Cost of Living in Portugal: How Much Costs to Live in the Country

Is the cost of living in Portugal still worth it? Whether you are a digital nomad, a passive income investor, or someone with a job offer in the country, getting the budget right is essential for a smooth transition. The cost of living in Portugal is still one of the lowest in Europe, making it highly attractive for foreigners, but it varies greatly between Lisbon, Porto, and smaller cities in the interior of the country.

In this guide, updated with 2025 values, we detail everything about the cost of living in Portugal: from rent to the price of a coffee. Everything you need to calculate: will your income be enough to live comfortably here?

What is the cost of living in Portugal per month?

For a couple, the everage cost of living in Portugal ranges between €1,800 and €3,000 per month – it can drop to €1,200-€1,500 in the interior or exceed €3,500 in upscale neighborhoods of Lisbon.

But be aware: housing is the biggest expense and has been rising year after year. If you plan to buy a property outright, you eliminate a significant fixed expense – otherwise, be prepared to allocate about 50% of your budget just for rent or mortgage payments.

Is Portugal expensive? What weighs most on the budget?

• Health (private insurance: €50-€150/person)
• Housing (rent or mortgage + insurance and condominium fees)
• Supermarket (€300-€600/month for a couple)
• Transportation (monthly pass: €40-€60; gasoline: ~€1.80/liter)

Purchasing Power in Portugal

Purchasing power – the ability to turn your salary into quality of life – depends on a delicate balance between income, local costs, and inflation. If you plan to move to Portugal, it is essential to understand how these factors impact daily life in the country.

Recent data from the INE reveals a country in transition: while GDP per capita reached 80.5% of the European average (placing Portugal 15th among the Eurozone countries), the daily life of families still struggles with high housing costs (which rose 12% just in Lisbon) and energy costs, as reported by the newspaper Expresso.

For Brazilians and other foreigners, the equation changes completely. The purchasing power in Portugal is up to twice as high as in Brazil. And for those earning in euros or dollars, the advantage is even greater: with €1,000, you can live better in Portugal than in Germany, France, or New York, since prices are 20-30% lower than in these countries.

The key is to understand that Portugal offers two distinct scenarios:

• For those dependent on local salaries (an average of €1,500 net), the budget needs to be well planned, especially in large cities.
• For those with external income (digital nomads, retirees, or investors), the country becomes an excellent cost-benefit destination, especially if they can benefit from tax advantages like the RNH 2.0.

This duality explains why, despite economic challenges, Portugal remains an expatriate’s paradise. Thus, this friendly country continues to attract so many foreigners: the combination of affordable quality of life, safety, and climate makes it one of the best places to live in Europe when considering the balance between costs and benefits.

How much does it cost to live in Portugal? It depends on the city.

That’s right, the cost of living in Portugal largely depends on the city you live in. One of the aspects that most influences expenses in the country is the cost of housing. In the largest cities, this cost is well above the national average, making life much more expensive.

In smaller cities, rent is usually much more affordable. Therefore, living in the outskirts of large cities or in cheaper cities in Portugal is a good way to save on housing costs.

Cost of living in Lisbon

The Portuguese capital is also the most expensive city in the country to live. With high housing prices, renting a one-bedroom apartment with parking in the city center can cost around €1,500. If the goal is to live with the whole family, the cost of a three-bedroom property is around €2,600.

Another aspect that can be much more expensive in Lisbon than in the rest of the country is eating out. Being a very touristy city, there is no shortage of restaurant options, but eating well can be expensive. A dinner at an average restaurant costs around €55 for a couple, while at a simple restaurant, a single meal costs €13.

Cost of living in Porto

The second most important city in the country, Porto, also has a high cost of living, although it is somewhat lower compared to Lisbon. Rent, for example, is about 20% cheaper in the northern city. Living in the city center in a one-bedroom apartment costs, on average, €1,200, and a three-bedroom apartment costs around €1,900.

The cost of food, whether in restaurants or supermarket shopping, differs little between the two cities. Overall, the cost of living in Porto is about 5% cheaper than in Lisbon, not including rent. A meal for two people in an average restaurant costs around €50, and a meal in a simple restaurant costs €11.

Cost of living in Braga

One of the main cities in the northern region of Portugal, Braga has a lower cost of living than Porto. Rent for a one-bedroom apartment in the city center costs €800, while a three-bedroom property in the same area will cost around €1,200.

Eating out in Braga is also cheaper. A dinner at an average restaurant costs around €45 for a couple. For lunch in a simple restaurant, the menu costs around €10. In general, living in Braga is about 7% cheaper than in Porto. Rent in Braga is 32% cheaper than in Porto.

Cost of living in Faro

The cost of living in Faro is not low, but it is still cheaper than living in Lisbon. Rents are about 30% lower than in the capital, on average. Renting a one-bedroom apartment in the city center costs around €1,000, while a three-bedroom apartment can cost €1,600.

Eating out can also cost a little more. A meal for two people at a mid-range restaurant costs €45, and at a simple restaurant, a meal costs around €11.

What are the costs of living in Portugal?

Now, let’s explore the main expenses that make up the budget of those who choose to live in Portugal. The amounts can vary significantly depending on the city and lifestyle, but in general, the most important expenses can be classified into the following categories.

1. Housing Costs (Renting a House or Apartment)

Without a doubt, this is the main villain of the cost of living in Portugal. Renting a property, especially in large cities, has increased considerably in recent years, driven by real estate speculation and the growth of tourism.

We consulted the websites Numbeo, Expatisan, and Idealista to gather the average values of the cost of living in the country and present the following rental prices in the four main cities chosen by expats.

The survey was conducted in March 2025 for T1 (one-bedroom apartment) and T3 (three-bedroom apartment).

Buying a House in Portugal: Is It Worth It?

Although property prices in Portugal have risen in recent years, buying a house in Portugal can still be more advantageous than renting – especially with the current interest rates, which range from 3% to 5%.

Data from Idealista (February 2025) shows that:

• National average price: €2,740/m² (5.6% increase in one year)
• Average price in Porto: €3,643/m² (3.6% increase in one year)
• Average price in Lisbon: €5,520/m² (4.5% increase in one year)
• 30-year financing: Average monthly payments of €700-€1,200 for a T2, sometimes cheaper than renting in the same area.

2. Electricity and Water

In Portugal, the energy market is liberalized, meaning you can choose an electricity supplier based on their prices, without a loyalty period. As a result, costs can vary greatly from one company to another, so it is important to stay alert.

There are some variables to consider when understanding your electricity and gas bill. For example, in some homes, all items are electric, including heating. In others, gas is used for heating the home, water, and cooking, as gas is cheaper than electricity.

The amount spent on electricity, gas, and heating varies according to the season, the size of the house, and the number of residents. In Portugal, the cost of electricity and gas typically ranges between €80 and €200 for a 80m² house with two people. In winter, which is colder with fewer daylight hours, consumption tends to be much higher.

The average water bill is about €25 for a couple. This amount can vary depending on the city, time of year, the amount of laundry done at home, whether there is a dishwasher, among other factors. But generally, it is a bill that does not exceed €40.

3. Food

Supermarket costs in Portugal are fairly stable, as the country doesn’t face significant inflation, so there is no great variation in food purchases. Furthermore, prices vary little from one city to another, with an average couple spending between €300 and €400 per month on groceries.

To give a better idea of the costs, here is an updated 2025 list of prices for some common supermarket items:

Eating Out in Portugal

When it comes to eating out, prices can vary considerably in Portugal. The more touristy and busy cities tend to have higher prices compared to other regions of the country.

Even within a single city, prices can fluctuate significantly. In Porto, for example, restaurants located in Baixa, one of the most touristy areas, are usually much more expensive than establishments in residential neighborhoods.

If we compare Porto and Covilhã, for example, we see a big difference in meal costs. According to the Numbeo website, while in Porto a simple meal costs €13 and a dinner for two people is about €53, in Covilhã, the prices are much lower: lunch costs around €8, and a dinner for two at a mid-range restaurant is about €33. This shows how the cost of living in smaller cities can be significantly more affordable.

4. Health

Health expenses also vary depending on your priorities. For example, if you choose private health insurance, you will have a fixed monthly cost, but if you opt for public healthcare, you won’t need to pay anything for most services, as we’ve already explained in our complete guide on health in Portugal.

Public Healthcare

Healthcare in Portugal is of high quality, and now, most consultations and procedures are free. Since June 1, 2022, the Portuguese public healthcare system stopped charging moderating fees for almost all medical services (except for non-referred emergencies). As a result, exams and procedures requested by your family doctor no longer have any cost, and medications prescribed by a doctor under the SNS (National Health Service) cost less than the regular market price.

This is because the government has a subsidy system, where it covers part of the medication cost, with the remainder being the responsibility of the user. It is quite common for the price of medication to be under €5 with a prescription. Some medications are free.

Private Healthcare: Health Insurance / Health Plan

Although the public healthcare system is excellent, some people opt for private health insurance in Portugal. While relatively inexpensive compared to plans in Brazil and (especially) the United States, health insurance costs start at €35 per month.

It is possible to find lower-cost health insurance options in Portugal, but these usually only include hospitalization coverage, excluding medical consultations and exams. Therefore, the cost depends on the insurance company, the insured person’s age, and which services you wish to include in your plan. There are also more affordable health plans that offer discounts for services from accredited doctors. To better understand the differences, check out our full article on health insurance in Portugal.

However, consultations are also paid for, but with lower prices than in private healthcare systems. Generally, a consultation with health insurance costs between €15 and €35. If you consult a private doctor without health insurance, you will pay at least €80 for the consultation.

One advantage of having health insurance is the ability to directly consult a specialist without the need to go through your family doctor, as required in the public system.

Average Monthly Health Insurance Prices (Individual)*

Notes:

• Basic Plan: Covers simple consultations and exams (e.g., Médis Essential, Multicare Light).
• Intermediate Plan: Includes medical specialties, some treatments, and emergencies (e.g., AdvanceCare, Allianz).
• Premium Plan: Offers extensive coverage, including international options, dental care, and physiotherapy (e.g., Fidelidade Gold).

*Prices are for reference only, please request a personalized quote.

5. Telephone and Internet

There are at least three major communication companies in Portugal: Vodafone, MEO, and NOS, in addition to Nowo, which serves more rural areas of the country. There are also smaller companies connected to these major operators, such as WOO, Yorn, UZO, Lyca Mobile, and Digi.

The prices for services vary little from one provider to another. The choice will depend on the availability of fiber optic internet in the region where you decide to live – believe me, this makes a big difference in quality.

This service has maintained its prices over the last few years due to increased competition. A basic package starts at €30, but for a little more, you can choose more comprehensive packages. It is even possible to include mobile phones in the plan.

Reference prices for telephony and internet in Portugal:

(Prices may vary with promotions and convergent packages)

6. Transportation and Fuel

Public Transportation

Public transportation in Portugal is good, and the costs are relatively low. The most comprehensive monthly pass in Porto and Lisbon, which allows travel throughout the metropolitan area, costs €40 in both cities. A municipal or 3-zone pass, like the one offered in Porto, costs €30. For students up to 23 years old, the pass is free.

Additionally, with the new “Passe Verde” (Green Pass), it is possible to travel by train throughout the country for €20/month. This rate is only available for residents of Portugal and can be purchased any day of the month, with a validity of 30 days.

In smaller cities, the cost is slightly lower, ranging from €10 to €40. Also, all cities offer a “social tariff,” which provides discounts for low-income families, students, seniors, and other groups.

Car Expenses in Portugal

If you plan to own a car in Portugal, you also need to consider the associated expenses. First, let’s consider the purchase of a car. A new non-luxury model can cost between €14,000 and €45,000.

Used cars, from 2016 onwards, can be found starting from €9,000, according to the research we did on the Standvirtual website.

Are you considering taking your car to Portugal? The costs for transport and import taxes may not be worth it. Check out our article that analyzes whether this decision is worthwhile. Also, discover how to validate your foreign driver’s license in Portugal.

In addition to these costs, there are other variables that will influence the overall expense, such as: monthly payments (if the car was purchased through financing), street parking, monthly garage fees, maintenance, and tolls.

7. Leisure Costs

One area that can vary significantly in your monthly budget in Portugal is spending on leisure. It all depends on your lifestyle – from those who prefer a picnic or coffee in the garden to those who never miss a summer festival.

Let’s take a look at the actual prices for 2025 to help you plan better:

Cost of Living in Portugal with Children

For those planning to move to Portugal with children, the cost of living includes additional expenses related to education. Public schools starting from basic education are free, but parents are responsible for paying for food (provided by the school) and educational materials.

For children in daycare, it’s necessary to budget for the costs, which are not cheap. In Porto, daycare costs an average of €450, in Lisbon €550, in Braga €300, and in Faro €450. There are also more affordable options or others that are subsidized by the government.

For parents who want to enroll their child in private schools, it’s important to note that the cost can be significantly higher. International schools can cost thousands of euros per year.

Regarding higher education, it’s important to remember that public universities are not free, although their tuition fees (propinas) are lower than those of private universities. If you plan to study in Portugal, be sure to check out our article on the best universities and also on student visas, in case you don’t yet have residence permit in Portugal.

Salary in Portugal

The minimum wage in Portugal is €870 gross in 14 installments. This amount is below the necessary level to live in the country, so for a couple where both earn the minimum wage, it may be tight to cover all expenses.

However, if each person earns the equivalent of the average salary in Portugal, which was €1,602 in 2025, it’s possible to live comfortably in the country, according to the INE (National Statistics Institute), especially if you own your own property.

How Many Euros per Month to Live in Portugal?

To summarize the cost of living in Portugal in 2025 for a couple, we have:

This would be the average cost of living in Portugal for a couple. The most important thing to keep in mind is that the necessary amount will depend on aspects such as the city chosen, the number of family members, and the lifestyle you intend to lead. We have presented a base cost for the country, and from that point, it’s essential to calculate costs based on your reality and needs.

Finally, another relevant aspect is always leaving a margin between income and expenses, as you never know when an unexpected situation may arise. This can range from small things like needing to buy an extra coat for the cold to costs related to a security deposit when renting an apartment.

Always remember, the most important thing is to have solid financial planning and adjust spending according to earnings to avoid financial strain at the end of the month.

🇺🇸 How Much Can an American Save by Living in Portugal?

Moving to Portugal isn’t just about lifestyle — it’s a strategic financial decision.
For upper-middle-class Americans, the cost of maintaining a decent standard of living in the U.S. has become increasingly unsustainable. You end up paying twice: first in high federal and state taxes, then again for private services that should be public — healthcare, education, security.

Double the burden: the American reality

A family or professional with an income of $150,000–$300,000 per year often spends:

💰 Annual cost just to sustain a basic lifestyle: $87,000 – $162,000, or €80,000 – €150,000.

🇵🇹 In Portugal, it’s a different game

Even with a comfortable lifestyle, Portugal costs up to 90% less than what many Americans are used to spending.

Annual Savings Estimate

What about the taxes?

In the U.S., you often face:

• Federal income tax up to 37%
• State taxes up to 13%
• Capital gains and dividend taxes up to 23.8%

In Portugal, under the RNH 2.0 regime:

• 0% to 10% on foreign income
• Tax exemptions on dividends, royalties, and pensions, if structured properly

👉 That means you stop paying twice — no longer funding a public system that fails you and then turning around to pay again for private services.

Final Thoughts

Portugal delivers what many Americans only dream of:

• ✅ Genuine public safety (without private patrols)
• ✅ Affordable, quality healthcare
• ✅ Free public education
• ✅ Predictable, moderate cost of living
• ✅ Peace of mind, quality time, and Mediterranean sunshine

✨ It’s not just about paying less — it’s about finally getting what you pay for.

If you wish to move to Portugal, rely on the legal consultancy of Atlantic Bridge in your process for acquiring a visa for Portugal, Portuguese citizenship, and tax planning.

Click here to schedule a free meeting with our specialists!

*Inácio Nery is an economist graduated from the University of Coimbra, with an Advanced Studies Diploma in Economics from Erasmus University Rotterdam. As CEO and co-founder of Atlantic Bridge, he leads the transformation of the migration sector through innovative technological solutions and international investment strategies.
With extensive experience in global mobility and strategic planning, Inácio served as Head of the world’s largest legal marketplace, where he streamlined financial and legal processes for millions of people. Through Atlantic Bridge, he drives innovation in the migration sector, connecting investors and expatriates to optimized strategies for wealth growth, citizenship, and global mobility, supported by technology and a team of experts.