How much money do you need to live comfortably in Portugal?

Rental prices in Lisbon and in Porto vary significantly depending on location and property type.

• In the Algarve, rental prices can fluctuate greatly, with luxury villas reaching up to €2,200 per month, but these start around €700 per month.
• You can find one-bedroom apartments in smaller cities starting from around €600 per month in Portugal's cheapest municipalities, although many foreigners will probably be renting around the €1,100 mark.

Buying property in Portugal

If you're considering buying property in Portugal, here are some average property prices to give you a starting point:

• Lisbon Metropolitan Area: €6,059 per square metre
• Porto Metropolitan Area: €4,060 per square metre

The best thing to remember here is to do your own research based on what you want. Again, cities tend to be more expensive, with rural areas more affordable. 

Other housing factors to consider

And don't forget to factor in these extra expenses:

• Property taxes:
  • IMI (Municipal Property Tax): An annual tax ranging from 0.3% to 0.45% of the property's value.
  • AIMI (Additional Municipal Property Tax): Applies to properties valued over €600,000, with rates from 0.4% to 1%.
• Utilities: The average monthly cost for an 85m² apartment is €121 across Portugal.
• Insurance: Standard property insurance can cost between €180-380 per year. Basic insurance starts at around €60 a year.

Utility cost of living prices in Portugal

Unsplash

Utility costs are crucial to understand when it comes to effective budgeting.

For a typical Portuguese household, monthly utility costs can range from €100 to €200, depending on factors like property size, location, and usage habits. This estimate covers the basics: electricity, water, gas, and garbage collection.

Electricity

Electricity in Portugal is a bit pricier compared to other European countries, averaging €0.2246 per kWh. That's about 22% higher than in the UK, so it's something to keep in mind. 

You can expect to pay around €60 per month for electricity for a one-bedroom apartment.  

Water

Water costs can vary quite a bit across different regions in Portugal. On average, you'll likely spend between €15 and €30 per month for a one-bedroom apartment. Porto tends to have the highest water rates, while Braga and Faro boast the lowest.  

Gas

Your gas bill will depend on how much you use and how it's supplied to your home. For a one-bedroom apartment, you can estimate around €20 per month for gas. If you use bottled gas, a 13-kg butane cylinder will cost you about €30 and should last a family of three for about a month.  

Internet and telecommunications

Internet services in Portugal are considered pretty reasonable. You can snag a 2-year home internet contract with speeds of 200Mb for €37 per month or upgrade to 1000Mb for €49 per month.

Grocery and food cost of living prices in Portugal

Getty images

One of the joys of living in Portugal is indulging in its vibrant culinary scene. But how much will all this deliciousness cost you? The good news is that groceries in Portugal are refreshingly affordable compared to many other Western European countries. 

The monthly grocery bill for a single person ranges from €150 to €350, depending on your lifestyle and where you live. As of January 2025, the cabaz alimentar essencial (essential food basket), which includes 63 staple products for a typical Portuguese diet, costs around €239.

Average costs of everyday food items in Portugal

To give you a clearer picture, here are some average prices for common food items in Portugal according to Numbeo:

• Milk (1 litre): €0.95
• Loaf of fresh white bread (500g): €1.40
• Rice (1kg): €1.43
• Eggs (12): €2.91
• Local cheese (1kg): €10.29
• Chicken fillets (1kg): €6.63
• Beef round (1kg): €12.81
• Apples (1kg): €1.94
• Tomatoes (1kg): €2.17
• Potatoes (1kg): €1.50

Remember that prices can vary depending on the region and the type of store you visit.

Where to shop in Portugal

Portugal offers a diverse range of grocery shopping options to suit every need and budget:

• Supermarkets: Major chains like Continente, Pingo Doce, Auchan, Intermarché, Lidl, and Aldi are widespread across the country. 

  Continente tends to be slightly more expensive, while Lidl and Aldi are known for their budget-friendly prices. 

• Hypermarkets (Hipermercados): These large stores, often located in shopping centres, offer a vast selection of products, including groceries and non-food items.

• Local markets (Mercados): Almost every district in Lisbon and other cities boasts its own indoor market with stalls selling local produce, fresh seafood, meats, cheeses, and more. 

  These markets often offer better value than supermarkets and are beloved by locals for their quality and variety.

• Small grocery stores (Mercearias): These neighbourhood shops are perfect for quick purchases and sometimes offer competitive prices on certain items.

• Organic markets: If you're looking for organic products, you'll find specialised markets and shops in many cities. 

  Porto has an organic market in the city park on Saturday mornings, while Lisbon has one in Praça do Príncipe Real.

Transportation options and costs in Portugal

Unsplash

Portugal offers a variety of transportation options, from efficient public transit to the freedom of car ownership. If you choose to live in the city,  you may not need a car. If you're further out in the sticks, then it may be essential.

Public transportation

Portugal boasts a well-developed and affordable public transportation system, especially in major cities like Lisbon and Porto.

• Metro systems: a single metro ride in Lisbon will set you back €1.90, but you can grab a 24-hour unlimited travel pass for €7.25, including buses and trams. 

  If you plan on using public transport frequently, consider the "Zapping" option on the reusable Navegante card for discounted fares.

• Buses and trams: Lisbon's buses and trams offer a charming way to experience the city, with fares starting at €2.30 for a single bus trip and €3.20 for a tram ride.

  The iconic Tram 28, a popular tourist route, might be a bit pricier.

• Train services: For intercity travel, Portugal's train network is a reliable and reasonably priced option. A high-speed Alfa Pendular train from Lisbon to Porto costs between €35.70 and €49.90, depending on the class of service.

The costs of car ownership

While public transportation shines in urban areas, many residents prefer the freedom and flexibility of car ownership, particularly in rural regions.

• Purchase and registration: Car prices in Portugal are generally on par with those of other Western European countries. 

  However, you'll also need to factor in registration fees for imported vehicles (€45/165), a one-off vehicle tax (ISV), and an annual circulation tax (IUC) to renew your license plates and road use permission. 

• Insurance: Car insurance is mandatory in Portugal. 

  Basic third-party liability insurance starts at around €150-300 per year, while comprehensive coverage can range from €350 to €600 annually, depending on factors like your age and the type of vehicle you drive.

• Fuel costs: As of January 2025, fuel prices in Portugal are €1.90 per litre for petrol and €2.00 per litre for diesel. These prices can fluctuate depending on global oil markets and government policies.
• Maintenance and inspections: Regular maintenance costs will vary, but mandatory vehicle inspections (IPO) cost around €30. These inspections are required every two years for vehicles 4-8 years old and annually for older vehicles.  

In 2022, the average monthly cost of car ownership in Portugal, including depreciation, was estimated at €1,160. However, this figure can vary significantly based on the car model, your driving habits, and individual circumstances.

The costs of healthcare services in Portugal

Unsplash

Portugal's public healthcare system, known as the SNS, provides universal coverage to all Portuguese citizens, legal residents, and even some undocumented migrants. 

Funded primarily through taxes and social security contributions, the SNS offers a comprehensive range of services, including primary care (through local health centres called Centros de Saúde), specialist consultations and emergency services.

While the SNS is largely free, you'll encounter small co-payments for certain services, typically ranging from €5 to €10. Prescription medications are also subsidised, making them significantly more affordable.

However, services like dentistry are not covered by the SNS, and will need to be paid for on a private basis.

The private healthcare system

Alongside the public system, Portugal has a thriving private healthcare sector that offers faster access to specialists, shorter waiting times, and more personalised care.

Examples of private healthcare costs:

• Specialist consultations: €50–€100
• Routine diagnostic tests: €20–€100
• Private hospital stays: €200–€400 per night

Private health insurance plans vary in cost and coverage:

• Basic plans: €20–€50 per month
• Comprehensive plans: €50–€150 per month

Generally, the SNS will be more than acceptable for general healthcare needs. However, if you require more specialised treatment, perhaps for a condition or operation, private may be the best approach.

Leisure activities and dining out costs in Portugal

Unsplash

Beyond the essentials, Portugal offers vibrant opportunities for leisure activities and experiences to enrich your life, such as dining out or having fun. 

Leisure activities and Portugal's cultural scene

Portugal's rich cultural heritage provides numerous options for entertainment, from historical sites and museums to modern attractions and lively events.

• Cinema: Catch the latest blockbusters for around €9.17 per ticket. Or, for a unique cinematic experience, check out venues like the Cinemateca Portuguesa in Lisbon, which showcases classic and arthouse films. 
• Museums: Immerse yourself in history and art at Portugal's top museums, with entry fees typically ranging from €2 to €10.
• Fitness and Sports: Stay active with a gym membership, which costs around €42.00 per month on average.

Savouring Portuguese cuisine through dining out

Portuguese cuisine is renowned for its fresh ingredients, bold flavours, and affordability. According to Numbeo:

• Casual dining: Enjoy a meal at an inexpensive restaurant for around €12, or indulge in a three-course meal for two at a mid-range establishment for approximately €45. 

  If you're in a hurry, a fast-food combo meal will cost you around €8 on average. 

• Drinks: Quench your thirst with a beer (0.5-litre draught) for €2.50, a cappuccino for €1.79, or a bottle of mid-range wine for €5 in a shop. 

Can you live comfortably in Portugal on different budgets?

Unsplash

€1,500 a month: comfortable living with careful budgeting

Living on €1,500 a month in Portugal is doable, especially if you choose to live outside the major cities. 

However, it will require careful budgeting and some trade-offs. This budget is above the average net monthly wage of around €1,300 per month, so you'll be able to cover your basic needs and enjoy some leisure activities.  

Potential allocations:

• Rent: €700-€800 for a small apartment outside city centres
• Utilities: €100-€150
• Groceries: €300-€350
• Transportation: €50-€100 (using public transport or a bicycle)
• Leisure: €100-€200

Trade-offs and limitations:

• Limited dining out options, mostly at inexpensive local restaurants
• Minimal budget for travel or expensive hobbies

€2,000 a month: More comfort and flexibility

With a monthly budget of €2,000, you can enjoy a more comfortable lifestyle in most parts of Portugal, including smaller cities and some areas of Lisbon and Porto. 

This budget is above the average salary and can provide a good quality of life for a single person or even a couple.  

Potential allocations:

• Rent: €800-€1,000 for a decent apartment, possibly in the city centres
• Utilities: €150-€200
• Groceries: €400-€500
• Transportation: €100-€150 (including occasional taxi rides or car-sharing)
• Leisure and Dining Out: €300-€400
• Savings: €100-€200

Possibilities:

• Regular meals at mid-range restaurants
• Occasional weekend trips within Portugal
• Gym membership or other regular leisure activities

€3,000 a month: Enjoying the best of Portugal

With €3,000 per month, you can experience a very comfortable lifestyle in most parts of Portugal, including the more expensive areas of Lisbon and Porto.

Potential allocations:

• Rent: €1,200-€1,500 for a spacious apartment in desirable areas
• Utilities: €200-€250
• Groceries: €500-€600
• Transportation: €200-€300 (possibly including car expenses)
• Leisure, Dining Out, and Travel: €600-€800

Enhanced possibilities:

• High-quality housing in prime locations
• Regular dining at upscale restaurants
• Frequent domestic travel and occasional international trips

What is the cost of living to retire in Portugal?

Unsplash

Portugal is quickly becoming a top choice for retirees seeking a fulfilling and affordable lifestyle. But what is the cost of retiring to Portugal, and is it the right choice for you?

Why move to Portugal to retire?

Portugal offers a compelling combination of factors that make it an ideal retirement destination:

• Financial benefits: Portugal has no wealth tax, aside from property tax on luxury homes.

  The country also offers tax exemptions on gifts for direct family members and allows for free remittance of funds to Portugal. 

• High quality of life: Enjoy a relaxed Mediterranean lifestyle with a favourable climate, stunning beaches, charming towns, and a rich cultural heritage.

Portugal vs. the world: Cost of living comparison

Unsplash

So, with Portugal's cost of living prices fresh in our mind, how does it stack up against other popular destinations? 

Note: These are approximate index values based on various sources and may vary depending on the specific location and lifestyle.

FAQs

Still have some burning questions about moving to Portugal? Here are some frequently asked questions that cover additional aspects of expat life in Portugal:

How easy is it to open a bank account in Portugal?

Opening a bank account in Portugal is generally a straightforward process for expats. 

The first step is obtaining a Tax Identification Number (NIF), a unique number used for tax purposes.

What is the education system like for expat children?

Portugal offers a variety of educational options, including both public and international schools. Public schools are generally free for residents, while international schools offer a more internationally recognised curriculum and cater specifically to foreign students.

How is the work-life balance in Portugal?

Portugal is known for its relaxed lifestyle and emphasis on work-life balance. The country values leisure time and family life, reflected in many businesses closing for lunch breaks and remaining closed on Sundays.

What are the options for learning Portuguese?

While English is spoken in many urban areas of Portugal, learning Portuguese can significantly enhance your experience and integration into the local culture. There are numerous language schools and online resources available to help expats learn Portuguese.

Getty images

Stay in the know about living in Portugal as a foreigner—get our weekly newsletter for the latest travel, legal, and lifestyle news.