Portugal in 2025: What It Really Costs to Live on the Minimum Wage in Reais

Many Brazilians consider moving to Portugal, but few understand the financial reality behind the numbers. In 2025, the Portuguese minimum wage on the mainland reached € 870 per month, while in the autonomous regions the figures are slightly higher — € 913.50 in Madeira and € 915 in the Azores. For those thinking in reais, this is approximately R$ 5,584.09, a figure that seems attractive until you start deducting taxes and considering the actual housing costs.

The Reality of Net Salary: What’s Left of the Income

The big mistake is comparing gross values. When you receive € 870, the money that actually reaches your account is considerably less. The Portuguese government automatically deducts 11% for Social Security — a mandatory system for all workers. If your income exceeds the minimum, the Portuguese Income Tax (Imposto de Renda Português) comes into play, which varies depending on dependents and family situation.

In practice, a worker earning minimum wage has approximately € 95.70 withheld solely for Social Security, leaving about € 774.30 before any additional income tax. For many, this reduction of nearly 11% is an unpleasant surprise that impacts the monthly budget.

Moving Toward the European Standard

The trajectory of Portugal’s minimum wage in recent years reflects consistent government effort. The € 870 in 2025 represents growth compared to € 820 the previous year, and this trend of annual adjustments is expected to continue until 2026. Although the movement is positive, Portugal remains one of the countries with the lowest minimum wages in Western Europe — confirmed by Eurostat.

Cost of Living: Where the Majority of the Money Goes

Understanding the cost of living is as important as knowing the salary. According to local market reference data, a single person spends on average € 1,800 per month, while a family of four needs approximately € 3,304. Portugal is the second most affordable country in Western Europe, but that doesn’t mean it’s cheap in absolute terms.

Housing: The biggest expense. A T2 (85m²) apartment in a upscale neighborhood costs about € 1,518 per month, while in common areas rent is around € 1,005. A studio averages € 729. In cities like Lisbon and Porto, these values are even higher and consume 40% to 50% of the minimum income — an unsustainable proportion for those earning only the minimum wage.

Food: Fast food costs € 8, a set menu € 12, chicken € 3.36 per 500g, and cheese € 4.90. Shopping prudently at supermarkets, it’s possible to keep food expenses around € 300 to € 400 per month for one person.

Transportation: The monthly pass costs € 35 (at least in Lisbon), and gasoline is € 1.69 per liter. For car users, this is another significant item in the budget.

Essential services: Gym € 34, electricity plus water and gas around € 112, medical consultation € 65.

Comparing with Brazil: Why the Minimum Wage in Reais Matters

Converting € 870 to reais — reaching R$ 5,500–R$ 5,600 — makes the move seem attractive. The Brazilian minimum wage in 2025 is R$ 1,518, less than a third. However, this superficial comparison ignores important structural factors.

In Portugal, mandatory deductions are systematic and heavy. In Brazil, a worker earning minimum wage often retains a smaller proportion of their income in formal deductions. Additionally, some basic Brazilian costs — such as fresh foods at markets — are proportionally more affordable than in Portugal.

The equation shifts for qualified professionals. An engineer, programmer, or healthcare professional in Portugal earns two, three, or even four times more than the minimum, creating a significant gap compared to Brazilian opportunities. For these groups, moving tends to be financially advantageous.

How Much Does It Cost to Work per Hour

With a monthly workload of 176 hours (standard 40 hours per week), the Portuguese minimum wage results in approximately € 4.94 per hour. Part-time (20 hours per week) would generate about € 435 monthly. Skilled professions earn much higher amounts, reinforcing the importance of professional training in the country.

Living on the Minimum: Is It Really Possible?

Technically yes, but with important caveats. In medium and small cities, where rent ranges from € 600 to € 800, it’s feasible to build a functional budget. In Lisbon and Porto, where a decent T2 costs € 1,200 to € 1,800, living on € 870 gross (€ 774 net) requires significant sacrifices and careful planning.

The answer depends on three variables: choice of location, standard of living one is willing to maintain, and the real possibility of professional growth. Someone arriving in Portugal earning the minimum but with prospects of increasing income quickly follows a different trajectory than someone who remains at the minimum indefinitely.

Perspective for Those Thinking of Migrating

Deciding to move to Portugal should not be based solely on comparisons of minimum wage in reais. It’s necessary to evaluate: the earning potential of your specific profession, the chosen city (big difference between Porto and Lisbon), access to social benefits, job stability, and medium-term personal goals.

For qualified workers, Portugal offers significant advantages in terms of remuneration, social protection, and quality of life. For those earning only the minimum wage, the experience will be more challenging, especially in larger urban centers. The success of the move depends less on the gross number and more on an honest assessment of your personal professional and financial context.