(Expat Cost of Living Unpacked)
Portugal has truly captured the hearts of people around the world. It has sunny beaches, charming old cities, rich culture, and a famously relaxed pace of life. It’s easy to see why so many want to move there. However, for anyone thinking about moving, a big question always comes up: what does it really cost to live in Portugal? Can you actually afford the dream?
Let’s look at the money side for expats. We’ll break down the main costs you can expect.
Good News: It’s Usually Affordable Compared to Many Western Countries
One of Portugal’s biggest appeals for people from other countries is its fairly low cost of living. This is true when you compare it to places like the U.S., Canada, the UK, or Northern European countries. Indeed, prices change a lot depending on the area. But still, you’ll often find daily expenses are easier to manage.
Housing: Your Biggest Cost That Changes a Lot
Like everywhere, housing will probably be your largest expense. And because of this, prices are very different depending on where you live.
- Lisbon & Porto: These are the two main big cities. They naturally have the highest rents and property prices. For example, a one-bedroom apartment in a good area might cost from €800 to over €1,500 per month. Buying a home here also costs more.
- The Algarve: This southern coastal area is popular for retirees and remote workers. It has a mix of prices. However, tourist spots like Lagos or Albufeira can be more expensive, especially when it’s busy. Towns further inland, on the other hand, offer cheaper choices.
- Smaller Cities & Countryside: If you want a quieter and cheaper life, then think about places like Braga, Coimbra, or even less busy areas like Alentejo or Central Portugal. Here, for example, you might find a nice one-bedroom apartment for €400-€700.
Tip: Websites like Idealista.pt and OLX.pt are good places to start looking for rentals. Also, remember to add utilities like electricity, water, gas, and internet. These usually add €100-€200 each month.
Groceries & Food: Eating Well Without Spending Too Much
Portugal has fresh food, great seafood, and local markets. This means you can eat really well without spending a lot of money.
- Supermarkets: Stores like Continente, Pingo Doce, and Lidl have good prices. Usually, a monthly grocery bill for one or two people who cook at home might be around €200-€400.
- Local Markets: For fresh fruits, vegetables, fish, and meat, local markets often cost less. They also give you a more real experience. Plus, they are a great way to enjoy the local culture.
- Eating Out: One of the best parts of Portuguese life is eating meals out. So, a “prato do dia” (dish of the day) lunch at a local restaurant can be as low as €7-€12. This often includes a drink and coffee. Dinner for two at a normal restaurant, in contrast, might be €30-€50.
Transportation: Moving Around Cheaply
Portugal has a great and affordable public transport system, especially in cities.
- Public Transport: Monthly passes for the metro, bus, and tram in Lisbon or Porto are usually under €40. Taxis and apps like Uber and Bolt are also quite cheap compared to other big European cities.
- Fuel & Cars: Owning a car adds a lot of cost. This includes high fuel prices, insurance, and upkeep. Therefore, many expats find they don’t need a car if they live in a city with good transport.
Healthcare: Both Public and Private Options
Portugal has a public healthcare system (SNS) that is generally good. Expats who are legal residents and pay social security can use it. However, many expats choose private health insurance. This gives faster access to doctors or specific services. A basic private plan might cost €30-€100+ per month, depending on your age and what it covers.
Other Costs: Fun, Utilities & More
- Internet & Mobile: Fast internet is widely available. It costs around €30-€50 per month. Mobile phone plans are quite cheap, often starting around €10-€20.
- Fun & Entertainment: A movie ticket is about €7. Museum entry fees are typically €5-€15. Enjoying coffee and a pastry at a bakery is a common, cheap pleasure.
- Visas & Residency: Don’t forget to include the first costs for visa applications, legal help, and paperwork to get your Portugal residency. See: SEF
So, What’s the Total?
It’s hard to give one “average” number. But still, many expats say they live well in Portugal on:
- €1,500 – €2,000 per month: This is for one person living outside Lisbon/Porto or in a smaller city. This budget allows for a good quality of life.
- €2,000 – €3,000+ per month: This range is for couples, or single people living in Lisbon/Porto. It would pay for a comfortable city life.
Ultimately, remember this depends a lot on how you spend money and where you choose to live.
Is Portugal Affordable for You?
In conclusion, the cost of living for expats in Portugal is very good. It offers a great lifestyle for less money than many other popular Western countries. Indeed, if you plan your money well and choose your location smartly, living in Portugal can absolutely become real for you.
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