According to the ‘Purchasing Power Europe 2025’ study by GfK/NIQ Geomarketing, which examines the purchasing power evolution in 42 European countries, Portugal’s purchasing power stands at 16,943 euros ‘per capita’.
Although the country has dropped one position in the ranking to 22nd place, the disposable income of the Portuguese increased by 15.7% compared to the previous year, gradually approaching the European average of 20,291 euros.
“The result reflects a recovery in consumption and a positive evolution of salaries, although Portugal remains distant from countries with higher purchasing power,” states GfK/NIQ Geomarketing.
The study reveals changes in the regional distribution of purchasing power in the country, with Oeiras surpassing Lisbon as the national leader, with 26,863 euros ‘per capita’. The capital now ranks second, with 26,161 euros.
The national top five is completed by Cascais (23,958 euros), Alcochete (23,375 euros), and Vila do Porto (22,046 euros).
Porto, Coimbra, and Mafra remain among the top 10 municipalities with the highest purchasing power, all above 20,000 euros ‘per capita’, while interior municipalities such as Vinhais (9,406 euros) and Benavente (16,985 euros) appear at the opposite end, “significantly below” the national average.
Despite the gradually decreasing inflation rates in the European Union, which are expected to settle at 2.3% in 2025 compared to 2.6% in 2024, the study notes that “the cost of living in Portugal remains high, mainly due to increases in housing, energy, and food, which continue to affect the real purchasing power of families.”
“Despite the nominal improvement of incomes, the progress against the European average remains limited, reflecting the structural challenges of the Portuguese economy. The weight of essential expenses and regional disparities remain decisive, with a clear concentration of income in the metropolitan areas of Lisbon and Porto,” underscores António Salvador, director-general of GfK/NIQ in Portugal, in a statement.
Across Europe, citizens have an average income of 20,291 euros per inhabitant, a nominal increase of 4% compared to the previous year, totaling 13.9 trillion euros in available purchasing power.
Liechtenstein (71,130 euros), Switzerland (53,011 euros), and Luxembourg (38,929 euros) lead the ranking, with incomes between 1.9 and 3.5 times above the European average, while Kosovo, Belarus, and Ukraine continue to register the lowest levels, with the latter being 15% below the European average.
Nevertheless, the study reports a “gradual convergence trend among European economies,” with Central and Eastern European regions showing above-average growth, progressively narrowing the gap with the West.
