What is the Cost of Living in Lagos, Portugal in 2025?

What are the everyday living expenses in Lagos, Portugal?

Living in Lagos, Portugal, provides an affordable and comfortable experience for expats, remote workers, retirees, and international students. Situated on the stunning Algarve coast, Lagos is a coastal city with beautiful beaches, rich history, and cobbled streets in the old town.

The vibrant local market in the old town and fishing villages offer a plethora of fresh produce, seafood, and handicrafts, providing a glimpse into the local lifestyle. The average person spends about €180 ($209) to €300 ($349) on groceries, especially when they cook most meals at home.

The city also boasts a thriving culinary scene, offering a diverse array of traditional Portuguese delicacies and international cuisines. The local cafes and restaurants provide a relaxed ambiance to savor the culinary delights. A couple dining out in a mid-range restaurant can expect to spend roughly €150 ($175) to €250 ($291) per month.

Those who live in an 85 to 90m² apartment spend about €90 ($105) to €120 ($140) on utilities. Internet and phone bills are quite manageable, costing about €55 ($64) to €75 ($87) per month, depending on the package.

Overall, living expenses in Lagos, Portugal, are manageable for expats, digital nomads, and families with children. But the total cost will vary based on your lifestyle and housing choices. Since Lagos is a major tourist destination, the costs increase during peak season.

How much does it cost to live in Lagos, Portugal?

Overall, prices in Lagos are more affordable and significantly cheaper than in other European coastal towns, keeping monthly costs for everyday life down. However, due to its popularity with locals, expats, and visitors, the Algarve is a little more expensive than the Algarve, such as Central Portugal or the Alentejo.

If you are moving to Lagos with a family of four, you can expect to pay between €2,500 ($2,910) and €3,500 ($4,074) per month, while a single person could get by on around €800 ($931) per month (excluding rent). This budget will include groceries, transport, monthly subscriptions, gym membership, and utilities.

The section below provides an overview of average Lagos living expenses an expat may need, including rent, education costs, and other expenses, should you be moving to Lagos with family.

Rent per month

Rental prices in Lagos depend on the location, the space required, and the condition of the property. Overall, you can expect to pay an average of €1,050 ($1,222) for a one-bedroom apartment in Lagos’ center and between €1,733 ($2,018) for a three-bedroom apartment in the city center.

You’ll pay a little less on the outskirts of Lagos. For a one-bedroom apartment in the suburbs or a village around Lagos, you’ll pay approximately €1,000 ($1,164) per month for a one-bedroom apartment, and for a three-bedroom property, you’ll pay around €1,900 ($2,212) per month.

Many couples choose a one-bedroom apartment (T1) or a small T2, as this keeps the rental costs in the most manageable range. Apartments in the outskirts are significantly more affordable than those near beaches, such as Meia Praia, or near the marina. It is possible to secure small accommodations for €950 ($1,106) to €1,400 ($1,630) per month, depending on the season. But, during summer tourist season, from June to September, short-term rentals have the highest prices. So, it is best to secure a long-term rental contract to secure the lowest, year-round rates.

The table below outlines the average rent in Lagos, Portugal:

Source: Numbeo

Property prices

If you’re interested in buying property in Lagos, Portugal, you can also expect higher prices in the historic center. On average, the asking price for property in Lagos was €5,066 ($5,898) per square meter in 2024.

As is the case with real estate, you’ll pay more or less not just depending on the location but also on the condition of the property. A real estate agent in Lagos will help you navigate the real estate market.

The cost of living in Portugal, generally speaking, is quite reasonable, and this extends to property prices, which are lower than in major cities in Europe. If you’re looking for a restoration project, you’ll pay considerably less than for a modern, fully equipped property.

For property investors who are willing to invest a significant sum, Lagos offers luxury properties, like villas with swimming pools, golf resorts, modern apartments, and penthouses. You can also find land for sale in the Algarve, where you can build your dream home from scratch.

Penny-pincher’s budgets for a couple, bare minimum costs

A couple can live in Lagos, Portugal, on a bare minimum budget of €1,250 ($1,455) to €1,550 ($1,804) per month if they cook most of their meals at home, rent a small apartment in the outskirts, and spend less on entertainment and leisure costs.

A one-bedroom flat in the village or a nearby town can cost over €700 ($815). To save costs, it is essential to use public transport and dine out less frequently. Instead, opt for walking, biking, and shopping at discount stores.

Here is a table on the lowest possible costs for monthly expenses:

Salaries and financing

If you’re looking for work in Lagos, the average monthly net salary is around €1,100 ($1,280) to €1,250 ($1,455), which is above the minimum wage of €870 ($1,013) in Portugal. Of course, your salary will depend on many other factors, such as the industry you’re looking to work in, your experience, and any bonuses you may be eligible for.

Should you take out a mortgage in Portugal, you can expect interest rates between 3.5 percent and 5.5 percent, depending on which rate you choose and the term of your borrowing. For more information on mortgage in Portugal for foreigners, read our ultimate guide.

What are the everyday living expenses in Lagos, Portugal?

The price of living in Lagos is slightly higher than in the northern parts of Portugal. But, it is more affordable than Lisbon, including other European seaside cities.

For example, the average single person spends about €1,450 ($1,688) to €2,000 ($2,328) per month, a couple roughly €2,100 ($2,444) to €3,000 ($3,492) per month, and a family of four around €4,000 ($4,657) to €5,500 ($6,403) and more to cover the monthly expenses, including rent.

Here is everything you need to know to plan the living expenses.

Grocery shopping

One of the advantages is that local food prices are reasonable, and, as mentioned above, Portugal is renowned for its exceptional cuisine and fresh produce. The average person spends about €180 ($209) to €300 ($349) on groceries and about €500 ($582) for two per month.

In the table below, you will find average prices for essential food and beverage items that a typical household would require on a weekly basis. It’s important to note that these costs are subject to variation based on the location of your shopping and fluctuations in the economy.

Source: Numbeo

Restaurant prices

Portugal is renowned for its exceptional cuisine, featuring fresh seafood and an abundance of locally grown produce. Subsequently, when it comes to great dining experiences at affordable prices, you’ll be spoilt for choice in Portugal – and Lagos, and the Algarve, in general, are no exceptions. You can dine in style at a low cost, which makes Lagos such a popular destination.

For a meal in an inexpensive restaurant in Lagos, you can expect to pay around €12 ($14) per person. If you’d like to treat yourself to a three-course meal at a mid-range restaurant, then expect to pay about €52.50 ($61) per person for a three-course meal.

Having a drink or coffee in one of Lagos’ many bars, cafes, and restaurants is also considerably cheaper than in other tourist hotspots in Europe.

A half-liter of domestic beer costs €2.25 ($3), a regular cappuccino costs €1.74 ($2), and prices for soft drinks are about €1.94 ($2).

Overall, if you are eating out four times a month in Lagos, you should expect to pay between €48 ($56) and €210 ($244).

Utilities and internet costs

For an 85 m2 apartment, you can expect to pay €97.50 ($113) per month on basic utilities, such as heating throughout the year, which should keep your energy bills low. Although the area has a generally mild climate, winter months can be cold, so check that your property has good insulation.

Of course, the total amount you spend on living expenses in Lagos, Portugal will depend on various factors, including the size of your accommodation, the number of occupants, and your daily usage of gas, electricity, and water.

For other monthly charges, such as the internet and mobile phones, bills will vary based on your chosen provider and personal usage. The average monthly phone plan costs about €18.80 ($22), while 60 Mbps of unlimited internet is about €38.33 ($45) per month. We recommend you research local providers before you sign up for a contract.

For a general overview of utility costs for a small household, please refer to the table below:

Source: Numbeo

Sports and entertainment costs

Lagos offers an abundance of things to do for free, be it exploring its beautiful beaches, nature, or the incredible history in the city and its outskirts. The area has a vibrant nightlife, making it an attraction destination for young professionals and expats.

If you’re interested in joining a fitness club or enjoy going to the movies, the table below provides an overview of the approximate costs.

Source: Numbeo

Transportation costs

Portugal’s public transport system is affordable and a great way to save money if you don’t want to invest in your own means of transport.

A one-way ticket for local transport in Lagos costs around €1.50 ($2), but a monthly pass for Lagos could save you money if you’re a regular traveler and costs around €30 ($35). Taxis and Ubers are also relatively affordable. The starting tariff for a taxi is €3.00 ($3), and €0.90 ($1) for every kilometer thereafter.

Clothing and shoes costs

Shopping for clothing and shoes doesn’t have to be expensive, and the Algarve offers many local markets, independent sellers, and second-hand stores. If you are shopping on the high street, however, the Lagos, Portugal, cost of living for new clothes and shoes can be found below.

Source: Numbeo

Childcare expenses

Portugal is a great country for families with children of all ages. If you’re reliant on childcare, there are many options in the Algarve and also in Lagos itself. The preschool costs for one child are around €475 ($553) per month, and the annual fees for an international primary school per child are about €10,500 ($12,225).

Health insurance in Lagos, Portugal

Residents in Lagos, Portugal, can use both the public SNS (Serviço Nacional de Saúde) healthcare system and private health insurance. Through public healthcare, many medical services are free, while others require a small co-payment.

For example, medical emergency transport, emergency care, community health problems, primary care referrals, and COVID-19-related services are free. However, prescription medicine, dental care, specialist consultations, and general practitioners incur different costs.

Private health insurance in Portugal is generally considered very affordable compared to many other Western European countries and the United States, but the cost depends heavily on your age and the level of coverage you choose.

The monthly premium for a single person can range from as low as €30 ($35) for a basic plan to over €300 ($349) for a comprehensive senior plan. You can read more about Portugal healthcare in our extensive guide.

Bank accounts & currency transfers in Lagos, Portugal

While opening a bank account in Lagos is usually free, most traditional Portuguese banks charge a mandatory monthly fee for their standard checking accounts. If you want a physical branch in Lagos, expect to pay €5 ($6) to €7 ($8) per month. If you are comfortable with an app-based digital bank, you can open a bank account for free. Our article on banking in Portugal provides a detailed overview of other expenses.

How can Goldcrest help you?

Managing the living expenses in Lagos is just the start. But, finding the right property, handling legal requirements, and negotiating prices can be stressful, especially if you’re new to the country and don’t know the local language. That’s where we can help.

Goldcrest is a buyer’s agent that guides you through every step of the property purchase process. We help you find homes that fit your lifestyle and budget, get the best price, and take care of all paperwork. We also provide local market advice, insights on neighborhoods, schools, and amenities.

Our team can connect you with professionals like lawyers, notaries, and mortgage advisors. Contact us today so you can save time and avoid common pitfalls. We make investing in property simple, smooth, and enjoyable.