Portuguese salaries differ from Spanish ones.
Salary grades in Portugal and Spain
The approximate grade of salaries in Portugal is in the table below.
Unfortunately, inflation affected only prices in the country, but not salaries. Portugal's minimum salary per month, by law, will be 705 euros in 2022 (before taxes) In 2023, the minimum salary will be raised to 760 euros, and taxes will need to be deducted from this amount. In the picture below, this value is slightly higher than the minimum salary because most likely, 13 and 14 salaries in the country are considered.
According to these statistics, low-skilled workers in Portugal receive just about 700-800 euros, which corresponds to the minimum salary in the country. Medium-skilled workers will receive about 1,000 euros, and over a thousand euros per month can only be received by highly qualified specialists (approximately it is from 1,400 to 2,000 euros per month).
If we compare the grade of salaries in Portugal with the grade of expenditures that we analyzed above, we get the following situation. When we are talking about a family of 2 adults and 2 children where the only one family member works, then he/she should earn about 2000 euros, that is, this person must be a highly qualified specialist (for example, an IT-specialist). If this person is not that specialist, then both adults must work, and their qualifications must be average, so that the sum of 2 salaries is at least 2000 euros per month. Any way, the family will be able to live at an average level, it will be able to pay the bills, but not be able to save or have a luxurious way of life. This nuance is critical to understand if you decide to immigrate to Portugal.
Visually, the grade of salaries in Portugal is presented in the graph below. The blue line shows the approximate level of the minimum salary in the country, and we see that the minimum salary is almost the real level of income for people who live alone and don't have a family.
Let's now see the situation with salaries in Spain.
In the table below, we can see that the minimum salary in the country is 400 euros higher than in Portugal (1100 euros and 700).
At the same time, low-skilled workers earn an average of 1200 to 1500 euros, with medium qualifications it is 1500 to 1900, and highly qualified specialists can count on a salary of 2000 to 3000 euros, which is an inconceivable salary for a Portuguese employee who is not a manager or chief.
In Spain, even for one salary of a highly qualified specialist, you can live and make savings, and it is possible even if we consider a family of 2 adults and 2 children. If 2 people with average qualifications work, then their total earnings will exceed 3,000 euros, and you can confidently pay bills and make savings from this amount.
Conclusions
As a result of our brief analysis of salaries and cost of living in Portugal and Spain, we can draw the following conclusions:
- The cost of living in Portugal is lower than in Spain, but not by much (the difference is about 100-500 euros).
- At the same time, the grade of salaries in Spain is much higher than in Portugal. The minimum salary in Spain is almost 400 euros higher than in Portugal, and if you are a highly qualified specialist, then in Spain you will most likely receive at least 1000 euros more than in Portugal.
Based on this, would it be possible to draw a clear conclusion that immigration to Spain will be more profitable than to Portugal? I think not because in the end everything will depend on your specific situation.
If you are going to seek employment in the country, then Spain will certainly be a more attractive option for you. If you want to work in the country and make savings, then the choice should also be made in favor of Spain.
But if you work as a freelancer, you have a remote income, and it is important for you to live in a country with the lowest cost of living and expenses, then Portugal is a more interesting place for you to immigrate.
For example, the conditions for obtaining a golden visa in Portugal are much more favorable than in Spain, so for investors, Portugal will also be a better country to invest in.
Each situation is unique, and it will all depend on your budget, availability of work and your goals. We hope that our article has helped you navigate the main differences in the levels of income and expenses of residents in Spain and Portugal. Which next two countries would you like to see in a new article in this section? Write out in the comments and see you in the next article!
