Cost Of Living For Expats In Portugal

Published on October 2, 2025 and written by Cyril Jarnias

Portugal is attracting more and more expatriates seeking a better quality of life at a lower cost. With its pleasant climate, varied landscapes, and rich cultural heritage, this Southern European country captivates with its art of living as well as its attractive prices. Let’s dive into the details of the cost of living in Portugal for expatriates and discover why this country has become a top destination for those looking to optimize their purchasing power.

An Overall Advantageous Cost of Living

Portugal stands out as one of the most affordable countries in Western Europe. On average, the cost of living is about 36% lower than in the United States and the United Kingdom, with some expense categories up to 74% cheaper. This significant difference allows expatriates to enjoy a comfortable standard of living while making substantial savings.

For a family of four, average monthly expenses (excluding rent) amount to about €2,073. A single person can manage with approximately €595 per month for their regular expenses, still not counting rent. These figures of course vary depending on lifestyle and chosen region, but they give a general idea of the budget to plan for.

Housing: Attractive Prices Despite Recent Increases

Housing remains one of the most significant expense categories, but prices in Portugal remain competitive compared to other European countries. A one-bedroom apartment in the city center costs on average €900 per month, while in the suburbs, the rent drops to about €590. These rates vary considerably depending on the city, with Lisbon being the most expensive, followed by Porto and the Algarve.

It’s important to note that real estate prices have risen in recent years, particularly in the most sought-after areas. However, they remain attractive compared to other European capitals. For example, housing in central Portugal costs on average 39% less than their British equivalents.

Food and Restaurants: Flavors at Low Prices

Portuguese cuisine is renowned for its quality and diversity, and the good news doesn’t stop there: prices are also very affordable. The monthly grocery budget for a single person is around €200. Local markets offer fresh products at unbeatable prices, up to 96.6% cheaper than in the United States.

Eating out remains an accessible pleasure. A meal at a mid-range establishment costs between €15 and €25 per person. It’s an opportunity to discover local cuisine without breaking the bank. For home cooking enthusiasts, supermarkets offer very competitive prices on basic products.

Transportation and Mobility: Economical Options

Getting around in Portugal is relatively inexpensive. A monthly public transport pass costs about €40, allowing for easy travel in major cities like Lisbon or Porto. For those who prefer cars, gasoline is cheaper than in France, although prices have increased in recent years.

Connections between cities are provided by an efficient and affordable network of buses and trains. For longer trips, low-cost airlines offer domestic flights at attractive rates.

Healthcare and Insurance: A Quality System at Lower Cost

The Portuguese healthcare system offers excellent value for money, with public and private options. Basic private health insurance starts at just €30 per month for a single person, and about €60 for a couple in their sixties with full coverage.

Consultations with specialists in private hospitals cost between €50 and €90, far from the rates charged in the United States. Private emergency services charge about €400, compared to over €1,145 in the United States. Medications are also cheaper thanks to a three-tier pricing system that makes prescription drugs less expensive than over-the-counter ones.

Leisure and Culture: Enjoying Without Breaking the Bank

Portugal offers a multitude of cultural activities and leisure options at reasonable prices. A monthly budget of about €150 allows for a rich social and cultural life. Museums, cinemas, and cultural events are generally cheaper than in France or the United Kingdom.

Beach and nature enthusiasts will be delighted by the many free or low-cost options. Water sports, hiking, and golf are particularly popular and accessible.

Overall Budget for an Expatriate: Living Comfortably With Less

Taking all these elements into account, what budget should be planned to live comfortably in Portugal as an expatriate? Here is an example of a monthly budget for a single person:

• Rent (1-bedroom apartment in city center): €900
• Utilities (electricity, heating, water): €110-150
• Food: €200
• Transportation (monthly pass): €40
• Leisure and outings: €150
• Private health insurance: €30-60
• Miscellaneous (phone, internet, clothing): €100

Total: approximately €1,530 – €1,650 per month

This budget allows for comfortable living in a major city like Lisbon. In smaller cities or in the suburbs, the cost of living can be even lower.

For a couple, a monthly budget between €2,000 and €2,500 can be estimated, depending on lifestyle. A family with two children should plan between €2,500 and €3,500 per month to live comfortably.

Taxation: An Additional Asset for Expatriates

The Portuguese tax system can prove advantageous for some expatriates. The “non-habitual resident” status offers interesting tax benefits for the first 10 years of residence, with a fixed tax rate of 20% on employment income and exemption from certain foreign income.

For self-employed workers and digital nomads, Portugal offers a special tax regime. The first €25,000 of income is tax-exempt, with rates of 37% and 48% applied to higher brackets. This measure aims to attract foreign talent and stimulate the country’s digital economy.

Conclusion: An Affordable Paradise for Expatriates

Portugal offers an exceptional living environment at prices that defy competition in Western Europe. Whether for retirees seeking sunshine, families looking for a better quality of life, or professionals attracted by the work-life balance, the country presents undeniable financial advantages.

With an overall cost of living 36% lower than in the United States and the United Kingdom, Portugal allows expatriates to fully enjoy the Mediterranean sweetness of life without going broke. The combination of a pleasant climate, rich culture, renowned cuisine, and affordable prices makes Portugal a top destination for those looking to optimize their purchasing power while improving their quality of life.

However, it’s important to note that prices, particularly in real estate, tend to increase in the most sought-after areas. It is therefore advisable to research thoroughly and compare different regions before making a choice. Despite these increases, Portugal remains a very attractive option for expatriates seeking a fresh start under the Southern European sun.