Oeiras, Lisbon and Cascais are the areas in Portugal with the highest declared incomes, according to INE, the National Statistics Institute in Portugal.
Which city is best for work in Portugal? And where are the highest salaries in Portugal? If you're thinking of moving to Portugal, then these are important questions that you might be asking yourself when choosing where to live and when searching for a job abroad. Let's have a closer look at salaries in Portugal and find out where people earn the most money.
Oeiras has the highest annual income in Portugal, an average value of 14,009 euros. Lisbon and Cascais complete the podium, with annual average values of 12,898 and 11,859 euros, respectively. In 2019, before the sudden appearance of the COVID-19 pandemic, the median gross declared income deducted from the IRS income tax assessed per taxable person in Portugal was 9,539 euros, up 4.5% on the previous year, according to data released by the National Statistics Institute in Portugal (INE). However, it's important to keep in mind that there are cities in Portugal where people earn more than others, something which also depends on the job you do.
According to INE, "the municipal portrait of the median value of the declared gross income deducted from the IRS assessed per taxpayer showed 65 municipalities with values above the national reference and, with lower values (below 8,000 euros) reflected in some other municipalities, mainly in Portugal's Northern region."
"The results show 42 municipalities with values above 10,000 euros per taxable person, 10 more municipalities than in in the previous year. When it comes to values above 11,500 euros, the municipality of Oeiras (14,009 euros) stood out - it presented the highest median income, followed by Lisbon (12,898 euros), Cascais (11,859 euros) and Alcochete (11,594 euros), areas which are all part of the Lisbon Metropolitan Area. In fact, all 18 municipalities in this region had median values of more than 10,000 euros", concluded INE.
It should also be noted that the 18 municipalities in the Lisbon Metropolitan Area were above the national average, the aforementioned 9,539 euros, a scenario that was also observed in 19 municipalities in the Central region, 13 in Alentejo, 7 in the North, 4 in the Azores, 3 in the Autonomous Region of Madeira and only 1 in the Algarve, in this case, Faro.
The INE data also show that the Lisbon Metropolitan Area (11,283 euros), the Coimbra district (9,715 euros), the Leiria district (9,709 euros), the Central Alentejo area (9,655 euros) and the Aveiro district (9,579 euros) were the sub-regions with the highest median incomes, higher than the national reference. The sub-regions of Alto Tâmega (7,531 euros) and Tâmega e Sousa (7,843 euros) had the lowest median incomes, below 8,000 euros per taxpayer.
The impact of the pandemic on salaries in Portugal
The institute alerts to the fact that these figures are relative to the pre-pandemic period of COVID-19, being foreseeable that "the economic impact of the pandemic crisis, particularly unfavourable for the tourism sector, and the strong territorial concentration of this activity, anticipate strongly asymmetric effects within and between the local economies and, consequently, on the incomes of families that depend on them".