Is it worth working in Portugal? Uncovering salaries, deductions, and the real cost of living

Many Brazilians dream of moving to Portugal seeking better pay and quality of life. But before packing your bags, it’s essential to understand whether the financial gain justifies the European cost of living. In 2025, Portugal set its minimum wage at €870 per month (approximately R$ 5,584 in reais), a figure that seems attractive at first glance. However, when analyzing mandatory deductions and the cost of living in major cities, the reality becomes more complex. This article breaks down the numbers to help you make an informed decision.

The numbers that impress (but don’t always reflect reality)

The minimum wage in Portugal exceeded €870 in 2025, representing growth from €820 in 2024. In the autonomous islands, the values are slightly higher:

• Madeira: €913.50
• Azores: €915

Converted to reais, the minimum wage in Portugal in reais reaches approximately R$ 5,500 to R$ 5,600, depending on the exchange rate of the day. At first glance, it more than triples the Brazilian minimum wage of R$ 1,518. However, this superficial comparison hides important financial pitfalls.

What really affects your take-home pay

Before celebrating, you need to understand the deductions. Every worker in Portugal faces mandatory contributions:

Social Security: 11% of gross salary

This deduction is mandatory for all. On €870, it amounts to €95.70 monthly.

IRS (Income Tax): varies according to personal situation

Income tax isn’t fixed. It depends on dependents, family status, and other circumstances. Those earning only the minimum wage usually have minimal or no withholding, but higher earners face progressive rates.

Practical calculation of net salary:

• Gross: €870
• Social Security deduction: €95.70
• Available amount (without IRS): €774.30

This represents roughly an 11% reduction right from the first deduction. If additional taxes apply, the net amount is even lower.

How much does it cost to live in Portugal: expensive and affordable cities

The cost of living in Portugal varies drastically depending on location. Lisbon and Porto are significantly more expensive than inland cities.

Estimated monthly expenses (per person):

• A person in a comfortable situation: €1,800
• Family of four: €3,304

Main expense items:

Food prices fluctuate quite a bit. Fast food costs around €8, a set menu €12. Items like 500g of chicken (€3.36) and 500g of cheese (€4.90) reflect European prices.

Housing consumes a large part of the budget. A T2 apartment with 85m² in a upscale neighborhood can reach €1,518 per month. In more typical areas, the same property costs around €1,005. Studios in popular areas go for about €729.

Transportation remains relatively affordable. A monthly transit pass costs €35, gasoline is €1.69 per liter.

Utilities (electricity, water, gas) cost about €112. Gym membership €34. Medical consultation €65.

The puzzle: salary versus expenses

Someone earning €870 (net €774) faces a tight scenario in the capitals. Rent alone in Lisbon can consume 60-70% of the available salary, leaving little for food, transportation, and leisure.

In medium-sized cities, the situation improves. With the same income, it’s possible to rent a studio, cover basic expenses, and even save, though without luxury.

The unwritten rule: in Portugal, the better your professional qualification, the greater the financial advantage. Technologists, engineers, and specialized professionals earn well above the minimum, turning the move into a profitable investment.

Portugal versus Brazil: an analysis beyond the numbers

Direct comparison between the minimum salary in Portugal in reais and the Brazilian minimum wage is misleading. In Brazil, the minimum is R$1,518, while in Portugal it reaches R$5,500+. It seems obvious to choose Portugal, right?

Wrong. The Portuguese cost of living is proportionally higher. Rent, food, and transportation take a larger share of the budget. In Brazil, some basic costs are more affordable relative to income.

Additionally, deductions in Portugal (Social Security + possible IRS) reduce disposable income more aggressively than in Brazil.

Real income comparison:

• Portugal: €774 after mandatory deductions
• Brazil: retains a higher percentage of gross income

Overall, working only for the minimum salary in both countries leaves little room for wealth accumulation. The difference becomes evident when analyzing qualified professionals: in Portugal, specialized careers grow far above the minimum, offering long-term stability and security.

When does the move make sense

For those earning only the minimum wage, life in Portugal is feasible but tight, especially in Lisbon and Porto. The lifestyle must be frugal, and savings are almost nonexistent.

For professionals with education or experience, the story is different. Demand for qualified labor and significantly higher salaries make Portugal attractive. Moreover, European social policies in health, education, and welfare provide security that transcends numbers.

Conclusion: more than just comparing numbers

Migrating to Portugal isn’t just a mathematical calculation. It requires analyzing:

• The potential salary for your specific profession
• The cost of living in your chosen city
• Opportunities for professional growth
• Personal goals in medium and long term
• Tax burden and social benefits

The minimum wage in Portugal in reais may seem attractive, but only qualified professionals or those with clear objectives find sustainable financial stability. For others, the move requires careful planning and flexibility in choosing where to live within Portugal.