Whether you’re planning to live in Portugal permanently or simply enjoying a holiday break, day-to-day life in this beautiful southern European country comes with financial considerations. But what about the price tags? Are they kind to your wallet? Let’s dive into the everyday expenses you can expect when living in Portugal.
Groceries at the Supermarket
When it comes to everyday necessities, Portugal is notably affordable. According to the Groceries Index of European countries (2023), the cost of basic foodstuffs such as bread, vegetables, and fruit is generally well below the European average. Local markets offer a treasure trove of fresh, regional products at very reasonable prices, where you can buy everything from farm-fresh produce to locally sourced cheeses.
Supermarkets have also become increasingly competitive in recent years, with a significant rise in the number of large chains across the country. This competition benefits consumers, with prices kept low, particularly in well-stocked wine departments where you can find quality Portuguese wines at attractive prices. For instance, a liter of milk typically costs around €1.10, and a loaf of fresh white bread is about €1.50. Seasonal fruits and vegetables are often priced much lower when bought in local markets, with a kilogram of apples costing around €2 and potatoes around €1.
A Drink on the Terrace
Portugal is famous for its rich coffee culture. Whether you are visiting a bustling city or a sleepy village, you’ll always find a ‘pastelaria’ where you can enjoy a delicious cup of coffee with a sweet pastry. The price of a Portuguese espresso, known as a bica, remains one of the most affordable in Europe, still hovering around €1.
If you want to soak up the sun later in the day on a terrace with a refreshing drink, you’ll be pleasantly surprised by the affordability. According to Beerena.com, the average price of a beer in Portugal is around €2, making it one of the cheapest in Europe, second only to some Eastern European countries. However, it’s worth noting that the location can significantly affect the price. A beer in a trendy beach club might set you back more than €4, while a similar drink at a traditional Portuguese café might cost only €1.50.
Eating Out in Portugal
Dining out in Portugal is not only a culinary delight but also very budget-friendly. It’s common for locals to eat out frequently, especially during lunch, thanks to the abundance of reasonably priced options. Many restaurants offer a “Prato do Dia” (dish of the day), a popular choice that includes a main course, often accompanied by bread, a drink, and sometimes dessert, all for a modest price.
According to Numbeo, the average cost for a three-course meal for two at a mid-range restaurant is approximately €40. However, in typical Portuguese eateries, the “Prato do Dia” can be enjoyed for as little as €9.50. If you’re dining at a casual local restaurant, you can expect to spend about €10-€15 per person, including a glass of wine or a beer. For a more indulgent experience at a high-end restaurant, a meal might cost between €50-€80 for two people, but this is still quite affordable compared to other Western European countries.
Additionally, tipping is customary in Portugal, with around 10% of the bill being the norm for good service. However, tipping is not obligatory, and the amount can be adjusted based on the level of service received.
Housing and Utilities
One of the most significant factors in the cost of living is housing. In Portugal, rent and property prices are generally more affordable than in many other Western European countries, although they vary greatly depending on the location. For example, renting a one-bedroom apartment in the city center might cost around €700-€1,200 per month, depending on the city. In smaller towns or more rural areas, you can find similar accommodations for as little as €400-€600 per month.
Utilities, which include electricity, heating, cooling, water, and garbage collection, typically cost around €100-€150 per month for a standard 85m² apartment. Internet and cable packages are also reasonably priced, with high-speed internet (60 Mbps or more) averaging around €30 per month.
Transportation Costs
Public transportation in Portugal is both efficient and economical. A monthly public transport pass in major cities like Lisbon or Porto typically costs around €40-€50, offering unlimited access to buses, trams, and the metro. For those who prefer driving, fuel costs are in line with the European average, with gasoline priced at around €1.80 per liter.
Taxis and ride-sharing services are also affordable, with a typical short trip within a city costing between €5 and €10. For longer journeys, Portugal’s well-developed rail network provides an inexpensive and comfortable way to explore the country, with a one-way ticket from Lisbon to Porto costing around €25-€30.
Healthcare and Insurance
Portugal offers a high standard of healthcare, with a public system that is free or very low-cost for residents. However, many expats and those who prefer quicker access to specialists opt for private health insurance, which is relatively affordable. A comprehensive health insurance plan might cost around €40-€100 per month, depending on the level of coverage.
Entertainment and Leisure
Leisure activities in Portugal also come at a friendly price. Cinema tickets cost around €7-€9, while a fitness club membership is typically around €30-€50 per month. Many cultural sites, such as museums and historical landmarks, offer discounted rates for residents and seniors, making it easy to enjoy Portugal’s rich heritage without breaking the bank.
Conclusion
To summarize, living in Portugal is a relief not only because of the wonderful climate and beautiful surroundings but also because of the friendly prices that daily life here entails. Whether it’s enjoying affordable groceries, sipping a €1 coffee at a local café, or dining out at a fraction of the cost you’d expect in other European countries, Portugal offers an attractive cost of living that is hard to beat. From urban living in vibrant cities to a more relaxed lifestyle in coastal or rural areas, Portugal provides a variety of options for every budget, making it an appealing destination for both expats and visitors alike.
