Relocating to Portugal is a dream for many, and the country’s relatively affordable cost of living compared to other Western European nations makes it even more appealing. Whether you’re a young professional, retiree, or family looking to make a change, understanding the cost of living in Portugal is essential to planning your move.
In this detailed guide, we’ll break down the various expenses you’ll encounter, from housing and healthcare to utilities and groceries, based on recent data and personal insights shared by locals. This guide is designed to provide you with the most accurate and comprehensive information to help you make an informed decision about living in Portugal.
1. Housing Costs: Renting vs Buying in Portugal
Housing is typically the biggest expense for anyone moving to Portugal, and costs vary greatly depending on the location.
Lisbon: The Capital City
As the most expensive city in Portugal, Lisbon attracts professionals, digital nomads, and expats. However, this popularity comes with a higher price tag:
- Rent: The average rent is around €23 per square meter. This means a 100 square meter apartment will cost about €2,300 per month.
- Buying: If you’re considering purchasing property, the cost per square meter in Lisbon averages €6,000.
Porto: Portugal’s Second Biggest City
Porto, while cheaper than Lisbon, is still relatively expensive as the second-largest city:
- Rent: Rent prices here average €19 per square meter, making a 100 square meter apartment about €1,900 per month.
- Buying: Property in Porto is approximately €3,600 per square meter, about 40% cheaper than in Lisbon.
Medium-Sized Cities: Coimbra and Caldas da Rainha
For those looking to settle outside the major urban centers, medium-sized cities like Coimbra and Caldas da Rainha offer a more affordable option:
- Rent: Coimbra’s rent averages €15 per square meter (€1,500 for a 100 square meter apartment), while Caldas da Rainha is even more affordable at €9 per square meter.
- Buying: Property costs range between €2,000 to €2,500 per square meter in these cities.
Affordable Cities: Chaves
For those seeking even lower costs, cities like Chaves present an attractive opportunity:
- Rent: Rent in Chaves is around €6 per square meter, translating to €600 per month for a 100 square meter apartment.
- Buying: Property costs are about €1,500 per square meter, making it a very affordable city for homeownership.
Summary of Housing Costs:
| Location | Rent (€/sq.m) | Cost to Buy (€/sq.m) |
| Lisbon | €23 | €6,000 |
| Porto | €19 | €3,600 |
| Coimbra | €15 | €2,400 |
| Caldas da Rainha | €9 | €2,000 |
| Chaves | €6 | €1,500 |
Clearly, your choice of location significantly impacts your budget for housing. Lisbon and Porto are considerably more expensive, while medium-sized cities and less urbanized areas offer more budget-friendly options.
2. Health Insurance and Healthcare Costs in Portugal
Health insurance is a vital consideration when moving to any new country. In Portugal, the healthcare system is robust, with both public and private options available. Public healthcare is available to residents, but many expats opt for private health insurance to ensure quicker access and more specialized services.
Health Insurance Costs
Health insurance premiums in Portugal vary depending on your age and the level of coverage you choose:
- For a 58-year-old: Premiums can range from €480 to €3,400 annually, with an average comprehensive plan costing about €1,711 per year (around €142 per month).
- For a 33-year-old: Premiums range from €60 to €2,000 annually, with mid-range plans averaging €1,200 per year, or €100 per month.
Private health insurance often covers a significant portion of healthcare expenses, such as doctor’s visits, surgeries, and prescriptions. For example, co-payments for doctor visits range between €8 to €15, while surgeries have co-payments of €500 to €1,000 depending on the complexity.
Public vs Private Healthcare
The public healthcare system (Serviço Nacional de Saúde) offers good coverage, but wait times can be long for non-urgent care. For this reason, many expats opt for private insurance to ensure more immediate treatment.
3. Utilities in Portugal
Utilities are another regular expense to account for when living in Portugal, though they are generally affordable.
Electricity and Water
Electricity costs are managed by private companies, while water services are typically managed by municipalities, leading to some variation in prices across different regions. For a two-person household, monthly utility bills (including electricity, water, and heating) typically range from €60 to €100, depending on your usage and location.
Telecommunications (Internet, TV, and Mobile)
Telecommunications costs in Portugal are on par with other European countries:
- A basic internet and TV package starts around €30 per month, but premium packages with high-speed fiber and multiple channels can go up to €100.
- Mobile plans with 10 GB of data cost about €19 per month on average.
Most internet packages come bundled with television services, even if TV is not a priority for you.
4. Grocery Prices in Portugal
Grocery shopping in Portugal is affordable compared to other Western European countries. Below is a general overview of basic grocery prices (as of August 2024):
- Milk (1 liter): €0.93
- Bread (0.5 kg): €1.38
- Rice (1 kg): €1.36
- Eggs (12-pack): €2.72
- Chicken fillets (1 kg): €6.85
- Cheese (1 kg): €9.88
Fresh produce is abundant and inexpensive, especially at local markets. For instance, apples cost around €1.97 per kilo, while bananas are about €1.26 per kilo.
For more updated info on grocery prices you can check Numbeo’s cost of living database.
Monthly Grocery Budget
For a single person, a monthly grocery bill will typically range between €150 to €200, depending on eating habits and preferences for local vs imported goods. For a family of four, expect to budget around €400 to €500 per month.
5. Transportation Costs in Portugal
Transportation in Portugal is efficient, with options ranging from buses, trams, and metros in the cities, to affordable intercity travel by train or bus.
Public Transportation
Public transportation costs are quite reasonable:
- Single bus or metro ticket: €1.40 to €2.00 depending on the city.
- Monthly public transportation pass: €40 on average.
For those who prefer driving, fuel costs are around €1.66 per liter for diesel (fuel costs can vary), while a Volkswagen Golf or similar vehicle costs approximately €29,700.
6. Dining Out and Entertainment Costs
Dining out in Portugal is a favorite pastime for both locals and expats, and it remains quite affordable compared to other European countries.
Eating Out
- Meal at a budget restaurant: €10 to €12.
- Mid-range restaurant (for two people): €40 to €60.
- Fast food meal: Around €8.
Coffee culture is also strong in Portugal, with a cappuccino costing between €1.80 to €2.50, depending on the location.
Entertainment and Recreation
Sports activities: Renting a tennis court for an hour will set you back about €12.
Gym memberships: €25 to €60 per month.
Movie tickets: €7 to €10.
7. Childcare and Education Costs
Portugal offers both public and private education options, with public schooling being free. However, if you opt for private education, here’s what you can expect:
- Private kindergarten: €400 to €500 per month.
- Private primary school: Annual fees of around €9,300.
Conclusion: Is Portugal Affordable?
Overall, Portugal remains one of the more affordable Western European countries to live in, with housing, healthcare, groceries, and dining being reasonably priced compared to other popular expat destinations. While Lisbon and Porto are more expensive, medium-sized cities offer great value for money and a high quality of life.
If you have a budget of €1,500 to €2,000 per month, you can live comfortably in most parts of Portugal. Of course, the more you can allocate, the more luxuriously you can live, with access to larger properties and more dining and entertainment options.
FAQs About Living in Portugal
- Is healthcare free in Portugal? Public healthcare is free or low-cost for residents, but many expats opt for private health insurance for faster access to care.
- How much do you need to live comfortably in Portugal? You’ll need about €1,500 to €2,000 per month to live comfortably, depending on the city and your lifestyle.
- Is Portugal cheaper than Spain? On average, Portugal is slightly cheaper than Spain, especially in terms of housing and dining out.
- Do you need a car in Portugal? Public transportation is excellent in major cities, but a car is useful if you live in rural areas or plan to explore the countryside.
- Is Portugal a good place to retire? Yes, Portugal is very popular among retirees due to its affordable cost of living, excellent healthcare, and mild climate.
- Can foreigners buy property in Portugal? Yes, foreigners can easily buy property in Portugal, and the process is straightforward with the help of a local lawyer.
