Living in Portugal: Cost of Living, Quality of Life, and French Expat Perspectives

Published on June 2, 2026 and written by Cyril Jarnias

For about the past ten years, Portugal has become one of the favorite destinations for French people dreaming of sunshine, safety, and a gentler everyday life. It is estimated that around 50,000 French people now live there, with a high concentration of retirees in the Algarve, but also families and working people in Lisbon, Porto, or along the Silver Coast. Behind this wave of relocations lie personal stories—those of Maya, Jean‑Claude, Sophie, Claire, and Thomas—but also a less idyllic reality: soaring real estate prices, the end of major tax perks, and pressure on public services.

Cost of Living: Still Cheaper Than France, Except for Housing

When a French person prepares to leave, the first question always comes up: “Will I really spend less?” Price comparisons reveal a nuanced reality.

International indices indicate that the cost of living in Portugal, including rent, is on average 20 to 30% lower than in France, but this average hides a major drawback: housing, which has become one of the most expensive in Europe relative to local purchasing power. Rents have skyrocketed since 2020, especially in Lisbon, Porto, and along the coast.

Data from 2026 provides clearer insight.

Overall Portugal / France Comparison

Figures from sources like Numbeo and international aggregates paint a fairly consistent picture: daily life is cheaper, but Portuguese incomes are significantly lower than French ones.

For a French person paid in euros by a French or foreign employer, the cost difference remains advantageous, especially outside Lisbon. For a household relying on Portuguese salaries, the feeling can be the opposite: high rents, modest incomes, limited purchasing power.

Realistic Monthly Budget for a French Person

Budgets observed among expatriates show relatively stable ranges, with significant variations based on the place of residence and whether or not children attend an international school.

The idea that “€2,000 per month is enough to live well in Portugal” remains broadly valid for a single person in Lisbon or Porto, but only if you avoid the most outrageous rents in the center and don’t add heavy expenses like international schools.

Housing: The Achilles’ Heel of Living in Portugal

This is the sensitive topic. Official figures from the National Statistics Institute (INE) show a rise in real estate prices of over 180% in ten years. Homes that sold for €400,000 are now listed at €800,000, and properties worth €700,000 in 2023 have reached €1.1 million.

The most expensive municipalities are around Lisbon:

For a French person, this means an apartment in Lisbon can reach levels close to Paris, while the countryside remains affordable, with village houses starting at €80,000 in some inland areas.

Renting: Rents That Rival France

Rents have followed the same trajectory as purchase prices. Over five years, some landlords have literally doubled their rents: a house that rented for €1,500 has jumped to nearly €3,000, and a property at just over €1,200 now goes for around €2,000.

Typical ranges in 2026:

International statistics confirm this feeling: while the cost of living excluding rent is about 29 to 30% lower than in France, rents are sometimes higher than in France, or at least comparable in big cities. Hence a paradoxical reality: Portugal is one of the most affordable countries in Western Europe for daily life, but one of the tightest when it comes to housing.

Food, Transport, Healthcare: Where Portugal Remains Much Cheaper

Outside of housing, the comparison clearly favors Portugal:

For a French household, the reduction in expenses is clear on everything related to daily life—provided that the “housing” line doesn’t consume all the gains.

Quality of Life: Why French People Fall in Love with Portugal

The wave of French expatriation to Portugal is not solely explained by taxes or the cost of living. International surveys, such as the Expat Insider barometer or happiness and safety indices, show that the country primarily appeals because of its overall quality of life.

In the 2025 edition of Expat Insider, Portugal ranks 10th out of 46 for quality of life, far ahead of France in overall expat satisfaction. In a previous survey, 95% of expats surveyed in Portugal said they were very or extremely satisfied with their life experience there, a score well above the global average.

Climate, Nature, and Pace of Life

What strikes most new French arrivals is first the climate and the slower pace. With around 300 sunny days per year, generally mild winters (except in mountain areas), and easy access to beaches, countryside, or the Douro vineyards, the environment plays a key role in the sense of well-being.

Detailed satisfaction indices illustrate this enthusiasm:

– 89% of expats surveyed say they are satisfied with the climate and weather.

– 94% say they are happy with the natural environment (sea, mountains, rural landscapes).

– 85% appreciate the air quality, well above the global average.

For many French people, Portugal appears as a softer version of Southern Europe: meals that linger, neighborhood cafés, pastelarias where you become a regular, farmers’ markets, and an administration that operates at a less rushed tempo. What may be annoying at first—slowness, postponed appointments—often becomes a component of that famous “sweetness of life” that retirees and remote workers seek.

Observation on lifestyle

Safety: A Clear Advantage over France

Safety comparisons are unequivocal. Portugal regularly appears in the top 10 of the Global Peace Index. Recent data places it around 6th–7th worldwide, while France hovers around 60th, with a “medium” score and a much higher perception of crime.

Indices compiled by platforms like Numbeo or European institutions show striking gaps:

Detailed statistics confirm this picture: in 2021, there were 85 homicides nationwide, for over 10 million inhabitants, and the vast majority of recorded offenses are non-violent. The main concerns for visitors and expats remain pickpocketing in tourist areas of Lisbon (Tram 28, Baixa) or Porto (Ribeira, São Bento), with the number of incidents declining since 2024.

At the city level, Porto is even considered one of the safest metropolises in Europe according to several chanceries, with a 12% drop in crimes targeting tourists between 2024 and 2025. Lisbon, for its part, has an extremely low homicide rate (0.4 per 100,000 inhabitants in 2025).

For a retired couple like Jean‑Claude Dheilly, age 79, settled for seven years, this dimension weighs heavily: absence of incivility, a feeling of tranquility on the street, the ability to go out in the evening without fear. Many French people speak of a return to an “1960s‑70s atmosphere” in some regions, especially the Algarve.

Healthcare: A Nearly Free Public System and Affordable Private Options

Another pillar of quality of life: healthcare. The Portuguese public system, the Serviço Nacional de Saúde (SNS), offers universal coverage to all legal residents, including French nationals who obtain a residence certificate. General practitioner consultations, hospital care, and emergency services are largely covered, with co-payments abolished for most procedures in 2022.

In practice, most French expats combine:

– registration with the SNS to access free or heavily subsidized public care;

– and a local private health insurance (e.g., Médis, Multicare, AdvanceCare) to shorten wait times and benefit from modern private clinics.

Premiums are noticeably lower than in France for comparable coverage: an adult under 50 can find solid coverage between €500 and €1,500 per year, and a family of four between €150 and €250 per month. A private specialist consultation ranges from €80 to €180, an MRI scan from €200 to €450—rates well below those in the United States or the United Kingdom.

Social Life, Leisure, Integration: A Welcoming Country, But Not “Instant”

Surveys of expats confirm what many French people on the ground describe: social life is generally rich, leisure options are plentiful, and integration is possible—provided you put in the effort.

The downside, especially for French speakers, is the language and social circles. English is widely spoken in cities, allowing you to get by without speaking Portuguese. But studies and testimonials converge: without at least an intermediate level of Portuguese (B1/B2), it is difficult to move from an “expat life” to true local integration. The bubble is comfortable—especially in the Algarve, where the French retiree community is very dense—but it can also be confining.

Experts who study integration rate the “level of difficulty” in Portugal at about 7–8/10 on the policy side (a fairly welcoming country, little discrimination), but higher on the practical side for those who don’t speak the language or rely on public administration. They almost systematically recommend:

– starting to learn Portuguese before even leaving;

– signing up for local activities (sports clubs, associations, volunteering) rather than only attending expat events;

– and following local news in Portuguese to better understand debates and developments (real estate, taxes, schools, healthcare).

Taxation and Retirement: The End of the Eldorado, But Still an Attractive Framework

For French people, especially retirees, Portugal has long been associated with the famous “Non-Habitual Resident” (NHR) status, introduced in late 2009 and popularized in the 2010s. This scheme offered a total tax exemption on foreign private pensions for ten years and, for certain qualified professionals, a flat rate of 20% on professional income instead of the progressive tax scale.

That era is over. The NHR was closed to new entrants at the end of 2023. A 2020 law had already introduced a 10% rate on foreign pensions for new beneficiaries, eliminating the full exemption. Those already under the regime continue to benefit until the end of their ten-year period, but new arrivals must work with other rules.

The New Tax Landscape for French People

Portugal now applies a progressive income tax scale, with several brackets going up to about 40% for high incomes. Portuguese tax residents are taxed on their worldwide income, while non-residents are only taxed on Portuguese-source income (often at a flat rate around 25–28% on certain income).

– No real wealth tax like France’s IFI;

– No inheritance or gift tax between close relatives (spouses, children, parents), with only a 10% tax applying to other beneficiaries;

– Low local property taxes (IMI), generally between 0.3% and 0.45% of the cadastral value;

– Favorable tax treatment for certain life insurance products and long-term investments, with deferred taxation at the time of redemption and effective rates that can go down to 11.2% on capital gains from sufficiently old contracts.

French Retirees: What Remains Advantageous?

For a French retiree today, the equation is different from that of Jean‑Claude or Julien, who left ten years ago. The private pension is no longer exempt, but it may, depending on the case, benefit from moderate taxation compared to the combination of tax and social contributions in France.

The main difference lies in:

– the absence of social contributions at 17.2–18.6% as in France;

– the fact that Portuguese taxation does not include a specific tax on real estate wealth like the IFI;

– and potential optimization through Portuguese life insurance products or tailored estate planning.

There is no longer an “automatic tax gift”, but an environment that is often more favorable for high real estate and financial assets, provided you have good advice.

Examples of French Journeys: Algarve, Lisbon, Porto, “Silver Coast”

Behind these broad balances, it is the individual trajectories that bring the reality on the ground to life.

Maya, originally from southern France, has lived abroad for nearly 20 years. In 2020, she and her husband moved to Portugal and set up an independent buyer’s agency for foreigners. Her observation is simple: the real estate market is tight, prices can vary by a factor of one to seven between the coast and the interior, local agencies speak little French, and the legal complexity (urban planning statuses, condominium fees, mortgages) scares French speakers. Her maximalist advice: if you plan to stay, it is better to buy than to rent, as the trend remains upward despite some occasional corrections in 2026.

Marie‑Catherine Dumoulin, a former nurse, and her husband Pierre‑Henri, 66, who sold his three pharmacies near Valence, chose a middle ground: six months a year in Portugal, six months in France. For them, the combination of a gentler cost of living, the absence of daily pressure, and the mild climate outweighs the drawbacks (bureaucracy, language, distance from family).

Claire and Thomas, settled in Porto with their two children, illustrate another model: that of a family seeking a compromise between international schools, still manageable rents, and family quality of life. Porto offers about 20% lower cost of living compared to Lisbon, more moderate rents, and a good selection of French or international schools, particularly the French International School of Porto (AEFE network) for those who want to keep a foothold in the French education system.

Practical Life: Procedures, Healthcare, Schools, Banking… and Driver’s License

Settling in Portugal is administratively simpler for a French person than moving to the United States or the United Kingdom, thanks to freedom of movement within the EU. No visa is required, but several essential steps are needed.

Key steps in the first few months:

For a real estate purchase, the procedure involves several steps: promise to buy (Contrato de Promessa de Compra e Venda) with a deposit of 10% of the price, legal checks (urban planning, mortgages, fees), signing the deed before a notary, and then declaring it to the Portuguese tax authorities. Banks offer mortgages that can span 30 to 35 years.

On the schooling side, French families have three options:

At the Lycée Français Charles‑Lepierre in Lisbon, annual fees range from about €4,700 to €6,500, with instruction in French and Portuguese. In Porto, the French International School offers an accredited curriculum from preschool to high school, with possible scholarships for French families via the AEFE.

Between Myths and Realities: What French People Really Need to Anticipate

In 2013, Portugal combined ultra-favorable taxation, real estate fire sales after the subprime crisis, a mild climate, and little international competition. Ten years later, the picture has changed: tens of thousands of European retirees have flocked in, real estate prices have more than doubled, the country has ended overly costly tax giveaways, and the housing issue has become a political flashpoint.

For a French person considering relocating today, several realities stand out.

The quality of life is excellent, but it involves trade-offs. The pace is slower, the hours shifted, the bureaucracy more nitpicky, and cash payments still common in neighborhood shops. For some French people very attached to efficiency and digital services, this can be a source of irritation. For others, it is precisely this slowdown that makes daily life more livable.

Safety is a trump card. International indices show an extremely favorable gap for Portugal compared to France, both in terms of crime and feeling of safety. Walking at night in Lisbon, Porto, or a small inland town is statistically much safer than in many French cities. Problems exist (domestic violence, traffic offenses, drugs in some neighborhoods, rising school bullying), but the overall level of violence remains low.

Integration must be earned. French people benefit from a cultural advantage: Latin proximity, shared references, Mediterranean cuisine, a taste for sociability. But they must accept stepping out of their French-speaking bubble, learning Portuguese beyond “obrigado,” and participating in local life. Those who remain confined to Francophone enclaves, especially where the community is dense, sometimes find themselves, after a few years, feeling they have changed countries… without ever really having lived in it.

In Conclusion: A Life Project, More Than an Optimization Plan

Living in Portugal as a French person in 2026 is no longer a simple tax arbitrage or a real estate move. It is a lifestyle choice, with its gains and costs.

The gains are tangible: bright climate, high safety, a solid public health system reinforced by affordable private options, a cost of living lower than France for most daily expenses, the friendliness of the people, a more human pace. Expat surveys confirm this: a large majority reports being happy and satisfied with their life in Portugal, more so than elsewhere in Europe.

For French people with a stable income from abroad—pension, remote work, international company—and willing to invest in the language and culture, Portugal remains a very appealing compromise. For those who plan to live on Portuguese salaries, buy at peak prices on the coast, and not learn the language, the dream is likely to crack sooner than expected.

Cyril Jarnias

Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.

On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.

Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.

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