Cost of Living in Portugal


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cost of living in portugalThe reasonable cost of living in Portugal has attracted expats from all over the world.

Though still not as tempting as its Iberian neighbour, the country is increasingly appealing to more Northern Europeans and Britons who have spied a fine opportunity to stretch their Euros and Pounds on Portugal's sun-soaked shores.

Not to mention, retirees and pensioners looking to invest in overseas housinghave taken a particular liking to the market of affordable property in Portugal.

As is the case in most destinations, in major cities such as Lisbon, Estoril and Cascais, the cost of living is much higher than in more rural communities; and depending on lifestyle choices, has nearly reached European averages.

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.

The cost of food in Portugal is much cheaper compared to other Western European countries, . Two adults can easily survive on a food and drink budget of less than a third of the average salary in Portugal.

Except for extremely expensive expat resorts and golf homes, such as in the Algarve, property is less expensive than the European average. Renting is also good value. An expat living in Portugal will spend between a third and a half of the average Portuguese salaly on rent. This often includes water, electricity and gas bills.

Portugal is a coastal country, and thus enjoys abundant and affordable seafood. Several regions in Portugal also make and distribute wine, both locally and internationally, allowing for extremely affordable bottles. Meat products are slightly more expensive, as are poultry and eggs.

Expats should note that car and petrol costs are considerably expensive in contrast to many other parts of Portuguese life: some find themselves paying thousands of euros for a rust-bucket on its last legs. Alternatively, public transport options are cheap and efficient.

Overall, the cost of living in Portugal heavily depends location and the lifestyle of the individual, but in general, offers good value to expats and retirees.

Cost of Living in Portgual Chart (Based on Lisbon, 2014) 

(Note that prices may vary depending on product and service provider and the list below shows average prices)
Accommodation (monthly rent in good area)
Furnished two-bedroom house EUR 800 -1,000
Unfurnished two-bedroom house EUR 750 - 900
Furnished two-bedroom apartment EUR 800 - 950 
Unfurnished two-bedroom apartment EUR 700 - 900
Food and drink
1 litre milk EUR 0.70
12 eggs EUR 2
Loaf of bread (white) EUR 1
1 kg rice EUR 1.70
1 litre Coca-Cola EUR 1.50
1kg chicken (whole) EUR 6
1 packer of Malboro cigarettes (20) EUR 5.50
Utilities
Monthly internet (Uncapped ADSL or Cable) EUR 25 
Mobile call rate (per minute - mobile to mobile) EUR 0.34
Monthly electricity (100sq.m apartment) EUR 100
Hourly rate for a domestic cleaner EUR 6-15
Eating out and entertainment
Three-course mid-range restaurant meal EUR 40
Big Mac meal EUR 5.40
Cappucino EUR 2.50
Coca-Cola (500 ml) EUR 1.90
Beer in a bar EUR 3
Transportation
Taxi/km EUR 1.50
City bus EUR 1
Petrol per litre EUR 1.58

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