Is Portugal Expensive to Live in? Updated Costs For 2025

Considered one of the most affordable countries in Western Europe, Portugal has increasingly become one of the best places to live. Foreigners are drawn not only by the country’s rich history and picturesque landscapes but also by its free public schooling, cheaper fares for public transportation, and the low-cost healthcare system.

In this article, we break down the cost of living in Portugal, exploring factors such as housing and daily expenses, transportation, and lifestyle choices.

You’ll also find out more about:

• Is it expensive to live in Portugal?
• A breakdown of food and grocery costs
• Healthcare costs in Portugal
• Benefits of living in Portugal

Is it expensive to live in Portugal?

Portugal is often considered one of the more affordable countries in Western Europe, making it an attractive destination for expats, retirees, and remote workers.

Compared to countries like Germany, France, or the United States, Portugal’s living costs are lower. For example, rent in Lisbon is often about 50% lower than in cities like Paris or New York.

The cost of groceries, transportation, and utilities is generally also lower in Portugal. The country’s agricultural sector contributes to lower prices for fresh produce and local goods. Additionally, public transportation is well-developed and inexpensive, reducing the need for car ownership.

Portugal’s affordability can be attributed to several key factors within its economic structure and external comparisons. The overall economic landscape of Portugal is marked by relatively lower average wages and living costs compared to other Western EU nations.

This contributes to affordability across basic necessities, including housing, food, and utilities. Although wages are lower, the cost of living is balanced by lower property prices, making it attractive for retirees and digital nomads alike.

However, if you choose to live in a city like Lisbon or Porto, rent prices can be relatively high, especially in central areas. A one-bedroom apartment in the city center might cost between €800 to €1,200 per month. In smaller towns or rural areas, rent can be significantly lower, often ranging from €400 to €700 for similar accommodations.

Exchange rates also play a role in affordability, particularly for expats or foreign visitors. For non-EU residents, the Euro’s fluctuation against weaker currencies can amplify their purchasing power.

In addition, cost differences become evident when comparing Portugal to neighboring EU nations. For example, rents in Lisbon are significantly lower than in major cities like Paris or Amsterdam.

Food and Groceries

Generally speaking, food prices in Portugal are quite affordable, particularly if you are buying local products. Food items like fresh fruits, vegetables, and dairy products are readily available across the country and are relatively cheap.

If you are planning to purchase imported products like a certain brand of beer or any other food item, expect to pay more money.

In the table below, you’ll find the approximate prices for food groceries items in Portugal.

Is Portugal expensive to eat out?

Wondering if Portugal is expensive for eating out? Well, it completely depends on your budget, lifestyle, and choice of restaurant. But, in general, you’ll find that eating out in Portugal is quite economical.

It will cost you as little as €4 to go for a breakfast menu at a local pastelaria (Portugal’s bakery shops) with an espresso shot included. For a comprehensive lunch menu, expect to pay between €8 and €12 per person.

If you are planning to go for a full-course meal at a mid-range restaurant, expect your bill to be around €20. In case you are considering a trendier restaurant, you can expect to pay around €25- €30 per person.

If you are looking to dine out in Lisbon, you can visit various Michelin-star restaurants in one of the most bustling cities in the world for around €95, but again, this is dependent on the restaurant that you choose.

Keep your food budget at around €50 per single person/day if you are on a holiday in Portugal and want to save money.

Utilities and Services

The cost of utilities in Portugal will vary depending on factors such as location, the size of the household, and individual consumption habits. However, on average, here’s an overview of what you can expect for basic utilities in Portugal:

• Basic (electricity, heating, cooling, water, garbage) for 85m2 apartment – €108.52 
• 1 min. of prepaid mobile tariff local (no discounts or plans) -€ 0.15 
• Internet (60 Mbps or more, unlimited data, cable/ADSL) – € 33.43

With that said, expect to pay around €100 in utility bills per month in Portugal (this includes electricity, water, gas, and wifi).

Education

According to our Global Intelligence Unit’s Global Education Report, the Portuguese education system is of high quality and ranked 25th. 

Portugal has both public and private institutions. Public schools up to a certain education level are free for citizens and foreign residents alike. However, if you’re considering private schooling, be prepared for tuition ranging between €400 and €500 per month from primary school to high school level.

If you’re considering an international school for your children, expect higher tuition fees. Typically, monthly costs for international schools in Portugal hover around €800.

When it comes to higher education, public university institutions generally charge tuition fees for Bachelor’s and Master’s programs. These fees typically fall between €1,000 and €1,500 per academic year for EU/EEA students and between €3,000 and €5,000 per academic year for non-EU/EEA students.

Healthcare

Portugal is also known for its low cost medical care for both citizens and legal residents who have paid into the Portuguese social security system. Portugal’s healthcare system is called the National Health Service (SNS),  which comprises both public and private services.

Residents can opt for public healthcare in Portugal, which is almost completely free. Only a couple of procedures require additional healthcare costs, including visiting the emergency room, taking a diagnostics exam, or getting a particular doctor’s appointment.

Citizens are entitled to a range of medical services at public hospitals and health centers. Prescription medications may have a co-payment fee, which is usually a modest amount.

Private health insurance for foreigners in Portugal is quite affordable, and it can cost between €20 and €100 a month, depending on your age and the extent of your coverage.

So, with private healthcare insurance in Portugal, you can pay between €400 a year for a basic plan or €1,000 for a yearly plan with better coverage. You can always have an international health insurance plan, although having Portuguese health insurance can often be more affordable.

Transportation

The cost of transportation in Portugal, compared to other Western European countries, is affordable. However, the cost of transportation in Portugal can vary based on the mode of transportation, your location, and how frequently you use it. Here’s an overview of the typical costs associated with transportation in Portugal:

• Public Transportation:

Buses, metro, and trams are popular and affordable means of transportation in cities and towns. Ticket prices vary depending on the option, but a single journey costs between €1.50 and €2.50. A monthly transportation pass is usually €40.

• Taxis and Ride-Sharing:
  • Taxis are available in urban areas and can be a convenient option for short trips. Fares vary by city, but a typical starting fee is around €3 to €4, with additional charges per kilometer.
  • Ride-sharing services like Uber are also available in major cities, providing an alternative to traditional taxis. Prices may be competitive and can vary based on demand and distance.

Rental Prices

Renting in Portugal is a good bet, especially if you’re not ready to buy a property yet. Currently, the average rental price in Portugal is €15 per square meter. For comparison, the average rental prices in UK cities such as Dublin are €33 per meter squared.  Rental prices tend to be higher in major cities. In 2022, the Lisbon region registered the highest value at over €18 euros per squared meter.

Real Estate Prices

Portuguese property prices are generally increasing, especially in major cities like Lisbon and Porto, as well as popular regions like the Algarve. This is due to demand from foreign buyers and investors.

The prices in Lisbon have increased exponentially and are much higher than prices in other parts of the country. Analysts are predicting that property prices are set to continue rising in the immediate future. Currently, the average house price in Portugal is around €1,454 per squared meter.

• Price per square meter to buy an apartment in the city center – €2953.34 
• Price per square meter to buy an apartment outside the city center – €1990.49 
• €670 for a one-bedroom flat that is close to the city center

Travel Costs in Portugal: An Overview

Knowing the average trip cost to Portugal is highly useful if you plan to visit the country before moving there.

However, the cost of visiting Portugal will completely depend on your budget, style, and personal preferences. Roughly speaking, you will spend around €68-115 per person per day.

The cost of flying to Portugal depends on the season, airline, and the country of departure, but generally speaking, it will cost between €715.76 and €1,175.10 per person for economy flights and €2,287.75 to €3,690.19 for first class (these flight prices are an average approximation and will fluctuate as per time and location).

Since Portugal is very strategically located, it is easily accessible from the United States and other European countries.

Flight prices from the USA to Portugal usually start from $151, and if you are flying to Portugal from Europe, it is quite affordable as various low cost airlines are available. Make sure to keep aside €34.56 to €70.11 per person per day for transportation and food.

When you visit Portugal, you will spend approximately:

• €80 per night for accommodation (per adult or even per room via Airbnb)
• €15 for a two-course meal per person and between €25 and €30 in a three-course meal
• €1.40 if you are taking the metro ride around Lisbon or Porto for a one-way trip
• €5 for visiting galleries or museums in Portugal, barring a few exceptions

Remember that the cost of accommodation will completely depend on what you are looking for and the location of your stay. For a more high-end or boutique hotel, for instance, prices start at about €150 per night in the capital and €80-100 per night in more interior towns.

For luxury hotels in Portugal, expect to pay between €200 and €400 a night. If you are looking to stay in a five-star hotel in the Algarve region, you will need to pay around €150 per night for a double bedroom.

Luxury transportation prices in Portugal

If you are looking to travel across the country luxuriously, then Portugal will offer you one of the world’s best traveling experiences. From amazing hotels and resorts, golf courses and stunning beaches, you are in for a treat if you are planning to travel across Portugal. For a long weekend getaway, guided luxury tours begin from €6,295. If you are traveling solo in Portugal, you can get reasonably priced accommodation in comparison to the United States.

Budget travel in Portugal

Traveling between Portuguese cities by public transport is quite cost-effective. For instance, a one-way train ticket from Lisbon to Faro will cost you around €20. If you are comfortable with local buses, then you can travel the country by buying a ticket that will cost €5 for a one-way trip.

Traveling in the interiors of Portugal is always cheaper than traveling to big business hubs and cities. For a week-long trip around Portugal it is likely to cost you around €1,000 (this includes your flights and accommodation charges, depending on where you are flying from and your choice of accommodation).

Your average Portugal trip cost will be massively reduced if you are backpacking or doing a solo trip; you can pay as little as €5 for a bed/night. If you are traveling with a group of friends, it will cost you around €140-€480 per night for accommodation for all of you if you are staying close to Albufeira, in the Algarve.

Cost of Living in Lisbon

Lisbon, Portugal’s vibrant capital, has emerged as the most sought-after city in Portugal, often described as the country’s most international hub. As of 2022, the Lisbon metropolitan area boasts nearly three million residents, reflecting a dynamic blend of locals and expatriates alike.

In fact, over 555,000 people have chosen Lisbon as their home, drawn to its welcoming atmosphere and the promise of a rich and fulfilling lifestyle. Lisbon is often considered one of the best cities to live in Portugal, and not by chance, the cost of living in Lisbon has been increasing in the city over the past few years.

Housing costs

The allure of Lisbon extends to its housing options, with a range of choices to suit various preferences and budgets. While the city center is known for its historic architecture and atmospheric streets, it may come with a higher price tag.

Expatriates often find a balance by exploring neighborhoods on the outskirts, where rental costs can be more affordable. On average, monthly rent for a one-bedroom apartment in the city center can range from €900 to €1,200, while prices may decrease to around €600 to €900 outside the center.

Everyday expenses and eating out

Lisbon offers an array of dining options, from local eateries serving traditional Portuguese cuisine to international restaurants and trendy cafes. A meal at a mid-range restaurant typically costs around €15 to €25 per person, while a three-course meal for two at a more upscale establishment might range from €50 to €100. Grocery costs are generally reasonable, with a monthly expense for a single person estimated at approximately €150 to €200.

Utility costs

The cost of electricity, gas, and water in Lisbon will depend on the property size and how many people live there. Utilities in a 45m² studio can cost between €80 and €90 per month. For two people in an 85m² apartment, the estimated monthly costs are around €120 and €130.

Benefits of Living in Portugal

Apart from the low cost of living, Portugal boasts a variety of advantages and benefits that make it an attractive destination for expatriates and those considering a change in their living environment. Some of the benefits of living in Portugal include:

Weather: Portugal is renowned for its mild and sunny climate. With over 2,800 hours of sunshine per year, the country offers a Mediterranean climate that is particularly appealing to those who prefer warm and sunny weather.

Expat-Friendly Environment: Portugal is known for its welcoming and friendly atmosphere towards expatriates. The Portuguese people are generally open and hospitable, making it easier for newcomers to integrate into the local community. Not to mention that most people in Portugal’s major cities speak English, making it easier for foreigners to adapt.

Beautiful Landscapes: From the picturesque coastline of the Algarve to the historic charm of cities like Lisbon and Porto, Portugal is adorned with diverse and stunning landscapes. The country’s natural beauty, including mountains, beaches, and vineyards, contributes to a high quality of life.

Safety: Portugal is considered one of the safest countries in Europe. Low crime rates and a sense of security contribute to the overall well-being of residents and expatriates.

Quality of Life: Portugal consistently ranks high in global quality of life indices. The combination of a relaxed lifestyle, a pleasant climate, and a variety of cultural and recreational activities contributes to an excellent overall quality of life.

Rich History and Culture: Portugal has a rich history and a vibrant cultural scene. Residents have the opportunity to explore historic sites, attend cultural events, and immerse themselves in the traditions of the country.

Attractive visa options: Getting a Portuguese Residency Visa has never been easier. From the Portugal Golden Visa Program, which is ideal for investors, to the Portugal D7 Visa, designed for retirees, Portugal offers several visa options for non-EU citizens.

Frequently Asked Questions About Expensive in Portugal

Is Portugal cheap?

Portugal is actually more economical than other European countries, especially in terms of transportation and accommodation costs. If you are living in Lisbon, your monthly budget can be around €1,700. It can come down even more if you are staying in the interior parts of the country.

What is the cost of traveling to Portugal?

The cost of traveling to Portugal depends on your budget completely. If you are planning for a mid range budget holiday, then it will cost you around €1,000 (including flights and accommodations, although this will depend on where you are flying from and the type of accommodation that you choose). Also this is also very dependent on the amount of time you are choosing to stay in the country.

Are the food prices in Portugal affordable?

The cost of drinks and food is quite affordable in Portugal. If you are planning to dine out in a city, you will need to spend around €15 for food and €10 for a bottle of wine at most restaurants. You can also find more economical places, where it can cost you around €10 for food options.

Housing costs in Portugal?

Accommodation is pretty affordable in Portugal. You will need to pay around €1,000-1,500, depending on the location and amenities to rent a two-bedroom house in Portugal. If you are planning to purchase a house in Lisbon, the capital of the country, it can cost you around €400K. If you are purchasing a house outside of the capital, it can cost you around €150K.

Are leisure activities and entertainment expensive in Portugal?

Leisure activities and entertainment in Portugal are affordable, and there are even free options to explore. Many historic sites, parks, and beaches can be enjoyed without significant costs, contributing to a rich cultural and recreational experience. Additionally, Portugal hosts numerous festivals and local events, often providing affordable or free entry, allowing residents to partake in the vibrant social scene without breaking the bank.

What is the cost of public transportation and owning a vehicle in Portugal?

Public transportation in Portugal is usually cost-effective and efficient. Cities like Lisbon and Porto have well-developed public transportation systems, and the cost of a monthly public transportation pass typically ranges from €30 to €40. On the other hand, owning a vehicle in Portugal involves additional expenses, including fuel, insurance, maintenance, and potential parking fees. Gasoline prices in Portugal are somewhat higher than the European average, with a liter costing around €1.64.