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If you’re thinking about moving to Portugal in 2025, one of the first questions that comes up is: How much does it cost to live here?
Portugal is often seen as an affordable European destination, but prices have been shifting in recent years due to tourism, foreign investment, and rising demand in major cities. Even with these changes, the country still offers a balanced lifestyle, good climate, and solid value compared to many Western countries.
In this guide, we break down what you can expect to spend on housing, utilities, groceries, transportation, and daily life across different regions.
How Much Does it Cost to Live in Portugal?
Portugal is often considered one of the more affordable countries in Western Europe, especially when compared with higher-priced destinations like Germany, France, or the United States. For many expats, this balance of reasonable costs, mild climate, and high quality of life is a major part of the country’s appeal.
Groceries, transportation, and most daily expenses are generally easier on the wallet, and the country’s economic landscape—shaped by relatively modest average wages—keeps many living costs at a lower level compared to other Western EU nations. Eating out is also budget-friendly, with a casual meal often costing far less than in Northern Europe or North America.
However, the cost of living can vary a lot depending on where you choose to live. Smaller towns and inland regions remain very affordable, while coastal areas and big cities tend to be pricier, especially for housing. This is where newcomers feel the difference most clearly.
In popular hubs like Lisbon and Porto, rent is usually the biggest expense. A one-bedroom apartment in the city center typically ranges from €900 to €1,200 per month, sometimes more in highly sought-after neighborhoods. On top of that, utilities can run between €100 and €150 monthly—higher in winter due to the poor insulation common in many Portuguese homes
Restaurant Prices
If you’re wondering whether eating out in Portugal is expensive, the answer depends on your budget, the type of restaurant you choose, and the city you live in. Overall, Portugal is known for being very affordable when it comes to dining out, especially compared to other Western European countries.
Let’s look at typical restaurant prices:
- Casual lunch or dinner:
A simple meal in a regular restaurant usually costs around €12 per person. - Mid-range restaurant:
A full-course meal for two people typically ranges from €50 to €60. - Fine dining / Michelin-star experience:
For gourmet tasting menus from award-winning Portuguese and international chefs, you’ll need to book several weeks in advance. Prices generally start above €100 per person.
Food and Grocery Prices
Food and grocery prices in Portugal are generally very affordable, especially if you buy from local producers, neighborhood shops, and traditional markets. Supermarkets and grocery shops, small stores, and even convenience shops at petrol stations offer a wide selection of fresh fruits, vegetables, bread, meat, and dairy at reasonable prices.
Imported products, however—such as berries, international brands, or specialty items—tend to be more expensive compared to locally sourced goods.
Below is a table with approximate grocery prices you can expect in Portugal:
Utilities
The cost of utilities in Portugal varies based on location, the size of your home, personal consumption habits, and the age or construction quality of the property. Many older Portuguese homes were built to stay cool during summer, meaning insulation was not a priority. As a result, these properties can feel cold in winter and lose heat quickly, leading to higher electricity usage for heating or AC.
Here’s a general idea of what you can expect to pay for basic utilities:
- Basic utilities for an 85 m² apartment
(electricity, heating/cooling, water): €110.92 per month - Mobile phone plan
(calls + 10GB+ data): €17.23 per month - Broadband Internet
(unlimited data, 60 Mbps or higher): €34.15 per month
Healthcare
One of the key reasons Portugal attracts many older expats and retirees from the US, UK, and other countries is its high-quality and affordable public Portugal healthcare system, known as the SNS (Serviço Nacional de Saúde).
Residents have access to essential medical services including doctor appointments, specialists, emergency care, and hospital treatments. Many services are completely free, while others require only a small co-payment.
In addition to the public system, Portugal offers a strong private healthcare sector, which expats often prefer for shorter waiting times and a larger choice of English-speaking doctors. Private health insurance is also relatively affordable, with monthly plans typically ranging from €50 to €150, depending on age, health, and coverage level.
Education
Portugal is well regarded for its education system, ranking 34th in the 2024 CEO World Magazine survey, ahead of Italy, Spain, and Malta.
If you’re planning to move to Portugal with school-age children, it’s important to know that public education is free, with no tuition fees for primary or secondary school. Public schools follow a national curriculum and offer solid academic standards.
For families exploring alternatives, private primary and secondary schools usually charge between €400 and €500 per month, depending on the school’s reputation, location, and the services included.
Public universities offer affordable tuition, usually €1,000 to €1,200 per year for Bachelor’s and Master’s programs. Private universities are more expensive, ranging from €5,000 to €15,000 annually.
For those interested in an international curriculum, international schools come at a higher cost. Tuition generally starts around €800 per month, while the most prestigious schools can reach €1,800 per month.
Transportation
Transportation in Portugal is generally more affordable compared to other Western European countries like Spain or Italy. Costs will depend on whether you plan to drive or rely on public transport.
If you prefer not to drive, Portugal’s public transportation network—including buses, metro, and trams—is reliable and budget-friendly. A single ticket usually costs €2.00 to €2.50, while a monthly pass is around €40, giving access to all public transport within the city. In some cities, residents over 65 years old can even get a free monthly pass.
Taxis are widely available in urban areas, with starting fares around €3.50 to €4, plus a per-kilometer charge. For short or occasional trips, services like Uber, Bolt, and shared bikes are also convenient and affordable options.
Rental Prices
Renting in Portugal is usually the most practical and affordable option at the beginning—especially if you’re not ready to purchase a property yet.
While housing prices in Portugal have increased in recent years, renting is still relatively affordable compared to many other European countries. However, it’s important to note that finding a rental apartment is becoming more challenging in the major cities, especially Lisbon and Porto, where demand is high and availability is limited.
In smaller cities and suburban areas, rental prices are much more reasonable, offering better value and more space for your budget.
Real Estate Prices
For those looking to buy property in Portugal, real estate prices have been rising steadily, especially in Lisbon, Porto, and the Algarve. Strong demand from international buyers and investors has played a major role in this growth. Although the Golden Visa no longer allows investment through residential real estate, its earlier impact helped push prices upward in major urban and coastal areas, creating long-lasting effects on the market.
Lisbon now sits well above the national average and has seen the fastest growth in recent years. According to Idealista, the country’s leading real estate portal, the average price in Portugal is around €2,970 per square meter.
Below you can check the asking price per square meter for the most relevant cities in Portugal:
- Portugal: 2,970.00 €
- Lisboa: 5,886.00 €
- Porto: 3,844.00 €
- Algarve: 3,839.00 €
- Madeira: 3.574.00 €
Income Tax
One important cost to consider when moving to Portugal is how your income will be taxed. Whether you’re a pensioner or a remote worker, once you obtain residency and spend more than 183 days per year in the country, you become a tax resident. This means you are required to declare your worldwide income in Portugal.
Portugal’s Personal Income Tax (IRS) follows a progressive rate system, ranging from 13% to 48% depending on your income level. Tax residents can also benefit from a variety of deductions—such as education expenses, healthcare costs, and other eligible allowances—which help reduce taxable income and lower the final amount payable.
Cheapest Cities to Live in Portugal as Expat
When choosing where to live in Portugal, the cost of living plays a major role in your budget. In the larger cities—especially Lisbon and Porto—the influx of foreigners over recent years has pushed prices up considerably. Because of this, many newcomers prefer to look for more affordable alternatives, especially if they don’t have professional obligations tying them to the big urban centers.
Portugal is a relatively small country, and many mid-sized cities offer excellent quality of life while still being within easy travel distance of major hubs like Lisbon or Porto. These cities have become increasingly popular among expats thanks to lower costs, safety, good infrastructure, and a relaxed lifestyle.
In many of these locations, the cost of living—particularly rent and housing—can be 25% to 30% lower compared to the main cities, making them very appealing for long-term living.
Here are some of the most popular and affordable cities for expats in Portugal:
- Braga
- Coimbra
- Leiria
- Aveiro
Most Expensive Cities to Live in Portugal
As in most Western European countries, the cost of living in Portugal is significantly higher in the major urban centers compared to smaller cities. These areas attract both locals and internationals, which naturally drives up prices—especially for housing, dining, and daily expenses.
While the costs are higher, these cities also offer advantages that smaller towns cannot easily match. You’ll find a faster work pace, broader job opportunities, better public transport, international schools, diverse restaurants, cultural events, and a wide range of services.
However, big-city living also comes with more traffic, crowds, and busier neighborhoods, especially during peak hours and tourist seasons.
Here are the most expensive places to live in Portugal:
- Lisbon
- Cascais
- Porto
- The Algarve Region
Benefits of Living in Portugal
Weather
Portugal enjoys a mild climate with plenty of sunshine year-round. Warm summers and gentle winters make it one of Europe’s most comfortable places to live.
Safety
Ranked among the safest countries in the world, Portugal offers low crime rates and a peaceful atmosphere—ideal for families, retirees, and remote workers.
Quality of Life
With affordable healthcare, relaxed living, fresh food, and a strong sense of community, Portugal delivers an exceptional quality of life focused on well-being and balance.
Expat-Friendly Community
Portugal has a welcoming, international environment. English is widely spoken, and expat communities are well established, making it easy to settle in and make connections.
Landscape
From stunning beaches and dramatic cliffs to rolling vineyards, mountains, and historic villages, Portugal’s diverse landscapes offer endless outdoor experiences and breathtaking scenery.
How to Move to Portugal
If you’re considering making the move to Portugal, it’s essential to be informed about the various visa and immigrations options available.
Portugal D7 Visa
Portugal D7 Visa, which is perfect for retirees or those with passive income. This visa requires proof of regular income or savings, and the ability to support yourself without working in Portugal. It’s a great option for those looking to enjoy the country’s relaxed lifestyle and stunning natural beauty.
Portugal Digital Nomad Visa
Portugal Digital Nomad Visa for remote workers and freelancers allow them to live and work in the country for up to a year, enjoying all the benefits of the Portuguese lifestyle while earning an income from their remote job or business.
D2 Visa Portugal
D2 Visa in case you are an entrepreneur looking to start or develop a business in Portugal, which allows you to obtain a residence permit for up to two years.
How Can We Help
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Frequently Asked Questions
Is rent expensive in Portugal in 2025?
Rent is the biggest expense for most people. In Lisbon, a one-bedroom apartment in the city center typically ranges from €900 to €1,200 per month, while smaller towns offer much cheaper options.
How much are utilities in Portugal?
Utilities for a standard apartment usually range from €100 to €150 per month, though winter months can be higher due to heating and poor insulation in older homes.
Is eating out affordable in Portugal?
Eating out is one of the more budget-friendly aspects of life in Portugal. A typical meal in a local restaurant can cost €8–€12, while a nicer dinner may range from €20–€30 per person.
Are healthcare costs high in Portugal?
Healthcare costs in Portugal are generally reasonable compared to many other countries. The public healthcare system, SNS, provides affordable access to healthcare services, with small fees for certain services. Private healthcare costs can be higher, with appointment fees ranging from €30 to €50.
What is public transportation like in Portugal?
Public transport is widely used and very affordable. Monthly passes in major cities cost around €40, and intercity trains and buses are reasonably priced.
How can i relocate to Portugal?
There are several visa options available: The D7 visa is ideal for retirees. The D2 visa is for those who want to work or start a business in Portugal and for digital nomads, Portugal offers the Digital Nomad visa, allowing individuals to live and work remotely while employed by a foreign company.
Is Portugal a good place to retire?
Yes, Portugal is often considered a great place to retire for several reasons. The country offers a warm climate, beautiful coastal areas, and a relaxed lifestyle. It has a low cost of living compared to many other European countries, which can make retirement savings go further.
Where do expats retire in Portugal?
The Algarve region in Portugal is a highly sought-after destination for expats looking to retire. Its stunning coastline, warm climate, and relaxed lifestyle make it an ideal place to enjoy retirement. Cities and towns like Faro, Lagos, Albufeira, and Tavira in the Algarve offer a vibrant expat community.
Is Portugal still a good value in 2025?
Yes—while prices have risen, the overall cost of living remains competitive, especially when factoring in the climate, safety, lifestyle, and relatively low daily expenses outside major tourist hubs.
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