Portugal Living 2025-02-18

The True Cost of Living in Portugal: A Breakdown by City

Discover the true cost of living in Portugal, covering Lisbon, Porto, Faro, Coimbra, Funchal and Cascais, with tips for finding the perfect city.

Colorful buildings along Porto's riverside with traditional architecture

Image by Nick Karvounis

Fabrizio Picture

Fabrizio

Southern Move Co-Founder

Table of Contents

Portugal, with its stunning coastline, rich history, and welcoming culture, has become a top destination for expats, digital nomads, and retirees.

When considering a move, one of the most crucial factors to evaluate is the cost of living, which varies considerably across different cities. In this article, we’ll explore the cost of living in some of Portugal’s most popular cities, providing an overview of housing, transportation, food, and lifestyle expenses.

Lisbon: The Vibrant Capital

Lisbon, Portugal’s capital, is known for its historic neighborhoods, scenic views, and cultural offerings. While it’s the most expensive city in Portugal, salaries are generally higher here as well.

  • Rent: Expect to pay between €1,000 and €1,800 for a one-bedroom apartment in the city center, with prices decreasing to around €800–€1,200 in outer neighborhoods.
  • Utilities: Monthly utility costs (electricity, heating, cooling, water, and garbage collection) typically range from €120 to €200.
  • Transportation: A monthly public transport pass costs about €50, while taxis start at approximately €3.50.
  • Food: Grocery costs are reasonable, with a typical weekly shop costing around €60–€80 for a single person. Dining out varies from €10 for a casual meal to €25–€50 for a mid-range restaurant.
  • Lifestyle: Lisbon offers a plethora of activities, from historical sites to nightlife. Expect to pay around €40–€70 for a gym membership, while cinema tickets cost about €8.

Porto: The Charming North

Porto, famous for its port wine and stunning riverside views, is more affordable than Lisbon, making it a popular choice for expats and digital nomads.

  • Rent: A one-bedroom apartment in the city center costs between €700 and €1,200, while outer areas can range from €500 to €800.
  • Utilities: Monthly utilities typically cost between €100 and €150.
  • Transportation: Public transport is budget-friendly, with a monthly pass costing around €30. Cycling is also popular and accessible.
  • Food: Weekly grocery shopping averages around €50–€70. Dining out is quite affordable, with local meals costing between €8 and €15.
  • Lifestyle: Porto boasts a vibrant arts scene, with gym memberships costing about €25–€50 and entertainment options such as museums costing around €5–€10.

Cascais: Coastal Charm Near the Capital

Cascais, located just a short train ride from Lisbon, is a picturesque coastal town known for its beautiful beaches and upscale lifestyle. It offers a relaxed atmosphere while still being close to the capital.

  • Rent: A one-bedroom apartment in the city center costs between €900 and €1,500, while rents in surrounding areas can range from €700 to €1,100.
  • Utilities: Expect to pay around €100–€150 for monthly utilities.
  • Transportation: A monthly public transport pass is free for residents or about €45 for non residents. Many residents also rely on trains to commute to Lisbon.
  • Food: Grocery costs are similar to Lisbon, with a weekly shop costing around €60–€80. Dining out can be slightly more expensive, with meals at local restaurants ranging from €15 to €30.
  • Lifestyle: Cascais is famous for its beaches and outdoor activities, including surfing and hiking. Gym memberships typically cost around €40–€70, while cultural events are often free or low-cost.

Faro: Gateway to the Algarve

Faro, the capital of the Algarve region, is known for its stunning beaches and warm climate. It offers a laid-back lifestyle at a lower cost compared to Lisbon and Porto.

  • Rent: In the city center, one-bedroom apartments cost between €600 and €900, while outer areas can be as low as €400–€650.
  • Utilities: Monthly utility costs range from €80 to €120.
  • Transportation: A monthly public transport pass costs around €35, and biking is a viable option in this region.
  • Food: Grocery costs are approximately €30–€50 weekly, and dining out is quite economical, with meals at local restaurants averaging €8–€12.
  • Lifestyle: Faro offers beautiful beaches and outdoor activities, with gym memberships around €25–€40 and movie tickets costing about €7.

Coimbra: Affordable Student Life

Coimbra, home to one of the oldest universities in Europe, offers an affordable cost of living combined with a youthful atmosphere.

  • Rent: Expect to pay between €400 and €700 for a one-bedroom apartment in the city center, while outer neighborhoods range from €300 to €500.
  • Utilities: Monthly utility expenses can range from €70 to €120.
  • Transportation: A public transport pass costs around €30, making it a convenient option for residents.
  • Food: Weekly groceries typically cost about €25–€40. Eating out is budget-friendly, with local meals costing around €6–€10.
  • Lifestyle: With a vibrant student community, Coimbra offers cultural activities, gym memberships averaging €20–€30, and affordable entertainment options like theater tickets.

Braga: Historical and Modern

Braga, known for its rich history and youthful energy, combines affordability with a high quality of life.

  • Rent: A one-bedroom apartment in the center costs between €500 and €800, with outer areas ranging from €400 to €600.
  • Utilities: Monthly utilities typically cost around €80–€120.
  • Transportation: Public transportation is economical, with a monthly pass costing about €30.
  • Food: Grocery shopping averages around €30–€50 per week, while dining out can range from €8 to €15.
  • Lifestyle: Braga is known for its cultural events and festivals. Gym memberships cost about €25–€40, with cultural attractions typically priced around €5–€10.

Conclusion

Portugal offers a diverse range of living costs depending on the city you choose. While Lisbon and Porto may be at the higher end, cities like Faro, Coimbra, and Braga provide affordable options without compromising quality of life. By understanding the cost breakdown in each city, you can make an informed decision on which location suits your lifestyle and budget.

Whether you’re a digital nomad, retiree, or someone looking to relocate, Portugal has something to offer everyone, making it an attractive destination for a new beginning.