Cost of living in Portugal

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The reasonable cost of living in Portugal continues to attract expats from all over the world. Although still not as popular as its Iberian neighbour, the country increasingly appeals to Northern Europeans and Brits. Retirees and pensioners looking to invest in houses overseas have taken a particular liking to Portugal’s affordable property market.

As is the case in most destinations, the cost of living in major cities such as Lisbon is significantly higher than in more rural communities. While Lisbon remains one of the pricier places to live in Portugal, it is still more affordable than many other Western European capitals.

For expats who can manage a modest way of life, a single person with a steady job earning a moderate salary can attain a decent standard of living in Portugal. Overall, the cost of living depends greatly on location and lifestyle, but the country generally offers good value to expats and retirees.

Cost of accommodation in Portugal

Property in Portugal is less expensive than the European average, a major drawcard for expats looking to settle here. Unlike most expats elsewhere, many foreigners living in Portugal actually opt to buy property rather than rent. If buying isn’t feasible, though, renting is possible, although prices can be high in areas like Lisbon and Porto.

In addition to the monthly rental fee, you'll also have to budget for utility fees. It's rare for utilities such as electricity, gas, and water to be included in the monthly rental fee for long-term rentals. Fortunately, utilities in Portugal are some of the most affordable in Europe.

Renting and Buying Accommodation in Portugal

Cost of transport in Portugal

The cost of buying, maintaining and fuelling a car is high in Portugal. If you choose to purchase a vehicle, you may find yourself paying thousands of euros for a rust bucket on its last legs.

Meanwhile, public transport is usually a viable alternative that’s efficient and much cheaper. The metros in Lisbon and Porto run regularly and are more affordable than in most European countries, while buses make for reliable yet economical intercity travel.

Public Transport and Driving in Portugal

Cost of groceries in Portugal

The cost of food in Portugal is much more affordable than in other Western European countries. Thanks to its vast coastline, Portugal enjoys abundant seafood. Several regions in Portugal also make and distribute wine both locally and internationally, making local prices friendly on the pocket.

On the slightly more pricey side are meat products, along with poultry and eggs. While imported goods can offer you a taste of home, costs are high and add up quickly.

Cost of entertainment and eating out in Portugal

Eating out and entertainment in Portugal are relatively affordable compared to many other Western European countries. You can expect to find a reasonable price for a meal at a local restaurant. Dining at a more upscale restaurant is more expensive but still not too bad.

Entertainment options in Portugal are diverse, ranging from cultural experiences like visiting museums and historical sites to outdoor activities like exploring the beaches and hiking trails. There are also more traditional forms of entertainment, such as going to the cinema or visiting a bar or nightclub. These outings tend to be on the more expensive side.

Cost of education in Portugal

Expats can send their children to a public school in Portugal at little or no cost. But, given the fact that standards at these schools vary and the continued criticism of the Portuguese public school system, most expats prefer their children educated at private or international schools.

Fees at international schools in Portugal can be high. In addition to school fees, parents must budget for extra costs such as textbooks, uniforms, extracurricular activities, and school excursions.

Education and Schools in Portugal

Cost of healthcare in Portugal

Portugal has a well-regarded healthcare system that balances affordability with quality, making it a favourable destination for expats from around the globe.

The public healthcare system, overseen by the Serviço Nacional de Saúde (SNS), provides mostly free care for citizens and legal residents. Private healthcare is also available and is inexpensive compared to other Western European countries. It offers an alternative for those seeking shorter waiting times and access to a wider network of specialists.

While the basic medical costs in Portugal are reasonable, it is important to note that the public healthcare system doesn’t cover everything. Services such as dentistry must be paid for either out-of-pocket or through private health insurance, which remains quite affordable.

Healthcare and Health Insurance in Portugal