Have you ever asked – Is Portugal expensive or cheap? You might be interested in learning how the cost of living in Portugal compares to your current situation as well as the cheaper or costlier alternatives.
Sun-drenched beaches, bustling cities, and delectable cuisine – Portugal ticks all the boxes for an unforgettable European adventure. But before you pack your bag and fly to Portugal, you want to make sure your budget works for you. Here we’ll talk about what you should expect from Portugal in terms of affordability.
And so to answer “Is Portugal expensive or cheap ” We will deep dive to dissect the cost of living in Portugal, from cozy hostels to Michelin-starred meals, exploring public transport and hidden gems. We will also compare it to other European counterparts, unveiling the secrets to a budget-friendly adventure in Portugal.
The Cost of Living in Portugal
According to Numbeo, you can spend 2,333.7€ as a family of four every month without rent. In the same vein, a single person can spend 661.2€ without rent. Rent in Portugal also ranges from 716.91 to 934.24€ for a 1-bedroom apartment and 1,207 to 1,693€ on average for a 3-bedroom apartment.
You’ll also pay on average 111.47€ monthly for electricity, heating, cooling, water, and garbage for an 85m2 apartment. You might also pay 19.20€ for a mobile phone plan with calls and data.
The Internet also costs on average 36.85€ monthly. A single person can eat an inexpensive meal for 10€ while 2 people can enjoy a three-course meal at a mid-range restaurant for 40€. Looking at these, you have a decent expectation of what you might spend in Portugal.
Still, bear in mind that the prices might be slightly higher in summer because it’s the high season. Also, short-term rentals will be noticeably higher than what we’ve written here. In truth, you’ll pay on average $100 per night for a 2-bedroom apartment instead of a much smaller fee paid monthly but calculated per yearly contract.
Is Portugal expensive or cheap?
Portugal is one of the most affordable cities in the entire Europe. Yet, affordability does not in any way mean a low-quality life. Instead, Portugal ranks 13th in Global Citizen Solution’s Quality of Life Index where the US comes 39th.
But to further get a clearer answer, Let’s compare the different aspects of living in Portugal to other countries in the world.
Accommodation
First, we talk about accommodations. As we’ve said before, Portugal has several different accommodation types ranging from shared rooms, to budget-friendly hostels, apartments, villas, beachfront condos, farmhouses, and luxury hotels. Short-term rentals will be at least three times the cost of long-term rentals.
Beyond that, rent in Portugal is 42.9% lower than in the United States. In the UK, rent is higher at about 31% than in Portugal. Nevertheless, compared to an Asian destination like Bangkok, Portugal is noticeably more expensive. Rent prices in Lisbon, for example, are 96.2% higher than in Bangkok.
Consumer Prices
The cost of goods in Portugal is generally 38.6% lower than in the United States. Grocery Prices in Portugal are also 42.1% lower than in the United States. And beyond that local purchasing power is 59.7% lower than in the United States. So a decent budget can get you there. Regarding the UK, consumer Prices are also 34.7% higher than in Portugal. Groceries Prices are also 28.9% higher than in Portugal.
That said, Spain and Portugal are both affordable cities with similar price tags for everything. Consumer prices in Spain are 4.5% higher than in Portugal. Rent prices in Spain are 7.7% lower than in Portugal. Groceries cost higher in Spain at about 4.7% than in Portugal.
In Bangkok, consumer prices are 23.0% higher in Portugal compared to this destination. Grocery prices are, however, 1.2% lower than in Bangkok.
Grocery Prices
Grocery shopping in Portugal is super affordable. Compared to the United Kingdom where groceries are 28.8% higher. In the same way, grocery prices are 44.7% lower in Portugal than in the United States. Below, we’ve provided a breakdown of what you expect to pay for your groceries.
Food
Besides your regular groceries, the food scene in Portugal is amazing. You can look forward to a diverse culinary scene offering a feast for your senses and your wallet. First, alongside the supermarkets, you can also use the several farmers’ markets scattered across the country. And then there are the local eateries offering generous portions of authentic dishes at wallet-friendly prices.
You should expect to pay around 5€ to 10€ for hearty meals. Mid-range restaurants as said before provide elaborate dishes. That’s why two people can spend about 40€ for a single meal. Fine dining for special occasions also introduces you to more elaborate multi-course tasting menus.
You should expect to pay about 50€ – 100€ per person. Nevertheless, the best way to experience Portuguese cuisine is to embrace the local atmosphere. Explore different neighborhoods, chat with friendly locals for recommendations, and don’t be afraid to step outside your comfort zone.
Utilities
Depending on the accommodation you go for, you might have to handle paying your utility bills. Long-term rental contracts often price utilities separately. However, short-term rentals especially during vacation require you to pay your utilities to your landlord. So, you should expect to pay around 111.35 € for the basics which includes heating, electricity, cooling, water, and garbage.
And as said before, you might 19.20€ for a mobile phone plan and 36.85€ for internet monthly. This is a far cry from the U.S. where you spend 204.97$ ((190.20 €), 50.71 $ (47.05 €), and 70.79 $(65.69 €) for the basics, a phone plan, and home internet respectively. That said utilities in the UK are also pricier than in Portugal at 296.25 € (253.35 £), 14.23 € (12.17 £), and 35.64 € (30.48 £) for the basics, a phone plan, and internet monthly.
Transportation
Portugal is one of the most fascinating locations with plenty of transportation options. And as long as you master the schedules, you can use public transportation to a greater extent. Ideally, you pay 1.98€ for a one-way ticket. Monthly bus passes cost 40.00€. If you opt for taxis, you might pay 3.50€ as a normal start tariff and additionally 0.80€ for every 1km. If you decide to rent a car, then gasoline prices are a bit more expensive at about 19.20€.
That said, a longer train ride such as going from Lisbon to Faro costs about 20€ one way.
You can also enjoy trains and even ride-sharing services. There’s even a cross-country train ticket called the Portugal Rail Pass, which allows you to travel for three to seven days in a month from the date of purchase. This ticket costs 73€ for three days for adults while children pay 36.50€. No matter your budget, there’s a transportation option for you.
Healthcare Costs
Portugal has one of the best public healthcare systems. Although it isn’t entirely free, you won’t go into depth paying for your medical bills. Plus, under the Portuguese healthcare system, children and seniors of nationals receive free medical care. Everyone else contributes. However, as a foreigner visiting Portugal, you will have to purchase private health insurance to cover your medical trips. That said, Portugal’s out-of-pocket private healthcare begins from as low as 50€.
Education Costs in Portugal
If you’re relocating with kids to Portugal, then you may also be considering the cost of educating them in Portugal. Generally, basic education in Portugal’s public schools is free. But most expats choose to send their kids to private schools, especially the country’s top international schools. Typically, education in Portugal is significantly lower than in the US.
The Cost of Luxury Travel around Portugal
If you’re interested in having a significantly luxurious experience around Portugal, you’ll find that there are plenty of experiences waiting for you. Portugal boasts of luxury properties such as treehouses and boathouses on private beaches, golf courses, luxury resorts, and more.
You can also find week-long guided luxury tours with specially curated itineraries to take you to the most gorgeous and secluded sites in Portugal. Often such guided tours begin from 6,295€ per person. Beyond that Portugal, is also home to over 28 Michelin-starred restaurants.
Buying Property in Portugal
Although Portugal recently stopped the real estate investment side of the Golden Visa program, buying properties in Portugal is still as decent as before. Some of the most advantageous properties exit around Lisbon, the Algarve, Tavira, Setubal, Cascais and Porto.
If you’re looking for properties with higher rental income, these are the areas to consider buying properties that can fetch a decent return on investment. Of course, these areas have some of the most expensive properties. And if you’re aiming at buying luxury houses and apartments, Quinta do Lago, Vlamoura and Vale do Lobo are the best places in the Algarve.
That said, if you’re looking for a second home outside of the tourist areas, consider other real estate across the numerous villages and towns in Portugal. The cheapest purchases would be inland homes, especially in the central region of Portugal. A good way to ensure you’re making the right investment is by working with a real estate professional.
Wrapping Up
So is Portugal expensive or cheap? The truth is Portugal is significantly more affordable than many other countries with equally high standards of living. But it’s not the cheapest country idea. Nevertheless, backpackers and budget-conscious travelers would love to visit Portugal. It’s a gorgeous country with tons of attractions and where your money will go so far in giving you the best of your vacation or relocation.
