Yearning for golden beaches, quaint streets, and the easygoing rhythm of Mediterranean life?
Honestly, who isn’t?
If you’re finally ready to turn that dream into reality, Portugal might be the perfect destination for you.
But hold those horses! Before you pack your bags and buy a one-way ticket, getting a handle on living costs is essential. How much will things actually cost, and is this beautiful country the right fit for your wallet?
That’s why we’ve put together this guide, breaking down everything from housing to healthcare, so you can confidently plan your big move.
Let’s dive in.
What You Need to Know
- Portugal is known for its affordable living compared to many Western European countries and the US. In fact, studies indicate that US consumer prices are nearly 75% higherthan in Portugal.
- Keep in mind that prices differ across regions. Big cities like Lisbon and Porto cost more compared to smaller towns.
- Your spending also largely depends on your lifestyle!
- Careful budgeting and smart choices can help you live comfortably, even if you’re on a tighter budget.
Cost of Living in Portugal: An Overview
Portugal has become a popular choice to live out your dreams.
The westernmost European country frequently ranks as one of the most affordable destinations in Western Europe. Portugal delivers high-quality living, low crime, excellent cultural opportunities, exquisite food, excellent healthcare, and much more.
Imagine this: you can enjoy jaw-dropping beaches, savour delicious pastéis de nata, and discover castles filled with history, all while spending significantly less than you would in other similar Western countries.
So, how much are we talking?
Living in Portugal can be 36% cheaper than in the United States and the United Kingdom, with some prices up to 74% more affordable.
For one person, most monthly expenses including rent in Portugal is less then €700 (roughly £600).
For a family, expect to spend around €2,400 (£2,000) per month for most expenses including rent.
Of course, this isn’t a one-size-fits-all answer.
Your actual costs depend on your lifestyle and the location you choose to live in.
Big cities like Lisbon and Porto are typically more expensive, but smaller towns offer unbeatable value.
And if you crave a lavish lifestyle then you’ll be paying more.
Let’s focus on the fundamentals here.
Rental prices are especially appealing in Portugal, averaging 40% lower than in the UK (and approximately 52% cheaper than in the US).
In Lisbon, a one-bedroom apartment in the city centre will cost you around €916 per month, but you can find much cheaper options in smaller towns.
Food is another pleasant surprise.
Portugal offers some of the lowest supermarket spending in the world, with the average person spending just €270 per month on groceries.
Keep in mind that prices have seen a gradual increase with an average inflation rate of 2.7%. However, this modest increase is unlikely to affect Portugal as one of Europe’s most budget-friendly paradises.
More on the Real Cost of Living in Portugal
Since we’re on the same page now, let’s break down how much everything costs on average in Portugal so that you know if this is suitable for your budget.
Housing Cost in Portugal
Whether you prefer a cozy apartment in Lisbon, a charming villa in the Algarve, or a rustic farmhouse in Alentejo, finding a home is key to a comfortable life.
As always, renting or buying in Portugal has its own advantages and drawbacks.
- Renting: Renting in Portugal helps if you aren’t sure about your long-term plans. Moreover, it involves lower upfront costs.
- Buying: If you’re committed for the long haul, investing in a property can be a smart move, especially with Portugal’s relatively reasonable real estate market.
Rental costs can vary depending on location and property type. Here’s an overview of the average rental prices in some popular areas.
Lisbon
- One-bedroom apartment in the city centre: €1,420 per month
- One-bedroom apartment outside the centre: €991 per month
- Three-bedroom apartment in the city centre: €2,648 per month
- Three-bedroom apartment outside the centre: €1,619 per month
Porto
- One-bedroom apartment in the city centre: €1,012 per month
- One-bedroom apartment outside the centre: €833 per month
- Three-bedroom apartment in the city centre: €1,887 per month
- Three-bedroom apartment outside the centre: €1,369 per month
Algarve: Rental prices can fluctuate here, with luxury villas reaching upto €2,000 per month.
Smaller Cities (e.g., Coimbra, Aveiro): You can find one-bedroom apartments starting from around €500 per month.
Buying Property in Portugal
If you’d like to buy a house in Portugal, here are some of the average estimates.
Keep in mind that these are averages.
Remember to do your own research to find the most current and accurate prices and choose a property that is a good fit for you. Again, cities tend to be more expensive and rural areas are more affordable.
Simply pick that perfect location and use websites like Idealista, BuyProperty, or ImoVirtual to see what prices are at the moment.
Other Housing Factors to Keep in Mind
Consider these extra costs.
- Property taxes:
- Maintenance Costs:
- For a one-bedroom apartment in Lisbon: Approximately €3,000 per year
- For a three-bedroom villa in Faro: Around €5,000 per year
- Utilities: The average monthly cost for an 85m2 apartment is €102 across Portugual. More on this shortly.
- Insurance: Standard property insurance can cost between €180-380 per year. Basic insurance starts at around €60 a year.
By considering these factors, you can decide whether to rent or buy.
Portugal: Utility Cost of Living Prices
Costs are crucial to effective budgeting, so let’s break down what you can expect to pay for electricity, water, gas, and internet in 2025.
For a typical Portuguese household, monthly costs can range from €100 to €200, depending on factors such as property size, location and usage habits.
This covers electricity, water, gas, and garbage collection fees.
Electricity
Electricity in Portugal averages €0.2246 per kWh. That’s about 22% higher than in the UK, so it’s something to keep in mind.
Expect to pay around €60 per month.
Pro tip: To control bills, try using appliances during off-peak hours.
Water
Water costs can vary across multiple regions in Portugal. You’ll likely spend between €15 and €30 per month. Porto tends to have the highest water rates, while Braga and Faro boast the lowest.
Gas
Your gas bill depends on usage and supply. For one bedroom expect to pay about €20 per month.
A 13-kg butane cylinder will cost you about €27 and will last a family of three for about one month.
Internet and telecommunications
Internet services in Portugal are affordable. You can purchase high-speed internet (200Mb) for €37 per month.
If you want to bundle your internet with TV services, expect to pay around €50 to €60 per month.
Regional Variations
Utility costs depend on where you live in Portugal. These are some cities and the average.
- Albufeira: €145
- Lisbon: €123
- Porto: €114
- Algarve: €€102
- Faro: €68
Also, keep in mind that colder seasons will see higher costs with your electricity. Warm weather may drive up expenses.
Grocery and Food Cost of Living Prices in Portugal
One of the joys of living in Portugal is enjoying its cuisine.
From fresh seafood and colourful produce, there’s something to satisfy every taste bud.
Well, how much will all this cost you?
Groceries in Portugal are affordable compared to other Western European countries.
The average monthly grocery bill for one person ranges from €150 to €350.
As of January 2025, 63 staple products were about €279.
While this represents a small increase from previous years, Portugal is still low-budget compared to other European countries.
Average Costs of Everyday Foods Items in Portugal
Here are the prices for common food items.
- Milk (1 litre): €0.94
- Loaf of fresh white bread (500g): €1.36
- Rice (1kg): €1.40
- Eggs (12): €2.68
- Local cheese (1kg): €10.25
- Chicken fillets (1kg): €6.72
- Beef round (1kg): €12.23
- Apples (1kg): €1.97
- Tomatoes (1kg): €2.21
- Potatoes (1kg): €1.49
Remember that prices depend on the location. Lisbon is more expensive.
Where to Shop in Portugal
Here are the best locations to shop considering your needs and budget.
- Supermarkets: Major chains like Continente, Pingo Doce, Auchan, Intermarché, Lidl, and Aldi are common. Continente is more expensive while Lidl and Aldi are budget friendly.
- Hypermarkets (Hipermercados): These large stores offer lots of foods and groceries in shopping centres.
- Local markets (Mercados): Most districts have their own indoor market with local foods as well as seafood cheeses and meats.
- Small grocery stores (Mercearias): These neighbourhood shops are ideal for quick buys.
- Organic markets: If you’re looking for organic products, you’ll find specialised markets around many cities.
Pro tip: Local markets offer the best value. Meals are made of locally sourced ingredients and markets provide the best and most convenient ways to find the best ingredients.
Portugal Transportation: Options and Costs
You have a variety of options such as transit or cars.
Public Transportation
Accessible transit makes getting around easy.
Here’s a breakdown of the main options:
- Metro Systems: Lisbon’s metro is a fantastic way to experience the city. A solo metro ride will cost you €1.80, and an unlimited pass costs €7.
- Buses and Trams: Lisbon’s buses and trains offer you a way to see the city, with fares starting at €2.20 for a solo bus trip and €3.20 for a tram ride.
- Train Services: For travel between destinations, trains are a reliable option. A high-speed train from Lisbon to Porto can start off at €33.
Uber is also available. You can use the estimate the cost of your trip.
The Costs of Car Ownership
Many prefer the freedom of having your own private car, particularly in rural regions. However, you must also weigh the costs associated with this.
- Purchasing and Registration:
€55-65, a vehicle tax CO2 emissions, and renew your license plate and road use permission.
- Insurance: Basic coverage will start from around €150-200 per €150-200 per year.
- Fuel Costs: As of January 2025, Fuel prices are €1.80 petrol and €1.70 diesel
- Maintenance and Inspections; Vehicle inspections cost around
€30.
In 2022, monthly costs of car ownership including depreciation, averaged at about €1,160.
Healthcare Costs in Portugal
Portugal has a robust healthcare system. It also has free services, so there is no need to buy insurance.
The public healthcare system: Serviço Nacional de Saúde (SNS)
SNS, Portugal’s Public Healthcare system, provides universal coverage to legal residents.
The SNS offers services such as these which are primarily funded through taxes.
- Primary care
- Consultations
- Hospital Treatments and Surgeries
- Emergency services
- Maternity Care
- Mental Health Services
While SNS is largely free, you’ll find small co-payments to be about €5 to €10.
Keep in mind that while the SNS is high quality, wait times may take time.
The Private Healthcare System
Portugal has a thriving private healthcare sector that provides more streamlined healthcare.
The SNS provides a wide range of high-quality options. These are some examples of costs.
- Specialist Consultations: €50-€100
- Routine Tests: €20 to €100
- Private Hospital Stays: €200–€400 per night
Selecting the Right Insurance Options
- Public Health Insurance: As a legal resident you are automatically covered under the system. Register for a healthcare card at a local health centre.
- Private Health Insurance: Residents choose supplementary plans that cover dental, expedited specialist visits, and cosmetic surgery.
Coverage varies.
- Basic: €20-€50 per month
- Comprehensive: €€50 – €150 per month
Private insurance providers include Médis, Multicare, Allianz, and Fidelidade.
In general, SNS will be more than suitable. But, if you require treatment for a specialised condition, then private may be best.
Healthcare in Portugal: What Makes it Stand Out
- Emergency Care: Public hospitals provides emergency care.
- Waiting Times: You can bypass wait times if you use private insurance.
- Regional Access: Mainland Portugal, and the Azores use a separate healthcare system.
Like most European countries, Portugal provides a diverse and quality driven system that covers all residents.
Whether you opt into private or SNS care, rest assured that you’ll have healthcare there ready for you.
Costs in Portugal: Leisure Actitivies and More
Enhance your life with different leisure activities and experiences.
Portugal offers a wide range of cultural experiences.
Culture of Portugal: From Museums, to Cinemas and More
Portugal enriches its history with entertainment.
- Cinema: Pay around €7.50 per ticket.
- Museums: Entry fees range from €2 to €10. Popular choices include the National Tile Museum, Castelo de S. Jorge, and the 3D Fun Art Museum.
- Concerts and Shows: In Lisbon, find international artists like Kylie Minogue and dancers in local events.
- Fitness and sports: Average gym costs are €37. Tennis can cost around €13 per hour depending on location.
- Cultural Events: Events such as lively Carnival in February. Tickets generally go from €5 to €15.
Taste the Food of Portugal
Enjoy restaurants.
- Casual Dining: Inexpensive and mid range options available can range from €10 to €45.
- Drinks: Beers, wines, and drinks range around €5.
- Local Specialities: The dish codfish also called bacalhau à brás range from €13. Kale soup, caldo verdo can range from €4 to €8.
Find small establishments where you can enjoy traditional portugal meals for under €10.
Tipping is always a sign of apprecation.
Portugal and Budgets
Now that you know the costs, let’s see how it translates from budgets to lifestyles.
€1500: Comfortable Living if Budgeted Well
It’s doable if outside of major cities.
It does require budgeting. The salary is about average, so basic needs as well as some leisure activities are suitable.
Potential Allocations
- Rent: €600-€800 for smaller apartment outside city
- Utilities: €100-€150
- Groceries: €300-€350
- Transportation: €50-€100
- Healthcare: €50
- Leisure: €100-€200
Drawbacks Include:
- Meals at local restaurants
- Budgeting
- Flexibility
€2000: More Freedom
Most portions of Porgual can have an adequate lifestyle, including those close to Porto or Lisbon.
Potential Allocations:
- Rent: €800-€1000 for a decent apartment, potentially close to the citiy
- Utilities: €150-200
- Groceries: €400-€500
- Transportation: €100-€150
- Healthcare: €100
- Leisure: €300-€400
- Saving: €100-€200
Occasional trips could be possible,
€3000: Best of Portugal
With this much, you’ll live comfortably in most parts of Portugal.
Potential Allocations
- Rent €1200-€1500 for a spacious apartment
- €200-€250: Utilities
- €500-€600: Groceries
- €200-€300: Transport
- €150-
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