Portugal's richest families live where houses are most expensive

The richest families in Portugal earn around 21,000 euros gross per month. And they live in the municipalities of Lisbon and Porto, on their outskirts, and in Loulé, concludes the most recent analysis by the Portuguese Ministry of Finance. What stands out is that the 8 municipalities that concentrate the incomes of the richest are also among the most expensive areas when it comes to buying a house in Portugal, with Lisbon, Cascais and Oeiras standing out.

Lisbon Louis Droege on Unsplash

The 0.1% richest families in the country earn around 21,000 euros gross per month and concentrate their income in 8 municipalities in the country, the Ministry of Finance's Studies Office (GPEARI) concluded by analysing the IRS personal income tax declared in 2021, without taking into account the wealth held in assets:

• Lisbon: concentrates 1,849 households;
• Porto: 485 families;
• Cascais (456);
• Oeiras (293);
• Sintra (173)
• Loulé (124);
• Vila Nova de Gaia (120);
• Matosinhos (100).

The annual income of these wealthy families starts at 228.4 thousand euros and they pay an effective rate of IRS - the one they actually pay - of 42.36 per cent. However, according to Jornal de Negócios, this IRS rate is much lower than those defined, since the marginal IRS rate for this level of income was 48 per cent in 2021, to which the solidarity tax is added. Explaining this tax difference are deductions and the inclusion of income at a lower rate, they explain.

Cascais Andrei Berescu on Unsplash

Counties where wealthy families live are the most expensive to buy a house in Portugal

What stands out is that the eight municipalities that concentrate the wealthiest families in Portugal are also some of the most expensive to buy a house in. Cross-referencing the GPEARI data with the most recent data from the National Statistics Institute (INE) for the third quarter of 2023, it's clear that Lisbon is the most expensive municipality to buy a house in, costing a median of 4,151 euros/m2. And it's also the one that concentrates the most wealthy families.

Cascais (3,831 euros/m2), Oeiras (3,177 euros/m2) and Loulé (3,168 euros/m2) follow close behind. Also in the top 10 most expensive municipalities to buy a house is Porto, with a median cost of 2,798 euros/m2.

Although Sintra, Vila Nova e Gaia and Matosinhos are not in the top 10, they are also among the most expensive municipalities to buy a house in Portugal, with costs of 1,957 euros/m2, 1,809 euros/m2 and 2,406 euros/m2, respectively, in the summer of 2023, according to INE data.

Nick Karvounis on Unsplash