Cost of living in Portugal: what budget do you need?

May 5, 2019

Thinking of moving to Portugal? One of the first questions that will probably come to mind is the cost of living in Portugal.

When we hear about Portugal in the media or at the local bar, we often talk about its unrivalled quality of life and low cost of living. I often hear: “In Portugal, it’s not expensive, you can have lunch for 10€. In France, the cost of living has really become too expensive”. Yes, restaurants are cheap in Portugal, but the cost of living isn’t just about restaurants! Other expenses(which you may not be aware of if you’re only coming to Portugal on vacation) are part of the daily cost of living.

So when it comes to quality of life, yes, it’s second to none. In fact, I’ll let you read some of my previous blog posts to see just how appreciable it is. On the other hand, when it comes to the low cost of living, I’d be a little more measured. Just 3-4 years ago, the cost of living in Portugal could indeed be described as “low”. Today, it’s a little different. That’s why I’m taking the time to dedicate an article to this subject: the cost of living in Portugal.

I. What are the main items of expenditure in Portugal?

1. Energy bills

In Portugal, electricity is about 20% more expensive than in France. For your water and electricity consumption, you’ll need to budget roughly €100 per month. Around €80 for electricity and €20 for water(based on a 40m2 home with electric heating). Of course, this price will vary according to the size of your home and your personal usage. I’ve deliberately given the example of a home with electric heating, as this type of heating or reversible air conditioning is very common in Portuguese homes. Why is this? Quite simply because the majority of homes in Portugal have no heating system at all. In recent years, many homes have been renovated, and reversible air conditioning or electric heating systems have been installed in most of them.

2. Health insurance

As mentioned in one of my recent articles on health, it’s essential, if not indispensable, to take out health insurance in Portugal. The budget you allocate to it varies greatly, since rates differ according to your profile, the risks and treatments you do or don’t wish to cover, etc. You can find insurance from €8 to €400 a month(yes! very different rates!). Overall, I’d say you should expect to pay around €70 a month for “good” health cover.

3. Internet & Phones

The national average for a fixed-line Internet package is €30. For cell phones, subscriptions start at €11 per month for a “basic” subscription. On average, you can expect to pay €50 for internet and telephone.

4. Shopping

For shopping, you have a wide choice of supermarkets: Pingo Doce, Jumbo, Continente, Mini Preço, etc. As in France, you’ll save money by opting for private labels. Supermarket prices in Portugal are more or less the same as in France. Going to small markets or buying directly from local producers can save you money and ensure you eat quality food. Roughly speaking, I’d say you’re looking at 200€ a month for one person. Of course, if you stick to your French habits and buy your Camembert Président and your Justin Bridou sausage, it’s bound to cost more! French products are, of course, more expensive in Portugal than in France. But I’ve already told you: Eat local! You’re in Portugal!

At local markets, the prices are much better and the products so good!

5. Transportation

Gas prices in Portugal are more or less the same as in France. On April 22, 2019, prices in Portugal were as follows: €1.55 per liter for gasoline and €1.39 per liter for diesel.

As for public transport, metro, bus, streetcar and other fares in the two big cities of Lisbon and Porto are equivalent at €30 or €40 per month, depending on the area you wish to cover.

6. restaurants

Restaurant prices in Portugal are relatively low. I’d say 40% less than in France. Foodies, I see you smiling behind your screen… A good reason to go out to eat more often! Well, if you’re going to visit Monsieur Alvillez at the Belcanto or the latest trendy restaurant in town, yes, the prices will be prohibitive. But if you go to a typical Portuguese restaurant off the tourist trail, you’ll get away with a fairly low price per person. Maximum €10 for quality, homemade Portuguese cuisine. Menus often include a main course, coffee and soup or dessert. Here are some sample prices for a few towns in Portugal.

Lisbon, menu around 10€,
Porto, menu around 8€,
Vila nova de Gaia, menu around 6€,
Braga, menu around 5€,
Faro, menu around 7€.

27€ for two courses, a large carafe of sangria, olives, bread, on the seafront and in the Lisbon region. And don’t forget the sun and warmth 😉

7. The rent

Let’s finish with what will be your main expense: rent. As you can imagine, rents vary greatly from place to place in Portugal. Rents have risen enormously in Lisbon and Porto in recent years, which is why I would say that the cost of living in Portugal is not all that low(at least in the big cities). The high cost of renting in the big cities compared with your income can make you sweat if you want to move to Portugal. In order to be a little more explicit about the amounts of these famous rents, I’ve chosen to dedicate a chapter to this, which you’ll find below.

Rents in Portugal.

II. The main factor influencing the cost of living in Portugal: rent

As you can see, the main factor influencing the cost of living in Portugal is rent. That’s why you’ll find below some rent estimates(based on a one-bedroom apartment in the city center). First, I present rents for three major cities: Porto in the north, Lisbon in the center and Faro in the south. Then, the rents of 8 “medium to large” cities, from the north to the south of Portugal, offering “low” rents. Even if you’re interested in a city other than those listed below, these estimates can give you a rough idea of the prices in Portugal (for further information, please see our article dedicated to renting in Portugal)

1. Three major cities: Lisbon, Porto and Faro

Lisbon – €900

Until recently, it was easy to rent a one-bedroom apartment in the center of Lisbon for just 600 euros. In recent years, with the increase in the number of tourists and expatriates, finding long-term rental accommodation has become complicated. Many are dedicated to seasonal rentals, and in the face of high demand for long-term rentals and limited supply, prices have soared. Today, you need to spend around €900 for a one-bedroom apartment in the city center.

Porto – €650

Porto, which I like to call Lisbon’s little sister, is Portugal’s other big city. This status makes it one of the cities with the most job opportunities, particularly in the textile, technology and innovation sectors. And, as in Lisbon, it’s also home to a large number of start-ups. At university level, Porto also offers great opportunities and, last but not least, the city has an airport. For all these reasons, the cost of living here is higher than in many other Portuguese cities, but lower than in the capital(around 30% lower than in Lisbon in terms of rent) . As in Lisbon, property prices have risen sharply in Porto. Today, you can expect to pay €650 for a one-bedroom apartment in the city center.

Faro – €600

Faro is the “capital” of the Algarve. In the low season, it’s fairly quiet, but during the high season, Faro and the surrounding area receive many tourists who come to enjoy the beautiful beaches of the Algarve. The climate is mild all year round. For these reasons, as you’d expect, the town offers a wide range of employment opportunities, mainly in the tourist industry(tourist agencies, hotels, restaurants, bars, etc.). The city also has two major assets: its international airport and the highly reputed University of the Algarve. Renting accommodation in the Algarve is more expensive than in other parts of Portugal, but remains almost 35% cheaper than in Lisbon, while still benefiting from the infrasuctures of a big city. For example, a one-bedroom apartment in the city center costs €600 per month.

2. Eight cities with over 55,000 inhabitants with rents under €500.

viana do castelo – 300€ – 88,700 inhabitants

Viana do Castelo, less than an hour from Porto, is often cited as one of the most beautiful cities in northern Portugal. It boasts magnificent buildings: palaces, impressive fountains and sublime churches. Renting a one-bedroom apartment in the city center will cost you around €300.

Braga – 450€ – 126,700 inhabitants

Braga is best known for the Bom Jesus sanctuary. It also boasts a prestigious university, theUniversidade do Minho, which welcomes many Portuguese and international students. Braga is a dynamic student city with many job opportunities. A one-bedroom apartment in the city center costs €450.

Viseu – 350€ – 99,300 inhabitants

Viseu is in the center of Portugal. It has been ranked several times among the cities with the best quality of life. The city is pretty and modern, with a very attractive historic center. An apartment to rent in the city center will cost around 350€.

Coimbra – 450€ – 143,000 inhabitants

Coimbra is one of Portugal’s oldest cities, but has a very young population, not least because of the reputation of its university, one of the oldest in Europe. Students from all over the world come here to study. For a one-bedroom apartment in the city center, the budget is €450. (To find out more about Coimbra, read our article on Coimbra on foot)

Leiria – 400€ – 127,000 inhabitants

Leiria is located in central Portugal, close to medicinal spas and beautiful beaches. Leiria was named one of the three best cities to live in Portugal in a Bloom Consulting study. The city’s unemployment rate is below the national average. The price of a one-bedroom apartment to rent in Leiria is around €400 per month.

Torres Vedras – 350€ – 79,500 inhabitants

Torres Vedras is close to the coast and not far from Lisbon (50 km). This last point explains why so many people choose to work in Lisbon but live in Torres Vedras, notably for its lower cost of living than the capital. A one-bedroom apartment can be found for €350 a month in the city center. This is well below Lisbon rents.

Évora – 450€ – 56,600 inhabitants

Located in the Alentejo region, Évora is a popular tourist destination, renowned for the beauty of its historic center, its gastronomy and its wines. It’s also a university town. It’s possible to find a one-bedroom apartment in the historic center for around €450.

Portimão – 450€ – 55,600 inhabitants

Let’s finish with Portimão, located in the Algarve region of southern Portugal. Long-term rentals are becoming increasingly rare in this very touristy region, in favor of seasonal rentals. But if you’re lucky enough to find a rental, you’ll be able to make the most of the sunshine and beautiful beaches this area has to offer. A minimum budget of €450 is required for a one-bedroom apartment in the center of Portimão.

III. Estimating the cost of living in Portugal: a concrete example

Here we go! How much do I need per month to live in Portugal? This is not a simple question. It’s hard to say exactly how much you’ll need to live in Portugal, because you, your neighbor and I are all different. The cost of living will depend on ..:

where you’re going to live: depending on the city or even neighborhood you choose, the cost of living will differ, particularly, as we’ve seen, in terms of “real estate” expenses(rent/credit),
your lifestyle: your habits, your needs, what you like to do, etc.

In spite of this, I’ve tried to draw up a “minimum budget” for living in Portugal. To do this, I’ve estimated the minimum budget for a single person living in the center of Porto (this “budget” remains an estimate, but may give you a rough idea). Please note that this budget does not include “extras”: restaurants, leisure activities, gym, hairdresser, school fees, etc., nor health, car or home insurance. Only the “main” expense items are listed.

Breakdown of different expenditure items for a single person living in Porto.

I would therefore estimate – and this remains “my estimate” – that the minimum to live alone in a “big city” in Portugal is €1,000. This budget must be set against your salary. The minimum wage in Portugal is 600€ in 2019, and the average wage is around 850€(source: Instituto Nacional Estatistica). To find out more about wages and working in Portugal, I invite you to read or re-read my article on working in Portugal.

So, as you can see, if we look at the cost of living/salary ratio, it’s very difficult for a single person to live in a large city (Lisbon, Porto, Faro) in Portugal.

IV. How to enjoy the advantages of a big city at an affordable cost of living?

For work reasons, or because you want access to a particular infrastructure: airport, school, hospital, etc., or simply because you’re a city dweller at heart, you may want to live in a big city like Porto or Lisbon. But your plans seem impossible because the cost of living makes rents unaffordable. Don’t worry, there are solutions.

1. Colocation

Sharing a flat can be one way of lowering your rent bill. Sharing is also a very good way of integrating if you choose Portuguese partners. You’ll learn the language much more quickly and become familiar with the country’s customs and way of life much more quickly.

2. Living less than 15 km from a major city

Another simple solution is to live in a town close to a major city. By moving a few kilometers away, the cost of living will be lower. Here are a few towns around Lisbon and Porto that might interest you. The cost of living will be lower, especially in terms of rents, but you’ll still be close to all the facilities that a big city has to offer.

Close to Porto

Matosinhos – 8 km from Porto,
Rio Tinto – 9 km from Porto,
Maia – 9 km from Porto,
Vila Nova de Gaia – 10 km from Porto,
Ermesinde – 13 km from Porto.

Porto and the 5 towns mentioned above.

Close to Lisbon

Odivelas – 11km from Lisbon,
Almada – 13 km from Lisbon,
Amadora – 14 km from Lisbon,
Sacavém – 14 km from Lisbon,
Loures – 15 km from Lisbon.

Lisbon and the 5 towns mentioned above.

In conclusion

As I said in my introduction, the cost of living in Portugal is often described as “low”, but as you will have seen in this article, this is not always the case. In particular, the city you plan to live in will influence the cost of living. I’m not saying it’s impossible to live in a big city, far from it, but I do think it’s necessary to open your eyes to the cost of living in Portugal today in 2019, which isn’t necessarily always in line with what some of the media talk about.

I also think that if you decide to move to Portugal, you should do so first and foremost out of “love” for the country. It’s the quality of life that should make you take the plunge, not the cost of living. If all you think about is “cost of living”, you’re in for a surprise.

When it comes to settling in Portugal, do you think you’ll opt for the “coup de la vie” or the “coup de coeur”?

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