Cost of Living in Portugal: Practical Expat Guide
Portugal remains one of Europe’s most attractive destinations for expats seeking a warm climate, affordable lifestyle, and high quality of life. But how much does it really cost to live here? Whether you’re relocating for work, retirement, or remote living, understanding everyday expenses helps you plan realistically and avoid surprises.
Overview of Living Costs in Portugal
Portugal is generally more affordable than Western Europe and North America, but costs vary widely by region. Cities like Lisbon and Cascais are more expensive, while Braga, Coimbra, and smaller towns offer significantly lower prices.
Key Factors Affecting Cost
Your chosen city or regionHousing type (apartment vs. villa)Your lifestyle and spending habitsWhether you live centrally or outside the cityYour access to local prices versus expat-priced services
Housing Costs in Portugal
Accommodation is usually the biggest part of an expat’s budget. Portugal has seen rapid rent increases in major cities, but affordable options still exist.
Average Monthly Rents
Lisbon City Center: €1,200–€2,000Porto City Center: €900–€1,500Braga / Coimbra: €600–€900Algarve (varies by season): €700–€1,500
Buying property ranges from €2,500–€6,000/m² in major cities and €1,000–€2,000/m² in smaller towns.
Utility Costs in Portugal
Utilities remain moderate but can fluctuate based on home size and energy usage.
Typical Monthly Utility Costs
Electricity, water, gas, waste: €90–€150Internet & TV packages: €30–€50Mobile phone plans: €10–€20 for good data plans
Electricity is the most expensive utility in Portugal, especially in winter when heating needs rise.
Food and Grocery Costs
Portugal offers high-quality, fresh produce at affordable prices—especially if you shop locally.
Average Grocery Prices
Milk: €0.80–€1.00Bread (fresh): €1.00–€1.50Chicken (1kg): €3.50–€5.00Fresh vegetables: €1.00–€2.00/kgOlive oil (1L): €4.00–€7.00
Local markets are cheaper than big supermarkets like Continente or Auchan.
Dining Out Costs
Eating out is one of the best-value experiences in Portugal. You’ll find everything from budget cafés to high-end dining.
Typical Prices
Menu do Dia (weekday set lunch): €7–€12Coffee at a café: €0.80–€1.20Dinner at a mid-range restaurant: €15–€25 per personBeer in a bar: €1.50–€3.00
In tourist hotspots like Lisbon, prices can be 20–40% higher.
Transportation Costs
Portugal has affordable public transport and major taxi/ride-hailing apps.
Transport Prices
Metro/tram ticket: €1.40–€1.60Monthly public transport pass: €30–€40Taxi or Bolt ride: €3.50 base fareFuel prices: €1.70–€2.00 per liter
Driving remains more expensive due to toll roads and fuel costs.
Healthcare Costs for Expats
Portugal’s healthcare system is affordable and high-quality. Expats can access public healthcare once legally resident, while private insurance is popular for convenience.
Typical Healthcare Costs
Private health insurance: €40–€70/monthDoctor consultation (private): €40–€60Pharmacy medicines: widely affordable, often €5–€20
Dental care is usually private, with prices ranging from €35–€60 for basic treatments.
Entertainment and Lifestyle Costs
From gyms to cinema trips, lifestyle expenses are moderate.
Average Prices
Gym membership: €25–€50/monthCinema ticket: €7–€9Monthly co-working space: €120–€200Beach clubs and events vary widely by region.
Is Portugal Really Affordable for Expats?
Yes—if you plan wisely, avoid tourist pricing, and embrace local shopping habits. While Lisbon and Cascais are pricey, inland and northern cities offer excellent value.
How to Keep Costs Low
Live slightly outside city centersShop at local marketsUse public transport instead of owning a carChoose Portuguese restaurants instead of touristy onesLearn basic Portuguese to avoid “expat pricing”
Final Thoughts
Portugal continues to offer a balanced lifestyle, affordable living options, and excellent quality of life for expats. Whether you’re budgeting for a family move or remote living by the coast, understanding the cost structure helps you make informed decisions. With smart planning, living comfortably in Portugal is entirely achievable—and often far more affordable than in many Western countries.