One of our thoughts was that we were going to live in a very cheap country on Diego’s salary from the USA without paying taxes on that money for 10 years.
We were totally wrong.
After a year of living in Porto, there were a few things that were cheaper than in Valencia.
First, when in Valencia the tax for buying a property is 10%, in Porto it is not even 3%.
In addition, with respect to the Real Estate Tax in Portugal as soon as you buy a property you do not pay it during the first 3 years. This is also a great saving.
Now let’s talk about day-to-day expenses.
In Portugal general VAT is 23%, when in Valencia is 21%.
Leaving aside the many extra expenses that the illegal situation of the house had brought us, we were spending much more than living in Valencia.
In food, where in Valencia we were spending 300 euros a month (including cleaning and skincare products), in Porto we were almost always spending 500 euros a month buying the same things.
Water and electricity cost the same.
In Valencia, we paid 3 euros for cell phone internet and for the house, at first, we paid 13 euros and then 23 euros because we upgraded the speed as we were both working remotely.
In Porto, the cell phone internet does not go below 10 euros and the home internet costs at least 36 euros. This is just for the internet without contracting any kind of pack. In addition, in Porto everything works with a 1- or 2-year permanence, there is no company that makes you a contract without permanence.
The withholding tax on the interest that your money generates in the bank in Spain is 20% and in Portugal it is 28%.
The services of an accountant in Porto are also more expensive. Where in Valencia it costs 15 or 18 euros to do your tax return, in Porto the cheapest you will find is 50 euros plus VAT.
Medical consultations are also more expensive.
In Valencia, an eminent doctor charges 50 euros for a consultation. For example, a dermatologist’s consultation at the Ricart Medical Institute cost me 50 euros and a podiatrist’s consultation in Sollana cost me 30 euros.
In Porto, medical consultations start at 50 euros, and are usually between 60 and 80 euros. This without doing anything, just looking at you.
While in Valencia the dental cleaning cost me 35 euros, in Porto it costs 70 euros.
The dental retainers that I bought in Valencia cost me 50 euros each, in Porto cost 300 euros each. Asking in many clinics they gave me prices like 250 euros and 180 euros.
I managed to find a place where they charged 60 euros per retainer, and they did them wrong. Then I made an appointment at another place where they charged 65 euros and after putting the mold 3 times, they had not been able to get it right and still wanted to put the mold a fourth time.
For a consultation at João Desport Dentistas for my gingival recession, I paid 130 euros because the orthopantomography (which is usually included in the consultation) was charged separately. I was shocked.
Regarding private medical insurance, it is also more expensive in Porto. The cheapest one we got cost 50 euros per month with a co-payment of 15 euros and did not cover dentist or cancer.
None covered cancer and as for the dentist, if you paid 100 euros a month, they would cover up to 2500 euros a year in dental expenses.
Medications are also more expensive; in fact, Diego’s parents bought blood pressure pills, minoxidil, and Diosmina, and had it sent from Valencia.
Public transportation is also cheaper in Valencia. A bus trip costs 1.50 euros and in Porto it starts at 1.80 euros; we have always paid 2.40 euros.
The subway in Porto is a bit cheaper; the problem is that it does not have much coverage. In Valencia the metro has better coverage in the city.
Second hand cars in Valencia are cheaper and the condition of the vehicles is much better. In Porto you pay a fortune for used cars that are wrecked and companies lie about mileage and everything.
By September 2023, gasoline was more expensive in Porto than in Valencia.
Finally, as you have seen in previous posts, the prices to do renovation works at home are an atrocity and much more expensive than in Spain.
What was cheaper:
Aesthetic procedures such as Botox and fillers were cheaper in Porto.
In Valencia, at the Ricart Medical Institute, a Botox session cost me almost 500 euros and Diego almost 700 euros. In Porto, we paid 250 euros each.
Doing the homologation of the driver’s license in Porto was cheaper and easier. In Valencia, to renew or homologate the driver’s license, you must pay for the psycho-technical test which is between 20 and 60 euros; also, the cost of the driver’s license is between 45 and 85 euros. In Porto you only need a medical certificate from the family doctor which is free of charge and the driving license costs 30 euros.
The payment of taxes on income obtained as an independent worker is a little more favorable than in Spain if you have the status of Non-Habitual Resident. It is not as advantageous as advertised, but it is more convenient than in Spain (at leas for the first couple of years). I will write more in depth about this in a future post.