Portugal’s Cost of Living: Know How to Enjoy the City on a Budget
Who wouldn't want to live in Portugal? Warm weather, rich culture and relatively low cost of living. Sounds like you should already pack your bags, right? But before you get into action mode, let us help you break down essential expenses such as housing, food, transportation, healthcare, and entertainment to give you a complete picture of what it costs to live comfortably in Portugal.
Housing is one of the most important and probably also the highest expenses for residents in Portugal. Your location in Portugal will also dramatically affect costs, with Lisbon, Porto, and the Algarve being the most expensive regions. But also within those cities, you will find cheaper and more expensive neighbourhoods. So choose wisely.
Lisbon: As the capital city, Lisbon has higher rental prices. A one-bedroom apartment in the city centre can cost between €800 and €1,200 per month, while prices in the suburbs drop to €600 to €900. Here you can also find our guide on the best neighbourhoods in Lisbon.
Porto: In Portugal's second-largest city, rental costs are slightly lower. For a one-bedroom flat in the city centre, you can expect to pay between €650 and €1,000, and outside the centre between €450 and €750.
Algarve: The Algarve is known for its beaches and tourist appeal, but rental prices vary greatly. A one-bedroom flat in the city centre can cost between €500 and €900, while outside the city centre it can be between €400 and €700.
Are you still unsure about which neighbourhood to choose? We recommend starting off with a short-term rental until you settle in and make up your mind. For short-term rental (up to 12 months), we can highly recommend Housing Anywhere! Here you will find rooms and apartments for any budget. It's the perfect quick solution for moving abroad and then starting the search for proper accommodation on-site.
Utilities and Internet
Utilities such as electricity, water, and gas are relatively affordable but can fluctuate based on the size of your home, your consumption habits, and whether you use heating in winter (especially in the northern parts of Portugal). On average, a typical apartment’s utilities might cost between €80 and €120 per month. If you live in a larger house, expect higher costs.
Internet in Portugal is generally fast and reliable, with various packages available. Fiber optic connections are common, and most plans cost between €25 and €50 per month, often bundled with television and phone services.
Groceries and Eating Out in Portugal
Grocery Prices
Cooking at home is always an affordable and good choice when living on a budget. You can also use it to bring people together and have social events at home.
Grocery shopping in Portugal is relatively affordable. Depending on your eating habits you can expect between €150-€300 per month. Below you can find some average prices of products.
Milk (1 liter): €0.93
Bread (500g): €1.36
Eggs (12): €2.75
Chicken Fillets (1kg): €6.88
Apples (1kg): €2.00
Potatoes (1kg): €1.47
Eating Out
When moving to Portugal you obviously also want to experience the local cuisine and atmosphere in bars and restaurants. Luckily for you, eating out can be quite affordable in Portugal as it is an important part of their lifestyle.
For budget-conscious travellers, local restaurants and cafés offer meals for as little as €8 to €12. Traditional Portuguese dishes such as "bifana" (pork sandwich) or "pastel de nata" (custard tart) are both tasty and affordable.
In the mid-range restaurants, you can dine for between €20 and €35 per person. A three-course meal with a glass of wine can be already worth the trip to Portugal.
Of course, you can also treat yourself to a fine dining experience. High-end restaurants, including Michelin-starred establishments, can cost between €50 and €150 per person. These restaurants offer exquisite cuisine and impeccable service and are definitely worth a visit if your wallet allows it.
Transportation in Portugal
Public transportation is efficient and affordable in most Portuguese cities. Lisbon and Porto have well-established metro systems, buses, and trams that make getting around easy.
Public Transportation
In Lisbon, a monthly pass for public transportation costs about €40, giving you access to buses, trams, and the metro. In Porto, a similar monthly pass is around €30. In smaller towns, public transport options might be limited, but taxis and ride-hailing services like Uber are widely available and affordable.
These passes are mostly valid for both local and regional travel outside of the cities. With this, you can explore the surroundings and enjoy the variety Portugal has to offer.
For those who do not need a monthly pass, individual tickets are available at reasonable prices. A single bus or tram ticket within Lisbon typically costs €1.80, while train fares for short distances can range from €1.35 to €4, depending on the route. Boat services, essential for crossing the Tagus River, also offer competitive pricing with single trips costing around €2.60.
Biking
Like many modern cities, Lisbon has its own public on-street bike share system, with bikes readily available all over the city.
Gira revolutionised the way locals navigate Lisbon's streets, offering a convenient and eco-friendly alternative to traditional transportation. With both e-bikes and regular bikes available, Gira provides flexibility and accessibility for riders of all preferences and abilities.
Yearly Pass for Locals: As it is primarily designed for locals, the biking system offers an affordable yearly pass for only 25€/y.
Day Pass for Tourists: Also tourists can take advantage of Gira's services by purchasing a day pass for €10. This pass includes 45-minute rides, perfect for exploring the city's highlights at your own pace.
Healthcare Expenses
Portugal offers a high standard of healthcare with both public and private options available.
Public Healthcare
Residents have access to public healthcare, which is subsidized by the government. A visit to the doctor typically costs around €5, while specialized treatments or surgeries are either free or highly subsidized.
Private Healthcare
Private healthcare is available for those who prefer shorter waiting times and more personalized care. Health insurance plans cost between €30 to €100 per month, depending on the coverage. Some companies offer private health insurance as a benefit which you can make use of to make use of the modern clinics and English-speaking doctors.
Leisure and Entertainment
Portugal’s relaxed lifestyle includes plenty of affordable leisure activities, whether you're into hiking, exploring historic sites, or enjoying the vibrant nightlife.
Entertainment Costs
Let’s not forget about the fun! Leisure activities in Portugal can be very affordable and have broad options from outdoor to indoor activities.:
Cinema ticket: €7 to €10
Fitness club membership: €30 to €50 per month
Theatre or concert ticket: €20 to €50
Outdoor Activities
Portugal is a paradise for nature lovers. Many outdoor activities such as hiking, cycling, and beach visits are free or low-cost. National parks like Peneda-Gerês offer stunning hiking trails, while Portugal’s extensive coastline provides opportunities for water sports like surfing. Organised tours and activities such as wine tasting or boat trips can cost between €20 and €100 per person. And don't miss out on all the great festivals during summer!
Museums and Historical Sites
Entrance fees for museums and historical sites range from €5 to €15. Many sites offer discounts for students, seniors, and children. Additionally, several museums have free entry on specific days each month.
Nightlife and Entertainment
Portugal's nightlife is vibrant, with options to suit every budget. A night out can be quite affordable, with a glass of wine or beer costing around €2-€3 in most places. For a more cultural experience, attending a Fado music performance can range from €10 to €50.
Now It’s Your Turn to Experience the Charm of Portugal
Portugal offers a great balance between quality of life and cost of living. While expenses can vary depending on your lifestyle and location, overall, Portugal remains one of the most affordable destinations in Western Europe. From housing and transportation to food and healthcare, Portugal provides a relatively budget-friendly environment, making it an attractive option for expats, remote workers, and retirees alike.
If you're considering moving to Portugal, take time to plan your budget and explore different regions to find the one that best suits your financial situation and personal preferences. Whether you’re looking for a bustling city life or a peaceful retreat by the sea, Portugal has something for everyone.
While quite affordable, the money still needs to come from somewhere. So, if you are still looking for a job to pay for your Portuguese adventure you can discover all our amazing opportunities below.
Now get ready to pack your bags and enjoy a relaxed lifestyle under the sun while making use of all the free and payable activities the country has to offer.
