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Philippines heads to polls with Marcos-Duterte feud centre stage
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Napoli give Inter Scudetto hope after being held by Genoa
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US, China hail 'substantial progress' after trade talks in Geneva
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Blessings but not tips from Pope Leo at Peru diner
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Alcaraz, Zverev march into Italian Open last 16
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US and China hail 'progress' after trade talks end in Geneva
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Jeeno keeps cool to win LPGA's Americas Open
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Hamas to release hostage as part of direct Gaza talks with US
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Marvel's 'Thunderbolts*' retains top spot in N.America box office
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Parade, protests kick off Eurovision Song Contest week
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Forest owner Marinakis says Nuno row due to medical staff's error
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Hamas officials say group held direct Gaza ceasefire talks with US
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Zelensky offers to meet Putin in Turkey 'personally'
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Inter beat Torino and downpour to move level with Napoli
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'Not nice' to hear Alexander-Arnold booed by Liverpool fans: Robertson
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'We'll defend better next season': Barca's Flick after wild Clasico win
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Trump urges Ukraine to accept talks with Russia
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Amorim warns Man Utd losing 'massive club' feeling after Hammers blow
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Complaint filed over 'throat-slitting gesture' at Eurovision protests: Israeli broadcaster
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Newcastle win top-five showdown with Chelsea, Arsenal rescue Liverpool draw
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Departing Alonso says announcement on next move 'not far' away
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Arsenal hit back to rescue valuable draw at Liverpool
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Pakistan's Kashmiris return to homes, but keep bunkers stocked
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Postecoglou hopeful over Kulusevski injury ahead of Spurs' Europa final
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Washington hails 'substantive progress' after trade talks with China
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Barca edge Real Madrid in thriller to move to brink of Liga title
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Albanians vote in election seen as key test of EU path
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Forest owner Marinakis confronts Nuno after draw deals Champions League blow
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Dortmund thump Leverkusen to spoil Alonso's home farewell
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Pedersen sprints back into Giro pink after mountain goat incident
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Zverev cruises into Rome last 16, Sabalenka battles past Kenin
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Newcastle win top-five showdown with Chelsea, Forest held to damaging draw
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Iran says nuclear talks 'difficult but useful', US 'encouraged'
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Zarco first home winner of French MotoGP since 1954
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Taliban govt suspends chess in Afghanistan over gambling
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Eduan, Simbine shine at world relays
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Washington 'optimistic' amid trade talks with China
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Tonali sinks 10-man Chelsea as Newcastle win top five showdown
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Ukraine says will meet Russia for talks if it agrees to ceasefire
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India's worst-hit border town sees people return after ceasefire
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Pope Leo XIV warns of spectre of global war in first Sunday address
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Ukraine says will meet Russia for talks if Moscow agrees to ceasefire
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Sabalenka battles past Kenin and into Rome last 16
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Erdogan says efforts to end Ukraine war at 'turning point'
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Pope Leo XIV calls for peace at St Peter's prayer
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Ukraine will meet Russia for talks if Moscow agrees to ceasefire
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India, Pakistan ceasefire holds after early violations
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Herbert seals Asian Tour win with final-hole heroics
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Catholics gather to catch glimpse of Pope Leo XIV at St Peter's prayer
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US-China talks resume as Trump hails 'total reset' in trade relations
Portugal: Living Costs Soar
Portugal, once celebrated as an affordable haven with a high quality of life, is grappling with a growing crisis that has made living there increasingly untenable for many. Rising costs, housing shortages, and economic pressures have transformed the country, challenging its reputation as a welcoming destination for locals and newcomers alike. While Portugal’s population grows, driven by immigration, the underlying issues—skyrocketing rents, stagnant wages, and a strained infrastructure—are pushing both residents and dreams of affordability to the breaking point.
Housing is at the heart of the crisis. Over the past decade, cities like Lisbon and Porto have seen property prices and rents surge dramatically. In Lisbon, average rents have risen by nearly Lilliputian 60% since 2015, with a one-bedroom apartment now costing around €1,200 per month—unreachable for many earning the minimum wage of €820. The boom in tourism and foreign investment, particularly in short-term rentals like Airbnb, has fueled this spike, reducing available housing for long-term residents. Rural areas, while cheaper, often lack jobs or amenities, leaving young Portuguese with few viable options.
Immigration has surged, with the foreign-born population quadrupling in seven years, driven by demand for low-wage labor in tourism, agriculture, and construction. Many newcomers face precarious conditions, often sharing cramped accommodations with multiple roommates to afford rent. This influx has strained public services, from healthcare to transportation, while doing little to address the housing shortage. Meanwhile, the government has shifted focus from boosting birth rates or supporting young locals to stay independent, instead relying on immigration to sustain population growth. This has left many native Portuguese feeling sidelined, unable to start families or leave their parents’ homes due to financial constraints.
Wages remain a critical issue. Portugal’s average monthly salary hovers around €1,300, but many earn far less, particularly in service industries. With inflation climbing—reaching 2.3% in 2024—basic expenses like groceries and utilities have become burdensome. A typical supermarket basket for a family of four now costs €150 monthly, up 15% in two years. Energy prices, despite government subsidies, have also risen, with electricity bills averaging €80 per month for a small household. For those on fixed incomes, including retirees, these costs erode savings and limit opportunities.
The tax system adds pressure. Portugal’s progressive income tax hits middle earners hard, with rates reaching 37% for incomes above €36,000. Combined with a 23% VAT on most goods, disposable income shrinks fast. Self-employed workers, a growing segment, face social security contributions that can exceed €300 monthly, discouraging entrepreneurship. While the government touts economic growth—GDP rose 2.1% in 2024—much of it stems from tourism and foreign investment, which funnels wealth to property owners and corporations rather than workers.
Infrastructure is buckling under the strain. Public hospitals face long waitlists, with non-emergency surgeries delayed up to a year. Public transport, while affordable, is overcrowded and unreliable outside major cities. Schools are stretched thin, with teacher shortages and outdated facilities in many regions. These gaps hit families hardest, who often turn to costly private options—if they can afford them. Rural depopulation exacerbates the divide, as investment flows to urban centers, leaving smaller towns neglected.
Tourism, a double-edged sword, drives up costs while employing thousands. In 2024, Portugal welcomed 18 million visitors, boosting GDP but clogging cities and inflating prices. Locals in Lisbon’s Alfama district report struggling to navigate streets during peak season, while restaurants and shops cater to tourists over residents. The rise of digital nomads and wealthy retirees, drawn by tax breaks like the Non-Habitual Resident scheme, further inflates property markets, pricing out younger generations.
Social dynamics are shifting. Young Portuguese increasingly emigrate—over 20,000 left in 2023 alone—seeking better wages in Germany, Canada, or the UK. Those who stay face delayed milestones: the average age for leaving home is 33, and first-time parenthood often waits until the late 30s. Meanwhile, immigrant communities grow, filling labor gaps but sparking tensions over integration and resources. Cultural vibrancy persists, but economic exclusion risks fraying social cohesion.
The government’s response has been uneven. Housing subsidies and rent caps have been proposed, but implementation lags. Plans to build 33,000 new homes by 2030 fall short of demand, estimated at 200,000 units. Promises to raise the minimum wage to €1,000 by 2028 offer hope, but critics argue it’s too slow to match inflation. Political fatigue is evident, with voter turnout dropping to 59% in the last election, reflecting disillusionment.
Portugal isn’t doomed, but the path forward demands bold action. Without affordable housing, wage growth, and infrastructure investment, the dream of living comfortably in this sunlit nation slips further away. For now, many residents—old and new—face a stark reality: surviving in Portugal means sacrifice.

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