Cost of living in Portugal

The reasonable cost of living in Portugal continues to attract expats from all over the world. Though still not as popular as its Iberian neighbour, the country is increasingly appealing to Northern Europeans and Britons. Retirees and pensioners looking to invest in overseas housing have taken a particular liking to the affordable property market in Portugal.

As is the case in most destinations, in major cities such as Lisbon the cost of living is much higher than in more rural communities. In the Mercer Cost of Living Survey for 2022, Lisbon ranked 109th out of 227 expat cities surveyed worldwide.

For expats who can manage a modest way of life, a single person with a steady job earning a moderate salary will be able to attain a decent standard of living in Portugal. Overall, the cost of living in Portugal depends very much on location and the lifestyle of the individual, but generally offers good value to expats and retirees.

Cost of food and drink in Portugal

The cost of food in Portugal is much cheaper compared to other Western European countries. Thanks to its vast coastline, Portugal enjoys abundant and affordable seafood. Several regions in Portugal also make and distribute wine, both locally and internationally, making it extremely affordable. Meat products are slightly more expensive, however, as are poultry and eggs.

Cost of accommodation in Portugal

Except for high-end expat resorts and golf homes, such as in the Algarve, property in Portugal is less expensive than the European average. Unlike most expats elsewhere, a significant number of foreigners living in Portugal actually opt to buy property rather than rent. Renting is also good value, although in areas like Lisbon and Porto, prices can be high.

Cost of transportation in Portugal

Expats should note that car and petrol costs are considerably more expensive than many other parts of Portuguese life. Some expats find themselves paying thousands of euros for a rust bucket on its last legs. Alternatively, public transport options are generally cheap and efficient.

Cost of schooling in Portugal

Expats have the option of sending their child to a public school in Portugal at little or no cost. But given the fact that standards at these schools vary and given the continued criticism of the Portuguese public school system, most expats prefer to have their children educated at private or international schools.

Fees at international schools in Portugal can be sky high. In addition to exorbitant school fees, parents will need to budget for extra costs such as textbooks, uniforms, extra-curricular activities and school excursions.