Hi, People! Today, you can find out everything you need to know about the cost of living in Portugal. We will dive into how much it costs for the essentials like food and housing, as well as other considerations that we think will improve the overall quality of life in Portugal.
We will break down everything so that if you plan to live in Portugal any time soon, you’ll know exactly what to expect and how to manage your money comfortably.
Is the cost of living in Portugal cheap?
In general, the cost of living in Portugal is relatively inexpensive. Naturally, it depends on how much you earn, but Portugal is among the countries in Western Europe with the lowest cost of living. This makes Portugal an attractive place to live for digital nomads, retirees, and other expats from around Europe as well as from the USA.
A look at the Cost-of-Living Index:
When looking at Europe’s cost of living index on Numbeo, which takes account of all cost factors in a country (rent, groceries, restaurants, and local purchasing power), the Portugal cost of living factors currently places the country 26th out of 40 countries. The countries ranking above it indicate a higher cost of living (mostly countries in Western Europe).
Putting this into perspective, it is clear that Portugal, comparatively, is an affordable country in which to live if your goal is to move to Europe. It strikes a great balance between affordability and an excellent quality of life.
Let’s break down the major costs of living in more detail to get a better idea of what to expect when living in Portugal. We have created a list according to our experience and the prices that are applicable today. Stick with us and see how the prices of housing, food, water, electricity, and other services determine the cost of living in Portugal. However, remember that these costs will change depending on whether you are moving as a family or as a single person.
Cost of accommodation in Portugal
First, let’s start with the most basic necessity: Housing. The housing costs in Portugal can largely be influenced by the area you decide to live in, and the property type you want. Your costs will also be influenced by whether you decide to buy or rent your home.
Buying a House
In a practical way, consider the following situation: You decide to move to Portugal and buy an apartment with two bedrooms in the inner areas of the Alentejo region, where you could be paying as little as €2,685 per square meter. However, say you look for that same apartment in the busier Lisbon Municipality, your price shoots up to an average of € 4,061. It all comes down to location.
Renting a House
Concerning renting a house in Portugal, the case is more or less similar. You will very likely pay higher rent prices in major cities like Lisbon and Porto (maybe double or more) when compared to the rest of the country. In an area like Viseu, you could find a three-bedroom apartment for €656 per month, whereas in Lisbon or Porto, you could pay double just for a one-bedroom apartment. However, keep in mind that all these prices reflect some of the services, commodities, and opportunities you will have at your fingertips if you live in a city like Lisbon or Porto. That said, we would say that you would at least have to pay between €600 and €900 per month to rent a house, depending on the location you choose.
Cost of Utilities and Communication in Portugal
What about the price of water, electricity, gas, TV, internet, and communications? Once again, the prices of basic services in Portugal are not as high as in some other European countries. The cost of water, for example, varies very little throughout Portugal. You could pay about €1.5-2 per m³. Unlike the water services, which are provided by, and paid to the city halls, the electricity service is provided by a few large companies, the biggest being EDP. This company will ask for an average of €0.25 per kWh. In total, you can expect to put aside around €114 for average monthly utility costs like electricity, heating, cooling, water, and garbage disposal – again, largely dependent on where you stay and what you consume.
Communications, TV, and internet services are mostly provided in promotion packs by telecommunication companies. You could find packages including all services from about €35 per month up to €60 per month. It is up to you what services you want and what you are willing to pay for.
Summing up all of these amounts, we would say that a two-person household with average lifestyles and average spending habits would pay about €114 for basic utilities and €80 for the TV, internet, and communications per month.
Cost of Food in Portugal
The cost of living in Portugal is fairly low mainly because of the price of food and essential goods. When compared with the rest of Europe, most of the supermarket shelf items we find are cheaper than in other countries. For example, you could buy:
- A loaf of bread for €1.35
- one kilogram (2.2 pounds) of rice for €1.39
- Pasta, milk, and many other basic pantry items for €1-2 each
- One kilogram of meat could around €12, depending on the cut
- Vegetables cost about €1-2 per kilogram
All in all, we would say that a two-person household would not have to spend more than €400 as an average monthly cost at the supermarket for a good, healthy and balanced diet.
Cost of Transportation in Portugal
Owning a car or using public transport in Portugal? We would say that, just as in almost every developed country, public transportation is cheaper than owning a car.
Cost of using a car
Consider the following costs when owning a car: You have to pay for the car, fuel (about €1.70 per liter of petrol/gasoline), taxes (that depends on numerous factors), insurance (about €350 to €550 per year), vehicle inspection (about €30 per year) and all the maintenance costs.
Cost of using public transportation
You could skip all of these costs and the trouble of driving in heavy traffic by using Portugal’s reliable public transportation. On average, you would pay about €40 for a monthly pass. If you prefer taking a taxi, you will be able to find affordable taxi fees. The average taxi fee in Portugal is around €0.8 per kilometer. Uber and Bolt are also readily available in Portugal and relatively affordable
Cost of Healthcare in Portugal
It is well known that Portugal has a very good healthcare system. If you are in Portugal and you need to go to the doctor, you will not pay more than a Portuguese citizen. We are talking about an average price of €5 to €10, if anything, for a visit to a regular medical center, or a maximum of €20 per visit in case of an emergency at a hospital. That’s it! Plus, if you are under 18 years old, or over 65, healthcare is free of charge under the Serviço Nacional de Saúde (SNS) system.
When it comes to buying your medicines, this is also cheaper in Portugal. The state subsidizes most of the cost of your medicine, unless you choose the most expensive option. Basically, you will not spend too much on your general health in Portugal. However, if you choose to go to a private doctor, you will certainly pay a lot more. But even then, there are many health insurance policies you could buy that would reduce those costs considerably. The same applies to dentists. Private health insurance costs starts at around €30 per month.
Cost of Education in Portugal
Being in a public school in Portugal is free of charge for basic education. However, the books and materials that are needed are not all free. Depending on the school year your child is in, you could spend between €200 and €350 on books and school materials per child per year.
For private schooling in Portugal, the cost of education will go up quite a bit, especially at international schools. The average cost of private preschool (or kindergarten) is around €433 per month for one child, and the average cost of an international primary school is €9,873 per year. This, of course, is highly dependent on the school.
When it comes to university, depending on the degree and institution, annual tuition costs between €3,000 and €5,000 per academic year for non-EU/EEA students.
Other Costs of Living in Portugal
Ok, the basics are covered. It’s time to talk about some other costs that are also important to us, such as buying clothes or eating out.
Clothing and personal care costs
Assuming that the average person in Portugal is interested in the average brands of clothing, we could say that there are many well-priced options. Of course, you could find Gucci and Prada stores, but we won’t include them in the expenditures of an average life.
Most shopping centers in Portugal will have almost the same (or very similar) stores. For example, you’ll be able to find Zara, H&M, and Mango stores in almost every shopping center. In those stores, you’ll pay between €30 to €40 for a summer dress and about €60 to €80 for a pair of jeans.
As for personal care items, this will vary a lot depending on the brand and quality of the product. You could find a bottle of shampoo for €2 and another for €13. Likewise, you can purchase a cheaper facial cleanser for €4, and a more luxuries branded one for more than €70. It all depends on your preferences and budget, giving you a little room for compromise.
Eating out costs
When compared to other developed countries, you could say that eating out in Portugal, on a normal day, in an average place, is really worth it. Of course, it will always be more expensive than eating at home, but for around €10 a meal, we are inclined to say that it’s a pretty good deal.
Usually, lunches are cheaper than dinners and it really depends on the zone and the restaurant. But you can find, without much of a problem, a really nice and regular place where you could enjoy a complete meal for €10, maybe €15 depending on the wine you choose.
Recreation costs
Speaking about wine, going out with friends can be expensive, or it can be really cheap. Again, depending on the places you choose to go, you could pay €5 for a beer in a fancy establishment, or less than €1 for the same beer in a local bar. You could find wines that cost €5, or even less, in a supermarket, but it will be €30 in a bar or restaurant for the same bottle.
A cappuccino costs around €1.82, but there are places that ask €3 for the same thing. Usually, it’s for the experience of being in that particular café or city location. Therefore, it can be cheap to go out, but if you’re not careful, you could spend more than you really have to.
As for other recreational activities for the days where you just want to have some fun, one seat in the cinema costs around €7.50, renting a tennis court for one hour is just over €12, and taking a day tour to see sights like Jerónimos Monastery and the Belém Tower could also cost €10 to €20.
Taxes in Portugal
As they say, the only two things that are certain in this world, are death and taxes (and our love for the gorgeous beaches in Portugal, of course). Non-resident foreigners are subject to flat rates on all taxable income earned. This tax rate in Portugal for foreigners is 25 percent and applies to all annual income from a Portuguese source. Non-residents must also pay a flat percent rate on income earned from interest or dividends. If you decide to move to Portugal, this is important to keep in mind when planning your spending.
Other recurring taxes you may be subject to are local property taxes (Imposto Municipal sobre Imóveis – IMI) at 0.3 to 0.8 percent, payable annually, if you decide to buy a home (this is besides the once off taxes you’ll incur when you purchase the property). Then, of course, VAT is also levied on the goods and services you purchase, with the rate ranging from 6 to 23 percent.
So, what is the cost of living in Portugal really?
Well, let’s see. On average, for a two-person household, without kids, you would spend, at minimum, about:
- €800 on housing costs
- €114 on your utilities
- €400 on food
- €80 on public transportation
- €80 per month for going out and eating out
- The occasional visit to the doctor and medicines could be €10 per month
That all adds up to a total Portugal living cost per month of €1,474, excluding the annual cost of clothes which might be about €420 per person (€35 per month). That translates to about €1,510 per month on average for two people. If a child is involved, we would have to consider the costs of schooling too.
So, there you have it. The minimum cost of living in Portugal for a single person is about €755 per month. Of course, you can spend a lot more if you are willing, but these are the basics (and maybe a bit more than that).
Living wages in Portugal
€755 per person. Is that really enough to live a comfortable life? It depends. Do you want to have a swimming pool during the summer? Or have the heater working 24/7? If so, you will see a spike in the average cost of living in Portugal. It will also be really difficult to live on this amount of money in the more expensive cities, like Lisbon or Porto, where commodities and rent are higher.
This amount is below the minimum living wages in Portugal, which currently sits at €820. To live comfortably, we would estimate that your average monthly salary should at least be closer to €1000 to €1200 per month in the less expensive cities and around €1500 to €1700 in pricier cities like Lisbon and Porto, to give you some wiggle room for having some fun and exploring the country along the way.
We know that when adding up all the costs in one place, it can seem overwhelming, but this shows that living in the country is easily made affordable if you spend your money wisely and know when to splurge. Compared to the USA and most Western European countries, Portugal is significantly cheaper while still offering a high quality of life.
Expat life, retirement living, and student life
While we’ve touched on this is our list, some lifestyles may influence the Portugal living cost per month in different ways to others. For example, the cost of living in Portugal for international students who will need to pay university fees and other student expenses like study books, will differ to expats who work and do not need to pay tuition fees, but may want to travel around the country more often.
Likewise, the cost of living in Portugal for retirees may mean higher accommodation costs to live in a retirement village or resort, or extra healthcare expenses for private specialized healthcare services. This is why it is important to take your specific lifestyle and needs into account.
Portugal: Affordable Cost of Living for Most
Our advice concerning the cost of living in Portugal is: Plan in advance. Yes, whether you are moving, visiting or just passing by, try to get some information about where you are going and what to expect. Portugal can be cheap, but it can get very costly for the unaware. There is, however, something that adds to the experience of living in Portugal: The weather! It is awesome and it is completely free! Enjoy!
We quoted the cost of living in Portugal in euro as it’s the currency used in Portugal, but you can convert it into your currency at Xe.com.
Frequently Asked Questions About the Cost of Living in Portugal
What is the average cost of living in Portugal for a single person?
The average cost of living in Portugal for a single person will depend on that person’s lifestyle and in which location they choose to live. Typically, the cost of living in Portugal is around €760 for a single person, but we recommend planning for estimated monthly costs of €1000 to €1200 to live comfortably in the less expensive cities, and around €1500 to €1700 in the more expensive cities like Lisbon and Porto.
How much does it cost to live in Portugal for a family of four?
As one of Western Europe’s most affordable countries, Portugal is an attractive place for families to live. The average monthly expenses in Portugal for a family of four without rent is €2,356, according to Numbeo.
What is the monthly cost of living in Lisbon, Portugal?
The monthly cost of living without rent for a single person in Lisbon is €731.5. However, keep in mind that accommodation in Lisbon is pricier than in other areas of Portugal and will increase the living cost Portugal requires.
How does the cost of living in Porto, Portugal compare to Lisbon?
As Portugal’s capital, and a very popular area for expats to live, Lisbon’s cost of living is substantially higher than Porto’s. On average, the cost of living, including rent, in Lisbon is 16.2 percent higher than in Porto.
What are the main expenses to consider when living in Portugal?
As with living pretty much anywhere in the world, your main expenses to consider when living in Portugal are your costs of accommodation, food, utilities, and transport.
How much do groceries cost in Portugal?
A typical mix of groceries in Portugal will cost:
- Milk (1 liter) €0.93
- Bread (500g) €1.35
- Rice (1kg) €1.39
- Eggs (12) €2.73
- Cheese (1kg) €10.04
- Chicken (1kg) €6.83
- Beef (1kg) €11.93
- Apples (1kg) €1.99
- Potato (1kg) €1.51
- Onion (1kg) €1.76
- Water (1.5 liter) €0.67
- Bottle of wine €4.99
- Domestic beer €1.13
What is the average rent for an apartment in Portugal?
The average rent prices per month will vary depending on your location, but a one-bedroom apartment’s average rent ranges between €732 and €945 per month.
How much does transportation cost in Portugal?
You can get a monthly local transport pass for about €40 or take a taxi for around €1 per kilometer.
If you have your own car, petrol (gasoline) costs about €1.69 per liter.
What are the utility costs in Portugal?
This amount will vary depending on what you use and how much of it, but basic utilities (electricity, heating, cooling, water, and garbage) for an 85 square meter apartment would usually cost around €114 per month.
What is the cost of living in Portugal vs. the USA?
When looking at Portugal cost of living vs US living costs, you’ll find that Portugal comes in at about 37 percent cheaper than the United States. Depending on the location, a single person’s living costs in Portugal average €660 to €800 ($717 to $870) per month without rent, while in the USA it averages $1,167 (€1073) per month.
How do housing costs in Portugal compare to the USA?
Like the lower cost of living in Portugal vs USA, Portugal also has lower housing costs. On average, rent in Portugal is 40 to 45 percent cheaper than in the United States. Comparing the costs of buying property, houses in Lisbon, the capital city of Portugal, are 33 to 46 percent cheaper than the USA’s Washington, DC.
What are the differences in healthcare costs between Portugal and the USA?
Portugal’s healthcare costs are significantly lower than the USA’s. Portugal’s public healthcare system provides mostly free healthcare treatments, or requires a minimal co-pay, while the private healthcare treatments cost anywhere from 50 to 400 percent less than in the USA, depending on what the treatment is.
How much cheaper is it to live in Portugal compared to the USA?
When comparing living costs Portugal vs USA, Portugal is 37.1 percent cheaper than the United States.
Is Portugal more affordable than the USA for retirees?
Portugal cost of living compared to US for retirees – and even compared to other countries in Western Europe – is definitely more affordable. Considering the lower property prices, lower cost of food and utilities, and significantly more affordable healthcare, as a retiree, your money will go further in Portugal compared to the USA.
