Thinking of relocating to Europe, but don’t want to deal with the high cost of living often associated with the region? Portugal can be a fantastic country to choose.
It offers a mix of all the good stuff—nice beaches, modern infrastructure, plenty of activities, and a sense of security.
But before making the move, it’s important to be familiar with the cost of living in Portugal in 2025. In this guide, we at Remitly are providing a breakdown of everything you need to know—from housing and healthcare to leisure and food—so you can plan with confidence.
Understanding Portugal
Portugal, or the Portuguese Republic, is located in southwestern Europe. It’s a unitary semi-presidential republic.
Portuguese is the official language, and the currency is the euro (€). Lisbon is the capital and the largest city in the country. Other notable cities in Portugal include Porto, Algarve, Coimbra, Braga, Evora, and Aveiro, among others.
The country’s population is estimated to be just over 10 million, with most residents identifying as Catholic.
Fun fact: Portugal is the oldest nation-state in Europe.
Why move to Portugal?
While the low cost of living in Portugal is a great reason to move there, it’s certainly not the only one. Here are just a few of the aspects of Portuguese life that are making expats fall in love with the country:
Safe environment and low crime rates
Portugal frequently ranks among the top 10 safest countries in the world. It’s also known for having some of the friendliest citizens in Europe, making it easy for you to feel safe and welcome.
Excellent healthcare system
Another impressive feature of Portugal is its exceptional healthcare system. The country allocates approximately 10% of its GDP to healthcare each year. What’s more, citizens and residents have free access to healthcare services in public facilities.
Many residents who want quicker services or specialized treatment opt for private healthcare service providers, which are also readily available. You’ll be pleased to know that even private healthcare facilities in Portugal offer care that is far more affordable than in most other European countries.
Quality education options
Portugal is known for being a leader in quality education, as is evident from different ranking authorities. It has numerous international schools and universities, giving families and students plenty of choices.
Residency is possible
The Portuguese government offers a range of visa options to foreigners seeking to study, work, or live in the country. The Portugal Golden Visa program is particularly notable, as it offers residency through investment.
Property ownership
As an expat, property ownership may be one of the things you’re considering. You’ll be happy to know that the process of owning property in the country is pretty straightforward.
Whether you want to buy property for yourself or for business, you’ll find that it’s a very feasible undertaking in the country.
Diverse expat community
All of these reasons make it easy to see why Portugal has drawn a diverse expat community to the country. The blend of cultures adds to the vibrancy and richness of everyday life.
Cost of housing in Portugal
There are plenty of housing options to choose from, ranging from cozy apartments in Lisbon and charming villas in the Algarve to rustic farmhouses in Alentejo. Whether you choose to rent or buy, it’s good to understand the pros and cons of each before making a decision.
Renting in Portugal
Renting is a good option if you’re new to Portugal or prefer flexibility. It allows you to explore different areas before committing to a long-term location and generally involves lower upfront costs.
The cost of renting varies depending on the location and type or size of the property:
Lisbon
A one-bedroom apartment in Lisbon may go for approximately $1500-$2000 USD (€1300-€1750 EUR) a month, depending on whether you’re in the city center. A three-bedroom apartment in the city may cost $1900-$2900 (€1660-€2540).
Porto
In Porto, a one-bedroom apartment can go for approximately $900-$1100 (€790-€965) a month, depending on how centrally located you are, while a three-bedroom apartment in the same city can cost $1500-$2100 (€1300-€1840) a month.
Algarve
The cost of renting in Algarve varies greatly depending on location and type of housing. Luxury villas can cost upwards of $2000 (€1750) a month, while ordinary apartments may go for around $500 (€440) a month.
Smaller cities
The rental costs in smaller cities like Coimbra and Aveiro are quite affordable. One-bedroom units can go for around $500 (€440) a month.
Buying property in Portugal
Purchasing property can be an excellent investment if you’ve made up your mind about long-term residency. As with rental prices, purchase prices vary according to location, size of the house, and the amenities included.
A home generally costs $4,000 (€3500) per square meter in Lisbon or $3,000 (€2630) per square meter outside the Lisbon city center. As Lisbon is the biggest urban hub, rates are typically lower in other cities.
Don’t hesitate to use the services of local real estate agents to scope out market trends and the best locations. You can also take advantage of online resources such as Idealista, BuyProperty, and ImoVirtual.
Utility and internet costs
When budgeting, it’s crucial to factor in expenses related to things like electricity, internet, and water, among others.
In general, utility costs can range from $100-$200 (€88-€175) depending on factors like size of the property and family, location, and usage habits.
Electricity
The cost of electricity averages $0.22 (€0.19) per kWh. You should expect to spend approximately $120 (€105) per month in a one-bedroom apartment.
Water
Like rent, the cost of water varies by region. On average, you can expect to spend anything from $15-$30 (€13-€26) a month for a one-bedroom apartment. Porto has the highest water rates, while cities like Braga and Faro are generally the most affordable.
Gas
The cost of gas generally depends on how much you use. For a small family in a one-bedroom apartment, the cost can be around $20 (€17.50) a month.
If you use bottled gas, expect to spend about $30 (€27) a month.
Internet and telephone
If you bundle your internet with TV and mobile services, you’ll likely spend about $50-$60 (€44-€53) a month.
A mobile phone monthly plan that includes calls and 10GB of data can cost approximately $21 (€18). If you opt for unlimited data and cable bundling, you’ll probably spend about $40 (€35) a month.
Groceries and food
Portugal has a vibrant culinary scene with many delicious dishes, but how much will it cost you to enjoy them?
The average grocery bill for a single person can cost anywhere from $150-$350 (€105-€307). For a better perspective, let’s have a look at the cost of some common items:
- 1 liter of milk: $1.07 (€0.94)
- 500g loaf of bread: $1.60 (€1.40)
- 1 kg of rice: $1.63 (€1.43)
- 12 eggs: $3.06 (€2.68)
- 1 kg of local cheese: $11.80 (€10.32)
- 1 kg of chicken fillets: $7.66 (€6.70)
- 1 kg of beef round: $14.29 (€12.50)
- 1 kg of apples: $2.22 (€1.94)
- 1 kg of tomatoes: $2.50 (€2.19)
- 1 kg of potatoes: $1.70 (€1.50)
Transportation costs in Portugal
In Portugal, you can rely on the country’s well-developed public transportation system or buy your own car and get a license in the country.
Public transport
Metro: Lisbon has a modern metro system. A single ride costs approximately $2 (€1.80), but you also have the option of getting a 24-hour unlimited pass that costs approximately $7.75 (€6.80). Porto has a similarly affordable open-air light rail network.
Buses and trams: There is a huge range of buses (both urban and long-distance), as well as trams to different destinations within the major cities. Fares typically start from $2.20 (€1.90) for buses and $3 (€2.60) for trams.
Train services: If you’re thinking of traveling from one city to another, boarding a train might just be the best option. A high-speed train from Lisbon to Porto costs anywhere from $33-$50 (€44-€29), depending on the class of service.
Cost of healthcare in Portugal
Portugal offers free healthcare services to citizens, legal residents, and, in some cases, undocumented migrants. The healthcare system is mainly funded by taxes and social security contributions.
The public healthcare system covers a wide range of services, including:
- Primary care
- Specialist consultations
- Hospital treatment and surgery
- Maternity care
- Emergency services
- Mental health support
It’s worth pointing out that you’re likely to come across some co-payments for certain services. These costs often range from $5.50 to $11.50 (€5-€10).
Dental care is not generally included under the public healthcare system, so you’ll have to seek out private providers or arrange private dental insurance.
Lifestyle and entertainment
Of course, you’re not planning on going to Portugal just to settle in, but also to enjoy everything the country has to offer! Whether you’re into movies, music, staying active, or soaking up local culture, there’s plenty to keep you busy and entertained.
Cinemas: To watch the latest movies on the big screen, you’ll spend about $7 (€6) on a ticket. Some of the top cinema theaters include Cinemateca Portuguesa and Cinemas NOS Alameda.
Museums: If you want to learn a bit about history and art, visiting a local museum might be up your alley. You’ll spend about $2-$10 (€1.75-€8.75) for a single person.
Concerts and shows: Whether you love music, theatre performances, or dance shows, you can always rely on Portugal to offer some of the best. The costs depend on the location and artists gracing the events.
Fitness: A gym membership costs about $40 (€35) a month on average.
Cultural events: A great way to learn more about Portuguese culture is to attend its cultural events. These include Carnival and the New Year’s concerts. You’ll spend anything from $5-$18 (€4.40-€15.75) per ticket.
Wrapping up
The low cost of living in Portugal and high quality of life are a big reason many expats are choosing to call this country home. With good education options, modern healthcare facilities, and low crime rates, Portugal can be an amazing place to live. With the right planning and preparation, before long, you’ll be living the lifestyle many dream of.
FAQs
Is it expensive to live in Portugal?
No. Portugal is generally less expensive than other European countries. Lisbon and Porto are considered the most expensive cities in the country, and they are still incredibly affordable compared to other European hubs.
Is it cheaper to buy or rent property in Portugal?
Renting is a more flexible and affordable short-term option, while buying can be a good long-term investment. Purchasing property involves upfront costs such as property taxes, legal fees, and maintenance.
What is the cost of healthcare in Portugal?
Healthcare is free for residents and EU citizens. However, products like medications are not free but rather subsidized, and dental services are not covered by the country’s public healthcare.