One in five in Portugal still at risk of poverty. Credit: Nicola Barts
Portugal has made progress in tackling poverty, but a new report shows that more than two million people are still at risk of poverty or social exclusion. The findings come from the “Portugal Balanço Social 2024” report, which calls for deeper reflection and stronger public policies to close the gap between the rich and poor.
According to the report, in 2023, Portugal had a poverty or social exclusion risk rate of 20.1 per cent. That means one in five people in the country still live under challenging conditions. While some improvements have been made in the last few years, the numbers show that poverty remains a major issue across the country.
The report draws on data from Eurostat, the European Union’s statistics office, and Portugal’s National Institute of Statistics (INE). It shows that the at-risk-of-poverty rate after social transfers in Portugal was 17 per cent in 2023. This is slightly above the EU average of 16.2 per cent. That figure reflects people whose income is below 60 per cent of the national median after receiving government support, such as pensions or social aid.
Portugal did perform better in other areas. The rate of severe material and social deprivation was 4.9 per cent, compared to 6.8 per cent across the EU. This measures how many people cannot afford basic needs like heating, decent meals, or regular activities. Also, only 6.3 per cent of people lived in households with very low work intensity, meaning few or no working adults. The EU average for this is 8 per cent.
Despite these relatively positive figures, poverty still affects large parts of the population. The report estimates that 1.8 million people in Portugal live in poverty. The official poverty line was set at an annual income of €7,588 in 2024 — or just €632 per month. Anyone earning less than this is considered at risk.
Even more alarming is that more than 10 per cent of Portugal’s population is living in extreme poverty, meaning they survive on less than half of that amount, under €3,548 a year. This means that more than half of all low-income families in Portugal have minimal income.
The report highlights several vulnerable groups. These include elderly people, immigrants, people with low education, and those living in rural areas. Families with children are also heavily affected. Single-parent households have a poverty rate of 31 per cent, while large families face a rate of 28.2 per cent.
Housing conditions are also a serious concern. Four out of ten people at risk of poverty live in poor-quality homes with leaking roofs, damaged windows, or walls that let in water. While most people are not sleeping rough, 1.1 per cent of Portugal’s poor population — around 15,000 people — said they have slept in public spaces or on the street due to lack of housing.
There are also substantial regional differences. The report says poverty is highest in the Autonomous Regions, especially the Azores. There, the poverty rate is nearly eight percentage points above the national average. Madeira and the Setúbal Peninsula also show above-average poverty levels. Inequality is greater in these regions, too, although some improvement was seen between 2023 and 2024.
Income inequality remains high across Portugal. The wealthiest 25 per cent of the population hold 48 per cent of the country’s total income. In contrast, the poorest 25 per cent have just 10.2 per cent. These figures are similar to those seen in 2022. The report also shows that inequality increased in 2023, especially in the Lisbon Metropolitan Area, Madeira and the Azores.
Researchers estimate that lifting all families from poverty in Portugal would cost around €3.5 billion. However, they stress that fighting poverty is not just about money. Long-term change would require a wide range of public policies and social support to address housing, education, employment, and healthcare.
The report calls on the government and society to reflect more deeply on these issues. While Portugal has taken steps in the right direction, too many people are still left behind. There is also a risk that rising inequality will undo the progress made so far.
Although the country has improved in some key areas and now performs better than the EU average in certain indicators, poverty continues to be a daily reality for millions. For Portugal to move forward, more action is needed to support its most vulnerable citizens and reduce inequality across all regions.
The “Portugal Balanço Social 2024” report makes it clear: progress is not enough unless it reaches everyone.
