What are the Living Expenses in the Algarve?

James Faro · Post by **James Faro** » Fri May 16, 2008 11:42 pm

Hello,

This is my first posting. May I say that this is an amazing website and is very informative with a lot of very kind and helpful people.

I am considering moving to the Algarve from the UK. I will initially rent for a few months just to get a feel of the place. We have been three times to the region, twice in Carvoeiro. Of course,a two week holiday is not the same as permanent residence, hence the initial renting period. Saying that, Carvoeiro is a really nice relaxed beautiful place.

I am doing mountains of research but the best source is the source of the fountain, namely the people living here!

I have made some costings about running a villa, say four bedrooms, swimming pool etc. From the research I have done it seems that living in Portugal is not that much cheaper than the UK but obviously has a far better quality of life!

Would it reasonable to say that the following costs per year would be reasonable to assume, based on three people, the following in Euros:

Electricity 2400.00
IMI Tax 4240.00 (based on 0.8% of a house worth 530,000.00
House Insurance 600.00
Food 14.700.00 (based on 282 per week
Health Insurance 1320.00 per person

Any indicators would be greatly appreciated.

Of course, as regards to tax on UK income I am looking into thoroughly and will get advice from an Anglo-Portuguese accountant/financial adviser. I am more concerned with the day-to-day runnings of living out here.

I have other questions but that will be for a later date - I don't want to bombard people with too many questions. I think i have taken liberties here already!

Many thanks - James

bigjomc · Post by **bigjomc** » Sat May 17, 2008 12:31 am

Hi , james , my house ins is due end of may , just had a new quote at 124 pounds , im an owner of an apt and thats for buildings inc earthquakes and contents old for new.

fmm · Post by **fmm** » Sat May 17, 2008 1:36 pm

£124? That sounds good. My apartment cost me £250 per year for building and contents insurance.

carolyn · Post by **carolyn** » Sat May 17, 2008 2:52 pm

Hi James
We own a 4 bed villa with pool but (unfortunately!) do not live in CVO, just rent it out in season and go for holidays.

I assume your costings are in euros? We paid £500 for insurance in February - with the assumption it is a holiday home - though the basics would not be any different for a real 'home' (rebuilding costs for example).

One thing you have omitted from your basic list is water cost, which is quite expensive as it is metered. We pay around 1200 euros a year and that is with minimal occupancy during winter, and without a garden irrigation system.

Hope this helps - you are very wise to do as much research as possible. So many people seem to enter a move like this with their eyes shut!

James Faro · Post by **James Faro** » Sat May 17, 2008 3:18 pm

Dear Carolyn and Bigjomc,many thanks for your replies.

These indicators are as what I expected. I have bought many books on moving, but of course, the minute a book is printed it is out of date! Thank God for the internet and for forums like this to get a realistic picture.

I knew I omitted something and that was the water rates.

It seems the utilities are quite expensive and on par with UK rates or in certain services just a little less.

It is good to do research well in advance. The more facts I look up and ascertain the more I know what to expect. Better to know in advance what problems or expenses are to be encountered than to be in the deep end in the thick of it.........what with the cost central heating for pools!

It's a shame there is not the sense if community in the UK as there is among the ex-pats in the Algarve as demonstrated in this great forum. Then again, I am in the middle of Camden in Central London with all the problems that entails!

- James

SJ & RE · Post by **SJ & RE** » Sat May 17, 2008 6:08 pm

Good luck James and keep looking into it all with your eyes open, many have been bitten without your foresight

steve · Post by **steve** » Sun May 18, 2008 12:27 am

I would not quarrel with your costings. The only other thing to factor in if you have any health problems is medical costs. My wife and I have private health insurance but obviously this does not cover chronic conditions and drugs. It is difficult to get a family doctor in CVO and so you can finish up paying for visits to private doctors. If you are healthy it is not much of a problem but we spent about 4000 euros last year on drugs, doctors visits and procedures not covered by private health insurance - but 30% is claimable against income tax.

My car insurance was more expensive than in the UK but the equivalent of vehicle excise duty was very much lower. Currently 15 euros a year for a 1 litre petrol car and 55 euros for a 2.5 diesel car. I believe however that higher rates now apply to new vehicles

You are very wise to rent and take time to get a good feel for the area.You may find that it suits you better to be further inland from CVO where property prices can be lower and you might get a house with a borehole to avoid mains water charges.

James Faro · Post by **James Faro** » Sun May 18, 2008 12:35 am

Thanks Steve, that was very welcomed advice. I hope you and your wife are ok now.

- James