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The cost of living in Portugal is about 13% below the EU average on Eurostat’s price measure, but the figure you’ll actually live on depends mostly on rent and on which city you choose. Using official data, a couple renting a 70 m² flat should plan for roughly €2,100 a month around Porto or in the Algarve and about €2,600 in central Lisbon, plus water and gas.
Every figure below comes from Statistics Portugal (INE), Eurostat or a regulator, with the arithmetic shown and the gaps named, so you can rebuild the budget for your own situation.
Prices in Portugal compared with the EU
Portugal’s overall price level was 86.6 in 2025, where the EU average is 100 (Eurostat). That headline hides a split: some everyday costs are cheap, others aren’t.
| Category (2025) | Price level, EU = 100 | What it means |
|---|---|---|
| All household spending | 86.6 | About 13% cheaper than the EU average |
| Restaurants and accommodation | 73.6 | The biggest gap below the EU average |
| Housing, water, electricity, gas | 81.1 | Cheaper on average, but rents in Lisbon run far above it |
| Transport | 87.9 | Somewhat cheaper |
| Electricity, gas and other fuels | 100.7 | About the EU average |
| Food and non-alcoholic drinks | 102.0 | Slightly more expensive than the EU average |
If you expect cheap groceries, adjust: food prices in Portugal sit slightly above the EU average, while restaurants and accommodation are where the price level falls furthest.
Rent by city and flat size
Rent decides most budgets, and INE’s median for new leases in the second quarter of 2026 ranged from €10.17 per m² nationally to €17.79 in Lisbon city (INE). Multiplying by typical flat sizes gives a monthly rent at the median.
| Area (Q2 2026) | €/m² | 50 m² (one bed) | 70 m² (two bed) | 100 m² (family) |
|---|---|---|---|---|
| Lisbon city | 17.79 | €890 | €1,245 | €1,779 |
| Greater Lisbon | 15.24 | €762 | €1,067 | €1,524 |
| Algarve | 11.56 | €578 | €809 | €1,156 |
| Porto metropolitan area | 10.83 | €542 | €758 | €1,083 |
| Portugal | 10.17 | €509 | €712 | €1,017 |
These are medians for contracts signed in that quarter, not asking prices, and national rents for new leases rose 10.2% in a year. Half of new leases cost more than the median, so treat the table as a mid-point. Our guide to where to live in Portugal compares the areas themselves.
Cost of living in Portugal for a couple: sample budgets
A couple renting 70 m² should budget about €2,100 to €2,600 a month, depending on the city. The budget adds the INE median rent, an electricity example, average household spending outside housing and utilities, and two health insurance policies.
| Monthly cost | Lisbon city | Greater Lisbon | Algarve | Porto area |
|---|---|---|---|---|
| Rent, 70 m² at the median | €1,245 | €1,067 | €809 | €758 |
| Electricity, 2,000 kWh a year | €46 | €46 | €46 | €46 |
| Other household spending | €1,228 | €1,228 | €1,228 | €1,228 |
| Private health insurance, two people | €73 | €73 | €73 | €73 |
| Total | €2,592 | €2,414 | €2,156 | €2,105 |
“Other household spending” is what the average Portuguese household spent outside housing, water, electricity and gas in INE’s 2022/23 survey: €24,190 a year in total, of which 39.1% went on that housing group, in the provisional results (INE). It covers food, transport, phone and internet, clothing, leisure and the rest. It predates the price rises since, so add a margin. Retirees can set these figures against pension income in our guide to retiring in Portugal.
Adjusting the budget for one person or a family
A single person in a 50 m² flat pays about €215 to €355 less rent a month than the couple’s flat in the table, but not half the other costs, since many household bills don’t fall with fewer people. A family of four needs about 100 m², which adds about €325 to €535 to the rent, plus schooling if you choose international schools.
Utilities, transport and property tax
Household electricity cost €0.273 per kWh including taxes in the first half of 2026, against an EU average of €0.328 (Eurostat), for homes using 1,000 to 2,499 kWh a year. Heavier use for heating or air conditioning moves you into a higher band, where the price per kWh is lower but the bill is larger.
Public transport is a clear saving in Lisbon. In 2026 the navegante metropolitan pass costs €40 a month for the whole metropolitan area, the city-only pass €30, and a family pass €80, while under-23s travel free (Metro de Lisboa tariffs). The same table lists a €20 metropolitan pass for over-65s.
If you buy, budget for IMI, the municipal property tax: 0.3% to 0.45% a year of the property’s tax value for urban property, with each municipality setting its rate (IMI Code, article 112). On a tax value of €150,000 that’s €450 to €675 a year.
Healthcare costs
Most user fees in the public health service were abolished in 2022; they remain for hospital emergency visits without a referral (Decreto-Lei 37/2022). Access is the bigger issue: about 1.67 million users had no assigned family doctor, according to SNS data reported in June 2026 (Observador), which is one reason many residents add private cover. British State Pension recipients may be able to register an S1 for state healthcare, covered in our guide to moving from the UK.
The average private health insurance premium was €437 per person in 2025, or €452 for individual policies (ASF). That’s an average across all ages and policy types, so get quotes for your own age and health before you budget.
One-off costs when you move
Before the monthly budget starts, each visa application costs €110 and each AIMA residence permit €185.60.
| One-off cost | Amount | Notes |
|---|---|---|
| National visa | €110 per application | Visa-center service fees extra |
| AIMA residence permit | €185.60 per applicant | Charged rate, below the €247.30 list price |
| UK police certificate (ACRO) | £70 | UK applicants |
| UK apostille | £45 per document | £35 for an e-apostille where accepted |
| Driving licence exchange | €30 | Within the deadlines for residents |
Add flights, shipping, a rental deposit and the first months of insurance, which vary too much to average.
Portugal vs the US and the UK
The average Portuguese household spends about a third of what an American household spends and under 60% of a British one. That compares spending, not prices, so it reflects incomes and habits as well as costs.
| Average household spending | Local currency | In euros (approx.) |
|---|---|---|
| Portugal, 2022/23 | €24,190 a year | €24,190 |
| United States, 2024 | $78,535 a year | €70,165 |
| United Kingdom, FYE 2025 | £676.60 a week | €42,025 a year |
Sources: BLS and ONS, converted at the ECB rate of October 23, 2026 (ECB). The surveys cover different years and define spending differently, so read the gap as direction, not precision.
For a retiree living on US or UK income, the practical test is whether your income covers the city budget above with a margin. If your income is fixed, the D7 visa sets a floor of €920 a month in 2026, well below the budgets in this guide.
Frequently asked questions
Quick answers about money before you move.
How much do you need to live comfortably in Portugal?
A couple renting a 70 m² flat should plan for about €2,100 to €2,600 a month on our official-data budget, more for extras such as a car, travel or international schools.
Is Portugal cheaper than the US?
Portuguese households spend about a third of what US households spend, and Portugal’s prices sit below the EU average overall. Food is the exception, slightly above the EU average.
Is Portugal cheaper than the UK?
The average Portuguese household spends under 60% of the UK figure. Spending reflects incomes as well as prices, so compare the city budgets above with your own costs at home.
How much is rent in Lisbon?
At INE’s median for new leases in mid-2026, a 70 m² flat in Lisbon city costs about €1,245 a month and a 50 m² flat about €890.
Which area has the lowest rents?
Of the regions compared here, the Porto metropolitan area had the lowest median at €10.83 per m², slightly below the Algarve. The national median of €10.17 shows that many areas outside the big cities cost less still.
Is healthcare expensive in Portugal?
Most public health service fees were abolished in 2022, and private insurance averaged €437 a year per person in 2025. Waiting for a family doctor is the main drawback.
Portugal’s cost of living rewards careful city choice more than anything else: rent at the median runs from about €760 for a two-bed around Porto to €1,245 in central Lisbon, while the rest of a household budget sits near €1,230 a month. Price your own budget from those numbers, add a margin for inflation, and compare regions in our Portugal relocation guide.
Sources
- Rents of dwellings, Q2 2026 (new lease agreements)
- Household Budget Survey 2022/2023 (provisional results)
- Price level indices for household final consumption (prc_ppp_ind_1)
- Electricity prices for household consumers (nrg_pc_204), 2026 S1
- Tariffs 2026
- IMI Code, article 112 (rates)
- Health insurance market indicators 2025
- Decreto-Lei 37/2022 (SNS user fees)
- Users without a family doctor rise again
- Consumer Expenditures, 2024
- Family spending in the UK, FYE 2025
- Euro foreign exchange reference rates
This guide is general information, not legal, tax or financial advice. Immigration and tax rules change often and depend on your circumstances. Check the official sources above and speak to a licensed professional before you apply or move. Read how we research and review in our editorial guidelines.
