Updated: March 5, 2025

 

Is Portugal cheap or expensive for Americans? At first glace, one can safely say that the cost of living in Portugal is quite reasonable based on the number of American expats living in the country. Of course, your cost of living will vary depending on your income and your lifestyle, but Portugal offers a fantastic quality of life at a relatively affordable cost.

Cost of Living in Portugal for Americans

How expensive is Portugal? Well, the cost of living in Portugal vs USA is generally considered about 37 percent cheaper than in the United States, not including rent. This, coupled with the country’s excellent quality of life, beautiful beaches, stunning mountain ranges, reliable public transport, and rich history and culture, make it very easy to fall in love with Portugal.

How expensive is Portugal for Americans?

is-portugal-expensivePortugal is one of the most affordable countries in Western Europe, and where the quality of life regularly ranks high. When it comes to the cost of living, most things are reasonably priced, with food available at inexpensive prices, cheap options for accommodation, and reasonable costs for transport. It’s not surprising, then, that so many American expats are making this beautiful country their home.

To give you a realistic idea of what this affordable cost of living in Portugal looks like, here’s what you would pay when living in Portugal’s capital city of Lisbon in comparison to America’s capital city of Washington, DC.

If you’re asking yourself Is Portugal affordable? You’ll find that prices are generally much lower than in the USA and other Western European countries, although prices have been creeping up in recent years.

A three-course meal for two at a mid-range restaurant:

  • €50 ($52) in Lisbon
  • €96 ($100) in Washington, DC

A monthly transportation pass:

  • €40 ($42) in Lisbon
  • €72 ($75) in Washington, DC

A one-bedroom apartment in the city center to rent:

  • €1,399 ($1,450) in Lisbon
  • €2,498 ($2,589) in Washington, DC

Basic utilities for an 85-square-meter apartment:

  • €126 ($131) in Lisbon
  • €194 ($187) in Washington, DC

Living expenses in Portugal for Americans

is-portugal-a-good-place-to-liveThe exact amount you spend each month will vary depending on your budget, lifestyle, and location in Portugal. However, it is totally possible to save money living in Portugal. The figures below will give you an idea of the average living expenses you can expect when living in Portugal, with data taken from Numebo.

  • €942 ($980) a month to rent a one-bedroom apartment in the city center in Portugal
  • Average monthly utility costs (including electricity, heating, cooling, water, and garbage) of around €116 ($120)
  • Grocery prices in Portugal are around 43 percent lower than in the United States
  • €5 for a ‘lunch menu’ deal at a Portuguese bakery (pastelaria) or €10 for a comprehensive lunch menu
  • Excellent basic education, with free public schooling for children. Private schools and private universities are also more affordable than in other European countries.
  • Upwards of €600 a month for private schooling (depending on your child’s grade and whether the school is a Portuguese or international private school)
  • Free or low-cost medical care for citizens and legal residents who have paid into the Portuguese social security system.

The Portugal cost of living is largely affordable, and because of this, many expats and investors are looking to buy property in Portugal. If you visit Portugal, you may be surprised by the low costs, particularly if you explore the lesser-known parts of the country.

The Cost of Food in Portugal for Americans

Food in Portugal is very affordable, particularly if you purchase locally grown food rather than imported food. You’ll quickly find portugeuse food and wine to be extraordinary. Local produce like fruit, vegetables, and dairy products are affordable and widely available, while imported goods are sold at a significantly higher cost.

Cost of Groceries in Portugal

The table below gives a general overview of the cost of goods in Portugal:

Product

Cost in Euros

Loaf of white bread

€1.36 ($1.42)

12 eggs

€2.7 ($2.82)

1kg bananas

€1.26 ($1.31)

1kg apples

€1.98 ($2.06)

1kg chicken fillets

€6.71 (6.98)

1L regular milk

€0.94 ($0.98)

1kg tomatoes

€2.22 ($2.31)

1kg potatoes

€1.5 ($1.56)

Bottle of mid-range wine

€5 ($5.2)

Alcohol

Alcohol is much cheaper in Portugal than in the USA, with a decent bottle of wine in America setting you back around €15 ($15.54) minimum. In Portugal, you can get a very good wine for as little as €4 ($4.15), with many higher quality wines regularly having promotions on them in the local supermarket.

If you are more of a beer drinker, domestic beer will cost you around €5.79 ($6) for a half-liter draught, while the same in Portugal will cost you €2.50 ($2.59). You’ll also still come across some places – although they are becoming slightly harder to find – where you can find a domestic beer for around €0.60.

Is Portugal expensive to eat out?

As with any country, the cost of eating out in Portugal will vary depending on what you like to eat and where. In general, however, dining out in Portugal can be quite affordable. For example, breakfast, including an espresso shot, at a pastelaria will cost around €4.

A meal at an inexpensive restaurant will cost about €10. A local beer will cost €3 for half a liter, while an imported beer will cost €4 for a third of a liter. A three-course meal for two will cost you €45 ($47) per person at a mid-range restaurant, while this will be higher in more trendier spots.

The Cost of Accommodation in Portugal

When it comes to accommodation in Portugal, rent prices are obviously higher in Lisbon and other major cities.

Average costs for accommodation in Portugal

When it comes to the accommodation costs and the Portugal cost of rent, it is largely affordable compared with other Western Europan countries. Below, we’ve shared the average rental prices for Portugal.

  • A one-bedroom apartment in the city center will cost you around €942 ($981) a month
  • A one-bedroom apartment outside the city center will cost you around €754 ($785) a month
  • A three-bedroom apartment inside the city center will cost you around €1,673 ($1,742) a month
  • A three-bedroom apartment outside the city center will cost you around €1,229 ($1,280) a month

Housing Costs

When it comes to the property market, the Portuguese real estate market is dynamic and offers an array of exciting investment opportunities.

GC-ICON-99Buying property

If you are considering buying property in Portugal, prices range considerably depending on the location. Property prices in the Lisbon Metropolitan Area stand at €4,935 and at €3,937 in the Porto Metropolitan Area. The Algarve, where you’ll find one of the most spectacular coastlines in the world, has an average asking price of €4,385, while for a cheaper option, consider the Alentejo, where prices stand at €3,181.

The north and center of Portugal are also more affordable, with average asking prices standing at €1,903 and €2,098, respectively. Property costs in Portugal generally fall considerably when you move away from the center of major cities or from coastal areas.

GC-ICON-86Types of accommodation in Portugal

Portugal’s property market has a range of accommodation types, from modern city apartments to beachside villas and everything in between. Should you be looking for a countryside mansion, you’ll be in luck, or if you are seeking something more extravagant, such as a palace, this can also be an option.

GC-ICON-105Utilities

Utilities are generally quite reasonable in Portugal, costing €126 ($131) in Lisbon, with prices lower than this outside the capital. This includes electricity, heating, cooling, water, and garbage for an 85m2 apartment. To put this into perspective, utilities in Washington DC clock in at around €194 ($187).

Recommended places to stay or live in Portugal

  • Lisbon: There’s no better place to start than Lisbon, the captivating capital of Portugal. This one-of-a-kind city is the perfect blend of modernity and tradition, and where there is always something to get involved in or visit. Easy access to stunning beaches is another massive plus.
  • Porto: Portugal’s second-largest city is known for being extremely welcoming and where you’ll come across some of the very best food in the country. Prices are cheaper here, plus you’ll be able to meander down charming cobblestone streets, visit the legendary Livraria Lello bookshop, and top the day off with a fabulous dinner with views over the Douro River.
  • Algarve: The Algarve is, in many ways, built for tourists and expats chasing a sublime climate, high quality of life, and some of the most glorious beaches in the world. Staying here is nothing but a pleasure.

There are countless other stunning parts of Portugal to visit or relocate to, from the authentic Silver Coast to the picturesque autonomous islands of Madiera and the Azores. For a taste of true luxury, check out the West Coast, where towns such as Comporta and Melides are becoming it places right now. You definitely won’t be disappointed by their distinctive fusion of nature and luxury living.

Want to find your own place in Portugal? Checkout our ultimate guide to discover your dream home

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Portugal Cost of Living vs USA: Comparing Capital Cities

Focusing on the capital, Lisbon is an immensely popular city with the highest cost of living in Portugal. In comparison to most cities in Western Europe, it is still one of the more affordable ones. Compared to Washington, DC, the cost of living is  45 percent lower in Lisbon, including rent. Rent prices are 49 percent lower, and the restaurant prices are 46 percent lower. So, depending on your income and spending habits, living comfortably and affordably in Lisbon is possible.

For a more detailed look at living costs in major Portuguese cities, take a look at our Cost of Living in Porto and Cost of Living in Lisbon guides for more information.

The Cost of Transportation in Portugal

The cost of traveling to Portugal will depend on several factors, including where you’re traveling from, how you’re traveling, and your budget.

GC-ICON-88Transport in Portugal

If you drive a car, petrol will cost about €1.79 per liter. The monthly fee for a travel pass in Lisbon or Porto costs €40, and a cross-country train ticket from Lisbon to Porto can cost between €29.44 and €35.99.

You’ll find affordable taxi fees, with an average fee of around €3.50. The average taxi fee increases by €0.80 per kilometer. Transport services like Bolt and Uber offer even cheaper fares. You’ll also find that traveling between interior towns is more affordable than traveling to tourist areas like the Algarve.

GC-ICON-49Traveling

Is Portugal expensive to visit? Not so much. If you’re on a budget, you’ll be happy to know that travel around Portugal, including accommodation at an affordable hotel with rooms that are priced between €20 and €50, can be affordable and enjoyable.

If you are on a tight budget, prepare to spend between €46 ($50) to €65 ($70) a day.

For a family of four, a summer trip costs around €7,614 ($8,460) for a week, including airfare. Daily expenses average €150 ($167) per person, covering accommodation, meals, transportation, and activities. Costs will obviously vary based on travel preferences, whether you eat out every day, and when you visit.

mansion iconLuxury travel around Portugal

While Portugal may be known for its affordable cost of living, that’s not all it has to offer. Those seeking a life of luxury can turn to Portugal, too. The country boasts several world-class hotels, golf courses, private beaches, and luxury properties in Portugal. You can find week-long guided luxury tours around Portugal starting from around €6,295 per person, or you could book luxury accommodation in places like the Algarve and explore the country at your own pace. If you’re looking for luxury dining, Portugal is home to 28 Michelin-starred restaurants.

The Cost of Education

albufeira beach portugal real estatePortugal has become increasingly popular in recent years amongst families looking for a better quality of life. When it comes to education in the country, you have public schools, private schools, and international schools.

Basic education in Portugal’s public school system is free, although many expats choose to send their children to international schools, of which there are 51 in the country, mostly clustered in the Lisbon Metropolitan Area, Porto, and the Algarve.

Portugal has free public schooling for all citizens and foreign residents. With this said, instead of public schools, many expats choose to send their children to international schools in Portugal.

If you are thinking about enrolling your children in an international school, monthly costs are around €800 ($832), with the lowest option starting at around €400 ($416) and the higher-end options reaching around €1,800 ($1,871).

Healthcare

Portugal’s healthcare system is generally very good, scoring favorably in various healthcare ranking indexes, such as ranking in 21st position in Numbeo’s 2024 Mid-Year Healthcare Index, above countries such as Germany, Switzerland, Canada, and New Zealand.

Healthcare in Portugal is under a hybrid system that includes public and private healthcare. Public healthcare is available to all Portuguese residents at just a minimum cost. However, many expats opt for private healthcare plans as options are generally very affordable, particularly when compared with the USA and other Western European countries. If you opt for private you should be able to see a specialist quicker. Generally, healthcare professionals and doctors in English speak very good English, although you’ll find English more widely spoken in private clinics.

Private health insurance in Portugal

Private health insurance is also much more affordable in Portugal than in other European countries and the USA, with private insurance ranging from €20 to €50 ($22–$55) per month, while in the USA you could pay hundreds of dollars per month. Private health insurance costs will obviously depend on your age, health conditions, and the private healthcare provider you opt for. Plus, a more comprehensive insurance plan will cost you more, for example, a comprehensive insurance plan covering the entire family.

The Cost of Moving to Portugal

Moving country is a big deal, and it can be expensive. Factoring in moving costs into your budget can make the whole relocating process much more simple.

Shipping expenses

If you want to ship furniture or goods to Portugal from the USA, this can cost a bit. The first step is to consider how urgently you’ll need your belongings, as the transit time will vary depending on the transportation method. Each option, air or sea, has its pros and cons.

Sea freight is the most affordable but also the slowest, taking 1-3 months. Air transport is the quickest, with delivery in up to one week, but is more expensive.

To give you an example, the cost for a 20ft shipping container from the USA to Portugal will be between €5,763 ($5,991) and €6,340 ($6,591). This will allow you to bring furniture for the bedroom, kitchen, boxes, and bikes, plus more.

Book your flight as early as possible

It may seem obvious but when moving to Portugal, book your flight at the earliest possible date. Prices can increase quickly so booking early will ensure you are not wasting money that you could easily have been avoided had you booked the tickets earlier. A one-way ticet can be as low as €250 ($260) if you book early enough.

Factor in extra costs

From buying additional furniture to setting up your phone plan, there will be extra costs cropping up during your move that you’ll need to take into account. Set aside some money for these smaller costs that can add up to make your move as easy as possible.

If you are considering relocating to Portugal, there are an array of options to secure residency, from the D7 Visa, which allows you to live in Portugal with passive income, to the Golden Visa, where you can secure residency through investment. If you are unsure which option is best for you, get in touch with our residency and citizenship division, Global Citizen Solutions.

From north to south, Portugal has loads to see and do, whether you have moved to Portugal or are visiting for a short trip. For such a small country, it’s quite impressive. Starting with Lisbon and Porto, the best starting point is to meander round the neighborhoods, taking a short coffee break and tucking into a delicious lunch. Particularly in the old parts of these major cities, you’ll get a flavor of the rich history of the cities. You have plenty of walking tours to choose from in the bigger cities to get under the skin of the city.

Then you have day trips to Sintra from Lisbon, where you’ll find the colorful palaces of Pena Palace and the dramatic Castle of the Moors. You have top attractions across the country, from waterparks in the Algarve to wine tours of the Douro Valley in the north. If you are visiting Portugal, you are in for a treat!

Below, we share some entrance fee costs, you can expect to pay when visiting Portugal.

  • The colorful Pena Palace in Sintra: €20 ($20.80)
  • The National Tile (Azulejos) Museum in Lisbon: €8 ($8.30)
  • Lisbon Aquarium: €25 ($26)
  • Entrance to the São Jorge Castle in Lisbon: €15 ($15.60) (free for residents)
  • Jerónimos Monastery in Belém: €12 ($12.48)
  • Torre de Belém: €8 ($8.30)
  • The famous Santa Justa Lift in Lisbon: €5.30 ($5.51)
  • Port wine tour and tasting in Porto: From around €20($20.80)
  • Livraria Lello Bookstore in Porto, one of the oldest bookshops in the world: €8 ($8.30), which can be used as credit toward a book purchase
  • Douro Valley Wine Tour: From around €65 ($67.61)

The best time to visit Portugal will depend on your preferences, but the buffer seasons, spring and autumn, offer mild weather with few crowds. Summer is ideal for enjoying festivals and beaches, while winter provides a quieter atmosphere, although the weather remains very mild compared with other European destinations.

Goldcrest: How We Can Help You

If you’re looking to buy your dream home in Portugal, contact Goldcrest. We are a buyer’s agent that is based in Lisbon, Porto, and the Algarve. We provide expert impartial advice on real estate investments and how to buy property in Portugal. From scouting out the perfect property through to property acquisition, we have you covered. Our team of skilled experts is available to solve all your real estate doubts, offering insightful expertise and strategic advice. We are focused on securing the best deal for you.

Frequently Asked Questions about the Cost of Living in Portugal

A meal for one person at an inexpensive restaurant will cost about €10.

Food and drink in Portugal are relatively affordable. A regular cappuccino costs around €2.39 ($2,49), a 0.33-liter bottle of water costs around €1.33 ($1.39), and a meal at an inexpensive restaurant costs €13. A good mid range bottle of wine in a supermarket can cost as little as €4.

On average, the cost of living in Portugal is 5.4 percent less expensive than in Spain. However, the cost of groceries and publictransport are generally less expensive in Spain.

On average, you should budget to spend about €109 per person per day on vacation in Portugal. Travelers spend an average of €32 on meals and €21 on transportation per day. Portugal is relatively inexpensive compared with the US because the economy is not as strong and the minimum wage is low.

Portugal offers great value for travelers, with affordable accommodation, food, and transport options. Costs can vary depending on the season and your preferences, but it’s generally budget-friendly compared to other European destinations. If you book in advance, whether its flights or accommodation, this will make your trip much less expensive.

Portugal is one of Europe’s more affordable countries. While costs vary by location and lifestyle, daily expenses like dining, transportation, and entertainment are usually reasonable, especially outside big cities and hot-spot areas.

Portugal is known for being one of Europe’s most affordable countries. While some areas like Lisbon or the Algarve may be pricier, overall, you can enjoy quality experiences without overspending compared to other European nations.