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Portugal cost of living vs USA is a very important point to consider before deciding to move here. So let’s dive in into the one crucial factor that often tops the list of considerations: cost of living.
In this article, we examine the comparison between Portugal’s cost of living and that of the US. Both are popular destinations renowned for their diverse cultures, vibrant lifestyles, and promising opportunities.
While the United States is knows for its economic prowess and dynamic cities, Portugal garner attention for its rich history, picturesque landscapes, and a growing reputation as an enticing expatriate haven.
Portugal Cost of Living vs USA: Overview
Living costs in Portugal are generally much more affordable compared to the United States, which is one of the reasons so many expats choose to settle here. According to recent Numbeo data, the overall cost of living in Portugal is about 36.6% lower than in the US, making day-to-day life noticeably easier on the budget.
In Lisbon, a single person can expect monthly expenses of roughly €800 to €1,200. This typically covers rent for a modest apartment, groceries, public transportation, utilities, and some leisure activities. Although prices have increased in recent years, Lisbon remains far more affordable than most major American cities.
Converted into US currency, the cost of living in Portugal in US dollars for a single person in Lisbon is approximately $870 to $1,300 per month, depending on lifestyle and location. This difference is a major reason why many people relocating from the United States find Lisbon financially manageable without giving up quality of life. See also: Cost of Living in Lisbon: A Complete Breakdown
By comparison, living in New York City costs significantly more. A single person typically spends between €2,100 and €3,300 a month, with rent alone often reaching €1,300 to €2,200 depending on the neighborhood. San Francisco is similarly expensive, with monthly costs ranging from €2,500 to €3,800 and central one-bedroom apartments commonly exceeding €2,500.
When comparing Cost of living in Portugal vs USA, it’s clear that Lisbon—and Portugal as a whole—offers a far more accessible lifestyle for those seeking lower living costs without sacrificing quality of life.
Comparing Living Costs in Portugal vs USA
Renting in Portugal
One of the biggest parts of the cost of living in Portugal vs USA is the amount you need to budget for rent.
Rental prices in Washington, DC are about 101.8% higher than in Lisbon. This means you would pay roughly double for a similar type of accommodation in Washington, DC compared to Lisbon.
The difference is even more pronounced in San Francisco, where rent prices are approximately 160.4% higher than in Lisbon. For many people relocating, these savings on housing alone make Portugal a far more affordable option overall.
However, it’s important to note that the cost of living in Portugal vs. United States can vary depending on several factors such as location, lifestyle, and personal preferences.
Grocery Prices
When comparing Portugal cost of living vs US on grocery prices, there are some notable differences to consider. The cost of groceries can vary depending on the region and individual shopping habits. However, here is a general overview:
In Portugal, the prices of groceries are generally lower compared to the US. For example, a kilogram of rice in Portugal can cost around €1,31 while in the US, it can reach almost €4,00.
Similarly, other basic food items such as bread, milk, vegetables, and fruit tend to be cheaper in Portugal, which makes the cost of living in Portugal in US dollars more affordable compared to the United States. However, imported or specialty products can be more expensive due to transportation costs and import fees.
Dining Out Costs
Eating out in Portugal vs United States offers very different experiences and costs. In Portugal, meals at local restaurants and cafés are generally more affordable, even in popular cities like Lisbon and Porto. A mid-range meal usually costs around €10 to €20, and in smaller towns, prices can be even lower. Portugal is also known for its “menu do dia,” a set daily menu that often includes a main dish, sides, dessert, and sometimes a drink—great value for a full meal.
In the United States, dining out tends to be more expensive, especially in cities like New York or San Francisco, where a mid-range meal can range from €17 to €30 or more. Prices climb higher at fine-dining restaurants, while smaller towns and rural areas offer slightly more budget-friendly options.
Of course, tipping customs don’t usually factor directly comparing living costs Portugal vs USA, but if you regularly eat out, they do make a noticeable difference in day-to-day spending.
In Portugal, tipping is appreciated but modest. Leaving 5% to 10% is considered generous, and it’s often optional rather than expected. In many casual restaurants, rounding up the bill is perfectly acceptable.
In the United States, tipping is a core part of the service industry. 15% to 20% is the standard, and not tipping can be seen as inappropriate. Over time, this difference adds up, making dining out in Portugal vs. United States noticeably more affordable when comparing everyday living costs.
Transportation Costs
For those not planning to drive in the country, understanding the Portugal cost of living vs US, especially transportation costs, is essential. Transportation expenses in Portugal vary depending on factors such as location, distance, and mode of transportation.
Generally, public transportation in Portugal tends to be more affordable than in the US. In Portugal, you can find cost-effective options such as buses, trams, and trains for getting around.
The pricing for public transportation varies by city, but as an example, a one-way ticket for local transport in Lisbon can cost around €2, while a monthly pass can range from €30 to €50.
On the other hand, transportation costs in the US can be higher, especially in major cities where public transportation systems may be limited. For instance, a one-way ticket for local transport in Washington D.C. can cost around €2.50, and a monthly pass can cost €90.
Utilities Expenses
When comparing utilities expenses between Portugal vs. United States, it’s important to consider factors such as location, property size, and personal usage. Generally, utilities costs can vary significantly within each country.
In Portugal, the average monthly cost for basic utilities (electricity, heating, cooling, water) for an 85m2 apartment is around €125. Internet services with a speed of 60 Mbps or more and unlimited data typically cost around €36.
In the USA, the cost of utilities can vary depending on the state and city. On average, the monthly cost for basic utilities in a similar-sized apartment is around €150. Internet services with similar specifications can range from €50 to €70 per month.
Healthcare Cost of Living in Portugal vs. USA
Healthcare costs in Portugal vs United States differ greatly, largely due to the structure of each country’s system. Portugal’s public healthcare service, the Serviço Nacional de Saúde (SNS), provides affordable care to residents, with only small fees charged for certain services. Even private healthcare in Portugal remains relatively accessible, with specialist appointments often costing between €30 and €50.
In contrast, the U.S. relies heavily on private healthcare, and individuals usually need insurance to manage expenses. Without coverage, costs can rise sharply. A private specialist appointment in the U.S. can easily exceed €100, with prices increasing further if tests or procedures are needed.
Education Cost of Living in Portugal vs. USA
When comparing the cost of living in Portugal vs USA, education is one area where the difference is especially noticeable. In Portugal, public education is very affordable, with primary and secondary schooling generally free for residents. Families mainly pay for textbooks and basic supplies, making it a budget-friendly option for both locals and expats. Private and international schools in Portugal, however, come with higher fees, usually between €6,000 and €10,000 per year.
In the United States, education costs vary widely, especially in the private sector. Private school tuition often ranges from €10,000 to €35,000 annually, and university fees can climb from €10,000 to over €50,000 per year depending on the institution.
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Taxes in Portugal vs USA
When comparing taxes as part of the cost of living Portugal vs USA, the systems are very different, and this often comes as a surprise to Americans moving abroad.
In Portugal, residents are generally taxed based on where they live, not on citizenship. Personal income tax is progressive, and rates can feel high on paper (from 13% up to 48%), but everyday expenses such as healthcare, education, and social services are far more affordable. With proper planning, many expats can structure their income efficiently, especially retirees and remote workers.
In the United States, taxation is based on citizenship, not residency. This means US citizens must continue filing US tax returns even while living in Portugal. Federal taxes, state taxes (where applicable), and self-employment taxes can add up quickly, particularly for higher earners.
The US–Portugal double tax treaty helps prevent the same income from being taxed twice, but it doesn’t eliminate tax obligations altogether. Smart tax planning is essential to avoid unnecessary exposure and to make the most of credits and exemptions.
The Cheapest Cities to Live in Portugal
When comparing the cost of living Portugal vs USA, smaller Portuguese cities stand out for their affordability while still offering a high quality of life. Cities such as Braga, Coimbra, and Aveiro consistently rank among the cheapest places to live in Portugal.
These cities benefit from lower rent, affordable dining, and excellent public services, making them especially attractive to retirees, remote workers, and families looking to stretch their budget further than they could in most US cities.
Braga
Located in northern Portugal, Braga stands out for its rich history, vibrant culture, and relatively lower cost of living.
The average monthly rent for a one-bedroom apartment in the city center is approximately €470, which is around 30% lower than the national average.
Outside the city center, the average rent drops to around €350, representing a 40% difference compared to the national average.
Coimbra
Home to one of Europe’s oldest universities, Coimbra offers a charming atmosphere and affordable lifestyle.
The average monthly rent for a one-bedroom apartment in the city center is around €500, which is approximately 25% lower than the national average.
Looking outside of the city center, the average rent is approximately €400, representing a 33% difference compared to the national average.
Aveiro
Famous for its picturesque canals and colorful boats, Aveiro provides an affordable living option for expats.
The average monthly rent for a one-bedroom apartment in the city center is about €550, which is around 10% lower than the national average.
Outside the city center, the average rent is around €400, representing a 20% difference compared to the national average.
The Most Expensive Cities to Live in Portugal
When looking at the cost of living in Portugal vs USA, even Portugal’s most expensive cities are often still more affordable than major US metropolitan areas. That said, certain locations in Portugal do come with higher housing and lifestyle costs, particularly in popular urban and coastal areas.
Lisbon
As the capital city, Lisbon stands out as one of the most expensive areas in Portugal. Rental prices in Lisbon can be significantly higher compared to the national average.
The average monthly rent for a one-bedroom apartment in the city center is approximately €1,200, while outside the city center, it is around €850.
The living expenses in Lisbon are also higher, with an estimated monthly expense of around €950 for a single person, excluding rent.
Cascais and Estoril
Located near Lisbon, Cascais and Estoril are upscale coastal areas known for their luxurious lifestyle. Rental prices in these areas can be significantly higher compared to the national average.
The average monthly rent for a one-bedroom apartment in the city center is around €1,500, while outside the city center, it is approximately €1,000.
The cost of living in Cascais and Estoril is also higher, with an estimated monthly expense of around €1,200 for a single person, excluding rent.
Porto
While generally more affordable than Lisbon, certain areas within Porto can have higher rental prices. Upscale neighborhoods near the Douro River, for example, may have higher rental costs compared to other parts of the city.
The average monthly rent for a one-bedroom apartment in the city center is around €900, while outside the city center, it is approximately €650.
The cost of living in Porto is also higher, with an estimated monthly expense of around €800 for a single person, excluding rent.
Buying Property in Portugal vs USA
When comparing the cost of living Portugal vs USA, buying property is one of the areas where the difference can be most significant.
In Portugal, property prices are generally more accessible, especially outside prime areas of Lisbon and Porto. Buyers can find modern apartments and family homes at prices that are often well below major US cities, with lower ongoing costs such as property tax, insurance, and maintenance. There are also no restrictions on Americans buying property in Portugal, whether as residents or non-residents.
In the United States, property prices vary widely, but in many metropolitan areas, buyers face significantly higher purchase prices, higher annual property taxes, and higher homeowner insurance costs. These ongoing expenses can materially increase the long-term cost of ownership.
Shipping Costs From US to Portugal
Shipping a 25ft container from Washington, D.C. to Portugal can vary in cost depending on the method you choose. Sending your belongings by sea is the most budget-friendly option, with an estimated cost of around €1,300 and a transit time of roughly 15 days. This method involves loading the container onto a cargo ship and transporting it across the Atlantic to a Portuguese port, making it ideal for those who aren’t in a rush.
Air freight is the faster alternative, with delivery taking around 5 days, but it comes at a higher price—about €2,750. This option is best for those who need their items quickly and are willing to pay for the speed and convenience of air transport.
How to Move to Portugal From The US
If you’re considering moving from the US to Portugal, there are several steps you’ll need to take to make your relocation as smooth as possible. Here’s a general guide to help you get started:
Portugal D7 Visa
D7 Visa, which is perfect for retirees or those with passive income. As of 2026, this visa requires proof of regular income or savings (€920 per month), and the ability to support yourself without working in Portugal.
Portugal Digital Nomad Visa
Digital Nomad Visa for remote workers and freelancers allow them to live and work in the country for up to a year or more, having at least a monthly income of €3,680.
D2 Visa Portugal for Entrepreneurs
D2 Entrepreneur 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.
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Frequently Asked Questions
How do healthcare costs compare between Portugal and the USA?
Healthcare costs are generally lower in Portugal compared to the USA. For example, a visit to a doctor in Portugal can cost between €30-€50, while in the USA, a similar consultation can range from $100 to $200 (approximately €87 to €175) or even more.
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.
You may would like to read Why do expats retire in the Algarve.
Is it expensive for an American to live in Portugal?
Compared to the United States, Portugal is generally more affordable. Housing, healthcare, food, and daily expenses tend to be lower, especially outside Lisbon and Porto.
Is healthcare free in Portugal for Americans?
Public healthcare in Portugal is low-cost, not completely free. Once you’re a legal resident, you can access the national health system with small co-payments. Many Americans also choose private health insurance, which is very affordable by US standards.
Can you collect US Social Security and live in Portugal?
Yes. You can continue to receive US Social Security payments while living in Portugal with no issue.
How much does a house in Portugal cost in US dollars?
Prices vary by location. Rough averages in USD:
- Smaller cities/interior: $150,000–$300,000
- Coastal areas: $250,000–$450,000
- Lisbon/Porto prime areas: $500,000+
There’s no restriction on Americans buying property.
Is it easy for a US citizen to move to Portugal?
Portugal is one of the easiest European countries for Americans to move to, thanks to clear visa options like the D7 (passive income), Digital Nomad, and retirement-friendly policies.
Can a retired American live in Portugal?
Yes. Portugal is very popular with US retirees due to its climate, safety, healthcare, and cost of living. The D7 visa is commonly used by retirees.
Does Portugal tax US retirement income?
Yes, Portugal can tax US retirement income, but this depends on the income type and your tax planning. The US–Portugal tax treaty helps avoid double taxation, making proper structuring important.
Can a US citizen just move to Portugal?
Not permanently. Americans can enter visa-free for 90 days, but to live in Portugal long term, you must apply for a residence visa before moving.
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