Cost of Living in Portugal

In 2025, Portugal introduced changes to its citizenship laws, dealing a blow to the hopes and trust of many expats living in the country. The main amendments include:

You can read the updated legislation in detail here.

If the newest restrictions don’t discourage your plans, this article breaks down the real cost of living in Portugal — from housing to healthcare and leisure.

Earlier, we wrote about Salaries in Portugal and Cost of living in Cyprus.

According to Portugal’s National Institute of Statistics, inflation in the country rose again in August 2025, reaching 2.8% over the previous 12 months. In July, the rate stood at 2.6%, and the August figure became the highest recorded since December 2024. The increase was driven mainly by rising food prices, which grew by 4.0% — the sharpest increase since October 2023.

In the Cost of Living 2024 report published by the consulting firm Mercer, Lisbon ranked 100th among the most expensive cities for expats worldwide and 38th in Europe. Some Reddit users jokingly compare Lisbon to major U.S. cities like Seattle, San Francisco, or Los Angeles — but with salaries closer to those in third-world countries.

The introduction of digital nomad visas and residence permits for remote workers has attracted expats who are usually earning significantly more than the local population. As a result, prices have risen to levels that exceed the country’s average income. Living in Portugal is no longer as cheap as it once was — many locals on Reddit note that moving here makes sense only if you earn a good salary abroad.

Is Portugal expensive? Compared to other European countries, monthly expenses here are lower — 39.63% cheaper than in the UK, 45.48% cheaper than in Germany, and 55.58% cheaper than in France. It would be an exaggeration to call life in Portugal nowadays cheap, yet the country still remains an attractive option for expats with a limited budget.

Portugal ranks 11th among EU member states with the lowest gross salaries. According to research by ECO, the 6% increase in the minimum wage in January 2025 was not enough to improve the country’s standard of living compared to other European nations.

Numbeo data suggests that a single person spends an average of €667.70 per month, excluding rent. The portal Meutudo estimates a realistic budget for a mid-sized city at 3,000–5,000 Portuguese reals, which amounts to €486–€811 as of 14 November 2025 — again, not including rent or mortgage payments.

Those who are considering inhabiting rural areas of Portugal may expect a lower cost of living compared to major cities. It is also possible to save a bit by choosing accommodation not in the city centre but on the outskirts of a large metropolitan area. Smaller cities such as Braga, Coimbra or Aveiro remain good alternatives for those seeking a high quality of life at a lower cost than in the main urban centres.

A tip from an experienced expat: take a closer look at the Azores. Reddit user DaveInAzores shares his relocation experience:

Living expenses in Portugal start with food. On average, the Portuguese spend 25.8% of their monthly budget on groceries. Prices in supermarkets have risen due to inflation since 2022, driven by raw-material shortages and increasing production costs.

According to DECOPROteste’s July 2025 monitoring report, the price of a basic food basket has increased by more than €3 since January, reaching €240.12. Compared to the same period last year, the cost has risen by almost €11.

Overall, food prices do not vary significantly between Portuguese cities. A couple typically spends €350–450 per month in supermarkets. The exact amount largely depends on the expat’s dietary habits.

Restaurant meal prices can vary significantly across the country. This is because food in cafés and restaurants in major and tourist-heavy cities is generally much more expensive than in areas that are less popular among visitors. Even within the same city, prices may differ depending on whether the district is residential or tourist-oriented.

Groceries can be purchased cheaper by comparing products across numerous supermarkets of different sizes. The largest local retail chain is Continente, but there are also other popular stores such as Pingo Doce, Intermarché, Spar, and Auchan. The international chain Lidl is also present in Portugal. At local markets, you can find plenty of fish, olive oil, fresh bread, and seasonal fruits and vegetables at attractive prices.

The largest expense category in a Portuguese household budget is housing. Nearly 30% of monthly income goes toward rent payments. An expert interviewed by BBC noted that in Lisbon and Porto, rent can consume between 40% and 50% of a family’s income.

According to Idealista, a major European real estate platform, the average rent in Portugal reached €16.8 per square meter in August 2025 — an increase of 0.7% compared to July and 3.3% compared to the same month in 2024.

Locals believe that the sharp rise in rental prices in Portugal is linked to European tenants and tourists with high purchasing power. Another important factor is whether the property is furnished. Unfurnished apartments tend to be significantly cheaper.

As in most countries, the larger the city, the higher the rental prices. Remote workers and digital nomads are advised to choose small villages, where renting a house can start from as little as €400 per month. Those employed on-site will need to look for a cozy and affordable place on the outskirts if they need to save on housing costs.

The healthcare system in Portugal consists of three branches:

Access to the SNS is available to foreigners who are legally employed in Portugal, as well as to their family members. The health tax amounts to 11% of income.

Private health insurance in the country is relatively affordable — from €20 to €50 per month. Major international providers include Allianz Care, Future Healthcare and Cigna Global, but more affordable plans can usually be obtained from local companies such as Multicare, AdvanceCare, MGEN, and Tranquilidade.

It is also important to implement disease prevention through sports into your life. A monthly gym membership costs an average of €38.60, while renting a tennis court for one hour on weekends costs around €15.15.

On average, the Portuguese spend around 2.7% of their monthly budget on clothing. Shoppers increasingly prefer ordering textile goods online and picking them up from parcel lockers. A study by Sicnoticias shows that due to rising housing costs, many Portuguese residents often have to cut back on buying new clothes.

Around 6% of the Portuguese monthly budget goes toward utilities. On average, this expense amounts to €114.34 per month.

Portugal has a liberalized energy market, meaning every household can choose its electricity provider based on offered tariffs. The cost per kWh can vary significantly between companies, so comparing plans is essential. To reduce electricity bills, many people install solar panels on rooftops or balconies. Most electricity providers also supply gas, and signing a dual contract can offer small savings.

Water prices vary by city because water services are managed by local municipalities. The average water bill ranges from €35 to €50, although actual consumption depends on the season and household appliances such as washing machines and dishwashers.

Regarding TV, phone, and internet, Portugal has three major providers: Vodafone, MEO, and NOS. Prices differ slightly between companies and depend on the availability of fiber-optic infrastructure in a particular region, which also affects service quality. A mobile plan with 10 GB of data costs about €18.56, while unlimited broadband Wi-Fi averages €36.73.

Entertainment also influences how much money is needed to live in Portugal. The cost of leisure activities varies depending on location and personal habits. A meal in an inexpensive restaurant costs around €11, and for €8 you can get a combo meal at McDonald’s. Some restaurants offer prato do dia — the dish of the day, which is served at a discounted price. It may be a single menu item or a full lunch.

A cinema ticket costs about €7.95, but many people prefer a Netflix subscription instead: the basic plan costs €7.99, the standard €12.99, and the premium €17.99 per month.

Large cities have a vibrant nightlife, which is not the case in small villages. There are plenty of ways to have fun in Portugal — whether you prefer peace and quiet, active sports, or can’t imagine a Friday evening without a pint of beer at a local pub.

The cost of living in Portugal is also shaped by how you get around. The country has an excellent motorway network, making travel by car easy and enjoyable — especially when exploring nature and landmarks. In addition to fuel expenses (which average €1.70 per liter), car owners should be prepared for additional costs:

A taxi ride within the city costs €3.50 plus €0.98 per kilometer. Popular European ride-hailing services such as Uber and Bolt operate in Portugal.

In large cities, residents actively use public transportation. A single bus ticket costs €8, and a monthly pass without discounts is €40. You can travel not only within the city but also across the country, including international routes. Prices vary depending on the day of the week and time of travel. Passengers can also choose between a regular bus and an express service with fewer stops.

For intercity travel, long-distance trains are the most convenient. Portugal also has suburban trains and the high-speed Alfa Pendular, which connects major cities across the country. Ticket prices vary by day and time, and seniors receive discounts. For example, traveling from Lisbon to Porto costs €23 on a regular train and €29 on Alfa Pendular.

In major cities, various types of bicycles are available for rent. For instance, GoCyclingPortugal offers basic road bikes starting from €45 per day, with optional protective gear. Note that some companies do not accept walk-in customers and require advance booking.

Fans of electric scooters will also find plenty of rental options. On average, prices start at €0.19 per minute, with a small unlocking fee. It’s also possible to rent a scooter for a full day, starting from €40, depending on engine power and the city where the rental station is located.

According to INE (the National Institute of Statistics), the minimum wage in Portugal in 2025 is €870, while the average salary is around €1,777.

There is no perfect budget that suits everyone, but we can look at real stories from locals and expats — who better to talk about life in Portugal than those who live it every day?

A Reddit user, Complete-Height-6309, shares his family’s monthly expenses in Vila do Conde:

He and his wife do not pay rent because they bought their apartment. Their basic monthly expenses total €900, and the rest goes toward leisure, home purchases, or additional healthcare needs.

Another user provides a breakdown of monthly spending while living near Coimbra. The family’s total income after taxes is €6,472. The couple purchased a house and pays a €1,300 mortgage monthly. They also installed air conditioners throughout the home and placed solar panels on the roof to reduce electricity costs. Additional expenses include:

Overall, a budget of €2,000–€3,000 per month is generally enough for comfortable living in Portugal, even if you are paying rent.

Despite certain economic challenges, Portugal remains a relatively affordable country with a high quality of life. It offers reliable healthcare and a pleasant climate. And if you ever need to send a money transfer from Portugal, the Korona app — available in the App Store and Play Store — is a convenient and trusted solution.

With Korona, users can send money comfortably and quickly to more than 60 countries, benefiting from some of the lowest fees on the market. Transfers are delivered almost instantly, and the recipient can receive the funds either to a bank card (where available) or in cash.

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