If you're considering buying property or relocating to Portugal, understanding regional income levels and salaries can provide useful insight into the country’s social and economic landscape. Recent data from 2023 shows that average incomes across Portugal are rising – although not evenly.
Income growth across Portugal in 2023
According to official figures, the average annual income declared by Portuguese residents (after personal income tax) reached €11,446 in 2023. This marks a 7.2% increase compared to 2022 – a clear sign that the country’s economy continues to grow.
However, income levels vary widely depending on the region. 71 municipalities reported above-average earnings, with the top spots going to:
- Oeiras: €15,862
- Lisbon: €14,282
- Alcochete: €13,654
Other areas with strong income figures include Cascais, Coimbra, Porto Santo, and Évora, each with average incomes above €13,000.
These municipalities often correspond with regions that are particularly attractive to international buyers, offering good infrastructure, quality of life, and growing local economies.
Where income is increasing fastest
Out of 298 municipalities analysed, 197 saw accelerated income growth in 2023. In 137 of them, the rise was even greater than the national average. This includes both well-known destinations and lesser-known towns undergoing economic development.
Interestingly, only Odemira – a rural area in southern Portugal – did not follow this upward trend.
What about income inequality?
While rising incomes are good news, the data also reveals some regional disparities. Portugal’s Gini coefficient (a measure of income inequality) stood at 35.5% in 2023 – a slight improvement on the previous year.
However, 31 municipalities had inequality levels above the national average, most notably:
- Lisbon: 42.6%
- Vila do Porto (Azores): 42.5%
- Porto: 41.8%
- Cascais: 40.2%
These areas tend to have a high concentration of both wealth and poverty – which can affect housing prices, rental yields, and investment strategies.
Where income distribution improved the most
Despite regional gaps, 210 municipalities saw improvements in income distribution, a promising sign for the future. One standout is Lagoa (Azores), which recorded the biggest reduction in inequality – down by 2.5 percentage points.
Why this matters for property buyers and investors
For anyone looking to invest in Portuguese real estate, rising income levels in many municipalities suggest increasing purchasing power and growing demand for housing. This is particularly relevant in areas like Lisbon, Oeiras, Cascais, and Coimbra, which continue to attract both locals and international residents.
Meanwhile, up-and-coming regions with accelerating income growth could offer attractive opportunities for early investment, especially where property prices remain relatively affordable.
As Portugal continues its post-pandemic economic recovery, understanding these local dynamics can help you make more informed decisions—whether you're buying a holiday home, planning a permanent move, or exploring buy-to-let options.
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