The Cost of Living in Portugal | An Expert Guide

Portugal, a country known for its stunning coastlines, rich history, and warm Mediterranean climate, has become an increasingly popular destination for expats and retirees. With a population of about 10 million, Portugal offers a blend of traditional charm and modern amenities, particularly in urban centers like Lisbon and Porto.

The Portuguese economy has been steadily growing, with key sectors including tourism, technology, and renewable energy. While not as robust as some of its European counterparts, Portugal's economy offers a comfortable standard of living, especially when compared to the cost of living in other Western European nations.

The expat community in Portugal is diverse and welcoming, with many foreigners drawn to the country's relaxed lifestyle, excellent cuisine, and favorable tax policies for newcomers. Cities like Lisbon, Porto, and the Algarve region are particularly popular among international residents.

Housing Costs in Portugal

Housing costs in Portugal vary significantly depending on location, with Lisbon and Porto being the most expensive cities. As of 2024, the average rent for a one-bedroom apartment in Lisbon's city center is approximately €900-€1,100 per month. Outside the city center, rents typically range from €650 to €800.

Rent Prices in Major Cities:

• Lisbon: The capital city has the highest rental prices in Portugal. A two-bedroom apartment in the city center can cost around €1,200-€1,500 per month1.
• Porto: As the second-largest city, Porto offers relatively lower rents than Lisbon. A one-bedroom apartment in the city center averages around €700-€9001.
• Algarve: Popular among tourists and retirees, prices can vary widely. A one-bedroom apartment averages about €600-€800, but can be higher in prime locations3.
• Smaller Cities and Rural Areas: Offer more affordable options. A one-bedroom apartment can range from €400 to €6003.

Food Costs in Portugal

Food costs in Portugal are generally lower than in many other Western European countries. A typical grocery bill for a single person might range from €150 to €250 per month. Dining out is affordable; a meal at an inexpensive restaurant costs around €8-€12 while a three-course meal for two at a mid-range restaurant can be about €35-€50.

Grocery Costs:

• Bread: Approximately €1 for a loaf
• Milk: Around €0.60 for a liter
• Eggs: Roughly €1.80 for a dozen
• Chicken: About €5 per kilogram
• Fresh fruits and vegetables: Prices vary but expect around €1-€2 per kg for most items1

Dining Out:

• Meal at an inexpensive restaurant: €8-€12
• Three-course meal for two at a mid-range restaurant: €35-€50
• Espresso coffee: €0.70-€1.20
• Local beer (0.5 liter): €1.50-€2.501

Transportation Costs in Portugal

Public transportation in Portugal is relatively affordable and well-developed in urban areas. A monthly public transport pass typically costs between €30 and €40.

Public Transport:

• Lisbon Metro: Offers extensive coverage with single tickets starting at €1.50.
• Porto Metro: Similar pricing to Lisbon, with single tickets around €1.20-€1.80.
• Buses: Available in most cities, with fares starting from €1.50 for single trips1.

Driving Costs:

For those who prefer driving:

• Gasoline prices hover around €1.60 per liter.
• Car insurance can vary but averages around €400-€600 annually.
• Toll roads are common, especially between major cities3.

Healthcare Costs in Portugal

Portugal has a public healthcare system (Serviço Nacional de Saúde or SNS) that provides universal coverage to all residents. While public healthcare is generally good, many expats opt for private health insurance for quicker access to services and English-speaking doctors.

Public Healthcare:

• Available to all legal residents
• Most services are free or low-cost, with some requiring small co-payments

Private Insurance:

Private health insurance premiums can range from €20 to €100 per month depending on coverage levels and age.

Utility Costs in Portugal

Basic utilities including electricity, heating, cooling, water, and garbage for an average apartment typically cost between €80 and €120 per month.

Breakdown:

• Electricity & Gas: Combined utilities average around €70-€100 monthly.
• Water Charges: Typically low; expect around €15-€25 per month.
• Internet Service: Usually ranges from €25 to €40 per month depending on speed1.

Example Table of Household Expenses in Portugal