Are you planning a move to Portugal and wondering how high prices in Portugal are? Would you like to know Portugal food prices, property prices in Portugal, and the price of gas in Portugal? Are you a student and would like to know how high the cost of living is in Portugal for international students? Are you curious whether life in Portugal is affordable for retirees or remote workers?
In this guide, we answer these questions and more using the latest price estimates available and the first-hand experience of Flatio team members living in Portugal.
- Cost of living
- Monthly expenses
- Properties
- Other costs
- Retirees
- Students
- Lisbon
- Salaries
- Minimum salary
- Portugal vs. UK
- Portugal vs. USA
- Portugal vs. Spain
- Affordable accommodations
What is the cost of living in Portugal
First of all, it's essential to recognize that how much it costs to live in Portugal varies based on your income, lifestyle, finances, and how you spend money. Overall, Portugal is known as one of the cheapest countries to live in Europe.
Most things, like groceries and accommodation, are relatively affordable compared to other European countries. For instance, prices for everyday items in Portugal are about 34% less than in France and approximately 27% lower than in Germany.
What is the cost of living in Portugal per month?
A couple with a steady, moderate income can live comfortably in Portugal's smaller cities for approximately €1,700 monthly, while in Lisbon, a couple might need €2,000 or more each month.
For singles, living costs can be around €1,500 per month in Lisbon or Porto, and even lower in non-major cities. However, it's worth noting that prices are rising rapidly in Lisbon.
If you have a higher income, you'll find that €3,000 monthly allows for comfortable living anywhere in the country, with plenty of luxurious options for activities and properties available for purchase.
Cost of living in Portugal: Properties
How much is rent in Portugal?
The average rent in Portugal has risen in recent years. According to online rental platforms, rents for a one-bedroom apartment in Lisbon typically start at €1,200 per month. In popular neighborhoods, including the city center, you can expect to pay €1,500 or more per month.
In the suburbs of Lisbon, you can find one-bedroom apartments for €800-1,000 per month. T0 apartments/studios usually start at €800 in areas outside the city center.
Find perfect apartments for rent in Portugal
Buying: Portugal real estate prices
Let’s take a closer look at property prices in Portugal.
In 2024, the average price of a house in Portugal is €243 per square foot, totaling around €490,000 for a 2,000-square-foot home.
Compared to the previous year, buying a house in Portugal has become 6% more expensive due to increased demand in recent years, leading to a rise in real estate prices.
Lisbon
Metropolitan Lisbon stands out as the priciest region for purchasing a house, with an average price of €337 per square foot.
Algarve
Following closely is Algarve, where a 2,000-square-foot home sells for approximately €620,000 on average, with an 8% annual price increase.
Centro
Centro emerges as the most affordable region for property purchases, priced at €134 per square foot, equivalent to €270,000 for an average-sized home, with a 6.8% yearly increase in home prices.
Madeira
Madeira experienced the highest year-over-year increase in home prices, rising by 21.6% to reach an average sale price of €550,000.
| Locality | Price per square foot |
| Portugal | €243 |
| Lisbon | €337 |
| Algarve | €310 |
| Centro | €134 |
| Madeira | €275 |
Portugal mortgages and rates
If you want to finance your property purchase in Portugal, there are various mortgage loans to choose from.
Before we get into that, let’s get to know some useful terms about mortgages.
- TAN (Taxa Anual Nominal) or APR (Annual Percentage Rate):
- It's the Annual Percentage Rate, commonly known as TAN in Portuguese.
- The variable TAN includes the spread and the indexing rate, typically Euribor for 12 months.
- Euribor (Euro Interbank Offered Rate):
- A daily reference rate reflecting average interest rates for Eurozone banks lending to each other.
- Often used as the indexing rate in TAN calculations.
- TAEG (Taxa Annual de Encargos Efetiva Global):
- The Total Effective Annual Cost, which combines TAN with additional lender costs like origination fees and insurance.
- Helps compare mortgage loan options effectively across different banks.
Fixed-rate mortgage
A fixed-rate mortgage means paying the same interest rate for a set period, which can range from 3 to 30 years. Banks usually charge higher rates for this type of mortgage. However, it provides stability as borrowers are shielded from fluctuations in Euribor rates.
As of January 2024, economists predict that fixed-rate mortgages will be available at 3.5% (TAEG) for up to five years, based on loan-to-value (LTV) ratios of up to 70%. It's important to understand that while LTV ratios can extend up to 90%, non-fiscal residents are regulated to a maximum of 75%.
Variable-rate mortgage
Variable-rate mortgages in Portugal rely on the mortgage spread, a fixed interest percentage set by the lending bank. Currently, this spread is approximately 0.85% across most financial institutions.
For non-residents, variable-rate mortgages typically cover up to 70% of the property's value. Buyers should aim to have around 30% of the purchase price readily available, plus additional funds for taxes and fees.
Monthly payments on variable-rate mortgages fluctuate based on the Euribor index and the chosen mortgage period, which can be three, six, or 12 months. These payments are usually reviewed periodically throughout the repayment period. Additionally, opting for early repayment may incur a 0.5% charge on the repaid capital.
Find perfect accommodation for rent in Madeira
Mortgages in Portugal for retirees
In Portugal, retirees with a steady pension income can qualify for a mortgage. However, it's essential to note that while many banks do provide mortgages to retirees, most have an age limit of 70 years old. Some banks may extend this limit to 80 years old, but it varies depending on the institution.
Mortgages in Portugal for businesses
If you're planning to buy a property for commercial purposes, typically, the maximum mortgage you can obtain is 50% of the purchase price.
However, if the property's valuation is lower, the mortgage amount may be based on that valuation as stated in the valuation report.
How much do I need to deposit?
For non-residents, it's important to understand that the typical minimum deposit required for purchasing property is around 30% of the total purchase price. Financing institutions typically offer between 60 and 70% of the property's valuation price to non-residents.
Other costs of living in Portugal
Taxes
If you're a tax resident in Portugal, your income from all sources worldwide is subject to Portuguese income tax, which can include salary, rental income, and capital gains.
However, if you're not a registered resident in Portugal, only income earned within the country is taxed, usually at a rate of 23%.
Regarding property purchases, it's important to consider Portugal's transfer tax, which varies from 1 to 8% depending on the property price and whether it's your first or second home in the country.
Additionally, there's an extra stamp duty of 0.8% on purchases. Keep in mind that a wealth tax in Portugal applies if you're the sole buyer and your property exceeds €600,000 in value.
Utilities
While housing expenses are affordable in Portugal, it's essential to consider other expenses that can accumulate.
The overall cost of living in Portugal is notably lower than in many other countries. For instance, monthly costs for an 85 m² apartment, covering basic utilities like water, electricity, heating, and rubbish collection, average around €110. In comparison, the same services in the UK typically cost over €200.
Additionally, mobile phone plans in Portugal typically stay around €25 per month, inclusive of a decent mobile data package. Prepaid mobile tariffs average around €0.16 per minute, similar to rates in the United States.
Transportation costs
Traveling in Portugal is quite affordable. A monthly bus pass, which covers various public transport options like buses, trains, trams, and boats both within and outside Lisbon, costs only €40.
While petrol prices are slightly higher at €1.50 per liter, new cars are approximately €5,000 cheaper compared to many other European countries.
Eating out
Portugal is celebrated for its delectable food and wine, especially its fresh seafood. The country offers high-quality cuisine without the steep prices found in other European nations like France.
Dining out in Portugal is budget-friendly, with a satisfying meal typically costing between €10 and €20. It's easy to indulge a couple of times per week.
Enjoying a drink or two is also economical and social, with a glass of wine averaging around €3 and a domestic beer priced at just under €1. Cheers to that!
Find perfect apartments for rent in Lisbon
Everyday essentials
When you're not exploring restaurants, stocking up on essentials at home is essential. Food prices in Portugal are quite reasonable, especially when you shop locally.
The quality of the produce is excellent and, thanks to Portugal's extensive coastline, fish is also remarkably affordable compared to prices in the rest of Europe.
Budgeting for food
Next to housing, food typically represents a significant portion of an expat's expenses. However, predicting food costs precisely can be challenging as it varies based on lifestyle and location.
One effective method to create a monthly food budget is by monitoring receipts to identify pricey items, such as branded or imported goods.
Leisure activities
Gym memberships in Portugal are affordable, typically costing around €25 monthly for a basic plan and reaching up to €150 for premium branded gyms.
Cinema tickets are also inexpensive, priced at around €7.50. Plus, for non-Portuguese speakers, English-language films are commonly shown with Portuguese subtitles.
Childcare and education
For families with children, public schools in Portugal are tuition-free but instruction is in Portuguese. Opting for an English-speaking international or private school will cost around €7,500 annually.
There's a wide selection of international schools in Portugal, particularly around Lisbon, with about 30 in the area. Whether considering public, private, or international schools, there are abundant options available.
For higher education, Portugal offers both public and private universities. Private universities typically charge fees averaging €400-500 per month.
Healthcare
In Portugal, public healthcare is mostly free for citizens and residents, with only minor fees for certain procedures like emergency room visits, diagnostic exams, or specific doctor appointments.
The cost of health insurance for expats in Portugal is considered affordable.
For foreigners, private health insurance in Portugal is relatively inexpensive, ranging from €20 to €50 per month depending on age and coverage. This translates to around €400 annually for a basic plan or €1,000 for comprehensive coverage.
While international health insurance is an option, opting for Portuguese health insurance often proves to be more cost-effective.
What is the cost of living in Portugal for retirees?
For retirees considering the cost of living in Portugal, you'll discover a comfortable lifestyle awaits.
Compared to the United States and many other European countries, expenses like healthcare, property, transportation, and groceries are generally more affordable in Portugal.
Cost of living in Portugal for international students
The cost of living in Portugal varies depending on the city you select for study. Despite rising prices, especially in Lisbon and Porto, you'll likely find that living expenses are considerably lower compared to many other Western European cities like Paris and London.
Here is a brief overview of the costs for students in Portugal in addition to the tuition fees.
Accommodation:
- On-campus housing: €150 to €500 per month.
- Off-campus options (shared/private): €200 to €800 per month.
- Utilities and Internet: They may cost an additional €50 to €150.
Food and groceries:
- Eating out: €5 to €10 at budget-friendly places.
- Monthly grocery bill: Estimated €150 to €250.
Transportation:
- Monthly public transport pass: €25 to €40.
- Walking and biking: They’re very common, especially in smaller cities.
Entertainment and socializing:
- Cinema tickets: €6 to €9.
- Museums: They often offer student discounts.
- Bar and club prices: €1.50 to €5 for drinks.
Cost of living in Lisbon, Portugal
Although Portugal is known for its affordability within Western Europe, Lisbon stands out with its own price range. If you're considering a move to the capital, it's important to be aware that property prices tend to be higher there compared to other areas of the country.
Portugal salaries
Portugal's minimum wage is one of the lowest in Europe, making it less attractive for Portugal-based jobs, especially for young people. This has caused many young people to move abroad for better-paying jobs.
However, sectors like technology, energy, finance, and insurance offer good salaries comparable to other countries. In general, wages are lower and job opportunities can be limited, especially for those who don't speak Portuguese. Many expats end up working in call centers, delivery service companies, or international companies where language isn't as big of an issue.
Because of these economic conditions, Portugal is becoming more popular for retirees, international remote workers, and digital nomads—especially after the introduction of the Portugal digital nomad visa - rather than those looking for Portugal-based jobs.
Find perfect apartments for rent in Porto
What is the minimum wage in Portugal per month?
In Portugal, the minimum wage is decided by a group made up of government officials, trade organization members, and union leaders. They meet every year to discuss and agree on the minimum wage, trying to find a balance that works for everyone involved.
In 2024, Portugal set the minimum wage at €820 per month, which gets adjusted every year based on living costs, productivity, and government policies. Despite this, the average salary in Portugal per month is €1,463 as of February 2024, showing a big gap with the rising cost of living.
Especially in Lisbon, it's not easy to find a rental for under €1,000 a month. This makes many people, especially young ones, choose to live with their parents or share housing with others.
Cost of living in Portugal vs. UK
Below are key insights into how consumer prices, including rent, and other essential expenses stack up between Portugal and the United Kingdom:
- The cost of consumer goods in the United Kingdom is 36.7% higher than in Portugal, excluding rent.
- When factoring in rent prices, the overall consumer prices in the United Kingdom are 34.5% higher compared to Portugal.
- Rent prices alone in the United Kingdom stand at 30.1% higher than in Portugal.
- Dining out in restaurants is notably more expensive in the United Kingdom, with prices being 68.2% higher compared to Portugal.
- Groceries also come at a premium in the United Kingdom, with prices being 29.0% higher than in Portugal.
- In terms of local purchasing power, the United Kingdom boasts a 94.0% higher rate compared to Portugal.
Cost of living in Portugal vs. USA
Portugal, compared to the United States, presents notable differences in the expenses incurred by its residents. Here's a breakdown of how consumer prices, including rent, and other essential expenditures compare between Portugal and the United States:
- Consumer prices in Portugal are significantly lower, with a 35.2% difference compared to the United States, excluding rent.
- Factoring in rent, overall consumer prices in Portugal are 37.5% lower than in the United States.
- Rent prices in Portugal are notably cheaper, standing at 41.7% lower than those in the United States.
- Dining out in restaurants is considerably more affordable in Portugal, with prices being 43.9% lower compared to the United States.
- Groceries also come at a lower cost in Portugal, with prices being 41.2% lower than in the United States.
- Despite these differences, the local purchasing power in Portugal is 59.8% lower compared to the United States.
Cost of living in Portugal vs. Spain
You may be asking yourself: Is Portugal cheaper than Spain? Spain, in comparison to Portugal, showcases both similarities and differences in the cost of living for its residents. Below are key insights into how consumer prices, including rent and other essential expenditures, compare between Spain and Portugal:
- Consumer prices in Spain edge slightly higher, with a 4.3% difference compared to Portugal, excluding rent.
- When including rent, overall consumer prices in Spain maintain a marginal 0.2% lead over Portugal.
- Rent prices in Spain are notably more affordable, standing at 7.9% lower than those in Portugal.
- Dining out in restaurants comes at a premium in Spain, with prices being 18.5% higher than in Portugal.
- Grocery expenses also see a slight increase in Spain, with prices being 4.4% higher compared to Portugal.
- Despite these variations, the local purchasing power in Spain is significantly higher, boasting a 66.1% advantage over Portugal.
Flatio: Reasonably priced accommodations in Portugal
Are you looking for a temporary or longer stay in Portugal? Then take a look at our reasonably priced, deposit-free, and remote work-friendly rental accommodations in various parts of the country, including:
- Lisbon
- Porto
- Sintra
- Coimbra
- Faro (Algarve)
- Aveiro
- Braga
- Cascais
- Funchal (Madeira)
Find perfect apartments for rent in Albufeira
Why Flatio?
Here's a glimpse of the features that distinguish us from other rental accommodation providers:
- Flexible, reasonably priced stays (from 5 days)
- Availability of rooms, flats, houses, villas, etc.
- Utilities and Wi-Fi included
- No deposit required for stays of less than 180 days
- Balanced, legally binding, visa-friendly lease agreement (translated into multiple languages)
- A very attractive cancelation policy
- Online signing of lease agreement
- StayProtection for Tenants, a service package to help tenants deal with emergencies such as internet problems and blocked doors, as well as accidental damage to property
- Move-in Guarantee with a 24/7 emergency line
- 100% money protection
- Customer support available every day of the week
- No hidden fees
- A secure and simple payment system (including the possibility to pay with Bitcoin)
[Sources: Global Citizen Solutions [1], Global Citizen Solutions [2], My Dolce Casa, Portugal Buyer's Agent, Numbeo [1], Numbeo [2], Numbeo [3], Portugalist]
