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Cost of Living in Portugal in 2025: A Freelancer-Friendly Guide

Freelancer
May 30, 2025
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Thinking about moving to Portugal to enjoy the sun, sea, and slower pace of life? You're not alone. With its mild climate, fast internet, and generally lower cost of living compared to other Western European countries, Portugal continues to be a favorite among freelancers, digital nomads, and remote workers.

But how much does it really cost to live here in 2025?

This guide covers everything you need to know—from housing to groceries, transportation to healthcare, taxes to internet speed. Let’s dive in.

Housing Costs in Portugal

Already made your decision to move to or visit Portugal? First thing to consider would be to arrange your accommodation. Housing rental prices vary greatly depending on the geographical location and preferences. Here's some updated information about the current state of the real estate market in Portugal:

Lisbon: Expect to pay between €1,200 and €1,600/month for a one-bedroom apartment in the city center. Prices outside the center are around €900.

Porto: Rents in Porto are slightly lower but still rising. One-bedroom apartments in central areas cost around €950 to €1,300/month.

Experience Note: I found an amazing 1+1 apartment right in the heart of the city in Porto. I couldn't believe my luck! I snagged it for €1,000 per month, and let me tell you, it was worth every penny.

The best part? This place had the most incredible central location, and the view of the historic city was absolutely jaw-dropping. Every morning, I'd wake up to that breathtaking view, and it felt like a dream come true. Living in the midst of Porto's charm was an experience I'll cherish forever.

Here's a little secret: with some savvy research, you can find apartments with views that will steal your heart! ‍

Small Towns and Villages: In smaller towns and villages in Portugal, the cost of living is generally more reasonable. In these areas, the monthly rent for a home can average between €600–€900.

Buying? Average apartment prices range from €180,000 (inland) to over €350,000 (coastal cities).

Hot Dish: Portugal ended its Non-Habitual Residency (NHR) tax scheme in 2024. While this may affect some international residents' income tax, it has slightly cooled the overheated real estate market.

Hotel, Hostel & Co-living Prices in Portugal

Hotels: Average daily price ranges from €70–€150. Luxury options go higher, especially during peak tourist season.

Hostels: €15–€35/night in Lisbon, Porto, and Algarve.

Co-Living Spaces:

  • Lisbon: €450–€1,000/month
  • Porto: €400–€900/month
  • Other cities (Faro, Coimbra, Braga): €350–€800/month

Popular options include Outsite, Selina, Second Home, and Porto i/o.

Food and Grocery Shopping Costs in Portugal

When it comes to food shopping and dining out in Portugal, you have a multitude of options. Here's more detail and regional differences:

Local Markets and Supermarkets:

Local markets in Portugal offer fresh and affordable products. You can find freshfruits and vegetables, local cheeses, and daily seafood at market stalls. Supermarkets also offer similar products, and prices are generally reasonable. Here are the average prices for basic food items:

🥛 Milk (1L): €1.10

🍞 Bread (1kg): €2.00–€3.00

🍚 Rice (1kg): €1.50–€2.50

🍗 Chicken breast (1kg): €6.50–€9.00

🧀 Local cheese (1kg): €7.00–€10.00

🍅 Tomatoes (1kg): €2.00–€3.50

🍎 Apples (1kg): €1.50–€2.50

Budget-Friendly Supermarkets:

In Portugal, "Pingo Doce" and "Lidl" stand out as budget-friendly supermarket chains. These stores often offer lower prices and frequently hover around the lower ends of the price ranges mentioned above. It's an excellent way to make your grocery shopping budget-friendly.

Mid-Range Supermarkets:

Portugal also has mid-range supermarket chains like "Continente" and "Intermarché." These supermarkets offer a wider range of products, and prices are generally at an average level. Besides basic food items, you can find household goods and cleaning products here.

Luxury Supermarkets:

In Portugal, the pinnacle of grocery shopping can be found at the prestigious luxury supermarkets - Pingo Doce, and Intermarché. These exclusive establishments offer a curated selection of exquisite food items, including the freshest produce, premium cuts of meat, artisanal dairy products, and decadent baked goods.

Dining Out Costs:

The cost of dining out in Portugal largely depends on the type of restaurant and the region. For example, in major cities like Lisbon or Porto, restaurant prices are generally higher. Here are some price examples:

A three-course meal at a mid-range restaurant (appetizer, main course, dessert) can cost between 25 - 35 Euros per person.

In fast-food restaurants, a menu (e.g., burger, french fries, and a drink) is around 7 - 9 Euros.

You can enjoy traditional Portuguese dishes at local restaurants for around 12 - 18 Euros per person.

Delightful Dining Discovery: Tascö in Porto" 🍽️ If you're in Porto, I highly recommend "Tascö"! 🍽️ This fantastic local spot offers Portuguese-style tapas. Their menu is packed with tasty snacks, mouthwatering steak sandwiches, and delicious seafood options. I still daydream about the meals I had there; they were that delicious!  Plus, the prices are quite wallet-friendly. If you want to savor Porto's street flavors and local cuisine, "Tascö" is a must-visit.

Address: Rua do Almada 151, 4050-036 Porto, Portugal 📍

Food shopping and dining out in Portugal offer different options for those looking to explore local flavors and those trying to manage their budgets. Enjoy your meals!

Transportation Costs in Portugal: Let's Explore!

Public Transportation Prices

Public transportation in Portugal is an affordable and convenient option for both urban and intercity travel. Here are some average public transportation prices:

🚌 A single ride ticket for a bus or tram in Lisbon typically ranges from 1.80 Euros to 2.00 Euros.

🚄 Train ticket prices for intercity travel can vary depending on the route and class. For example, a first-class high-speed train trip from Lisbon to Porto may cost around 40 Euros to 50 Euros.

🚋 Daily public transportation cards in Lisbon cost around 6.80 Euros and provide unlimited use for one day.

Rental Car and Fuel Prices

If you want to explore rural Portugal and enjoy the freedom to go wherever the wind takes you, renting a car is an excellent option. On average, renting a small car can cost between 40 Euros to 60 Euros per day. The price may vary depending on the type of vehicle, rental duration, and insurance options.

Fuel prices in Portugal are similar to the European average. Gasoline typically ranges from 1.80 Euros to 2.00 Euros per liter, while diesel fuel may be slightly cheaper.

Bike Paths and Walking Trails 

Portugal offers fantastic options for those who love cycling and walking. There are numerous bike paths and walking trails throughout the country. These areas are typically surrounded by natural beauty and provide access to historic sites.

Bike Paths: Many cities in Portugal have dedicated bike lanes and promote cycling. You can rent bikes in Lisbon, Porto, and other major cities to explore them on two wheels. Daily bike rental prices usually range from 10 Euros to 20 Euros.

Walking Trails: Portugal's stunning natural landscapes and coastal areas are ideal for walking enthusiasts. The country's interior regions also offer various routes for hikers. Traditional stone paths and trails along the coastline provide magnificent options for nature enthusiasts.

Bike rentals and walking trails in Portugal may vary in price depending on the region and the length of the route. However, these activities offer a wonderful opportunity to both explore nature and embrace a healthy lifestyle.

Personal Tip from My Experience: While I was in Portugal, I actually fell in love with cycling and walking around. Even when I moved between cities, I found public transportation to be super convenient. Surprisingly, as someone who usually rents a car, I didn't even miss having one in Portugal! So, if you're a fan of cycling, I strongly suggest giving it a go in this beautiful country. ‍

Education and Healthcare Service

Portugal excels in providing education and healthcare services.

Education:

Portugal boasts a reputable education system. There are various options for those looking to pursue university-level education. Major cities like Lisbon and Porto are home to prestigious universities. While university education is typically offered in English, learning Portuguese can be a fantastic opportunity to immerse yourself in the local culture. Tuition fees vary depending on the university and program type but are often more affordable compared to other Western European countries.

Healthcare Services:

Portugal is known for its modern healthcare services. In case of emergencies, you can dial 112. There are numerous hospitals, clinics, and health centers across Portugal. Healthcare services are generally provided to high standards.

If you plan to reside in Portugal long-term, you can enroll in the public healthcare insurance system known as SNS (Serviço Nacional de Saúde). Private health insurance is also an option and may offer additional services and coverage choices

💡In my opinion: Portugal can be an attractive choice for those planning to invest in education and healthcare.

Living as a Freelancer in Portugal

Good Internet Infrastructure: Portugal boasts a fast and reliable internet infrastructure. Especially in major cities and coastal areas, broadband internet connections are prevalent. Fiber internet service is available in most places, enabling you to smoothly conduct your online work. This is essential for tasks like video conferencing, downloading or uploading large files, and efficiently managing your freelance work.

Tax Advantages: Portugal offers a tax regime that, in some cases, doesn't tax foreign income. This is a significant advantage for freelancers. To benefit from low tax rates or tax exemptions while living in Portugal, it's essential to review local tax regulations and international agreements. Working with a financial advisor can help you make the most of these tax advantages.

Workspace Choices: Finding ideal working spaces for freelancers in Portugal is quite straightforward. In major cities and tourist areas, you'll find plenty of coworking spaces and café-style workspaces. These places are often cost-effective and provide a professional working environment. Additionally, you can even work at beachside cafés along the coast, allowing you to combine work with the beauty of nature.

Taxes in Portugal

When living and working in Portugal, it's essential to understand the tax system. Here are the common types of taxes in Portugal, brief explanations, and tax percentages:

Tax Type Rate
Income Tax (IRS) 14% to 48%
VAT 23%
Corporate Tax 21% (for companies)
Property Tax (IMI) 0.3% to 0.8%
Vehicle Tax €60–€300/year
Inheritance Tax None (for family)
Stamp Duty 0.8% (property)

To take advantage of tax benefits in Portugal, it's important to note that tax rates and regulations may change over time, so carefully reviewing local tax rules and international agreements is essential. This information can help you understand your tax obligations while living in Portugal.

PS:For freelancers, simplified tax regimes may apply. Foreign income is no longer tax-exempt post-NHR, so consult a local accountant.

Art and Culture Activities in Portugal

Portugal is a treasure trove of art and culture, offering a delightful range of activities to explore. Let's dive into the vibrant world of creativity with some exciting options and their average prices:

Museums: Portugal boasts an array of captivating museums. You can wander through gems like the Gulbenkian Museum in Lisbon or the Serralves Foundation Museum in Porto. Museum entrance fees are generally quite reasonable, ranging from 5 to 15 Euros.

Theater and Stage Performances: In major cities like Lisbon and Porto, treat yourself to captivating theater and stage performances. Tickets to a mesmerizing show usually cost between 20 to 40 Euros.

Cinemas: If you're a film enthusiast, catching a movie is a popular pastime. The price of a cinema ticket typically falls within the 5 to 10 Euro range.

Festivals and Special Events: Portugal hosts an array of festivals and special events year-round. Dive into the local culture with events like the São João Festival in Lisbon or enchanting Fado Nights in Porto. Ticket prices can vary depending on the event's nature and location, so keep an eye on the local event calendar!

Art Workshops: Unleash your inner artist by participating in art workshops and courses offered in many cities. Workshop prices may vary based on duration and content, but they are generally affordable. Get creative!

Libraries and Public Spaces: Portugal offers serene libraries and public spaces, often free or requiring a nominal fee. These are perfect spots to read, work, or simply unwind.

Indulging in art and culture activities in Portugal can suit any budget. Be sure to check out the local event calendar and explore special offers to make the most of your cultural journey. Enjoy! 🌟

Recommended Monthly Income for Enjoying Life in Portugal

Living the good life in Portugal is a delightful dream, but it's essential to have a rough estimate of your monthly income to make that dream a reality. Of course, your specific needs and lifestyle choices will play a big role, but let's break down some typical expenses with a friendly touch:

Sweet Shelter: The cost of accommodation depends on where you choose to settle. In vibrant cities like Lisbon and Porto, expect higher rents. On average, you might pay anywhere from 800 to 1200 Euros per month for a cozy apartment.

Nom Noms: Monthly food expenses will vary depending on your appetite and household size. For a solo explorer, budgeting 150 to 250 Euros a month for groceries is a good start.

Getting Around: If you're taking public transport, monthly passes can differ from city to city, ranging from 30 to 40 Euros in larger cities. If you've got your wheels, factor in fuel and maintenance.

Health Matters: While public healthcare is free, some opt for private health insurance, which usually costs around 50 to 100 Euros per month.

Fun Times: Portugal has a vibrant culture with plenty of entertainment options like movies, dining out, and cultural events. Your spending here depends on how adventurous you are!

The Essentials: Remember to include utilities (electricity and water), internet, phone bills, and basic household stuff in your budget.

In a nutshell, a single person can enjoy life in Portugal with a net monthly income of around 1,800 to 2,400 Euros. But if you're planning for a larger family or a fancier pad, you might need a bit more. Keep in mind that living costs are often higher in major cities, so be prepared for a slight bump in your budget if you're aiming for urban living. 🌟💶

Category Est. Monthly Cost (€)
Rent (1BR) €1,200
Groceries €200–€300
Utilities + Internet €100–€150
Transport €40–€80
Health Insurance €50–€100
Coworking/Cafés €0–€200
Dining & Leisure €150–€300
Total €1,800–€2,400

Language: Do You Need to Speak Portuguese?

While many younger Portuguese speak English, especially in cities and tourist areas, learning Portuguese will significantly enhance your experience:

Daily Life: Most administrative tasks, doctor visits, and local services operate in Portuguese. Knowing the basics helps.

Social Integration: You'll build deeper connections and feel more included in local life.

Digital Tools Help: Apps like Duolingo, Babbel, or Google Translate can get you started.

You don’t need to be fluent to live here—but showing effort goes a long way. Even a simple "obrigado" (thank you) is always appreciated.

Final Thoughts

Portugal remains one of the most attractive destinations in Europe for freelancers. While costs have increased slightly since 2023, especially in Lisbon and tourist areas, it’s still possible to live well—especially if you're smart about where you settle and how you budget.

Want to manage your freelance income while living abroad?👉 Try Juuli

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Anna Morrow

Content Creator
With 20 years of experience in the creative industry, Marissa continues to guide freelancers.
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Anna Morrow

Freelance Strategist & Contributor at Juuli
Sharing real tips and tricks from my global freelance journey to help you succeed worldwide.