Overview
Portugal offers a significantly lower cost of living than the US, UK, or Northern Europe—but costs have risen substantially since 2020, especially in Lisbon. Location matters enormously.
💡 Reality Check: Portugal is no longer "cheap." It's affordable compared to major US cities, but rising housing costs have changed the calculus. Budget accordingly.
Cost Comparison to US
- vs. San Francisco: 50-60% lower overall
- vs. New York: 45-55% lower overall
- vs. Austin: 25-35% lower overall
- vs. Miami: 20-30% lower overall
Housing Costs
Housing is the largest expense and varies dramatically by location:
Rental Prices (1-Bedroom Apartment)
| Location | City Center | Outside Center |
|---|---|---|
| Lisbon | €1,200-1,800 | €900-1,300 |
| Porto | €900-1,400 | €700-1,000 |
| Algarve (Lagos, Faro) | €800-1,200 | €600-900 |
| Cascais/Estoril | €1,100-1,600 | €900-1,200 |
| Coimbra | €500-800 | €400-600 |
| Braga | €600-900 | €450-700 |
The rental market in Lisbon and Porto is extremely competitive. Expect to pay several months upfront (first + last + deposit) and face competition from other applicants. Furnished apartments cost more.
Buying Property
| Location | Price per sqm |
|---|---|
| Lisbon center | €5,000-10,000 |
| Porto center | €3,500-6,000 |
| Algarve | €2,500-5,000 |
| Silver Coast | €1,500-3,000 |
| Interior/Rural | €500-1,500 |
Utilities
Monthly utility costs for a typical apartment:
| Utility | Monthly Cost |
|---|---|
| Electricity | €50-100 |
| Gas (cooking/heating) | €20-50 |
| Water | €15-30 |
| Internet (fiber) | €30-50 |
| Mobile phone | €10-25 |
💡 Heating Note: Many Portuguese buildings lack central heating. Winters are mild but can feel cold indoors. Budget for space heaters or expect higher electricity bills in winter.
Food & Dining
Groceries
Monthly grocery budget for one person: €200-350
| Item | Price |
|---|---|
| Bread (loaf) | €1-2 |
| Milk (1 liter) | €0.70-1 |
| Eggs (dozen) | €2-3 |
| Chicken breast (kg) | €6-8 |
| Beef (kg) | €10-15 |
| Fresh fish (kg) | €8-15 |
| Wine (bottle) | €3-10 |
| Coffee (250g) | €2-5 |
Supermarkets
- Budget: Lidl, Aldi, Minipreço
- Mid-range: Pingo Doce, Continente
- Premium: El Corte Inglés, specialty shops
- Markets: Local mercados often have fresh produce cheaper
Dining Out
| Type | Cost per Person |
|---|---|
| Espresso (bica) | €0.70-1.20 |
| Beer (draft, 0.5L) | €2-4 |
| Lunch menu (prato do dia) | €7-12 |
| Casual dinner | €15-25 |
| Nice restaurant | €30-50 |
| Fast food meal | €7-10 |
💡 Prato do Dia: Look for "prato do dia" (dish of the day) or "menu do dia" at local restaurants—usually includes soup, main, drink, and coffee for €8-12.
Transportation
Public Transport
- Lisbon Metro single ticket: €1.65
- Lisbon monthly pass (all zones): €40
- Porto monthly pass: €30-40
- Intercity train (Lisbon-Porto): €25-35
Driving
- Gasoline (liter): €1.60-1.80
- Diesel (liter): €1.50-1.70
- Parking (city center/hour): €1-3
- Highway tolls: Significant on major routes
Taxis & Rideshare
- Uber/Bolt: Widely available in cities, cheaper than taxis
- Short ride (3-5km): €5-8
- Airport to center (Lisbon): €15-25
Healthcare Costs
Healthcare is very affordable compared to the US:
- Private health insurance: €30-100/month
- Private GP visit: €50-80
- Specialist visit: €80-150
- Dental cleaning: €50-80
- Prescription drugs: Heavily subsidized for residents
💡 Public Healthcare: Once registered with SNS, most care is free or very low cost (€5-20 co-pays).
Sample Monthly Budgets
Lisbon - Comfortable Single
Monthly Total
- Rent (1BR center): €1,400
- Utilities: €100
- Groceries: €300
- Dining out: €200
- Transport: €50
- Health insurance: €50
- Entertainment: €100-200
Porto - Moderate Single
Monthly Total
- Rent (1BR center): €1,000
- Utilities: €80
- Groceries: €250
- Dining out: €150
- Transport: €40
- Health insurance: €40
- Entertainment: €100
Algarve - Retired Couple
Monthly Total
- Rent (2BR): €1,000-1,400
- Utilities: €120
- Groceries: €400
- Dining out: €300
- Car expenses: €200
- Health insurance: €150
- Entertainment/travel: €200-400
Budget Living - Small City
Monthly Total
- Rent (1BR outside center): €500-700
- Utilities: €70
- Groceries: €200
- Dining out: €100
- Transport: €30
- Health insurance: €30
- Entertainment: €70
D7 Visa Income Requirements
For D7 visa purposes, Portugal requires proof of "sufficient means":
- Primary applicant: ~€760/month (1x minimum wage)
- Spouse: Additional 50% (~€380/month)
- Each child: Additional 30% (~€228/month)
The legal minimum for visa purposes is much lower than what you'll actually need to live comfortably, especially in Lisbon or Porto. Budget realistically.