Cost of Living in Portugal in 2025

What is the cost of living in Portugal in 2025? Is it expensive to live in Portugal?

You may ask these questions if you’re considering living in Portugal.

Fortunately, if you’re traveling from an expensive city in the US, Canada, or the UK, you’ll find your money stretches a lot further in Portugal, especially when it comes to healthcare, housing, and food. Offering the lowest costs of living in Western Europe, the estimated monthly costs in Portugal are about €1,200 – €2,500, but this will largely depend on your lifestyle and where you choose to live.

According to Numbeo, the average cost of living in Portugal is 28.6 percent less than in France and 28.5 percent cheaper than in Germany. When it comes to the cost of living in Spain vs Portugal, the average living cost in Spain is 4.7 percent higher.

Despite its affordability, Portugal maintains a high quality of life, consistently ranking among the best in global quality-of-life indexes. For example, the country is ranked in the 6th position in Global Citizen Solutions’ Quality of Life Index.

In this article, we’ll break down the cost of living in Portugal, covering everything from rent and groceries to everyday living expenses, helping you navigate life in one of Western Europe’s most budget-friendly destinations.

The Cost of Housing in Portugal

The cost of housing in Portugal remains affordable by Western European standards, although prices have been rising in key areas, such as Lisbon, the Algarve, and Porto. Currently, the average asking price for a property in the Lisbon Metropolitan Area is €4,935 per square meter, while in the Porto Metropolitan Area and the Algarve, it stands at €3,937 and €4,385 respectively.

However, more budget-friendly options can be found in Portugal’s central, northern, and Alentejo regions, where property prices are significantly lower. Given these factors, many expats consider buying property a better long-term investment than renting. Our Portugal House Prices guide offers a better overview of house prices across the country.

Renting remains a practical option for those not ready to purchase a home. Rental prices vary widely, with a one-bedroom apartment in central Lisbon averaging €1,388 per month, while more affordable options exist outside the city center at around €1,075. Smaller cities and rural areas offer significantly lower rents.

Utility Costs in Portugal

After drawing up a budget for your housing costs and properties, you need to monitor your utilities and home service expenses. Utility bills, including electricity, water, and internet, are typically lower than in many other European countries.

The utilities include heating, water, electricity, garbage collection, mobile tariff, internet, and much more. Numbeo suggests that the combined cost of utilities come to around €115 a month in an 85m² apartment. If you want to know how affordable this is, you need to check the same living expenses with other countries. For instance, in the UK, this is about €240.

If you live in southern Portugal, you will likely want to have air conditioning during summer, which increases your electricity bill. In general, you might need to heat the apartment during Portugal’s mild winter, as houses can get pretty cold in the winter months. You will want to factor these two things into your Portugal living cost.

Here are the average monthly utility costs in Portugal, which might vary based on your usage.

Transportation Costs in Portugal

Portugal is one of the most beautiful countries in Western Europe, with stunning beaches, incredible food, wine, and picturesque towns. It would be a shame not to explore it all. Fortunately, the public transport costs are fairly affordable in and around Portugal.

Public transportation is well-developed and affordable, with a monthly pass costing around €40.

The petrol cost is slightly expensive in Portugal, costing €1.70 per liter. You can find affordable taxi fees, although Uber and Bolt offer even cheaper fares. The average taxi fee is €3.50 and increases by €0.99 per kilometer.

In 2023, Portugal also became one of the latest European countries to introduce a cross-country train ticket to boost sustainable travel. The monthly pass costs €20 and allows unlimited journeys on Portugal’s regional trains.

Suppose you prefer the convenience of having your own car in Portugal, you will be happy to know that a new or equivalent quality Volkswagen Golf 1.4 90 KW Trendline car costs €30,000. This is cheaper in Portugal than it is in other European countries like Spain, where the same care will cost you €33,365.

Cost of Dining Out in Portugal

How much does it cost to live in Portugal, when it comes to eating out? Similar to every other cost, dining out in Portugal is also affordable. You can easily dine out a few times per month and not have it spoil the budget.

Portugal has a reputation for incredible food and wine, with delicious fresh seafood. You can enjoy high-quality food without the premium price tag, which is usually the case in other countries in Western Europe.

You can eat a regular solid meal in an inexpensive mid-range restaurant in Portugal for €8-€15 and a drink or two at a reasonable price. A glass of wine for €3 and a beer for around €2.

For more information on dining out costs, refer to the below table:

Everyday Food Bills and Expenses in Portugal

When you are not eating out, you will require some basic essentials at home to cook for yourself. Taking the cost of living in Portugal for a single person into account, the grocery costs are reasonable. A typical monthly grocery bill for a single person will range from €150 to €350, depending on lifestyle and location.

Portugal’s long coastline also makes fish prices highly affordable.

Below is a detailed list of essentials and their average cost.

Source: Numbeo

Healthcare Costs in Portugal

According to the latest ranking of the world’s health systems by the World Health Organization, Portugal ranks 12th. Portugal also ranks 23rd in the world on the 2024 World Index of Healthcare Innovation.

There are two categories of healthcare systems in Portugal, namely, public healthcare and private healthcare. Public healthcare, SNS, is almost free for all Portuguese citizens and legal residents. There will be healthcare costs associated with selected procedures, which include visiting a family doctor, the emergency room, or taking a diagnostic examination. The fee can be anything from €5 to €20. The diagnostic exams cost no more than €40.

Private healthcare in Portugal is more expensive than the public healthcare system.  However, both private medical services and private health insurance are still quite affordable, especially when compared to the USA.

Private health insurance varies depending on your insurance plan. There are different types of private health insurance plans in Portugal, and you’ll need to choose one that suits you the best. The prices of private insurance, on average, are around €400 a year. Prices can go as high as €1,000 when you choose a more comprehensive insurance plan.

Without private health insurance, you’ll have to pay an average of €40 to €50 for a private doctor’s appointment.

Cost of Leisure Activities in Portugal

Portugal is an active and vibrant country, with people enjoying their sports, spa, and much more during their leisure time. They have an ample amount of football fields, tennis clubs, golf courses, equestrian facilities, and white-water rafting.

They even made an initiative to install “Parque Ambiental”, which are parks for recreational activities, such as walking, climbing walls, bicycle routes, and other endeavors.

If you are a movie buff, the country has a lot of movie theaters, where they show English language movies in the original language with Portuguese subtitles.

Here are some of the sports and leisure activities in Portugal and their average cost:

Cost of Childcare in Portugal

In Portugal, public schools offer basic education for free to both citizens and foreign residents until the students are nine years old. Lessons are taught in Portuguese.

If you opt for a private school, you must pay the required amount for the education.

Private schools charge between €400 and €500 per month from primary to high school, which does not include the enrollment fee and book fees. Portugal also has English-speaking international schools, where the fee is around €800-€1,800 per month (varies per school), in addition to the enrollment fees, books, uniforms, etc.

Cost of living in Portugal vs USA

As American expats seek a better quality of live outside the USA, a big draw to Portugal is the significantly lower cost of living. 

The cost of living in Portugal vs the USA is over 34 percent cheaper, allowing American nationals access to a higher quality of life than they would be able to afford back home. 

Everything from housing, groceries, and dining out to healthcare and education tends to cost less, especially if you’re coming from a major US city. 

Here are some cost comparisons to put the differences into perspective, according to the latest price averages on Numbeo: 

• Housing prices are 38-45 percent cheaper in Portugal compared to the USA.
• Food (groceries) are 30-60 percent cheaper in Portugal compared to the USA.
• Dining out costs are 32-38 percent cheaper in Portugal compared to the USA.
• Healthcare in Portugal is mostly free or at a very minimal cost in the public system and 100-300 percent cheaper for private healthcare services compared to the USA.
• Education is 45-65 percent cheaper in Portugal compared to the USA.
• Public transport is about 30 percent cheaper in Portugal compared to the USA.
• Monthly utilities are 38 percent cheaper in Portugal compared to the USA.
• Mobile phone and internet costs are 41-63 percent cheaper in Portugal compared to the USA.

A Sample Budget for a Single Person Living in Portugal

For a better idea of how to plan your budget when moving to Portugal, here is a sample monthly budget mapping out the average monthly cost of living in Portugal for single person expats.

For this example, we are using the rental cost of an apartment outside of Lisbon city center.

Cost of Living in Portugal: Final Thoughts

So, is Portugal cheap? The cost to live in Portugal is, in many ways, much more affordable than in other Western European countries. From utilities to healthcare, you’ll likely find that your money stretches further.

If you’re considering a move to Portugal, our partner, Global Citizen Solutions, will be able to offer you expert advice and guidance on your journey to moving to Portugal. Global Citizen Solutions is a multidisciplinary firm offering bespoke residence and citizenship solutions in Europe and the Caribbean.

Here at Goldcrest, we also offer you expert advice and personalized guidance to finding your dream home in Portugal at an affordable price. From providing you with access to exclusive property listings to negotiating the best prices, we ensure all your requirements are met and your needs are treated as our only priority.

If you’d like to know more, feel free to reach out to us by filling out the contact form below, and we’ll be in touch.