Portugal cost of living
Portugal Country Guide
Everything you need to know about moving to Portugal
Cost of Living in Portugal Compared to the U.S. & Canada
Many Americans and Canadians are interested in finding better quality of life at a more affordable expense than what they might find in their home countries. Portugal is an excellent option for anyone moving to a foreign country to find lower cost of living.
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The cost landscape in Portugal varies across regions. The biggest factor is usually rental price, which can range from €500 to upwards of €3000 per month. Check out the sample budgets provided below for a comprehensive overview. Typically, expenses tend to be higher in coastal areas and major cities such as Lisbon and Porto.
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Key Cost Considerations for Expats in Portugal
Your cost of living in Portugal will vary depending on your specific location and lifestyle. Generally, costs will be higher in and near Lisbon as well as in the Algarve. Costs in cities will be higher than in the countryside, and coastal towns will cost more than inland locations.
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Here are some key cost considerations to take into account when creating your budget:
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1. Rent: The real estate market in many parts of Portugal has experienced substantial growth in recent years, making long-term rentals increasingly expensive in popular locations like Lisbon. For instance, a T1 (one-bedroom) apartment in a popular Lisbon neighborhood may cost €1000-1500 per month, although in a small town you could find a 3 bedroom house for the same price.
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2. Utilities: While the cost of living is generally reasonable, utilities can be on the higher side. A small apartment might incur over €100 per month for water and electricity. Additionally, phone and internet packages range between €20 and €60 per month.
3. Transportation: When it comes to transportation, Portugal offers affordable options. A metro ticket in Lisbon or Porto is under €2, and intercity train travel typically costs around €20 for a 3-hour roundtrip journey. However, purchasing a car, even a used one, can be relatively expensive, especially in comparison to the United States.
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4. Food – Food in Portugal is not only delicious but also budget-friendly. A lunch menu (menu do dia) often costs under €5 and typically ranges from €5 to €12. Even a cup of coffee is reasonably priced, with rural areas charging around €0.50 and cities rarely exceeding €1. Grocery shopping is also cost-effective, especially for locally sourced fresh produce.
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5. Insurance & Banking – Other costs to consider include private health insurance, where costs can vary considerably, but where you are certain to pay significantly less than in the U.S. If you decide to open a Portuguese bank account you should expect to pay €5-10 per month in fees.
Sample Budget #1: The Algarve
Please note that these sample budgets are directional only. The town you live in, changing prices, and your lifestyle will all influence your ultimate budget.
Living in the Algarve for Two People per Month (USD)
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Sample Budget #2: Porto
Please note that these sample budgets are directional only. The town you live in, changing prices, and your lifestyle will all influence your ultimate budget.
Living in Porto for Two People per Month (USD)
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Sample Budget #3: Lisbon
Please note that these sample budgets are directional only. The town you live in, changing prices, and your lifestyle will all influence your ultimate budget.
Living in Lisbon Center for Two People per Month (USD)
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Helpful resources
Partner Article: Protect Yourself From Currency Volatility When Purchasing a Property in Portugal
December 12, 2023
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Portugal client reviews
StartAbroad made the process easy and manageable. Anna is the BEST, she informed me of the necessary steps to get me to Portugal. StartAbroad helped with housing, needed documents, and the million questions I had. I highly recommend their services if you want an easy and very manageable process to travel and live overseas.
Joyce L.
Portugal Concierge Client
5/5
We hired StartAbroad to help us find a long-term rental in Portugal and we’re extremely happy that we did. Because we wanted to be in the Algarve where longer term rentals aren’t easy to find, Anna from StartAbroad helped us create a wish list that matched our budget [and] still managed to check the boxes that were important to us. Based on that, she compiled listings for us to see as soon as we touched down in Portugal from the US. Armed with that, and a little bit of luck, we were able to find a home that was everything we’d hoped for!
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We feel very confident recommending StartAbroad to anyone looking to relocate abroad.
Richard F.
Rental Search Client
5/5
We greatly appreciated the personable…concierge service that StartAbroad offered. [They] listened to what we said and what we did not say and helped us plan a very fun, but strategic exploratory trip. We were able to see multiple cities during our very brief visit and have a lot of fun along the way.
Tea N.
Exploratory Trip Client
5/5
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