If you're planning on moving to Portugal in 2021, one of the key factors to consider is the cost of living. What is the average cost of living in Portugal? How much money do you need to live comfortably in Portugal? Where is the cheapest place to live in Portugal? We aim to answer these questions and more in our 2021 guide to the cost of living in Portugal for students, single people, pensioners or families so that you can consider the living expenses in Portugal before you move.
Average cost of living in Portugal per month
Portugal has arguably one of the lowest costs of living in Western Europe and is much cheaper compared to other Southern European countries such as Spain and Italy. The cost of living is low in almost all aspects of life, from eating out to paying bills and even rent.
The average cost of living in Portugal will depend on where you decide to live, but even if you choose to live in the capital, Lisbon, the cost of living is said to be around 45% cheaper than London, for example. But how much do things cost in Portugal? According to Numbeo, the world's largest cost of living database, you can expect to pay the following prices for certain items in Portugal, all of which will contribute to your living expenses in Portugal (figures updated in June 2021):
| Item | Average cost in Portugal (euros) | Average cost in Portugal (pounds) |
| Milk (1 litre) | 0.63€ | £0.54 |
| Loaf of bread | 1.09€ | £0.93 |
| Bottle of water (1.5 litres) | 0.52€ | £0.45 |
| Bottle of mid-range wine | 4.00€ | £3.42 |
| Meal for 2 people in a mid-range restaurant | 30.00€ | £25.67 |
| Pint of beer | 2.00€ | £1.71 |
| Regular cappuccino | 1.39€ | £1.19 |
| One way train or bus ticket | 1.60€ | £1.37 |
| 20 pack of cigarettes | 5.00€ | £4.28 |
How much money do you need to live comfortably in Portugal?
Cost of living in Lisbon for students or a single person is said to be around £456.81 (533.91€) without rent, while the same estimated monthly costs for a family of 4 are £1,602.47 (1,872.93€). Keep in mind that wherever you choose to live in Portugal, housing costs will take up a large portion of your budget when you consider other expenses such as rent or a mortgage, gas, electricity, water and other household costs.
While the cost of living in Portugal isn't expensive, keep in mind that salaries are also much lower in Portugal compared to other countries. What is a good salary in Portugal? In 2021, the national minimum wage in Portugal rose to 775.80€ per month before tax based on 12 payments. This adds up to 9,310€ per year. According to Expatica, "the average net-disposable income per household in Portugal is 18,198€ a year". Many people in Portugal live off 750€ a month, while a couple who earn over 2,000€ per month can expect to enjoy a great lifestyle in Portugal.
Property prices in Portugal
How much does a house cost in Portugal? This highly depends on where you choose to live, with the highest house prices found in the capital city, Lisbon. While house prices are increasing in Portugal, the coronavirus has also had a significant effect on the market and on property prices. In spite of rising property prices, it is still much cheaper to live in Portugal compared to many other European countries.
What is average rent in Portugal? In Lisbon, you can easily find a good room for rent for around 400€ per month, while this figure will significantly drop in the outskirts or in smaller towns and cities. According to the idealista price index for May 2021, the average price for rentals in Lisbon is 13.3€/m2.
The cost of living in Portugal vs UK
Is it cheaper to live in Portugal or the UK? When it comes to cost of living, the UK is more expensive than Portugal. In general terms, prices including rent are 42.66% more expensive in the UK, according to Numbeo. In almost all categories, such as buying groceries, eating out or paying rent, Portugal is cheaper than the UK.
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