Cost of Living: What Life Really Costs in Portugal

Portugal markets itself as an affordable European destination, but costs vary dramatically by location and lifestyle. While still cheaper than most Western European countries, Portugal's cost of living has risen significantly, particularly in Lisbon and Porto.

Housing: The Biggest Expense

Rent dominates monthly budgets. In Lisbon, a one-bedroom apartment costs €1,200-€1,800 in central areas, €800-€1,200 in suburbs. Porto: €900-€1,400 central, €600-€900 suburbs. Smaller cities like Braga or Coimbra: €500-€800. Interior towns and Alentejo: €300-€500. Buying property: Lisbon €300,000-€500,000 for 70m², Porto €200,000-€350,000, smaller cities €100,000-€200,000.

Food and Dining

Grocery shopping for one person: €150-€250 monthly if cooking at home. Fresh produce at municipal markets is affordable: tomatoes €1.50/kg, bread €0.80-€1.50, coffee €3-€4 for 250g. Restaurants vary: traditional tasca lunch €7-€10, mid-range dinner €15-€25 per person, fine dining €50-€100+. A bica (espresso) costs €0.70-€1.00, beer €1.50-€3.00, glass of wine €2.50-€5.00.

Supermarket chains from cheapest to most expensive: Lidl and Continente (good value), Pingo Doce (mid-range), Auchan, El Corte Inglés (premium). Shopping at municipal markets for produce and small neighborhood shops for fresh bread and cheese saves money while supporting local businesses.

Transportation

Public transport is affordable. Lisbon metro/bus pass: €40 monthly. Porto Andante pass: €30-€40. Single tickets: €1.50. Taxis start at €3.25, Uber/Bolt similar or slightly cheaper. Owning a car adds significant costs: fuel €1.70-€2.00 per liter, insurance €300-€600 yearly, tolls €2-€15 per trip, parking €80-€150 monthly in cities.

Healthcare and Insurance

Portugal's NHS (SNS) provides healthcare to residents with modest fees: GP visit €5, specialist €7, emergency €20. Many opt for private insurance (€50-€150 monthly) for faster access and English-speaking doctors. Private GP consultations cost €60-€100, dental cleaning €40-€80, comprehensive health insurance €80-€200 monthly depending on age and coverage.

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We live comfortably in Porto on €2,500 monthly—something impossible in our home city of Amsterdam where we needed €4,500 for the same lifestyle.

Other monthly expenses: gym membership €25-€50, mobile phone €10-€30, Netflix/streaming €8-€15, haircut €10-€25, entertainment €100-€300. Total monthly budget for a single person: Lisbon €1,800-€2,800, Porto €1,500-€2,400, smaller cities €1,200-€1,800, interior €900-€1,400.