Social Security in Portugal

When you get sick in the US, you will likely lose your income. Parental leave is nonexistent and can have an even larger impact on someone’s social and financial well-being, particularly women. In Portugal, this is not the case! You can get sick, lose a job, and have a child without falling into complete financial distress. 

This is because of Portugal’s Social Security System, known as Seguranca Social. While many pensions are too low in the context of the cost of living, Portugal’s Social Security System is well-rounded and tackles several social issues. 

The Portuguese Social Security system secures citizens’ basic rights and ensures equality in opportunities, providing support measures such as unemployment allowances, paternal leave, and other financial support.

Who can access social security in Portugal?

The Social Security system is valid for Portuguese and foreign citizens who make contributions. To work in Portugal, you must have a Social Security Number (NISS). If you already have a Portuguese citizen’s card, your NISS is on the back of the card.  

Whether you can access certain pensions and leaves depends on your income, the amount of time you have contributed, and other factors. However, basic rights such as parental and sick leave are always guaranteed, regardless of your tax bracket. 

Social Security Payments in Portugal

For Social Security to function in Portugal, individuals must make their contributions. If you are working in Portugal, either employed or self-employed, you will have to pay social security, which will one day assure you a retirement pension and other benefits. 

Employees pay 11%, while their employers pay 23.75% to 34.75%. In this case, the amount for social security is automatically deducted by your employer. An employer is also responsible for registering its employees with Social Security. 

If you are self-employed, you are responsible for making your payment which is higher at 21.4%. You must pay your contributions between the 10th and 20th of the month following the month to which the contributions concern. There are a few specific exceptions for those on self-employment. 

Self-employed social security contributions can be paid via:

• ATM
• Treasury Office of Social Security
• Home banking
• Social Security Direct Debit

Guide to Taxes in Portugal

Unemployment Benefits in Portugal

Portugal’s Social Security system has multiple types of unemployment benefits. Unemployment benefits usually pay 65% of your earnings. However, the minimum monthly rate is €439, and the maximum is €1,097. 

Residents can access the main unemployment benefit if they have lost their job or come to the end of a contract. However, you must be registered as a job-seeker and have worked for at least 360 days in the 24 months before you lost your job. 

Another type of unemployment benefit is the social unemployment benefit. You might qualify after either your regular unemployment benefit has run out or you do not meet the conditions for unemployment benefit. You need to have worked for 180 days in the one year before becoming unemployed.

In Portugal, you also have a partial unemployment benefit. To access this, you need to have already received unemployment benefits and begin working in a part-time or self-employed job. The earnings from this job must be lower than the amount of the unemployment benefit. 

Guide to Working in Portugal

Parental Leave in Portugal: Parental and Maternal Leave in Portugal

If you are employed in Portugal, you have the right to parental leave, both men and women. Self-employed people are also eligible. However, you must have paid social security contributions for a minimum period of six calendar months, whether consecutive or aggregate.

In Portugal, you have initial and extended parental leave. The parental leave period is up to 120 (100% income) or 150 consecutive days (80% income). Both parents can take the period between 120 and 150 days at the same time.

Mothers MUST take at least six weeks off right after childbirth, and there is a 20 working day compulsory leave for fathers.

After that, the 120 days or 150 days may be extended by 30 days in the case of shared leave. However, to do so, each parent must take leave of 30 consecutive days or two periods of 15 consecutive days after the mandatory maternal leave of 42 days. 

If the initial parental leave is not shared, benefits can be granted to the father if the mother works. 

If the childbirth takes place before the 34th week of pregnancy, the parental leave is increased by the total duration of the hospital stay plus 30 days after discharge. 

In the case of a miscarriage or voluntary abortion, the mother might have paid leave between 14 and 30 days, depending on a doctor’s advice. In the case of stillbirth, a mother is granted 120 days of paid leave. 

Guide to Having a Baby in Portugal

Same-sex Parental Leave in Portugal

Unfortunately, most of the language used in the parental law refers to a “mother” and “father.” However, in 2019, the parliament officially stated that LGBT+ couples have parental leave rights.

Two men and two women who have a baby (through adoption or biologically) will be paid for 120, 150, or 180 days, either at 100% or 80% depending on the amount of time.

LGBT Guide to Portugal

Child Benefits in Portugal

Portugal’s Social Security system also includes plenty of family benefits for children and young people. These are available for children up to 16 years old, as well as those between the ages of 16 and 24 if they are in further education or have a disability.

These benefits are only available if a family has moveable assets worth less than around €100,000 and earns below a certain amount.

If a parent is in the first income bracket (up to around €7,100) with a child under three years old, they will get around €150 a month. 

Sick Pay in Portugal

Known as the subsidio de doenca, sickness benefits in Portugal are available for both employees and self-employed people.

However, you need to be working for at least six months before, and if you are self-employed, you would need to have paid your social security for three months before getting sick. 

Sick pay in Portugal is unlike parental leave, where depending on the number of days, you can get up to 100% of your pay.

You will actually get paid a larger percentage the longer you are sick. If you have a sickness and cannot work for over 365 days, you will get 75% of your income.

However, for the first 30 days of sickness, you will only get 55% of your income. Between days 91 and 365, you can claim 70% of your income.

Orphan & Widow Pension in Portugal

If a spouse or parent dies, Portuguese residents can claim benefits, including both a Survivor’s Pension and a Widow/Widower’s and Orphan’s Pension. You need to have been making contributions for at least 3 years, but eligibility also depends on your income. Spouses can claim 70% of the pension, while children can only claim up to 40%.

Retirement Pension in Portugal

The Portuguese Social Security system ensures you will get a retirement pension if you contribute throughout your life. The official retirement age in Portugal is 66 years and 7 months in 2022 and 66 years and four months in 2023. You also need at least 15 calendar years of remuneration and social security contributions. However, keep in mind that the pension age is set to rise.

Nevertheless, if you seek to retire earlier, this is possible. You can retire in Portugal from the age of 55 if you have made at least 30 years of contributions. Still, your payments will decrease for every extra year you receive your pension.

Guide to Retiring in Portugal

Social Integration Income (RSI) in Portugal

Known as the Rendimento Social de Insercao (RSI), this benefit is granted to people and families in serious social or financial need and at risk of social exclusion. It is meant to help with basic needs to integrate individuals into society.

To be eligible, a household’s monthly income must not exceed the Social Integration Income (RSI) value, and the main applicant must be registered as a job-seeker. Over 130,000 families in Portugal receive the RSI. 

The main holder gets €188.68 which is 100% the value of the RSI. Each child receives around €93.34, 50% of the value of the RSI. Moreover, other adults besides the holder receive €130.68. Therefore, a family of two adults and two children receives around €500. A single mother with one child receives around €280. 

The largest and most populated island in the Azores, São Miguel is known as the Green Island due to its beautiful forested terrain and large lakes. Many visit the island and fall in love with it, leading them to seek to move here short-term or more permanently.

The island has around 140,000 inhabitants, with 45,000 people residing in Ponta Delgada, the island’s largest city.

Is it expensive to live in the Azores? What is the cost of living like in the Azores? Every island in the archipelago is different, but generally, it is more affordable than living in most places in mainland Portugal, especially Lisbon and Porto.

Consumer prices, including rent, are around 17% lower in Ponta Delgada, the capital of Sao Miguel, than in Lisbon. Restaurant prices are around 6% lower, and grocery prices are almost 4% lower. 

If you’re considering Sao Miguel as a permanent or temporary home, let’s take a look at the average monthly budget for expats without children, families, and digital nomads in the capital of Ponta Delgada.

Guide to Sao Miguel

Cost of Living in Ponta Delgada, Sao Miguel for an Expat

The monthly budget for an expat in Ponta Delgada, Sao Miguel is less than €1000.

A one-bedroom apartment costs around €600. If you are looking for a larger apartment, this could cost around €900. 

A monthly transportation pass is around €40 or less for buses. Utilities cost around €100, including phone data and cable TV which is a lot cheaper than in mainland Portugal. 

For exploring the island and eating out at your favorite restaurants, budget around €150 a month. You can easily spend less or more, depending on your lifestyle. 

Groceries for a single person average out at around €40 a week.

Health care could add to your monthly budget in Sao Miguel. EU citizens with a valid European Health Insurance Card can use the National Health Service (SNS) for free for up to 90 days in Portugal. This allows them time to get registered as legal residents to continue using the public health system.

However, non-EU citizens are only entitled to use the public health system if they are employed and pay social security in Portugal, having to be registered as legal residents as well.

Even if this is the case, they must purchase private health insurance to cover medical care before arriving in Portugal and becoming a legal resident.

Cost of Living in Ponta Delgada, Sao Miguel for a Digital Nomad

The cost of living in Faro for a digital nomad is at least €950 a month. This is the case if you sleep in a hostel’s dorm and cook most of your meals. If not, expect to need at least €2,200 a month in Ponta Delgada. 

How did we get from 950 to over 2000? Well, if you opt for the budget option of a shared dorm in a hostel, expect to only need to pay €15 a night, so around €450 a month. However, a private Airbnb would cost you at least €1200.

Renting a desk at a co-working place in Ponta Delgada costs around €100. Transportation costs around €40. 

Budget at least €200 for leisure such as eating out, bars, and tourists to discover the island.

Food can easily max out your monthly budget. If you want to save and have a kitchen at your disposal, a weekly shop shouldn’t cost more than €40.

However, if you plan to eat out, an affordable meal is around €8. This would set you back around €700 in a month.

Cost of Living in Ponta Delgada, Sao Miguel for a Family of Four

This last Azores monthly budget for Sao Miguel is the most expensive because let’s be honest, so are kids. Expect to spend at least €2000 a month for a family of four in Ponta Delgada.

However, if you need health insurance for the entire family and your two kids will attend private school, you will spend over €3000.

A three-bedroom apartment in Ponta Delgada will set you back around €900. However, prices can go up to €1200, depending on the apartment type and amenities. 

Budget around €160 a month for monthly transport passes. However, it is more convenient for a family of four to own a car and drive around the island. Fuel will cost you anywhere between €150 and €250 a month. 

Utilities cost around €120 and include electricity, heating, water, etc. However, this can be much higher in the winter or depending on your family’s consumption.

Groceries for a family of four in Ponta Delgada should cost around €100 a week, so budget at least €400 a month.

If you need to purchase health insurance for the whole family, this will cost you at least €200 a month.

However, you might be eligible to use access to healthcare for free, even if you are not an EU resident. Non-EU citizens are only entitled to use the public health system if they are employed and pay social security in Portugal, having to be registered as legal residents as well.

While public schools are free, private schools can cost anywhere between €300 and €500 depending on the establishment and age of your child. You could pay around €1000 a month for two kids just for education. 

Guide to the Azores

Making such a large purchase in a new country comes with its challenges. If you are planning on buying a car in Portugal, it’s essential to make sure how to get a fair deal and follow the legal requirements. 

There are plenty of questions to consider. Are you planning on purchasing a new or used car? What’s a good place to purchase a car in Portugal? Let’s take a look at everything you need to know about buying a car in Portugal.

Guide to Driving in Portugal

Who can buy a car in Portugal?

If you are looking to buy a car in Portugal, you must first figure out if you’re eligible to do so. There are quite a few restrictions to purchasing a car in Portugal. You will need the following:

• Proof of residence in Portugal 
• Identification document
• Portuguese tax identification number (NIF)

Where to buy a car in Portugal

Before you choose where to buy your car in Portugal, consider whether a new one is right for you. Buying a used car will save you money! Luckily, in Portugal, you can buy both new and used cars online and in car dealerships. 

Online

In the last few years, buying a car in Portugal online has been growing in popularity. However, there is a larger risk involved in doing so. Still, there are plenty of great sellers out there, and you can usually negotiate the price. 

You just need to make sure you are taking the right steps to ensure a fair purchase. Before even seeing the car, ask the seller about the maintenance history and the number of kilometers on the car.

Car Dealership

The old-fashioned way is sometimes best! You will find car dealerships that sell new and used cars all over the country. You will get to test-drive the vehicle, which is not usually allowed when you buy a car online. 

The good thing about buying a car from a dealership is that you are usually offered more after-sales support, including maintenance. If you buy a second-hand car at a dealership, you will have a minimum 12-month guarantee. 

Major car companies have dealerships in Portugal, such as BMW, Toyota, Renault, and more. 

Car Prices in Portugal

While Portugal is known for its relatively low cost of living, car prices are quite high. The average price for a car in Portugal in 2020 was €32,444, up almost €5,000 in 5 years.

While buying a used car is more affordable than a new one, they are still expensive compared to other European countries. On the 2017 Global Used Car Index, Portugal ranked as the 9th most expensive country as cars depreciate more slowly in Portugal. 

Despite high averages, there are still affordable second-hand cars out there, many under €5,000. 

Documents After Car Purchase

When you sell your car in Portugal, you need to make the official change of ownership within 60 days. This is done by completing the Transferencia de Propriedade or the verbal contract of purchase and sale. This document will include information about the vehicle and the new owner. 

Both the seller and buyer will also have to go through the declaration of sale and purchase of the car. This form indicates the individuals involved in the registration process of the vehicle.

Registering the car with IMT is very important and mandatory for all vehicles in Portugal. You can register the car with the Institute of Registries and Notaries (IRN), either online or at a citizen’s shop. 

You will then receive your registration certificate, known as the Documento Unico Automovel, which needs to be in your car at all times. 

Driving in Portugal

To drive a car in Portugal, you must be over the age of 18. However, to rent a car, you must be over the age of 21. You can drive in Portugal with your driving license if you are an EU or American national.

An International Driving License is required if you stay longer than six months. If you do not have an EU or American license, you should obtain an International Driving Permit (IDP) before you arrive.

If you’re not quite ready to purchase a car in Portugal, consider renting a car to explore the country. Prices will vary on time of year and type of car. If you do not drive stick, beware that automatic car rentals are more expensive.