.png)
Thinking about moving to Portugal? You're not alone. In 2025, Portugal continues to be one of Europe's most attractive destinations for expats, digital nomads, and retirees looking for an affordable yet high-quality lifestyle. But here's the million-dollar question (or should we say million-euro question?): exactly how much money do you need to live comfortably in Portugal?
I've spent months analyzing the latest data, talking to expats, and comparing prices across Lisbon, Porto, the Algarve, and smaller Portuguese cities. Whether you're planning to work remotely from a Lisbon co-working space or retire in a quiet Alentejo village, this comprehensive guide breaks down every expense you'll face in 2025.
Let's dive into the real numbers—no fluff, just facts.
Is Portugal Expensive? The 2025 Reality Check
The short answer: No, Portugal is not expensive—especially compared to other Western European countries and North America. But it's not the dirt-cheap paradise some travel blogs make it out to be, either.
Portugal offers Western European quality of life at a fraction of the cost. You'll get excellent healthcare, reliable infrastructure, and a vibrant cultural scene without breaking the bank. However, prices have been steadily climbing, particularly in popular expat hotspots like Lisbon and Porto.
Here's how Portugal's living costs compare globally:
- 30% cheaper than the United States (on average)
- 28% lower than France and Germany
- 5% more affordable than Spain
- 43% less expensive than London
- 47% cheaper than Washington D.C.
The cost of living varies dramatically based on where you choose to settle. A studio apartment in central Lisbon will cost you nearly triple what you'd pay in a charming town like Viseu or Castelo Branco.
Monthly Budget Breakdown: How Much Do You Really Need?
Let's get specific. Based on 2025 data from multiple sources, here's what different lifestyles actually cost in Portugal:
Budget Lifestyle (€1,200–€1,500/month)
If you're willing to live outside major cities, cook most meals at home, and embrace a simpler lifestyle, you can comfortably live on this budget. This works well for:
- Retirees seeking a quiet life in rural Portugal
- Digital nomads working remotely from smaller towns
- Anyone prioritizing savings over city amenities
Your budget breakdown might look like this:
- Rent (1-bedroom, outside city): €450–€600
- Groceries: €250–€300
- Utilities: €80–€100
- Transportation: €40–€60
- Internet/Mobile: €45–€55
- Entertainment/Dining: €200–€300
Comfortable Lifestyle (€1,800–€2,500/month)
This is the sweet spot for most expats. You'll have a nice apartment, eat out regularly, enjoy Portugal's cultural offerings, and still save money compared to your home country.
This budget allows you to:
- Rent a modern 1-bedroom apartment in a decent neighborhood
- Dine out 3-4 times per week
- Travel within Portugal on weekends
- Take Portuguese language classes
- Enjoy occasional entertainment and activities
Upscale Lifestyle (€3,000+/month)
Living large in Portugal on €3,000+ per month gives you access to premium locations, frequent restaurant dining, a car, international schools (if you have kids), and a lifestyle comparable to middle-class living in major U.S. cities—but still at a significant discount.
Managing Your Money in Portugal Just Got Easier
Moving to Portugal means dealing with euros, international transfers, and potentially multiple bank accounts. That's where Juuli comes in.
Juuli's all-in-one financial platform is designed specifically for freelancers, digital nomads, and expats living across Europe. With Juuli, you get:
- Multi-currency accounts – Hold and convert EUR, USD, GBP with minimal fees
- Juuli Visa Card – No foreign transaction fees, accepted everywhere
- Instant transfers – Send money internationally without traditional banking delays
- No company registration required – Perfect for freelancers and digital nomads
Whether you're receiving client payments from abroad or managing your Portuguese expenses, Juuli makes international money management seamless. Focus on enjoying Portugal—let Juuli handle your finances.
Housing Costs in Portugal: Rent vs. Buy in 2025
Housing is your biggest expense in Portugal, but it's also where you'll see the most significant savings compared to other Western countries. The Portuguese rental market has been competitive in recent years, particularly in Lisbon and Porto, but it's still affordable by international standards.
Rental Prices by City (2025 Data)
Buying Property in Portugal
If you're considering purchasing property, Portugal's real estate market has seen significant growth but remains accessible. As of 2025, median house prices have risen to €1,736 per square meter nationally (up 6.6% year-over-year).
Here's what you can expect to pay for property purchases:
Food & Groceries: What You'll Actually Pay
One of Portugal's biggest advantages is its fresh, high-quality food at reasonable prices—especially if you shop like a local. Portuguese cuisine relies heavily on locally-grown produce, fresh seafood, and regional wines, keeping costs down.
Grocery Shopping in Portugal (2025 Prices)
Here's what you'll pay at major supermarkets like Continente, Pingo Doce, and Lidl:
💡 Money-Saving Tip: Shop at local markets (mercados municipais) for fruits, vegetables, and fresh fish. Prices are often 20-30% lower than supermarkets, and the quality is exceptional. Every Portuguese city has at least one traditional market worth exploring.
A basic food basket for essential items costs approximately €244 per week (as of August 2025), though this varies based on your shopping habits. Most expats report spending €250–€350 per month on groceries when cooking at home regularly.
Eating Out in Portugal
Portugal's restaurant scene offers incredible value. You can enjoy authentic Portuguese cuisine without spending a fortune:
- Breakfast at a pastelaria: €3–€5 (includes espresso and pastry)
- Lunch menu (prato do dia): €8–€12 per person
- Casual dinner for two: €25–€40
- Mid-range restaurant (3 courses for two): €40–€60
- Espresso: €0.70–€1.20
- Glass of wine: €2.50–€4.00
- Beer (0.3L draft): €1.50–€3.00
The "prato do dia" (dish of the day) is your best friend in Portugal. Most restaurants offer a complete lunch menu including soup, main course, drink, and dessert for under €10. It's not just budget-friendly—it's often the best way to experience authentic Portuguese cooking.
Transportation Costs: Getting Around Portugal
Portugal's transportation infrastructure is excellent, and you have several affordable options depending on your lifestyle and location.
Public Transportation
Both Lisbon and Porto have comprehensive public transport networks including metro, buses, and trams:
- Lisbon metro single ticket: €1.65
- Lisbon monthly pass (Navegante): €40
- Porto metro single ticket: €1.30
- Porto monthly pass (Andante): €40
- Bus ticket (most cities): €1.50–€2.00
Long-distance travel between cities is affordable via train or bus. The Alfa Pendular high-speed train connects major cities, while regional trains and bus services (like Rede Expressos) offer budget-friendly alternatives.
Ride-Sharing & Taxis
- Uber/Bolt base fare: €2.50–€3.50
- Per kilometer: €0.60–€0.90
- Average 10km ride in Lisbon: €8–€12
Owning a Car
If you're living outside major cities, a car becomes more practical. Here's what car ownership costs in Portugal:
- Used car (5 years old): €8,000–€15,000
- New car average: €20,000–€34,000
- Gasoline: €1.60–€1.75 per liter
- Diesel: €1.50–€1.65 per liter
- Car insurance: €300–€800 per year
- Annual inspection/maintenance: €200–€400
Portugal has high import taxes on new vehicles, so many expats buy used cars locally or opt for car-sharing services like Zipcar in urban areas.
Utilities & Internet: Monthly Recurring Costs
Portugal's utility costs are reasonable, and internet infrastructure is surprisingly good throughout the country.
Monthly Utility Breakdown
- Electricity, water, gas (85m² apartment): €80–€150
- Internet (100+ Mbps fiber): €30–€45
- Mobile phone plan (unlimited calls + 10GB data): €15–€25
- Telecom bundle (Internet + TV + phone): €40–€60
Portugal's climate means you'll spend less on heating and cooling compared to many countries. Winters are mild (though homes can feel cold indoors without proper insulation), and summers are hot but manageable, especially near the coast.
Living in Portugal as a Freelancer? Meet Your Financial Best Friend
Portugal is a freelancer's paradise, but managing international payments doesn't have to be complicated. Juuli makes it simple.
Real benefits for real freelancers:
- Get paid instantly – No waiting days for international transfers
- Invoice like a pro – Create and send invoices without platform commissions
- Track everything – See all your income and expenses in one beautiful dashboard
- Pay Portuguese bills easily – Rent, utilities, subscriptions – all from one account
- No company needed – Start accepting payments today, not after weeks of bureaucracy
Join thousands of freelancers across Europe who've made Juuli their go-to financial platform. Work from anywhere, get paid everywhere.
Healthcare Costs in Portugal
Portugal has one of Europe's best healthcare systems, and it's refreshingly affordable. The country's National Health Service (SNS) provides free or low-cost healthcare to residents, but many expats also opt for private insurance for faster access and English-speaking doctors.
Public Healthcare (SNS)
Once you're a legal resident, you can register for Portugal's public healthcare system:
- General practitioner visit: €5–€10
- Specialist consultation: €7–€15
- Emergency room visit: €18–€20
- Prescription medications: Heavily subsidized (often 80-90% covered)
Many medications that cost hundreds of dollars in the U.S. (like insulin) are nearly free in Portugal. This alone can be life-changing for expats with chronic health conditions.
Private Healthcare
Private health insurance is popular among expats who want:
- Shorter wait times for appointments and procedures
- English-speaking doctors and staff
- Access to private hospitals and clinics
- Comprehensive coverage including dental and vision
Private insurance costs: €30–€150 per month, depending on age, coverage, and pre-existing conditions. For a healthy 40-year-old, expect to pay around €50–€80 per month for comprehensive coverage.
Education Costs: Schools in Portugal
If you're moving to Portugal with children, education costs vary significantly between public and private options.
Public Schools
Portugal offers free public education for residents, including:
- Primary education (6-12 years)
- Secondary education (12-18 years)
- University education for EU citizens and residents who've lived in Portugal for 2+ years
International & Private Schools
Many expat families choose international schools for English-language education:
- International school tuition: €800–€1,800 per month
- Annual fees (example: St. Julian's School, Lisbon):
- Primary: €8,000–€12,000 per year
- Secondary: €12,000–€18,000 per year
- Admission fees (non-refundable): €4,000–€6,000
If private school costs are a concern, consider Portuguese public schools combined with English tutoring or after-school programs. Many expat families report their children adapt quickly and become bilingual within a year.
Entertainment, Leisure & Lifestyle Costs
Portugal offers a fantastic quality of life with plenty of affordable entertainment options. Your lifestyle spending will depend on your interests, but here's what you can expect:
Fitness & Recreation
- Gym membership: €25–€50 per month
- Yoga/fitness class (drop-in): €10–€15
- Swimming pool entry: €3–€5
- Tennis court rental (per hour): €10–€20
Entertainment & Culture
- Cinema ticket: €6–€9
- Theater/concert ticket: €15–€40
- Museum entry: €5–€10 (many offer free days)
- Netflix subscription: €7.99–€15.99
- Spotify Premium: €10.99
Social Activities
- Coffee with friends: €2–€5 per person
- Drinks at a bar: €8–€15 per person
- Weekend brunch: €12–€20 per person
- Wine tasting tour (Douro Valley): €50–€100
Portugal's beaches are free, hiking trails are abundant, and many cultural events are either free or low-cost. Your entertainment budget can be as modest or extravagant as you choose.
The Most Affordable Cities in Portugal
If budget is your primary concern, consider these affordable Portuguese cities that offer excellent quality of life:
1. Viseu
Located in northern Portugal, Viseu is 35% cheaper than Lisbon. A single person can live comfortably on €1,129 per month (including rent), while a family of four needs around €2,870.
2. Castelo Branco
One of Portugal's most affordable cities, with rent averaging just €6.80 per m². You can find furnished 1-bedroom apartments for €450–€600 per month.
3. Évora
A UNESCO World Heritage city with incredible history and architecture. Rent prices are about 50% lower than Lisbon, with a single person needing approximately €1,136 per month.
4. Santarém
Just an hour from Lisbon but 30% cheaper. Single-person monthly costs average €1,136, making it ideal for those who want proximity to the capital without the high costs.
5. Coimbra
A historic university city with a vibrant student atmosphere. Costs are significantly lower than Lisbon and Porto, with plenty of cultural activities and excellent public services.
These cities offer the quintessential Portuguese experience—historic architecture, friendly locals, excellent food—without the premium prices of tourist hotspots.
Taxes & Income Considerations
Portugal uses a progressive tax system for residents. If you become a tax resident (spending 183+ days per year in Portugal), your worldwide income becomes taxable at rates from 12.5% to 48% (2025 rates).
However, Portugal offers several tax incentives for new residents:
- NHR 2.0 Tax Regime: Portugal's updated Non-Habitual Resident program offers reduced tax rates for qualified professionals and income types
- D7 Visa income requirement: €870 per month (minimum wage) for passive income holders
- Digital Nomad Visa: Allows remote workers to live in Portugal while working for foreign companies
Property taxes in Portugal are notably lower than in many countries, making homeownership more accessible. Annual property tax (IMI) typically ranges from 0.3% to 0.8% of the property's fiscal value.
Tips for Living Affordably in Portugal
Ready to maximize your budget? Here are proven strategies from experienced expats:
- Learn basic Portuguese. Prices drop when you shop at local markets and interact in Portuguese. Plus, locals appreciate the effort and are more likely to share insider tips.
- Shop seasonally. Portugal's fresh produce is incredibly cheap when it's in season. Strawberries in spring, tomatoes in summer, oranges in winter—follow the seasons for the best deals.
- Embrace the local lifestyle. Portugal's affordable pleasures—beach days, hiking, outdoor festivals—are often free or low-cost. You don't need to spend big to enjoy an incredible quality of life.
- Avoid touristy areas for dining. That restaurant in Lisbon's Baixa with menus in six languages? Probably overpriced. Walk two blocks away and find where locals eat for half the price.
- Use public transportation. Portugal's public transport is excellent and affordable. Unless you're in a rural area, a car is often unnecessary and expensive.
- Take advantage of student/senior discounts. Many museums, attractions, and transportation services offer significant discounts. Always ask!
- Join local groups and networks. Expat Facebook groups, language exchange meetups, and community events are great for finding deals, advice, and affordable activities.
Frequently Asked Questions
Can I live in Portugal on €2,000 per month?
Yes, absolutely. €2,000 per month allows for a comfortable lifestyle in most Portuguese cities, including Lisbon and Porto (if you budget wisely). You'll be able to rent a decent apartment, eat out regularly, and enjoy leisure activities. In smaller cities, €2,000 provides an even more comfortable lifestyle with extra savings potential.
What is Portugal's minimum wage in 2025?
Portugal's minimum wage is €870 per month as of January 2025. This is also the income requirement for the D7 visa (for passive income holders like retirees). However, average salaries are higher, particularly in Lisbon and Porto, and many industries pay significantly above minimum wage.
Is Portugal cheaper than Spain?
Yes, Portugal is approximately 5.3% more affordable than Spain on average. However, specific costs vary by city—Barcelona and Madrid are significantly more expensive than Lisbon, while smaller Spanish cities may be comparable to Portuguese alternatives.
How much does healthcare cost in Portugal for expats?
If you're a legal resident, you can access Portugal's public healthcare system for minimal fees (€5–€20 per visit). Many expats also purchase private health insurance, which costs €30–€150 per month depending on age and coverage. Prescription medications are heavily subsidized and far cheaper than in the U.S.
What are the cheapest cities to live in Portugal?
The most affordable cities include Castelo Branco, Viseu, Évora, Santarém, and Coimbra. These cities are 22–50% cheaper than Lisbon while still offering excellent quality of life, safety, and access to healthcare and cultural amenities.
Do I need a car in Portugal?
Not necessarily. If you're living in Lisbon, Porto, or other major cities, public transportation is excellent and affordable. However, if you're in rural areas or want to explore Portugal's countryside regularly, a car becomes very practical. Many expats start without a car and buy one later if needed.
How do Portugal's living costs compare to the United States?
Portugal is approximately 30% cheaper than the United States on average. Rent is about 40% lower, groceries are 39% less expensive, and restaurant prices are 38% cheaper. Healthcare costs are dramatically lower—medications and procedures that cost thousands in the U.S. often cost just a fraction in Portugal.
What's the best way to handle money as an expat in Portugal?
Use a modern fintech solution like Juuli that's designed for international living. Traditional banks often charge high fees for currency conversion and international transfers. With Juuli, you can hold multiple currencies, make instant transfers, and use a Juuli Visa Card without foreign transaction fees—saving you hundreds of euros per year.
Are groceries expensive in Portugal?
Groceries in Portugal are quite affordable, especially for locally-produced items like fresh fruits, vegetables, fish, wine, and olive oil. Imported brands and specialty products cost more. Most expats spend €250–€350 per month on groceries when cooking at home regularly. Shopping at local markets can reduce costs by 20-30%.
Is Lisbon expensive compared to other European capitals?
Lisbon is significantly cheaper than most Western European capitals. It's 43% less expensive than London, 37% cheaper than Los Angeles, and 47% less than Washington D.C. However, Lisbon is more expensive than Eastern European capitals and some smaller Western European cities. Among major tourist destinations, Lisbon offers excellent value.
Final Thoughts: Is Portugal Worth It?
After analyzing all the numbers, talking to dozens of expats, and comparing Portugal to other destinations, here's my honest take: Portugal offers one of the best value propositions in Western Europe for 2025.
You're not just getting lower costs—you're getting a genuinely high quality of life. Excellent healthcare, safe communities, stunning beaches, rich culture, friendly locals, and over 300 days of sunshine per year. And yes, the food really is that good.
Can you live comfortably in Portugal on €1,500 per month? Absolutely, if you choose your location wisely. Can you live luxuriously on €3,000 per month? Without question.
The cost of living has increased in recent years, particularly in Lisbon and Porto, but Portugal remains remarkably affordable compared to other Western countries. Whether you're a retiree seeking a peaceful lifestyle, a digital nomad looking for a vibrant community, or a family wanting excellent schools and healthcare without breaking the bank, Portugal deserves serious consideration.
Just remember: the best budget is the one that matches your priorities. Some expats live happily on €1,200 per month in a quiet village, while others need €2,500 to feel comfortable in Lisbon. Only you can decide what trade-offs make sense for your lifestyle.
But here's what I know for sure: thousands of expats have moved to Portugal in recent years, and very few regret it. The combination of affordability, quality of life, and that intangible Portuguese warmth (what locals call "saudade") creates something special.
Ready to make the move? Start planning your budget today—and don't forget to set up your Juuli account before you go. Your future Portuguese self will thank you.
Continue Your European Cost of Living Research
Now that you've explored Portugal's living costs, you might want to compare it with other affordable European destinations. Each country offers unique advantages for digital nomads, freelancers, and expats:
