Lisbon is third most costly city to live
A study involving 56 large cities has put Lisbon on the same level as some of the largest capitals in the world like Rome and London, and overtaking Paris and Seul, in terms of the cost of living.
The study by the English insurance company CIA Landlord takes into account income, housing and the cost of living.
In the study ‘The Cost of Living Crisis: How big is the gap between outgoings and incomings around the world?’ London ranked as the least financially viable city in the UK but worldwide it came just behind Rome. Lisbon however came third as the least viable city to live in, in the world.
It calculates that the average salary per month after tax is €1036 while the average cost of renting a 3-bedroom apartment inside the city centre at €1,625, while the average cost of living per month is €560. However, the remaining salary after paying rent and cost of living is €-1149.
Whilst there is more awareness around the cost of living crisis, the report notes that there is evidently a gap between salaries and bills, and this exists not just within the UK, but also across the world. In order to conquer this, more needs to be done in relation to ensuring that workers can effectively manage their income and outgoings, whether that be by increasing salaries or reducing rent to ensure they can break even per month.
However, the lower cost of living in Portugal’s smaller cities is attracting nationalities from around the world, particularly, Brazilians.
The record prices for properties both to buy and rent has spurred Brazilian immigrants to smaller cities or even to live in the interior of the country where property is cheaper.
Portugal’s small size — the size of Pernambuco in Brazil – and its good road and fibre optic internet infrastructure covering 87% of all homes means that professionals can work away from Lisbon or Porto without any additional difficulties.
The current trend for the latest wave of Brazilians looking to relocate to smaller cities in Portugal was noted by the NGO Casa do Brazil in Lisbon which provides advice and help to the Brazilian community in Portugal.