A Comparison of Portugal Cost of Living vs U.S.

Are you dreaming of life in Europe but worried about sky-high taxes?

While it’s true that most European countries have higher income tax rates than the U.S., that isn’t the whole picture.

In this post, we’re comparing the total cost of living—including taxes, housing, and healthcare—in a typical U.S. city to a popular expat destination in Portugal.

Prefer to watch? You can catch the full video right here before diving into the post.

Disclaimer: We’re not tax professionals—this comparison is based on publicly available data and is meant for informational purposes only. Always consult a qualified expert before making financial or relocation decisions.

The Scenario: Cost of Living in Sacramento vs. Coimbra

For this comparison, imagine a simplified scenario: one person living in Sacramento, California, versus one living in Coimbra, Portugal. Both earn the equivalent of $75,000 per year (about €69,000) and own a home worth roughly $400,000 (about €367,000).

We are going to explore four major factors:

•  Income tax
•  Property tax
•  Cost of living
•  Healthcare

Of course, there are countless variations depending on your tax situation, age, and lifestyle—but this gives you a starting point to understand the bigger picture.

Income Taxes

A person in Sacramento earning $75,000 pays approximately $19,714 per year in income tax (federal and state combined), according to Talent.com.

In Portugal, a person earning €69,000 would pay around €20,234 in income tax, or about $22,000.

That’s roughly $2,300 more per year than in the U.S., or about $190 per month.

So yes, income taxes are higher in Portugal—but let’s keep looking at the bigger picture.

Property Taxes

In Sacramento, the average property tax rate is about 1.3%. On a $400,000 home, that’s $4,600 per year.

In Portugal, property taxes are typically around 0.3%. For a comparable €367,000 home in Coimbra, that’s about €1,100—or $1,200 per year.

That’s a savings of over $3,000 yearly on property tax alone. And don’t forget—Portugal generally doesn’t have HOA fees, utility surcharges, or assessment fees like many U.S. neighborhoods.

Cost of Living

We used Expatistan.com to compare total monthly costs. A single person in Sacramento spends about $3,459 per month. In Coimbra, it’s about €1,634—or $1,640.

That’s a 52.5% difference.

Annualized, that’s a savings of over $21,000 per year. For most people exploring the expat lifestyle, this is a game-changer.

Healthcare

Healthcare costs are a significant consideration when moving abroad, especially if you’re over 50.

In the U.S., someone might pay around $1,000/month.

In Portugal, we pay about $225/month for private insurance and $18/month for a concierge service that helps us navigate the system. Many expats don’t even use private insurance—Portugal’s public healthcare system is free to all residents.

Even with the extra monthly costs, that’s a savings of around $9,000 annually in Portugal.

The Big Picture: Cost of Living in the U.S. vs. Portugal

Here is the cost of living comparison at a glance, totaling all four categories we discussed:

That’s a monthly savings of $2,665—even with higher income taxes in Portugal.

Thinking About Moving to Portugal?

Whether you're moving abroad after 50, looking for a more affordable lifestyle, or dreaming of Europe, Portugal remains one of the best-value destinations for expats.

Want help planning your move?

👉 Download our free Moving to Portugal Mini-Guide—a 10-day email course answering your biggest questions about visas, healthcare, housing, taxes, and more.

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Photo by Ricardo Resende on Unsplash