Key Takeaways
• Average annual salary: $94,704 in the US vs. $23,102 in Portugal for similar jobs.
• Portugal’s cost of living is about 45% lower than the United States, especially for rent and daily expenses.
• Remote workers earning US salaries in Portugal enjoy higher spending power and quality of life than local earners.
When people think about moving to another country for work, one of the first things they want to know is how much they might get paid, and what that means for their daily life. Let’s look closely at the average salary in Portugal 🇵🇹 compared to the United States 🇺🇸, especially for similar jobs. We’ll also discuss the cost of living, so you can see the full picture—not just the money you make, but what it lets you afford.
How Average Salaries Stack Up: Portugal vs United States
The biggest thing to know is that salaries in Portugal 🇵🇹 are much lower than in the United States 🇺🇸. This is true whether you look at technology jobs, teaching, engineering, or other fields. Let’s start by comparing overall pay:
| Country | Average Monthly Gross Salary | Average Annual Gross Salary |
|---|---|---|
| Portugal 🇵🇹 | €1,833 (about $1,924) | €22,006 (about $23,102) |
| United States 🇺🇸 | $7,892 | $94,704 |
So, on average, someone working in the United States 🇺🇸 earns almost four times what they might make in Portugal 🇵🇹. Annually, it is about $95,000 in the United States 🇺🇸 compared to about $23,000 in Portugal 🇵🇹. For many people, this seems like a huge difference—and it is—but the story is more complicated once we talk about living expenses.
A Closer Look: How Do These Averages Play Out By Job?
Salaries can differ a lot depending on what job you have. Here are some numbers for popular career paths:
Technology and IT Jobs
- Software Developer
- Portugal 🇵🇹: €2,900 per month (about $3,137)
- United States 🇺🇸: $7,000 to $12,000 per month, depending on experience and city
- Data Scientist
- Portugal 🇵🇹: €3,200 per month (about $3,460)
- United States 🇺🇸: $8,000 to $13,000 per month
Other Common Professions
- Engineer
- Portugal 🇵🇹: €1,800–2,500 per month (about $1,900–$2,700)
- United States 🇺🇸: $6,000–$10,000 per month is common
- Teacher
- Portugal 🇵🇹: €1,200 per month (about $1,300)
- United States 🇺🇸: $4,000–$5,000 per month or more
Just looking at these numbers, the United States 🇺🇸 offers much higher pay for the same jobs.
What About Take-Home Pay?
While gross (before tax) salaries matter, what you actually take home—your net pay—is what lets you pay rent, buy groceries, and save money.
– In the capital city Lisbon 🇵🇹, the average net salary is about $1,233 per month
– In Atlanta, a typical mid-sized city in the United States 🇺🇸, the average net salary is about $5,433 per month
Again, that’s more than four times as much for the average worker in the United States 🇺🇸 compared to Portugal 🇵🇹.
Minimum Wage: Setting the Base
Every country has rules about the lowest wage that people can earn, called the minimum wage.
| Country | Minimum Monthly Wage (2025) |
|---|---|
| Portugal 🇵🇹 | €870 |
| United States 🇺🇸 | About $1,257 (federal minimum), but can be higher in some places |
In the United States 🇺🇸, some states and cities have even higher minimum wages, but the federal baseline is $1,257 (about €1,170), a bit higher than Portugal’s €870 minimum.
But What About Daily Life? The Cost of Living Factor
Here is where the story shifts. Although you might make more money in the United States 🇺🇸, it generally costs a lot more to live there—sometimes much more! For most people, daily life costs matter just as much as their paycheck.
For example, according to reports, living in Portugal 🇵🇹 overall is about 45% cheaper than in the United States 🇺🇸. This means things like rent, food, transport, and other essentials cost a lot less.
- Rent: In Portugal 🇵🇹, paying for a place to live is usually 50–60% lower compared to similar American cities.
- Food and Transport: These are also much less expensive in Portugal 🇵🇹.
So, if your salary is lower, but you spend less overall, your quality of life might still be very high. For many expats and remote workers, this is very appealing.
Example: Rent and Everyday Costs
Imagine a software developer living in Lisbon 🇵🇹:
– Gross monthly salary: €2,900 (about $3,137)
– Net pay after taxes: about €2,150 (roughly $2,327)
The same job might pay about $9,500 per month gross, or about $6,500 after taxes, in a major U.S. city. But, in the U.S., about half that money could go just to housing, while in Portugal 🇵🇹, you’d likely spend much less on rent.
Sector-Specific Comparison Table: Software Developer
To put this into simple numbers:
| Metric | Lisbon/Portugal 🇵🇹 | Major US City 🇺🇸 |
|---|---|---|
| Gross Monthly Pay | €2,900 ($3,137) | $9,500 |
| Net Monthly Pay | ~€2,150 ($2,327)* | ~$6,500 |
*Note: This is an average. Your after-tax pay could change based on your choices and personal situation.
Why Are There These Differences? Some Context
So why does Portugal 🇵🇹 have lower salaries compared to the United States 🇺🇸? There are a few reasons:
- Economic Factors: Portugal 🇵🇹 is a smaller economy with fewer major companies and less demand for high-paid jobs than the United States 🇺🇸, which has the world’s biggest economy and a very high demand for skilled workers.
- Cost of Living: Since things cost less in Portugal 🇵🇹, employers pay less, and workers can still afford their daily needs.
- Tax and Social Benefits: Portugal 🇵🇹 offers benefits like public healthcare and education, which are often paid for by higher taxes. In the United States 🇺🇸, workers often pay more for private health insurance and schooling, which can eat up a big part of a paycheck.
These explanations show why the numbers are different, and they also tell us a bit about daily life in each country.
Who Benefits Most? Impact on Workers and Employers
For Immigrants and Expats
If you move to Portugal 🇵🇹 and earn a local wage, you will probably make less than if you worked the same job in the United States 🇺🇸. However, you may spend a lot less on rent and daily life, and enjoy many public services. For people who work remotely for a company in another country but live in Portugal 🇵🇹, these lower living costs can make for a very comfortable lifestyle.
For Employers
Companies in the United States 🇺🇸 sometimes outsource work to Portugal 🇵🇹 or hire remote workers there because they can pay lower salaries while still accessing good talent. From a business point of view, this can save money.
As reported by VisaVerge.com, many businesses are considering countries like Portugal 🇵🇹 because skilled workers there often speak several languages and have strong technical skills, all while having lower salary demands than peers in the United States 🇺🇸.
Trends: What Does the Future Look Like?
Both countries are changing. The economy in Portugal 🇵🇹 is growing, and new technology sectors are taking off, which might mean higher salaries in coming years. The country is attractive to people who want a good work-life balance, beautiful scenery, and lower costs.
In the United States 🇺🇸, salaries remain high, but so do living costs. This is especially true in big, popular cities. Remote work trends now allow some Americans to earn a high U.S. salary while living in other countries, including Portugal 🇵🇹, which raises the profile of Portugal 🇵🇹 as a popular choice for digital workers.
Pros and Cons Recap
| Factor | Portugal 🇵🇹 | United States 🇺🇸 |
|---|---|---|
| Average Salary | Much lower | Much higher |
| Cost of Living | Much lower | Much higher |
| Public Services | Strong (health, schools) | Varied by location, expensive |
| Work-Life Balance | Often better (more vacation, relaxed pace) | Can be harder (longer hours) |
| Remote Work Potential | High, especially for expats | High, especially for digital jobs |
Case Study: A Remote Software Developer
Let’s say you’re a software engineer from the United States 🇺🇸 who moves to Portugal 🇵🇹 but keeps your U.S. job and salary:
- You earn about $9,500 per month, which is much higher than most local wages.
- You pay rent that’s about half the price of what you would in a big U.S. city.
- You spend less on food, transport, and care.
- You can enjoy public healthcare and services.
This setup lets a person save money, enjoy a good living standard, and possibly retire early. That’s a big reason why Portugal 🇵🇹 is famous among digital nomads and remote workers.
How to Learn More and Apply: Official Resources
For those considering work or moving to Portugal 🇵🇹, the Portuguese government’s official migration portal offers guidelines on work visas, salary standards, and living in the country. Likewise, people interested in moving to the United States 🇺🇸 can find salary data, work policies, and immigration rules on the U.S. Department of Labor’s website.
Key Points to Remember
- Average Salary: In the United States 🇺🇸, pay is usually three to four times higher than in Portugal 🇵🇹 for the same jobs.
- Cost of Living: Living costs, especially rent, are much lower in Portugal 🇵🇹—often half the price.
- Quality of Life: Despite lower wages, many people in Portugal 🇵🇹 enjoy a great daily life because local prices match what they earn.
- Remote Work: Workers paid U.S. salaries but living in Portugal 🇵🇹 often have much more spending power and comfort than in the United States 🇺🇸.
- Employer Perspective: Companies may find Portugal 🇵🇹 attractive for outsourcing and remote hires due to skilled workers and lower salary needs.
Understanding these factors can help you figure out which country fits your goals, whether you measure life by your paycheck or your relaxation time.
For further reading, you may wish to check out salary guides and official country statistics, like those found on the Time Doctor blog or Portugal’s migration site. And if you want to see updates and news about immigration to both Portugal 🇵🇹 and the United States 🇺🇸, sites like VisaVerge.com offer helpful tips and real stories.
Thinking about moving, working, or hiring in Portugal 🇵🇹 or the United States 🇺🇸? The best choice depends on your needs. High pay in the United States 🇺🇸 comes with high costs, while Portugal 🇵🇹 provides a more affordable, often more relaxed life—especially for those able to blend the two worlds.
Learn Today
Gross Salary → The total amount earned before any taxes or deductions are taken from the paycheck, shown as monthly or yearly.
Net Pay → The amount of money an employee actually takes home after tax and other deductions, ready to spend or save.
Minimum Wage → The lowest legal monthly or hourly pay employers can offer, set by government policy for basic worker protection.
Cost of Living → A measure of how much money is needed for essentials like housing, food, and transport in a particular place.
Remote Work → A job arrangement allowing professionals to work from anywhere, often for foreign employers, leveraging technology and online communication.
This Article in a Nutshell
Comparing salaries between Portugal and the United States reveals U.S. workers earn nearly four times more. However, living costs in Portugal are about 45% cheaper. For expats or remote workers, Portugal offers a high quality of life if earning abroad, blending affordability, attractive work-life balance, and substantial daily savings.
— By VisaVerge.com
Read more:
• Portugal healthcare system outranks US in World Health Organization list
• Portugal’s Golden Visa draws investors despite EU changes
• D7 Passive Income/Retirement Visa: Guide to Retiring in Portugal
• Portugal Orders 18,000 Foreigners Out Before Election
• Portugal Golden Visa restricts options to fund and business investments
