Portugal’s popularity among expats has been growing in recent years. The benefits of living in Portugal are many, with its rich heritage and modern economy blended into a relaxed lifestyle. But is Portugal affordable to live in? Yes, compared to many other European countries, the cost of living in Portugal is relatively low. In this article you will find information about prices in Portugal and some useful budget tips.
Is Portugal cheap or expensive?
Where to live in Portugal?
Average Portuguese salary
How much does it cost to live in Portugal?
Food cost in Portugal
Cost of rent in Portugal
Utilities
Healthcare for expats in Portugal
Taxation of income in Portugal
Is Portugal cheap or expensive?
According to the Global Passport Index, Portugal gets the highest points for its protection of personal freedoms, environment, and overall happiness of the population. Another benefit of living in Portugal as an expat is high migrant acceptance in the society. At the same time, the cost of living in Portugal is medium: Lisbon is ranked the 80th most expensive city in Europe, well below those in the UK, Germany, Italy, or Spain. The cheapest place to live in Portugal included in the list is Braga, ranked the 99th.
Where to live in Portugal?
The country is divided into several regions which are useful to know when figuring out how much it costs to live in Portugal. The major ones include:
- Lisbon metropolitan area, which offers the most opportunities for employment and pastime but is also the most expensive.
- The Lisbon coast, also known as the Portuguese Riviera. Combining the stunning views of the Atlantic Ocean with proximity to the capital city, this area tends to be on the higher end when it comes to the cost of living in Portugal.
- Northern Portugal and Porto, the second largest city in the country and the second most expensive after Lisbon.
- Central Portugal is home to many smaller towns and allows easy access to other regions of the country. If you are looking for the cheapest place to live in Portugal, this might be an optimal first step.
But before we proceed to review the prices in Portugal, let us get the gist of what constitutes a good salary there.
Average Portuguese salary
To ensure that Portugal is affordable to live in, it has a minimum wage in place. As of 2025, it is set at €870 per month paid in 14 monthly payments (the rates may vary depending on additional factors such as occupation or territory). There are plans to increase the amount to €1,020 by 2028.
The Glassdoor data show that salaries in Portugal can reach up to €12,000, with €2,000 being the median pay. As elsewhere, wages depend on the industry, experience, location and so on. An average Portuguese salary for tech workers, for instance, is around €3,690, engineers €2,400, and sales representatives €1,750 per month.
In turn, those living in larger cities such as Lisbon and Porto can expect a higher income. For example, in Lisbon an average monthly salary is around €3,760, much higher than the national average of €1,270. The national indicators are lower than in other Western European countries but the low cost of living in Portugal compensates for the difference.
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How much does it cost to live in Portugal?
As estimated by Numbeo, the cost of living in Portugal as a single person would be about €680 a month. For a family of four, the amount is €2,400.
At the same time, prices in Portugal vary depending on location. In Lisbon, the above amounts are €740 and €2,640, while in Braga, one of the cheapest places to live in Portugal, €647 and €2,240 respectively. The inflation rate in 2024 was 2.6%, and the estimate for 2025 is even lower, at 2.1% which means that the cost of living in Portugal should remain relatively stable.
Food cost in Portugal
Portuguese cuisine is world-famous for its fresh produce and simple but delicious meals. In fact, since 2000 its gastronomy has been considered as a national intangible cultural heritage. But how much does food cost in Portugal?
For an average household, grocery shopping and eating out constitute about a quarter of the overall cost of living in Portugal. However, as demonstrated in the table below, food prices in Portugal also vary.
Prices for basic food items, €
| Grocery type | Lisbon | Porto | Braga |
|---|---|---|---|
| Bread | 1.44 | 1.34 | 1.54 |
| Rice, 1kg | 1.48 | 1.39 | 1.42 |
| Chicken fillets, 1kg | 6.78 | 6.58 | 6.75 |
| Potato, 1kg | 1.62 | 1.36 | 1.31 |
| Milk, 1l | 0.97 | 0.94 | 0.92 |
| Banana, 1kg | 1.35 | 1.22 | 1.25 |
| Apples, 1kg | 2.10 | 1.92 | 1.82 |
| Eggs, 12 | 2.70 | 2.64 | 2.69 |
| Portugues beer, 0.5l bottle | 1.27 | 1.09 | 1.12 |
But what about eating out, is Portugal cheap or expensive? Again, it depends. For example, a regular meal for one at a restaurant in Braga would cost about €9 whereas in Lisbon it is close to €14. Similarly, for a fancier meal for two be ready to pay €45 and €55 respectively. A bottle of water costs 30% more in the capital’s cafes as do most other drinks such as beer, coffee, or soft drinks.
Cost of rent in Portugal
The above numbers, however, do not account for rent which constitutes the largest part of any household budget, amounting to around a third of all expenses. Again, the cost of rent in Portugal depends on location and your needs and preferences.
When deciding where to live in Portugal, the following table gives an idea of rents in different cities, with Lisbon being the most expensive and Braga the cheapest place to live in Portugal.
Monthly cost of rent in Portugal, €
| Location/flat | Lisbon | Porto | Braga |
|---|---|---|---|
| Central | |||
| 1-bedroom | 1,420 | 1,055 | 770 |
| 3-bedroom | 2,560 | 1,890 | 1,185 |
| Suburban | |||
| 1-bedroom | 1,105 | 835 | 590 |
| 3-bedroom | 1,705 | 1,390 | 920 |
| Share of rent in monthly expenses | 37% | 33% | 26% |
The numbers above are indicative because the cost of rent in Portugal has been steadily growing. For example, in 2024 rents in Lisbon increased by more than 8% and in Braga by over 11%.
Keep in mind that to rent a place in Portugal you need to provide proof of your identity and financial position. This includes such documents as your ID, a Portuguese tax number, and proof of funds or employment. The financial side, however, might make you question if Portugal is really that affordable to live in. Once you sign the contract, you are expected to pay up at least 3 monthly rents in advance and a security deposit on top of it, which may also amount to several monthly payments. In addition, your household bills usually need to be paid separately.
Utilities
Basic utilities include electricity, water, and heating among others. For an average 85 sq.m flat, the bills would come at about €130 per month. The prices in Portugal for a broadband internet connection are usually between €30 and €40.
Read our article to find ways to save on utility bills.
Healthcare for expats in Portugal
One of the benefits of living in Portugal is its healthcare system which comprises public and private insurance, and expats are entitled to both. The former is almost free and is funded through social security contributions deducted from income. Any resident of Portugal can get medical assistance from a public health institution. In turn, prices in Portugal for private insurance vary from hundreds to thousands of euros depending on the plan. The average cost is around €400.
Taxation of income in Portugal
Income taxes can substantially affect the cost of living in Portugal. Generally, tax residents, or those who spend in the country over 183 days a year, pay a tax on a sliding scale of between 13% and 48% on their worldwide income. As such, if you are a high earner, be ready to major deductions from your income. The filing of a tax return is usually required if earnings exceed €7,703.
Non-residents are taxed at a flat rate of 25% on the income generated in Portugal. There is the third tax status, non-habitual residency, which offers several tax benefits to expats working in high-value fields. However, its scope of application is limited.
There is a special tax regime for digital nomads, whom Portugal has been trying to attract in recent years. While there is a monthly income threshold of over €3,000, the first €25,000 are tax exempt. On a higher income, the rates of 37% and 48% are applied.
So, is Portugal cheap or expensive? Overall, expats might find Portugal a great option in terms of the cost of living. Even with average earnings one can easily both enjoy a high quality of life and put some money aside to explore the world.
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