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PSG beat Le Havre to stay on course for unbeaten Ligue 1 season
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Man City close in on Champions League with Everton late show
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14-year-old Vaibhav Suryavanshi becomes youngest IPL player
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Barca make stunning comeback to beat Celta Vigo in Liga thriller
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Zverev sets up birthday bash with Shelton in Munich
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Man City boost top five bid, Southampton snatch late leveller
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US Supreme Court intervenes to pause Trump deportations
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Alcaraz and Rune race into Barcelona final
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US, Iran to hold more nuclear talks after latest round
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Man City close in on Champions League thanks to Everton late show
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Bayern close in on Bundesliga title with Heidenheim thumping
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Tunisia opposition figures get jail terms in mass trial
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Putin announces 'Easter truce' in Ukraine
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McLaren duo in ominous show of force in Saudi final practice
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Afghan PM condemns Pakistan's 'unilateral' deportations
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Iran says to hold more nuclear talks with US after latest round
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Comeback queen Liu leads US to World Team Trophy win
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Buttler fires Gujarat to top of IPL table in intense heat
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Unimpressive France stay on course for Grand Slam showdown
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Shelton fights past Cerundolo to reach Munich ATP final
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Vance and Francis: divergent values but shared ideas
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Iran, US conclude second round of high-stakes nuclear talks in Rome
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Dumornay gives Lyon first leg lead over Arsenal in women's Champions League semis
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Trans rights supporters rally outside UK parliament after landmark ruling
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Rune destroys Khachanov to reach Barcelona Open final
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From Messi to Trump, AI action figures are the rage
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Vance discusses migration during Vatican meeting with pope's right-hand man
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Afghan FM tells Pakistan's top diplomat deportations are 'disappointment'
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British cycling icon Hoy and wife provide solace for each other's ills
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Money, power, violence in high-stakes Philippine elections
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Iran, US hold second round of high-stakes nuclear talks in Rome
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Japanese warships dock at Cambodia's Chinese-renovated naval base
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US Supreme Court pauses deportation of Venezuelans from Texas
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Pakistan foreign minister arrives in Kabul as Afghan deportations rise
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Heat and Grizzlies take final spots in the NBA playoffs
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Iran, US to hold second round of high-stakes nuclear talks in Rome
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Humanoid robots stride into the future with world's first half-marathon
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Migrant's expulsion puts Washington Salvadorans on edge
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Plan for expanded Muslim community triggers hope, fear in Texas
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Pakistan foreign minister due in Kabul as deportations rise
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White House touts Covid-19 'lab leak' theory on revamped site
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Dodgers star Ohtani skips trip to Texas to await birth of first child
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US senator says El Salvador staged 'margarita' photo op
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Ford 'adjusts' some exports to China due to tariffs
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Thomas maintains two-shot lead at RBC Heritage
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US to withdraw some 1,000 troops from Syria
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Four killed after spring storms wreak havoc in the Alps
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Spurs' Popovich reportedly home and well after 'medical incident'
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Trump goes to war with the Fed
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Celtics chase second straight NBA title in playoff field led by Thunder, Cavs
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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