See if the cost of living in Portugal fits your budget. Read our guide to prices for food, housing, transportation, leisure and more.
With an enviable climate, stunning scenery and an affordable cost of living, Portugal's reputation among foreigners is growing. The Algarve is one of the best places to retire, while the otherworldly charms of Lisbon, Porto, Coimbra and Cascais offer a tranquil cultural environment.
The cost of living in Portugal is known for being quite reasonable, offering a comfortable lifestyle for many foreigners. This guide provides an in-depth overview of the spending you can expect and covers all the essentials.
General cost of living and standard of living in Portugal
Portugal scored relatively low on the OECD Better Living indicator, especially in terms of income and education. However, water and air quality scores are higher than the OECD average. Despite its low scores, Lisbon ranks 37th in Mercer's 2019 Urban Quality of Life Rankings, ahead of Paris, Milan, London and Barcelona.
Portugal's income may be lower than in other comparable Western European countries, but the cost of living is also greatly reduced.
Find the perfect Portuguese city for your new immigrant life
The average disposable income per household in Portugal is €18,287 per year, below the OECD average. A very sociable single person living in the heart of Lisbon is expected to spend around €2,000 per month (including rent), while a family of four may cost around €5,000 per month.
About 20% of Portugal's population is at risk of poverty, slightly below the EU average. Although this number has declined in recent years, women are slightly more likely to be at risk than men.
The estimated cost of living in different parts of Portugal is as follows:
Cost of living in Portugal: Lisbon
57% cheaper than New York
32% cheaper than Munich
6% cheaper than Madrid
22% cheaper than Brussels
38% cheaper than Paris
46% cheaper than London
Cost of living in Portugal: Porto
62% cheaper than New York
40% cheaper than Munich
18% cheaper than Madrid
31% cheaper than Brussels
45% cheaper than Paris
52% cheaper than London
Cost of living in Portugal: Coimbra
52% cheaper than New York
48% cheaper than Munich
29% cheaper than Madrid
41% cheaper than Brussels
53% cheaper than Paris
59% cheaper than London
Cost of living in Portugal: Braga
66% cheaper than New York
46% cheaper than Munich
26% cheaper than Madrid
38% cheaper than Brussels
50% cheaper than Paris
57% cheaper than London
Salaries and salaries in Portugal
If you are looking for a job in Portugal, a salary may be one of your top priorities. Portugal's current minimum wage is €665 per month, which is lower than in neighbouring Spain.
A woman working in a bar in Portugal
The average wage in Portugal is €24,521, well below the OECD average and also below the average in Spain, Italy and France.
Housing costs in Portugal
In many cases, housing costs in Portugal are cheaper than elsewhere in Western Europe.
Rents in Portugal
Renting a city apartment in Lisbon or the charming Algarve town costs around €650 per month, while a three-bedroom serviced apartment can fetch up to €2,500 per month. Apartments in Lisbon cost an average of 860 euros per month.
Elsewhere in the country you can find two bedroom apartment rentals as low as 500 euros. Unfurnished apartments are usually the cheaper option. Expat families living in Lisbon are looking for buildings with modern facilities and are expected to pay between €1,200 and €2,000 per month.
Real estate prices in Portugal
According to real estate platform Idealista, Lisbon is the second cheapest capital city in Europe (after Brussels). Obviously, the average house price in the center of Lisbon is 227,751 euros. While housing costs €4,547 per square metre in the city centre, the average price in suburbs is €2,653 per square metre.
View of Figueira de Castelo Rodrigo
Prices vary greatly across the country. For example, in other major cities such as Cascais, Porto and Faro, you may have to pay between €2,000 and €3,000 per square meter. At the same time, prices in rural areas have fallen sharply. The city with the cheapest real estate prices is Fort Figueirad Rodrigo, with a median price of 161 euros per square meter.
The cost of domestic bills in Portugal
Utility bills in Portugal
Portugal's mild climate significantly reduces utility costs. According to Numbeo, the average cost of electricity, gas and water for an 85 m2 apartment in Portugal is 102 euros per month.
Read more in our Guide to Setting Up Utilities in Portugal.
Portugal's telecommunications
Portugal also has good internet coverage and there are many internet and phone providers. Internet and TV packages from one of the major providers start at €30 per month for landlines, TVs and Internet.
Healthcare prices in Portugal
Public health care in Portugal is provided by the Portuguese National Health Service (SNS). All residents need to register with the Portuguese Social Security Institute in order to access it. Your employer should do this for you, but if you are self-employed, you need to do it yourself. Some services are free, while others require a small donation. Please consult your healthcare provider or use the SNS online portal for exact costs.
Cascais Hospital
If you decide to use private health insurance, you may have to pay more. Your premium will depend on the coverage you need and whether dental and other services are included. Costs vary widely: from a few hundred euros to a few thousand euros.
Childcare costs in Portugal
Childcare services in Portugal include nurseries, nurseries, nannies and kindergartens. According to Numbeo, nurseries typically only accept children between 3 months and 3 years old, and cost between €250 and €500 per month.
By law, nannies in Portugal must be at least 21 years old. Au pairs and Au Pairs in Portugal can request a fee of around EUR 180 per week. If you are looking for an Au Pair through an intermediary, remember to consider the intermediary fee. Expatriates should budget at least €200 per week for childcare services in Portugal.
Cost of study in Portugal
Schools in Portugal are funded by the state, and registered expats can send their children to public schools free of charge. Many foreign children attend private or international schools, which makes educating your child expensive. Universities in Portugal are more affordable compared to other EU countries.
Private schools specialize in Portuguese but are taught bilingually. International schools allow your child to study the curriculum in your home country.
Explore the international schools of Portugal
Tuition fees vary, so you should contact the school directly. However, to give you an idea of the average cost, a private school in Lisbon charges tuition fees of €10,000 and €20,000 per year, plus €3,250 in taxes and additional registration fees. Meanwhile, British schools in Porto charge between €8,400 and €12,400 a year.
Portugal also has public and private universities. Public universities are much cheaper: tuition starts at around €800 per year. Well-known private universities charge much higher fees: from €2,350 per year to €5,880 per year.
Food and drink costs in Portugal
Grocery stores in Portugal
The cost of staple food in Portugal is still low, but the budget for expats should still be around €200 per person. Keep in mind that you can also source cheap, quality fresh fish on the coast.
Grocery stores in Portugal are relatively affordable. Chains include Continente, Auchan and Pingo Doce. If you're looking for a budget option, portugal also has discount supermarkets like Lidl, Minipreço and Aldi.
Learn how to make our top 10 Portuguese dishes
Here are some of the average costs of typical groceries in Lisbon:
1 liter of milk: EUR 0.65
A loaf of bread: EUR 1.15
1 kg of rice: EUR 1
1 kg apple: EUR 1.65
Restaurants in Portugal
Dining out in Portugal is cheaper than in other nearby countries. Cheap restaurants charge between €7 and €15 per meal, while fast food is cheaper. A typical McDonald's meal will cost you around €6.75. Meanwhile, if you want to push the boat out, you can easily find a three-course meal for 30 to 60 euros.
Beer, wine and spirits in Portugal
In a restaurant in Portugal, a glass of beer costs as little as €1, while a specialty beer costs up to €4. On the other hand, if you want to buy alcohol at the supermarket, the minimum consumption for half a liter of domestic beer is 0.65 euros, and for more special beers up to 3 euros. A bottle of mid-range wine costs between €2.50 and €7.40.
Bar on site at the port
It would be a shame to move to Portugal without going to the local port to sample. A visit to the port inn at Villa Nova de Gaia (across the river from Porto) costs between €12 and €30, depending on the property and whether you want a ticket that includes a Fado show and dinner.
Coffee in Portugal
Like almost everything in Portugal, coffee prices are much cheaper than anywhere else in Western Europe. In Lisbon, the average price for a regular cappuccino is €1.80, compared to €2.00 in Madrid, €3.50 in London and €3.70 in Paris. Prices are even lower outside the capital: in Porto or Braga, cappuccino will cost you 1.60 euros.
Transport prices in Portugal
Public transport in Portugal
Public transport in Portugal is also cheap, with good bus, metro and trams in all major cities. In Lisbon, you can buy a ticket that covers most of the city's transport network for a specified period of time:
1 hour ticket – €1.50
1 Day Ticket – €6.40–€10.60
Trams in Lisbon
You can also purchase a monthly pass from €30 (or €20 if you're 65 or older). Discounts are available for low-income earners and seniors.
Private transportation in Portugal
The flat rate for a Lisbon taxi is €3.25 and €0.50 per kilometre. For the latest prices, please use the online taxi fare finder.
Owning a car in Portugal is comparable to other Western European countries. The price per liter of unleaded gasoline is 1.59 euros. If you are traveling on the highway, you should pay tolls, and if you are traveling long distances, you will need to pay more. A long drive in Portugal can add €20 to €30 to your journey.
Taxation and social security in Portugal
Personal income tax is deducted from your monthly salary. As a general rule, married couples are taxed separately, but you can choose to tax jointly. Self-employment tax returns should be filed online or in paper between April 1 and May 31. The tax brackets for income in Portugal are:
€0.00 to €7,112: 14.5%
€7,112 to €10,732: 23%
€10,732 to EUR 20,322: 28.5%
€20,322 to €25,075: 35%
€25,075 to €36,967: 37%
€36,967 to €80,882: 45%
Over 80,882 EUR: 48%
You may pay an old-age contribution of 11% of your salary, while your employer pays 23.75%. If you work in the public sector, you will pay a minimum pension contribution of 3%. At the same time, the self-employed paid 29.6%.
Portugal's social security system protects contributors from costs associated with unemployment, maternity, occupational diseases, disability, pensions and death.
Living expenses assistance
Portugal offers several benefits for residents who need help with the cost of living. These relate to:
Family
healthy
Incapacitated
old age
Social assistance
unemployment
In addition to maternity and paternity leave support, residents of Portugal have access to child benefits. The amount you can apply for depends on your income level, the age of your children, and how many children you have. Additional amounts are provided for children with disabilities.
Residents are also entitled to unemployment benefits, provided that they have worked for 360 days in Portugal or in a country with which Portugal has a social security agreement in the last 2 years. These benefits are typically worth 65% of your previous income.
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