Portugal provides numerous advantages to its residents, including a pleasant Mediterranean climate, low crime rates and beautiful landscapes. But is it expensive to live in Portugal? How much money do you need to live comfortably in Portugal? Portugal is known for its affordable living expenses in comparison to other developed nations in North America and Europe. From lively cities to idyllic shorelines, Portugal offers endless possibilities.
Whether you're in the United Kingdom and imagining a life in Portugal or you're a US citizen who has already requested a visa, we have all the details on the cost of living in Portugal. Discover more about real estate expenses, including how much it costs to buy or rent in Portugal, household bills, healthcare costs, food prices and more in our cost of living in Portugal 2024 guide.
Cost of living in Portugal vs UK
Is living in Portugal expensive? The answer is no. In fact, Portugal is one of the most affordable places to live in Western Europe. The monthly cost of living in Portugal is lower than almost half of the countries worldwide. If you enjoy the liveliness of city life, you will be pleased to know that the cost of living in Lisbon is about 45% lower than in London, even though the city is the most expensive in Portugal. It’s also 37% lower than in Dublin, and 54% lower than in New York.
If you are considering relocating from the UK to Portugal, you will also be happy to learn that the cost of living in Portugal is approximately 25% lower than in the UK. Additionally, renting a property in Portugal is roughly 27% less expensive than in the UK, though costs can vary based on location and property size and style, and prices are on the rise.
How much money do you need to live comfortably in Portugal?
The amount of money needed to live comfortably in Portugal can vary depending on your lifestyle, location within the country, and personal preferences. For a family of 4, monthly living expenses will be just over €2,000 (excluding rent). For an individual, monthly living expenses could be approximately €600 (excluding rent).
Cost of living in Portugal for retirees
The cost of living in Portugal for pensioners can vary depending on the region, lifestyle choices, and personal preferences. Generally, Portugal is considered to be one of the more affordable countries in Western Europe, making it an attractive destination for retirees.
Some key factors affecting the cost of living for retirees in Portugal include:
- Housing: Renting or purchasing property in Portugal can vary significantly depending on the location. Urban areas like Lisbon and Porto tend to have higher housing costs compared to smaller towns or rural areas.
- Healthcare: Portugal has a public healthcare system that is accessible to residents, including retirees. Additionally, many retirees opt for private health insurance for additional coverage and faster access to services.
- Utilities: The cost of utilities such as electricity, water, and heating can vary based on the size of the property and usage habits.
- Transportation: Portugal has a well-developed public transportation system, which can help reduce transportation costs for retirees who do not own a car. However, owning a vehicle and associated expenses like fuel, insurance, and maintenance should also be considered.
- Food and groceries: The cost of groceries in Portugal is generally lower compared to many other European countries. Eating out can also be affordable, especially at local cafes and restaurants.
- Entertainment and leisure: Costs for entertainment, dining out, cultural events, and leisure activities can vary depending on personal preferences and location.
Additionally, consulting with local expatriate communities or retirees living in Portugal can provide valuable insights into the actual expenses involved in retiring in the country. For more information of retiring in Portugal, check out our guide.
Property prices in Portugal 2024
The cost of buying property in Portugal 2024
In Portugal, you will definitely get more for your money when buying property, compared to the UK and the USA. Property costs differ by area, and you will typically pay more for a house located in the city centre than one in a rural setting.
In recent years, house prices in Portugal have risen dramatically, and although prices are expected to drop, the shortage of properties on the market is causing prices to remain high for now. In spite of this, there are still cheap properties to be found in Portugal. For instance, Lisbon and Porto are among the priciest regions to buy property in Portugal, although still much cheaper than most of Europe. And if you wish to move close to some of Portugal's most stunning beaches, explore the properties available in the Algarve region, where prices will be higher in the main tourist areas and closest to the coast.
The cost of rent in Portugal 2024
Rental expenses in Portuguese cities are once again typically higher than those in rural areas, as you might anticipate. Your monthly rental costs will vary depending on the size of the property you desire and where you wish to reside. For example, a one-bedroom apartment in Lisbon will cost roughly €1,300 per month. With the same budget, you could get a two-bedroom, two-bathroom apartment in Funchal, Madeira, where property prices are much lower.
Portugal living expenses
Household bills in Portugal
Inflation heavily affected the cost of living in Portugal, with increasing household bills seriously impacting those living in the country. The amount of money required to cover household expenses in Portugal depends on the size of the property and the number of occupants. To illustrate, if you live alone in a one-bedroom studio apartment, you should budget approximately €90-100 monthly for utilities such as electricity, water, heating, and waste disposal. This amount could increase to up to €130 per month for a couple.
Moreover, if you choose to live in an area such as the Algarve where the climate is generally hotter, you should factor in the extra expense of running an air conditioning unit, which can be pricey. Additionally, it's important to consider the cost of things such as internet, which usually costs around €50 per month.
Food and drink prices in Portugal
Generally speaking, food and drink prices, as well as eating out, are lower in Portugal compared to the UK or the US. Below is an overview of the estimated prices for some basic grocery and food items in Portugal, as well as eating out, based on Numbeo's 2024 data:
| Item | Average cost in Portugal (euros) |
| Milk (1 litre) | €0.93 |
| Loaf of bread | €1.38 |
| White rice (1kg) | €1.36 |
| 12 eggs | €2.73 |
| Meal for 2 people in a mid-range restaurant | €40.00 |
| Bottle of local beer (0.5 litres) | €2.50 |
| Regular cappuccino | €1.78 |
Alcohol prices in Portugal
Is alcohol expensive in Portugal? Alcohol prices in Portugal can vary depending on factors such as the type of alcohol, the brand, and the location where you're purchasing it (e.g., supermarket versus bar, tourist areas). Here's a general overview:
- Wine: Portugal is famous for its wine production, and you can find a wide variety of wines at different price points. In supermarkets, you can find decent bottles of wine for as little as €2 to €5. Mid-range bottles might range from €5 to €15, while higher-end or specialty wines can cost €15 and up per bottle. Wine served in restaurants or bars will typically be more expensive, with prices varying depending on the establishment's quality and location.
- Beer: Beer is also popular in Portugal, and prices can vary depending on whether you're buying it at a supermarket, a bar, or a restaurant. In supermarkets, a pack of six domestic beers might cost around €3 to €5. At bars or restaurants, a pint of beer can range from €1.50 to €3 or more, depending on the brand and location.
- Spirits: Prices for spirits like vodka, rum, gin, and whiskey can vary widely depending on the brand and quality. In supermarkets, you can find a bottle of domestic spirits starting from around €10 to €20. Imported or higher-end spirits will be more expensive. Prices for spirits at bars or clubs will typically be higher than supermarket prices.
Overall, alcohol prices in Portugal are generally lower than in many other European countries, making it an attractive destination for those who enjoy a drink. However, as always, it's essential to keep in mind your personal budget and drink responsibly.
Public transport costs Portugal
Travel and public transport costs in Portugal are generally more affordable compared to the US and UK. Both trains and buses are reasonably priced, with monthly tickets available for under €50 in many major cities. Looking at transport prices in Lisbon, for example, the city offers a monthly travel pass for €40 while London's transport pass is more than €150 per month.
Most major cities in Portugal have excellent public transport options that make it easy to get around without a car. Larger cities like Porto and Lisbon have a variety of low-cost public transportation alternatives, including buses, coaches, metros, trains, and trams. Portugal of course also has several significant international airports, including Faro, Porto, and Lisbon.
Healthcare costs in Portugal
Portugal boasts an excellent healthcare system that was ranked 12th globally by the World Health Organisation in 2019. If you are relocating from the US to Portugal, you can expect lower healthcare costs. As a registered Portuguese resident, you will have access to national health service (SNS), which is financed by taxes and social security contributions.
Similar to the NHS in the UK, most crucial medical services are available at no cost to residents in the public healthcare system, although some state healthcare services may require standard user fees to access them. The amount charged varies, such as €15 for attending the Accident and Emergency Department or €5 for a basic GP appointment. Around 50% of the almost 250 hospitals in Portugal are private.
The majority of healthcare providers have Portuguese-speaking and English-speaking staff, while social security fund contributors, pensioners, children, and pregnant women are eligible for free healthcare in Portugal.
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