What’s the Real Cost of Living in Portugal in 2025?
With its sun-drenched coastlines, charming cities, and friendly locals, Portugal has become one of Europe’s most desirable destinations for expats and digital nomads. But what makes Portugal especially appealing isn’t just its beauty or climate—it's also the affordability. Whether you're planning to relocate permanently, retire, or spend a few months working remotely, understanding the real cost of living is essential for making the most of your time in this Iberian gem.
If you're curious about the cost of living in Portugal, you’re not alone. This question ranks high among people considering a move to Portugal, and for good reason. Prices can vary greatly depending on your lifestyle, location, and whether you choose to live like a local or stick to expat-heavy areas. Let’s break down the major expenses so you can start planning realistically.
Housing: Your Biggest Monthly Expense
Housing costs will likely be your largest recurring expense, but they are still far more affordable than in many Western countries. Rental prices vary significantly between urban centers, smaller towns, and coastal resorts.
Lisbon & Porto: These two major cities are the most expensive in the country. A one-bedroom apartment in the city center might cost between €1,000–€1,500 per month, depending on location and condition. In surrounding suburbs, you can find similar spaces for €700–€1,000.
Algarve & Cascais: Popular with retirees and second-home buyers, these areas offer a high quality of life but at a premium. Rent here ranges from €800–€1,400 for a one-bedroom apartment.
Interior & Small Towns: Inland towns like Évora, Castelo Branco, or Viseu offer much lower prices, with rental apartments available for as little as €400–€600 per month.
If you're looking to buy property instead of renting, Portugal continues to offer good value per square meter, especially in rural areas and smaller cities.
Utilities and Internet
Monthly utility costs for electricity, gas, water, and garbage collection usually range between €80 and €120 for a standard apartment. This can go up in the winter if you’re using electric heaters, as most Portuguese homes lack central heating. High-speed internet is widely available and affordable, with plans starting at around €30–€40 per month for a solid fiber connection.
Many expats bundle their internet, TV, and mobile phone services, which can provide good value if negotiated with providers like NOS, MEO, or Vodafone.
Groceries and Food
Groceries in Portugal are generally inexpensive, especially when shopping at local markets or discount supermarkets like Pingo Doce, Lidl, or Continente.
A weekly grocery bill for a couple typically ranges between €60 and €90.
Fresh produce, fish, bread, and olive oil are abundant and affordable.
Local wine can cost as little as €2–€5 per bottle, and even mid-range labels are great value.
Eating out is also budget-friendly. A simple lunch menu (prato do dia) at a local restaurant can cost as little as €8–€12 and usually includes a main dish, drink, and dessert. A three-course dinner for two at a mid-range restaurant might run around €30–€50.
Transportation Costs
Public transportation in Portugal is efficient and affordable. In cities like Lisbon and Porto, monthly passes for buses, trams, and metro lines cost around €40. Trains and long-distance buses connect cities at reasonable rates. For example, a train ride from Lisbon to Porto can cost as little as €25.
If you plan to drive, fuel costs hover around €1.70–€1.90 per liter (as of 2025), and car insurance averages between €200–€500 per year, depending on your driving history and vehicle.
Owning a car can add expenses such as road tax, maintenance, and parking, particularly in urban areas.
Healthcare: Quality at a Fraction of the Price
Portugal has a public healthcare system (SNS) that is free or low-cost for residents. Non-residents or expats not yet registered may opt for private healthcare, which remains relatively affordable compared to the U.S. or UK.
A visit to a private doctor might cost €50–€100.
Comprehensive private health insurance plans are available for €50–€100 per month per person, depending on age and coverage.
Pharmacies are plentiful and reasonably priced, and many medications that require prescriptions in other countries are available over the counter.
Entertainment and Lifestyle
Portugal offers plenty of affordable leisure activities. Cinema tickets cost around €7–€10, gym memberships average €30–€50 per month, and museum entries often range from €5–€10, with discounts for students and seniors.
Outdoor lovers can enjoy Portugal’s natural beauty—beaches, hiking trails, and national parks—for free or for a small entrance fee. Social life can also be vibrant and affordable, especially if you enjoy cafés, community events, or music festivals.
Monthly Budget Examples
Here’s a rough idea of monthly living costs for different lifestyles:
Solo in Lisbon (urban lifestyle): €1,500–€2,000
Couple in a mid-sized town (comfortable): €1,800–€2,300
Family of four in a small city (moderate): €2,500–€3,200
Retired couple in the countryside (modest): €1,200–€1,600
Tips for Saving Money
Live like a local – Shop at fresh markets, eat at traditional tascas, and use public transport.
Avoid peak season rents – Long-term leases are often cheaper if you avoid summer tourist months.
Bundle services – Combine mobile, internet, and TV packages for discounts.
Explore smaller towns – Big cities are exciting, but smaller regions offer peace and lower prices.
Final Thoughts
Portugal continues to deliver exceptional value for those looking for a high-quality life without breaking the bank. Whether you're a retiree, remote worker, or family looking for a fresh start, the overall cost of living in Portugal remains affordable compared to most Western countries.
Of course, your lifestyle choices and location will shape your monthly budget—but with a bit of planning and local insight, Portugal offers the chance to live well, comfortably, and often luxuriously, on a reasonable income.