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    Article

    Cost of Living in Portugal: Still Affordable in 2026

    Article -> January 7, 2026

    Article

    Relocation to Portugal

    Cost of Living in Portugal: Still Affordable in 2026
    Portugal Homes BrandA Portugal Homes brand logo
    Portugal Homes

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    Portugal has long been on the global radar, yet it remains an underrated destination in the westernmost corner of continental Europe. Several factors make it an attractive choice for relocation or a second residence, including safety, abundant sunshine, excellent air quality, universal healthcare, and access to reputable schools and universities.

    Beyond these advantages, Portugal’s biggest selling point may still be its cost of living. In 2026, as much of Europe continues to face rising living costs, Portugal’s affordability stands out. It remains one of the most cost-effective countries in western Europe, offering a high quality of life supported by modern infrastructure.

    It’s easy to see why both expats and investors continue to choose Portugal. 

    Cost of Living in Portugal Compared to Other Countries

    The average cost of living in Portugal is considerably low in comparison to several other Western nations, with essentials such as groceries, healthcare, childcare, and education costing less. This affordability coexists with a broad set of high-quality services. Portugal follows the broader European trend of strong public provisions, enabling citizens and residents to enjoy a high standard of living at a more modest price point.

    As of December 2025, Expatistan, an open-sourced international cost of living index, ranks Portugal as the 23rd Most Affordable Country. The first position is occupied by the Cayman Islands, followed by Switzerland as the most expensive countries on the list.

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    Eurostat, the EU’s official statistical agency, also places Portugal notably under the average cost levels for goods and services within the bloc.

    Updated estimates from December 2025 suggest that Portugal is still approximately 13% below the EU average in 2026, whereas certain EU nations top the scale, with Switzerland and Iceland costing over 50% above that average. This gap highlights Portugal’s advantageous position for both short and long-term relocation. 

    Is Portugal Expensive for Food and Drink?

    Portugal’s culinary scene may not enjoy the same global recognition as Italian or Japanese cuisines, yet it consistently impresses food enthusiasts.

    Taste Atlas rates Portuguese cuisine as the 4th best in the world, just behind Italian, Greek, and Peruvian, thanks in part to its delectable seafood dishes, regional specialties, and the renowned Port and Madeira wines

    Despite this culinary prestige, everyday food and drink costs remain affordable.

    Groceries

    In Portugal, there is a commonly used term: cabaz alimentar essencial. Literally translated as “essential food basket”, it refers to a group of around 63 products considered fundamental for a typical and balanced Portuguese diet.

    According to the most recent data from DecoProteste, Portugal’s consumer protection agency, the average cost of the basket stands at approximately €243.65. While this reflects a slight increase from the previous year, it remains competitive compared to other western European countries.

    • Milk (Regular, 1 Litre): From €0.80–€1.20 per litre

    • Fresh White Bread: From €1.61–€5.40 per kg

    • White Rice: From €0.99–€2.01 per kg

    • Eggs (12, Large): From €1.97–€3.80

    • Local Cheese: From €6.00–€20.00 per kg

    • Chicken Fillets: From €3.00–€8.49 per kg

    • Beef (Round / Back Leg): From €7.34–€18.98 per kg

    • Apples: From €0.99–€2.85 per kg

    • Bananas: From €0.99–€2.49 per kg

    • Oranges: From €0.99–€3.00 per kg

    • Tomatoes: From €1.19–€3.00 per kg

    • Potatoes: From €0.88–€2.29 per kg

    • Onions: From €0.99–€2.47 per kg

    • Lettuce (1 Head): From €0.80–€2.30

    • Bottled Water: From €0.19–€1.01 per litre

    • Bottle of Wine (Mid-Range): From €3.00–€8.00

    • Domestic Beer: From €1.50–€3.64 per litre

    • Imported Beer: From €2.86–€9.11 per litre

    Source: Numbeo

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    Restaurants

    Dining out costs vary depending on the city and type of establishment. Lisbon remains the most expensive metropolitan area, followed by tourist-heavy regions like Porto and the Algarve. Regardless, the price of a meal in central Lisbon frequently remains below the norm of European capitals like Paris or Rome. In smaller Portuguese towns, it is still common to find a decent meal at a very reasonable price.

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    To provide a broader picture of prices across Portugal, Portugal Homes draws on our own experience alongside data from Numbeo, a crowd-sourced global database that focuses on city-specific cost-of-living data, including the cost of meals at restaurants.  

    • Meal at a Standard Restaurant: From €8.00–€18.00

    • Meal for Two at a Mid-Range Restaurant (Three Courses, Without Drinks): From €30.00–€70.00

    • Combo Meal at a Fast-Food Restaurant: From €7.50–€10.00

    • Domestic Draft Beer: From €2.11–€7.04 per litre

    • Imported Beer: From €5.63–€14.08 per litre

    • Cappuccino (Regular Size): From €0.80–€3.00

    • Soft Drink: From €3.38–€7.04 per litre

    • Bottled Water: From €2.82–€5.63 per litre

    Beyond Lisbon, Porto and the Algarve, the prices can be even more affordable. It is not uncommon to find restaurants where a glass of house wine is around €2.

    How Does the Real Estate Market Compare to the Cost of Living in Portugal?

    The Portuguese Real Estate Market has evolved into a central pillar of the national economy. With the Golden Visa shift that took effect in 2023—removing direct real estate investments as a qualifying path—many analysts anticipated a downturn. Yet, property prices have only continued to climb, demonstrating the remarkable resilience of Portuguese real estate.

    • Rising Demand: Lisbon, Porto, and the Algarve lead the increase, reflecting high interest among both domestic and international buyers.

    • Steady Rental Growth: that the median monthly rent per square metre stands at around €8.22 for continental Portugal—a modest increase from the previous year. Core urban centres exceed this number, sometimes surpassing €16/m² in premium Lisbon districts. 

    • Property Values: INE also informs that are at roughly €2,065/m2, with hot spots like Lisbon nearing or exceeding €4,865/m2. This steady ascent hints that investing sooner rather than later may secure more favourable rates. 

    Foreign Buyers

    International stakeholders continue to play a major role, with Lisbon seeing around 65% of purchases in certain prime areas from buyers who maintain addresses outside Portugal. This trend supports the notion that the domestic market remains robust, even after modifications to the Golden Visa. 

    If anything, this only reveals the Real Estate sector’s resilience and its growth is unstoppable, proving to be an excellent investment opportunity in Portugal.   

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    Rental Costs

    The resilience of the Portuguese real estate market is reflected in its rental prices. Broadly speaking, the more rural the location, the more affordable the rent, while properties closer to Lisbon tend to command higher prices.

    According to the latest data from INE, published in June 2025, the national median price for new rentals in Portugal stood at €8.22 per square metre.

    Several regions exceeded this national median, including Greater Lisbon (€16/m2), Cascais (€14.72/m²), Oeiras (€13.89/m²), Funchal (€11.34/m²) and Porto (€12.94/m²), among others. 

    Read More:

    Portugal Rental Market: Buy to Let and Get the Best ROI

    Property Prices

    The strength of the real estate sector also extends to property prices. Interest in Portugal and in everything the country has to offer remains at an all-time high, and following the principles of supply and demand, property prices have reached record levels.

    Data published by INE on October 22nd 2025, shows that the median house price in Portugal rose to €2,065 per square metre in the second quarter of 2025, representing a year-on-year increase of 19.0%, up from 18.7% in the previous quarter. All 26 of Portugal’s NUTS III sub-regions recorded price increases compared to the same period in the previous year.

    Unsurprisingly, Lisbon leads in terms of property values, with median prices reaching €4,865 per square metre, followed by Cascais (€4,346/m²), Oeiras (€4,161/m²), and Porto (€3,309/m²). The data also confirms that property prices have continued to rise across the country, with all Portuguese sub-regions recording year-on-year growth.

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    Cost of Domestic Bills

    Water, Electricity, and Gas

    Most water supply is managed by local municipal authorities, while electricity and gas services are privatised. In 2026, you can expect the average monthly energy bill for a two-person household typically ranged between €40 and €80, depending on usage.
    Water charges generally fall between €15 and €30 per month.

    Gas costs vary depending on whether a property uses natural gas or relies entirely on electric systems. While most homes are equipped with natural gas, some households opt for fully electric solutions, using water heater tanks, electric ovens and induction hobs.

    Telecoms

    Internet, cable TV, and phone packages in Portugal typically start at around €30 per month for basic plans, offered by major providers such as NOS, MEO, and Vodafone. Alternatives like Digi and similar operators are also available, often offering more specialised or lower cost packages.

    Telecommunication providers also offer higher-priced packages with faster internet speeds, additional TV channels and optional extras such as mobile plans, streaming services or increased data allowances.

    Please note that all prices are indicative and provided for reference only. Costs may have increased or decreased since the original research conducted in January 2026.
    Portugal Homes does not endorse any specific provider nor offer advice on provider selection. We recommend researching the options that best suit your needs. 

    Can Salaries in Portugal Cover the Cost of Living?

    Portugal’s minimum wage stands at approximately €920 as of January 2026, reflecting a slight increase from the previous year. While still modest compared to more affluent EU countries, average salaries­­—particularly in metropolitan areas and specialised industries— have been improving.  

    Wage growth has been more noticeable in the private sector, offering a more positive outlook overall. However, despite Portugal’s relative affordability amid rising global living costs, salary levels remain less competitive. According to Eurostat, the European Union’s statistical office, Portugal ranks below the EU average in terms of purchasing power parity and GDP per capita. 

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    According to the latest data published by INE in December 2025, Portugal’s GDP per capita expressed in purchasing power parities stood at 82.4% of the EU average in 2024, while Actual Individual Consumption per capita reached 85.7% of the EU average. These figures indicate that, despite recent improvements, Portugal’s purchasing power and household consumption levels remain below the European Union average, largely due to the unattractive salaries in Portugal.

    For expats and investors looking to relocate and enjoy Portugal’s many advantages, working remotely for a higher-income country is often the most effective option. This allows individuals to earn stronger wages while benefiting from Portugal’s lifestyle and lower cost of living.

    Is Portugal an Affordable Place for Retirement?

    In recent years, Portugal has become a popular destination for retirees, with established expat communities found across the country, including in more rural areas.

    In 2025, the number of foreign residents reached a record-high, including a significant number of retirees. This trend reflects both the ease of relocating to Portugal and the relative affordability of everyday essentials such as groceries, dining out and domestic bills.

    For retirees seeking to enjoy their golden years in one of Europe’s sunniest countries, property acquisition is often the main challenge. While property prices have increased, many still find Portugal more affordable than destinations such as the United States, the United Kingdom or other European capitals. 

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    Although the buying process is transparent, it can be complex and benefits greatly from expert guidance. Portugal Homes offers comprehensive support, helping streamline property searches, manage legal processes and provide ongoing expat support services, including tax representation and property management. 

    Healthcare & Medical Costs in Portugal

    Portugal operates a universal public healthcare system, the SNS – Serviço Nacional de Saúde (the National Healthcare Service), which is accessible to all tax-paying residents. The SNS provides primary healthcare through family doctors based in USFs (Unidades de Saúde Familiar, commonly referred to as Health Centres), as well as urgent care through public hospitals.

    Appointments at Health Centres are free of charge, while hospital Emergency Room visits may be subject to taxas moderadoras (moderation fees). These fees vary depending on the treatment and hospital but are generally affordable.

    In many cases, exemptions apply, including when patients obtain a referral through SNS24, the 24-hour national health line, which can result in no charge.

    One of the main drawbacks of the public system is longer waiting times, both for routine appointments and emergency care. For this reason, private health insurance is often recommended.

    Costs vary depending on individual circumstances but are significantly lower than in countries like the United States. On average, individual plans range from €30,00 to €60,00 per month, while family plans typically cost between €150,00 to €200,00 per month. 

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    Education Costs in Portugal

    In Portugal, public education system is free and compulsory between the ages of 6 and 18. Children typically begin primary school in the 1st grade at age 6 and complete secondary education in the 12th grade by age 18. Alongside the public system, there are also private education options available throughout the country.  

    International schools in Portugal tend to have diverse student bodies and offer alternative curricula such as the International Baccalaureate (IB), British and American programmes, most of which are taught in English. 

    Portugal has a total of 75 international schools, 36 of which are located in the Lisbon area.

    Annual tuition fees generally range between €5,000 to €15,000, although some schools may charge more or less depending on the programme and grade level.  

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    Childcare Costs in Portugal

    Before starting primary school at age 6, parents in Portugal have several childcare options.

    • Berçários or Infantários (nurseries) accept children from birth up to the age of 3.

    • Kindergarten follows, welcoming children between the ages 3 and 5. Kindergarten is not mandatory, and some families choose alternative care options such as nannies or grandparents.

    As with the broader education system, both public and private childcare options exist. Public childcare services are free but often underfunded, resulting in long waiting lists. Private childcare institutions are widely available, and some international schools also offer nursery and kindergarten services.  

    While fees vary from institution, enrolling a child in a private nursery or kindergarten typically costs between €2,000 and €5,000 per year, excluding additional fees. 

    Are Public Transport Prices in Portugal Reasonable?

    In short, yes. However, public transport networks are most efficient in larger cities such as Lisbon and Porto.

    Outside major metropolitan areas, owning a car often becomes necessary. Smaller cities may have local transport systems, but these are usually limited, less reliable and primarily serve older residents.

    Public Transportation in Lisbon

    Getting around Lisbon is straightforward. The city is 1 of 18 municipalities within the Lisbon Metropolitan area, which is well connected by buses, an underground metro, suburban rail services, trams, and river ferries.

    The Lisbon Metropolitan Area includes:  

    • Lisbon

    • Alcochete

    • Almada

    • Amadora

    • Barreiro

    Residents and visitors can use the Navegante Metropolitano, a monthly transport pass that offers unlimited access to all public transport across the metropolitan area for €40 per month.

    Single tickets are also available and can be purchased at metro station machines, CP railway stations, or onboard certain services.
    As of January 2026, a single metro ticket costs €1.90 and can also be used on Carris buses within Lisbon. 

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    Public Transportation in Porto

    Porto operates its own integrated public transport system, covered by the Andante Metropolitano monthly pass. For €40 per month, the pass provides unlimited access to buses, metro, and rail services across the Porto Metropolitan Area.

    Unlike Lisbon, Porto’s transport fares are calculated based on travel zones, rather than the type of transport used.

    The Porto Metropolitan Area includes:

    • Porto

    • Arouca

    • Espinho

    • Gondomar

    • Maia

    • Matosinhos

    • Oliveira de Azeméis

    • Póvoa de Varzim

    • Trofa

    • Santa Maria da Feira

    • Santo Tirso

    • Valongo

    • Vale de Cambra

    • São João da Madeira

    • Parede

    • Vila do Conde

    • Vila Nova de Gaia

     

    The city is divided into six fare zones.
    Single-journey prices start at €1.40 for travel within zones 1–2, increase to €1.80 for zone 3, and can reach €4.55 for longer journeys covering up to zone 9.

    24-hour tickets are also available, ranging from €5.15 for zones 1–2 to €16.70 for zone 9. 

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    Railway Transportation across Portugal

    Railway services in Portugal are operated by CP – Comboios de Portugal (Trains of Portugal). In Lisbon, several strategically located stations connect the city to surrounding municipalities and regions across the country.

    Suburban rail travel within the Lisbon municipality typically costs €1.45 per journey, with fares increasing when trips cross different railway lines. CP also offers a range of 24-hour ticket options, including combined passes covering the metro, CP rail services and Carris buses, priced at €11.

    CP also provides a low-cost travel option known as the Green Railway Pass. Available exclusively to Portuguese residents, this pass costs €20 per month and is valid for 30 consecutive days from the selected start date. The pass must be loaded onto a CP card for the chosen period.

    Portugal’s Low Cost of Living: Attracts Investors, Expats and Digital Nomads

    Portugal continues to attract both residents and newcomers, offering strong incentives for those looking to settle temporarily or permanently.

    Residency in Portugal provides visa-free travel across all 29 Schengen countries.

    Remote workers are particularly well positioned to thrive in Portugal, thanks to the country’s robust digital infrastructure and some of the fastest and most reliable internet services in Europe. Beyond affordability, Portugal’s pro-investment climate and favourable tax frameworks continue to draw expats, entrepreneurs, and investors.

    Cost of Living vs Quality of Life in Portugal

    Portugal offers a highly attractive balance between cost of living and quality of life, despite one notable drawback: relatively low salaries compared to other Western European countries. Beyond this, however, the country consistently delivers a high standard of living at a significantly lower cost than destinations such as the United States, the United Kingdom, South Africa, India, among others.

    Quality of life is shaped by multiple factors, including healthcare, safety, education, climate, and air quality—areas in which Portugal performs exceptionally well.  

    Safety is often a top priority for individuals considering relocation. Portugal stands out globally in this regard, ranking among the .

    In the 2025 Global Peace Index, an annual report published by the Institute for Economics and Peace. Low levels of violent and non-violent crime make it a secure destination for both individuals and families.  

    Air quality is another increasingly important consideration for expats, particularly as air pollution continues to affect health and quality of life in many countries. Portugal also has one of the , outperforming countries such as Germany, France, Belgium, the United Kingdom, and the United States.

    Social integration is also relatively smooth. Portuguese society is widely regarded as warm and welcoming to foreign residents, and language barriers are minimal thanks to , making everyday life and professional interactions more accessible for newcomers.

    Adding to its appeal, Portugal is one of the , enjoying over 300 days of sunshine per year.

    With accessible healthcare, reputable schools and universities, and a comparatively low cost of living, Portugal provides an environment well suited to individuals, couples, and families seeking a high quality of life without the high costs associated with many other developed countries

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    • Cascais

    • Loures

    • Mafra

    • Moita

    • Montijo

    • Odivelas

    • Oeiras

    • Palmela

    • Seixal

    • Sesimbra

    • Setúbal

    • Sintra

    • Vila Franca de Xira

    INE (Portugal’s National Statistics Institute) reported on June 27th 2025,
    Portugal’s average housing prices
    safest countries in the world
    cleanest air quality
    strong English proficiency
    sunniest countries in Europe