The cost of living in Portugal

An overview of the cost of living in Portugal covering rent, food, utilities, transport, education and healthcare for foreign nationals.

A detailed article onthe country of Portugal.

Look up theQuality of Life Indexof Portugal and other countries worldwide.

The cost of living in Portugal

For those wishing to live inPortugal, the cost of living here is very reasonable compared with other countries in Western Europe. Although life in Western Europe generally may be expensive, it is still possible to live comfortably on a modest salary in Portugal.

Many foreign nationals decide to move to Portugal or retire there. Alongside Portugal’s cost of living, foreign nationals also consider the country’s temperate climate and its wonderful scenery.

People in Portugal have lower incomes than in other Western European countries. However, this does not cause a problem because the cost of living there is relatively low compared with the rest of the continent. It is therefore easier to live on a smaller salary in Portugal than in other Western European countries. Local people in Portugal can easily live on around EUR 870 a month.

In this country, the cost of living varies depending on location and lifestyle. Note that Lisbon and Cascais are the most expensive cities in Portugal, followed by Porto.

In contrast to the expensive cities, Braga, Viseu and Coimbra are the most affordable places to be found in Portugal. Rent is cheaper (around EUR 400-600 a month), and the cost of food and eating out is very reasonable in these places.

Rent and property prices

A detailed article onBuying a home in Portugal.

Generally, both rental and purchase prices for property are affordable in Portugal.

Rental prices

Outside the expensive cities mentioned above, it can be seen that for a two-bedroom apartment, rent ranges from EUR 550 to EUR 800 a month across the country. An unfurnished apartment is cheaper still to rent.

However, for those wanting more luxurious services for their family, rents should be expected to range from EUR 1,500 to EUR 2,200 a month for an apartment. Renting a mid-range apartment in this country is also a very reasonable expense when compared with other Western European countries.

Property prices

In Portugal, as with rents, the price of an apartment varies depending on the location within the country. In the Algarve, a one-bedroom apartment costs from EUR 150,000 to EUR 200,000. In Lisbon, the price of a one-bedroom apartment ranges from EUR 300,000 to EUR 600,000, depending on the location.

Food and groceries

Groceries

Food is generally very affordable in Portugal, particularly fruit, vegetables, fish and meat. For groceries, a monthly budget of EUR 200-300 will be more than enough, including some luxuries. Because of the proximity to the sea, fish prices are also reasonable at around EUR 5-8. Meat costs around EUR 7-10, and chicken around EUR 2.5. Some costs for other grocery items can be found in the table below:

Item	Price (EUR)
Apples (1 kg)	1,95
Bananas (1 kg)	1,26
Chicken (1 kg)	6,81
A dozen eggs	2,75
A loaf of bread (500 g)	1,37
Local cheese (1 kg)	9,85
Milk (1 litre)	0,97
Onions (1 kg)	1,71
Potatoes (1 kg)	1,45
Rice (1 kg)	2,75
Bottled water (1.5 litres)	0,68

In addition, good wine in Portugal costs under EUR 10, and on average around EUR 5-7. But that does not mean it lacks rare wines. In fact, there are rare and aged wines that may cost up to several thousand Euros. Finally, a bottle of beer can be found from EUR 1.

Eating out

The estimated costs for eating out can be seen below:

Item	Price (EUR)
A meal at an inexpensive restaurant	10
A meal for two at a mid-range restaurant	40
A meal at a fast-food chain	8
Bia	2,50
Bottled water	1,10

Generally, lunch costs around EUR 20, and fast food around EUR 8-9. Where eating somewhere more upmarket, the price is around EUR 35-45 per person.

Utilities

The average monthly utility costs in Portugal can be found below. Note that monthly prices may vary depending on how much is used in a month and the size of the home.

Item	Price (EUR)
Basic utilities (electricity, heating, cooling, water, refuse) for an 85 m2 apartment	111,36
A monthly mobile telephone plan with calls and internet (10 GB)	19,14
Internet (60 Mbps or more, unlimited data, cable/ADSL)	36,83

Transport

For those living in the country, it can be seen that buses are the most widely used form of public transport here. Bus fares range from EUR 2 to EUR 6. Most places in Portugal can only be reached by bus. Intercity buses are also available in most cities.

In addition, in the districts of Lisbon and Porto, metro lines can also be found. These networks connect the city centres with neighbouring districts and municipalities. There is also a tram line in these two cities. Most metro tickets cost around EUR 1.20 – EUR 5. Monthly passes range from EUR 20 to EUR 40.

There are also rail lines in Lisbon, Porto and Coimbra. These are urban lines, and there are also some regional trains. The regional trains connect neighbouring cities. There is also a line called the Alfa Pendular, connecting the main cities across the country.

Finally, in Portugal, affordable taxi fares can be found as well as alternatives to taxis, such as Uber, Cabify and MyTaxi. Average taxi fares in Portugal start at around EUR 3.5 and rise at a rate of EUR 0.80 a kilometre.

Education

In Portugal, basic education (9 years) is free for residents (including both citizens and foreign residents). However, where a private school is chosen, a substantial sum must be paid.

At private schools in Portugal, an average of EUR 400-500 a month is paid from primary through to secondary level, in addition to registration and book fees.

There is also the option of international schools. Average fees at these schools are around EUR 800 a month (this figure varies by school), in addition to registration and other associated fees (books, uniforms, and so on).

Public universities are cheaper than private universities. For public universities in Portugal, there is a fee cap that changes each year. As at 2024, the maximum fee is around EUR 900. Fees at each private university differ. However, the average private university in Portugal costs EUR 3,000 a year.

Healthcare and social security

Healthcare

Public healthcare in Portugal is almost free, with low costs for citizens and lawful residents. Only certain procedures require a small fee. These procedures may include attending the emergency department, seeing a family doctor, having diagnostic tests, or attending certain doctor’s appointments. Fees for these procedures in Portugal are from EUR 5-20. Tests will usually cost no more than EUR 40.

In Portugal, private healthcare is more expensive than public healthcare. An average of EUR 40-50 is paid for a doctor’s appointment where private health insurance is held.

Health insurance

The price of private health insurance may vary depending on the plan chosen. There are many different health insurance plans in Portugal, so it is essential to choose one meeting your needs.

On average, private insurance costs around EUR 400 a year. And, where a more comprehensive plan is chosen, the price may reach EUR 1,000.

Social security

The Portuguese social security system provides certain benefits relating to unemployment, occupational illness, incapacity, maternity, pensions and death. For those registered with the social security system in Portugal, contributions are paid from their salary. The amount taken from gross income is 11%. In addition, the employer pays a further 23.75% a month.

Where self-employed, 29.6% of declared income is paid each month.

Bank accounts and money transfers

For those living in Portugal, most banks charge a monthly fee for a bank account, from EUR 5-10. They also charge fees on credit cards, overdrafts, loans and mortgages. These fees vary depending on the bank, the card, and so on.

For international transfers, EUR 15 is paid for transfers under EUR 50,000, and around EUR 30 or more for transfers over EUR 50,000.

For those with a bank account in a currency other than the Euro, they may use Transferwise or a currency broker to convert money in Portugal.

Retirement

Many retirees from European countries, the United States and the United Kingdom choose Portugal for retirement. The reasons for this are the country’s reasonable standard of living, favourable climate, and wonderful coastlines and scenery.

Alongside these advantages, tax rates and property costs are very favourable for retirees in Portugal. Foreign nationals mostly favour the Algarve region for retiring in Portugal. Forbes even recently rated this region the most affordable option for retirees in Europe for retiring in Portugal. According to the Annual Global Retirement Index 2024, Portugal is the second-best place to retire.

How do you live in Portugal?

For those interested in living in Portugal and taking advantage of the low cost of living, it is a good idea to speak with a professional and ask all the questions you have. Depending on your personal situation and particular needs, a professional adviser can point you in the right direction, saving time and money.The Portugal Golden Visais one option for obtaining residence through investment (with the possibility of citizenship) in Portugal.