2020 arrived and with it a general increase in prices and the cost of living in Portugal, which will affect several sectors ranging from food to tobacco through tolls. This increase in the cost of living in Portugal is the consequence of the increase in taxes, inflation, minimum wage and the price index which are assessed by the Portuguese government each year. The price of rents, cell phone plans as well as public transport passes are increasing for this new year 2020 in Portugal and it will be necessary to take this into account when calculating its budget to live in Portugal. Other expenses are down, especially for electricity, and some remain stable. What price increases are planned for 2020? What will be the cost of living in Portugal in 2020? Lisbob, the expat assistant in Portugal, tells you all about the 10 things that will become more expensive in Portugal in 2020.
Discover the increase in the cost of living in Portugal in 2020
1- Accommodation
In this new year 2020, the rental price index in Portugal will increase by 0.51%. This increase is much lower than in previous years :
2019 - 1.15%
2018 - 1.12%
2017 - 0.54%
2016 - 0.16%
According to data published by the National Institute of Statistics (INE), in the last 12 months ending in August, the average change in the price index, excluding housing, was 0.51%, which is the basis of the coefficient used for the annual update. The cost of living in the big cities of Portugal is much higher than in the interior regions, and rent represents an important item of expenditure in the budget. So watch out for the bad surprise.
Knowing the cost of living in Portugal in 2020 is important before to decide to move
2 - Public transportation
The Authority for Mobility and Transport (AMT) has determined that prices for public passenger transport passes will increase by 0.38% in 2020.
In a press release, the regulator indicated that "the rate of tariff update, within the framework of the regular tariff update of the collective public passenger transport, in force from January 1, 2020, and whose value is average change in the consumer price index, excluding housing, over the 12 months from October 2019 to September 2020, according to data published by the National Institute of Statistics, is 0.38% ".
This amount is however disputed by the National Association of Heavy Passenger Road Carriers (ANTROP). Indeed, it claims an update of 3.96%.
Some things will be more expensive in Portugal in 2020
3 - Vehicles
Diesel cars are subject in 2020 to an "increase of 500 euros in the total tax payable", according to the draft Portuguese state budget 2020.
Thus, according to the Government, "light vehicles fitted with a diesel propulsion system are subject to an increase of 500 euros in the total amount of tax payable, which is reduced to 250 euros" for certain light commercial vehicles "to the except vehicles which present in their certificates of conformity or, if there is none, in the technical approvals a particle emission value lower than 0.001 g / km ".
In the case of the ISV - Vehicle tax "the tables of the environmental component are adapted to integrate the transition into the approval of consumption and adaptation emissions", and the displacement component is updated at the rate 0.3%.
The annual IUC tax rates are updated by 0.3% and the tax tables and rules adapted to the new CO2 measurement system, reveals OE2020.
4 - Tobacco
The price of tobacco and the cigarette pack in Portugal is expected to increase in 2020 due to an increase in the tax paid by cigarette producers, but which should be offset by a larger increase in the purchase price of the cigarette pack by consumers.
Regarding the nicotine tax used to charge and recharge electronic cigarettes, the rate of the tax is 0.32 euros per milliliter compared to 0.31 euros per milliliter currently.
In the case of cigarettes, the government revises the tax to which they are subject, bringing the specific element to 101 euros (instead of 96.12 previously) and lowering the `` ad valorem '' element to 14% (from 15% today).
For cigars and cigarillos, the government raises the tax per thousand (thousands of units) to 412.10 euros for cigars (compared to 410.87 today) and to 61.81 euros for cigarillos (compared to 61) .
Finally, regarding the tax on the rest of the tobacco for smoking, rolling, snuff and chewing, the tax cannot be less than € 0.175 per gram, above € 0.174 per gram.
Tobacco is dangerous for your health
5 - Health
Healing will cost less in 2020 in Portugal. It is one of the measures which is still awaiting approval of the state budget, but it should pass without too much difficulty, with the support of the parties of the parliamentary left. The end of user fees in the health sector should progress by the end of the year in all scheduled primary care consultations (health centers and family health establishments).
For the moment, so-called "open" appointments (those scheduled for the same day) and other acts prescribed by doctors, such as analyzes or examinations, are not concerned. The total elimination of costs should not take place before 2023.
Driving in Portugal will be more expensive in 2020for some kind of cars
6 - Telecommunications
Telecommunications are expensive in Portugal, for sometimes limited service. This is an important expense item for everyone's budget in Portugal. Bad news, telecom operators NOS and MEO have signaled that they will once again raise prices for their services in 2020. MEO will increase all of these plans by a minimum of 50 cents, and NOS will increase its plans by 1%. Vodafone and Nowo have not yet announced an increase
7 - Bread
The price of bread could be "slightly corrected" in 2020 according to the Portuguese baking industry association, although the value of raw materials remains stable in a sector where "difficult times" are coming as consumers change their mode power. A slight increase in prices is expected.
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8 - Tolls
The price of Portuguese tolls will not increase in 2020 due to negative inflation. The price of Portuguese tolls, which belong to private concessionaires, has a calculation method based mainly on 12-month inflation.
The formula that determines how the increase in the toll price is calculated each year is provided for in Legislative Decree 294/97 and determines that the variation to be practiced each year is based on the annual inflation rate excluding accommodation over the continent for the last month for which data is available before November 15, the deadline for dealers to communicate their price proposals to the government for the following year. In this case in October inflation was -0.13%.
Tolls will cost the same in Portugal in 2020
9 - Sweet drinks
The famous sugar tax exists in other European countries and Portugal has already applied it for a few years. In 2019 this tax had already been increased, and it will be further increased in 2020. Except for drinks with a sugar content of less than 25 grams per liter, all others with a higher value will be increased the tax.
At least that is what is provided for in the state budget. In the document, the Portuguese government proposes that drinks "with a sugar content of less than 50 grams per liter and equal to or greater than 25 grams per liter" pay a fee of 6.02 euros per hectolitre, an increase of two cents. For drinks with a sugar content of 80 grams or more per liter, the increase is heavier, from 20 euros per hectolitre to 20.06 euros (plus six cents).
10 - Electricity
Good news on the energy side. Electricity prices on the regulated market will fall by 0.4% for domestic consumers from 1 January. Electricity prices in Portugal for households still on the regulated market thus fell for the third consecutive year. This reduction of 0.4% represents a drop of 18 cents for a monthly bill of 43.9 euros, according to the accounts published by the regulator. Sales prices to end customers in the autonomous regions of the Azores and Madeira will decrease by 1.0% in 2020.
