Cost of Living in Portugal in 2025: Ultimate Guide for Expats

Cost of Living in Portugal

The cost of living in Portugal is generally lower than in most Western European countries, though it has been steadily rising in recent years due to demand from expats, digital nomads, and tourism.

Housing is the largest expense, particularly in Lisbon and Cascais, but day-to-day costs such as groceries, dining out, and public transportation remain affordable compared to European averages. Utilities, healthcare, and leisure activities are also reasonably priced, making Portugal an attractive destination for those seeking a balance between quality of life and affordability.

Is Portugal expensive?

Whether Portugal is considered expensive largely depends on where you live and your lifestyle. Compared to countries like France, Germany, or the UK, Portugal is noticeably more affordable in terms of rent, food, and services.

However, for locals earning the average Portuguese salary, the rising cost of housing—especially in Lisbon and Porto—can make daily life feel expensive. Expats and retirees often find Portugal relatively budget-friendly, especially if they have foreign income or pensions.

Smaller cities and rural areas remain particularly cost-effective, allowing residents to enjoy Portugal’s Mediterranean lifestyle at a fraction of the cost of other EU countries.

Monthly Budget Estimates by Household Type

A single person living in Lisbon can expect to spend between €1,200 and €1,800 per month, with rent taking up the largest share. Outside Lisbon and Porto, this drops to around €900 to €1,300.

Couples typically need between €1,800 and €2,500 monthly, depending on their housing choice and lifestyle. Families of four generally require between €2,500 and €3,500 to cover rent, groceries, schooling, transportation, and leisure activities.

Retirees, particularly those who own property, often live comfortably on €1,500 to €2,000 per month in smaller cities or coastal towns, where housing costs are lower. This flexibility allows different household types to adapt their budgets according to their needs and location.

Portugal Housing Costs: Rent and Property Prices by Region

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.

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.

Real estate in Portugal is generally more affordable than in the USA (you can check out our USA vs Portugal real estate guide for a deepdive into this), while rental prices in Portugal are around 38.9 percent lower than in the USA.

You will need to get a NIF number (Portuguese tax number) to buy property and for other major financial purchases and we recommend opening up a Portuguese bank account to save on international transfer costs.

Renting remains a practical option for those not ready to purchase a home. Rental prices vary widely, and below we provide a guide to what you can expect to pay in key locations.

Lisbon

• A one-bedroom apartment in Central Lisbon averages €1,418 per month
• A three-bedroom apartment in Central Lisbon averages €2,631 per month
• A one-bedroom apartment outside the city will cost you around €1,089 per month
• A three-bedroom apartment outside the city will cost you around €1,777 per month

Porto

• A one-bedroom apartment in Central Porto averages €1,047 per month
• A three-bedroom apartment in Central Porto averages €1,917 per month
• A one-bedroom apartment outside the city will cost you around €808 per month
• A three-bedroom apartment outside the city will cost you around €1,384 per month

Algarve

• A one-bedroom apartment in a city center in the Algarve averages €1,000 per month
• A three-bedroom apartment in a city center in the Algarve averages €1,800 per month
• A one-bedroom apartment outside the city center will cost you around €850 per month

Cascais

• A one-bedroom apartment in Central Cascais averages €1,475 per month
• A three-bedroom apartment in Central Cascais averages €3,256 per month
• A one-bedroom apartment outside the city will cost you around €1,083 per month
• A three-bedroom apartment outside the city will cost you around €2,281 per month

Inland areas

More affordable options exist in more inland areas. Smaller cities and rural areas offer significantly lower rents. For example, the rent for a one-bedroom apartment in Coimbra is €680 per month, and a three-bedroom apartment in Braga would cost you €1,189. In some parts of Portugal, you will likely be pleasantly surprised by the affordable costs of property, both to rent and buy.

The cost of living in Guarda, Viseu, and Santarém are examples of affordable locations to live and rent or buy property in Portugal. For those seeking a cheaper alternative to the Algarve, the Silver Coast is a smart option. Find out more: Cost of Living on Portugal’s Silver Coast.

Everyday Living Expenses: Food, Dining, Transport

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 equivalent in the USA would be around €56 for a monthly pass. Ticket prices are generally available at a reasonable cost.

The petrol cost is slightly higher 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 an equivalent new  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 or a typical family-owned restaurant (known as a tasca) for €8-€15 and a drink or two at a reasonable price. A glass of wine for €3 and a beer for around €2. Restaurant prices are on average 36 percent lower in Portugal when compared with the USA.

For high-end dining, expect the bill to be more aligned with international prices. Portugal has a wide range of Michelin-starred restaurants that are well worth a visit. They are mostly focused in Lisbon, Porto, Cascais, and the Algarve.

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, although bear in mind that average monthly expenses in Portugal will vary depending on your lifestyle and location. Compared with the USA, grocery prices are around 37 percent cheaper in Portugal. Portugal’s long coastline also makes fish prices highly affordable.

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

Source: Numbeo

Cost of Living in Portugal: Other Cost to Consider

Utility Costs in Portugal

Utility bills, including electricity, water, and internet, are typically lower than in many other European countries.

Utilities include heating, water, electricity, garbage collection, mobile tariff, internet, and much more. Numbeo suggests that the combined cost of utilities come to around €116 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 and €180 in the USA.

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.

Healthcare Costs in Portugal

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 health insurance in the USA.

For example, a GP visit in Portugal is free with public healthcare, and with private healthcare this will cost you around €50. The same visit in the USA wil cost you around €100.

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.

Portugal’s healthcare is well regarded. 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.

Cost of Leisure Activities in Portugal

There are many free leisure activities in Portugal, such as hiking, enjoying the gorgeous beaches, and biking. Portugal is an active and vibrant country, with people enjoying sports, spas, and much more during their leisure time. They have an ample amount of football fields, tennis clubs, golf courses, equestrian facilities, water sports, 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 and Schools 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 and international 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 Comparison Across Portugal’s Cities

The cost of living in Portugal varies significantly depending on the city, with Lisbon and Cascais ranking as the most expensive areas. Lisbon, the capital, is the financial and cultural hub, which drives up housing, dining, and transportation costs.

Rents in central Lisbon can be two to three times higher than in smaller cities, and everyday expenses like groceries and dining out also come at a premium. Cascais, known for its coastal lifestyle and popularity among expats, has similarly high real estate prices, often surpassing Lisbon due to its desirability as both a residential and holiday destination.

Porto, Portugal’s second-largest city, is slightly more affordable but has seen sharp price increases in recent years as it grows in popularity with digital nomads and international investors.

In contrast, smaller cities and interior regions such as Coimbra, Braga, and Évora offer a much lower cost of living while maintaining a high quality of life.

Housing in these areas is considerably cheaper, with rents often less than half of those in Lisbon, and day-to-day expenses like dining, public transport, and healthcare are also more budget-friendly. Even within coastal regions, towns in the Algarve—while more expensive than inland Portugal—remain cheaper than Lisbon or Cascais, especially outside peak tourist zones. The cost of living in Cascais and Lisbon is amongst the highest in the country.

This regional disparity allows residents and expats to choose between the vibrancy of Portugal’s urban centers or the affordability and slower pace of smaller towns, tailoring their lifestyle to both budget and personal preferences.

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 USA is around 30 percent cheaper, helping American nationals access to a higher quality of life in Portugal 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 when it comes to Portugal cost of living vs US, 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 considerably cheaper for private healthcare services when compared to the USA.
• Education is generally much cheaper in Portugal compared to the USA, depending on the school.
• 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.

The cost of living in Portugal is one of the key reasons why so many Americans have come to call the country home. Recently, there have been many Californians moving to Portugal driven by low living costs, Portugal’s thriving tech scene, and geographical similarities, such as beautiful beaches and a great climate.

Income, Wages, and Minimum Salary in Portugal

In Portugal, income and wages are regulated by national labor laws, collective bargaining agreements, and sector-specific contracts. The country has a relatively low cost of living compared to other Western European nations, but wages also tend to be lower.

The average monthly gross salary in Portugal is around €1,400–€1,500, though this figure varies widely depending on the industry, qualifications, and region. Highly skilled professionals in technology, finance, and healthcare typically earn above the national average, while service-sector and agricultural workers earn less.

Employers must also provide social security contributions, which cover healthcare, unemployment benefits, and pensions, ensuring a degree of protection for employees. Portugal enforces a national minimum wage, which serves as a baseline for all workers. In 2024, the minimum salary was set at €820 per month, which increased to €870 in 2025.

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.

Also, factor in the cost of moving to Portugal, such as flights and shipping your belongings, which will boost up the costs in the first months.

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

Portugal Cost of Living 2025: Practical Tips

Moving to Portugal, it can be tricky to get to grips with the differences in the cost of living here compared with your home country. To make things easy for you, below we outline some practical tips to help you settle in Portugal.

1. Saving money: Depending on where you are moving from, take a note of your grocery bill, careful pay attention to utility costs, and general living expenses, particularly during your first months. This will help you see what aspects of life could be considered expensive and what is much more affordable. This will help you budget and save in the future.
2. Settling in costs: When moving to another country, there will always be unexpected costs that will crop up. Whether it is transporting your belongings to Portugal or having to take stock of utilities, don’t stress too much about initial moving costs. Simply try to factor them in and budget accordingly. Having a checklist here can help no end, so you are aware of potential costs that could stack up.
3. Tax implications: If you are buying property, factor in the property taxes that you’ll need to pay at the time of purchase, IMT, and Stamp Duty. You can find out more in our article on property taxes in Portugal.
4. Keep track of monthly expenses: Note down your monthly expenses to get to grips with the cost of things in Portugal. Note down monthly expenses for groceries, transportation, utilities, and other things to budget better in the future.

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 on 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.