Living Cost In Portugal: How Expensive Is It?

 

Portugal is often thought of as an affordable place to visit. It is the land of sun, sea, and surf. You will also find many things to do in Lisbon, the charming capital, and other cities.  It is a place where you can get a delicious glass of wine for €3. That will make you wonder about the living cost in Portugal.

Is Portugal expensive to live? The country is the land of stark contrasts. The minimum wage within the country is less than €800 per month, which isn’t much, especially if you live in Lisbon or Porto.

Salary doesn’t increase much once you climb the rankings. For example, a senior marketing position at an agency will pay around €1,800 per month (if that). So if salaries are so low, how affordable is it to live in Portugal? Yvonne Ivanescu, an expat living in Portugal and founder of the website Now In Portugal, will answer this question.

A Backstory

Well, let’s break it down, point by point, no fluff—first, a little bit of a backstory. My husband and I moved to Lisbon from Belgium in June 2020. We were planning to live in Almada, right across the bridge from Lisbon. We had picked out a two-bedroom apartment that was approximately €700 furnished.

Rent will be your main expense and depending on where you choose to live, your living cost in Portugal can be high. Or at least higher than people would normally expect.

The day before I was supposed to fly to Portugal to sign the lease and get the keys, the pandemic hit. You see, we didn’t consider moving to Lisbon pre-pandemic because the prices in the city were astronomical. A two-bedroom in a lovely part of town was at least €1,000 per month, if not more. And unfortunately, at the time, that was just not in our budget. But as the pandemic grew longer, the rent prices in Lisbon dropped. And when we decided to move, we realized that renting in Lisbon was now a possibility. 

Remember, this cost breakdown is lifestyle-specific. We are a couple in our mid-thirties, with a dog, no children. As a result, our monthly living costs in Portugal reflect this part of our life. The cost of living in Portugal can vary depending on whether you are a backpacker or a family of four. 

Nevertheless, this is my story and experience living in Portugal.

Living Costs in Portugal

Rent in Lisbon and Porto is higher than in most regions. To give you a little bit of perspective, a friend of mine lived in the beach town of Ovar, around a 20-minute drive from Porto. At the time, he was paying around €350 per month for a three-bedroom, furnished apartment. In Porto, for that price, he could only pay for a room in a shared apartment. 

Rent prices in Lisbon and Porto start around €900 for a decent two-bedroom apartment. When we moved to Lisbon, many Airbnbs had recently started offering apartments for long-term accommodation in Porto and Lisbon.

We had a furnished two-bedroom apartment for €900 per month, which had internet and water. We only had to pay for the electricity, which was €40-60 during the summer and €80-90 during the winter months (because of umm heating). I am following a guy on TikTok who is living in a beautiful two-floor one-bedroom fully-furnished apartment right in Chiado, and he pays €1,800 per month (with a garage). That shows how Lisbon can be expensive to live.

A Move to Costa

The second lockdown was particularly hard on us, so we decided to move out of the city like many people. We ended up moving in April 2020 to Costa da Caparica, which is right across the bridge from Lisbon (around a 20-minute drive).

We now pay the same amount, €900, for a 2-bedroom apartment which is around 90m2. Unfortunately, unlike Airbnb, we had to do everything ourselves, including turning on the water, heating, and setting up the internet.

So here is the breakdown of what we pay for our utility bills:

• Water = €30-40 per month
• Electricity = €30-40 per month
• Internet = €50-60 per month (there are packages available at major providers that include things like television, home internet, and phone)
• Gas = €50-70 per month 

As I mentioned previously, if you want to move a little outside of the cities, you can find more affordable apartments. But there are still areas outside the main cities that have become digital nomad “hotspots”—these areas still have high rent prices.

An example of this is the surf town of Ericeira, which has a higher cost of living. It can be tricky to find any apartment there in the center (or near the center) for less than €700.

The “Friend” Price

This price is usually reserved for the Portuguese or someone who is well inserted into the Portuguese community—someone who has a friend of a friend who has an apartment.

We were looking at buying some apartments within the area of Costa da Caparica, and we visited one that had a stunning view. It was small, and a couple was currently living there. The Remax woman told me that we could easily rent out the apartment if we wanted to in the future for at least €700 per month.

We asked how much the couple was paying at the moment, to which she replied, oh, they are getting the friend price, €300 per month. I was so uncomfortable with the price difference that I felt like saying obrigada, ironically (that’s thank you in Portuguese).

Another time we were SUPing in Arrabida. We met with someone who was also from Costa. He was surprised about how much we paid for rent and stated that he previously rented out his two-bedroom with a backyard near where we currently live for around €700.

The question of rent is tricky. But one thing that I should note, which I also pointed out in an article that I wrote about things I wish I had known before moving to Portugal, is that when apartment hunting, make sure to look for air conditioning units that can provide heat. Winters in Portugal can be cold, and central heating is rare in many apartments. 

Living Cost In Portugal: Groceries

Like many other countries, the price of grocery shopping depends on where you go. There are grocery shops that are cheaper than most, which in this case would be Lidl or Aldi. Then you have the mid-range stores like Auchan and the pricey ones, which would be the Corte Ingles grocery store. You can apply for a Makro card if you have a business, which is also a great place to shop in bulk.

If you choose to buy your groceries at the cheaper or mid-range supermarkets, your living costs will be considerably lower.

It also depends on what you intend on buying. If you are the type of person that loves eating brie or feta cheese daily, then your grocery bill is going to add up. Some items considered premium will make your living expenses in Portugal higher.

A friend of mine once told me that she could feed her family of four with around €50 of groceries per week. Unfortunately, I haven’t mastered the fine art of grocery shopping yet, so my grocery bill isn’t that low. Our grocery bill ranges from €350 to-500 per month—this is also because I like sprinkling in organic items, which is always more expensive.

Then there are the markets. Portugal is a land of farmers, so there are a lot of markets selling fresh food in and around major cities where farmers come together and sell their crops.

You can even travel to these places if you’d like. In the summertime, we would often see stalls on the side of dirt roads selling things like cherries or even potatoes. Again it depends on the place. In Lisbon, the Mercado Biológico do Principe Real is fantastic, but it comes with a price. 

Cost of Living in Portugal: Eating Out

A lot of these sections come with a giant asterisk, as living in Portugal can be very affordable or as expensive as living in other places in Europe. Eating out is no different. Costs in Portugal can really vary. Let’s look at an example.

In São João de Caparica, there are 5-6 different beach bars lined up, one right beside the other. Now, if you go to Classic Beach (which is created By Oliver), then you’ll pay €25 for a Wagyu burger and €7-10 for a glass of wine. Right next to it is Chiado, where you can get a glass of wine (poured right to the rim) for €4 and a burger for €8 (yes, I know that it’s not Wagyu). If you want the bottle, there are many options for €7-10

Each location has the same view and a variety of food options. They’re both excellent. So, in the end, it’s all about what you prefer. 

In Portugal, local dishes are often cheaper. For example, a delicious bitoque at a local tasqueria can cost around €7. But if you are in the mood for Italian, Mexican, or Thai food, then the price starts to increase.

I love Mexican food and found a great delivery-only restaurant that offers reasonable prices. We order a 2-person at-home taco kit, plus dessert and drinks for around €40-50. In Porto, my husband and I ate at a Mexican place where we ordered an appetizer to share, two separate taco dishes (6 tacos), two glasses of wine, and a dessert. In total, we paid €40. Again this depends on where you go.

I recently went on a trip to Guimaraes. We went to a top restaurant, ordered an appetizer, steak, ribs, bacalao, two glasses of wine, a caipirinha, a coke, and dessert, all for €70. I would assume that a  similar bill in a Lisbon or Porto restaurant would have been double.

Now I need to get something off my chest, that goes beyond the living cost in Portugal; it may be controversial so brace yourself. As a Canadian, I grew up with a plethora of food options at my fingertips.

When I moved to Brussels, I also found that there were a lot of options. I LOVE eating different types of food; whether it be Italian, Polish, Romanian, Indian, Greek, or Thai, I am all for it. However, I’ve found it difficult to find good value in Lisbon for the quality in this particular category.

Yes, there are different types of restaurants offering a range of international cuisine, but I almost always find myself disappointed in the end. The food is almost always “meh,” and value for money is not there. I’m still on the lookout, so please send any recommendations my way.

Living Expenses in Portugal: All The Extras

Now, how about the extras? As a Canadian, I find shopping for anything can be tricky in Portugal. Or maybe because I haven’t found the RIGHT places to look. I always find that there are two levels.

Living in Portugal, you must accept that things are either cheap or are expensive—there isn’t a middle ground. But at the same time, I come from the land of sales. We all know that many European countries only have two official sales, summer, and winter. And those sales are not earth-shattering.

I tend to go to Corte Ingles to peruse the items during sale times and still leave empty-handed. Yes, the dress is 40% off, but that only means that instead of €300 that sweater is now €180.

Sometimes I long for the days in Canada, the land of Marshalls and Winners, where you can find a Pajar jacket priced originally for over $500 for LESS than $100. Don’t get me wrong; I am not advocating for over-consumption. But sometimes you just need a sweater. 

There are even some essential items that need to be ticked off that shopping list. I had to ask my mother to bring me fluffy towels from Canada. I couldn’t find good quality, soft, thick towels for less than €20 (Ikea). To put it into perspective, my mom ended up paying CAD$12 (€9) for a deliciously fluffy towel that she brought to me. These are some subjective things to consider when living in Portugal: some items can be expensive, but the quality is not there.

Then there was the question of furnishing my apartment. Again this might be due to my inexperience with shopping. I also had trouble finding good quality furniture, other than Ikea—do we consider Ikea as good quality by the way?

It seems like you either have cheaper options like Ikea or Conforama or high-end shops like KARE. I’ve furnished my WHOLE apartment with Ikea, which isn’t bad but sometimes you want that STATEMENT piece. I found Antarte interesting, but the pieces are still pricey—we paid around €750 for a television stand.

Is it cheaper to live in Canada or Portugal? Living in Portugal is 22% cheaper than in Canada.

Portugal Living Cost: Services

Last but not least there are the services. I started to get some treatments done in a beauty center in Lisbon. For facials, I often pay around €60 per session, while pedicures are about €30. I got my hair cut and dyed once in Lisbon and ended up paying €250. Although recently in Costa I was quoted €100 for color. My husband gets his hair cut by a barber in Costa, which is around €9.

Let’s Put Into Perspective 

At this point, you are probably calling me out and saying, HEY! from what I can see, living on Lisbon isn’t that expensive, Yvonne; you are exaggerating. Ok, let’s put it into perspective. I compare Lisbon prices with Belgium, as I lived in Brussels for three years before moving to Portugal.

In Brussels, I lived in a recently renovated 90m2 two-bedroom apartment in the city center for €900 per month (WITH central heating). The food prices were the same, but when I compare services (facials, haircuts) or extra costs like going out for dinner, the costs are almost the same if not sometimes a little cheaper in Brussels.

The big difference, however, is salary. In Belgium, salaries are double what they are in Portugal, which does make a difference in the long run.

I also want to state that I am happy and grateful to be living in Portugal, which is such a beautiful country. It is now my very permanent home. It is where I will spend the majority of my life. I love it here, and this article is in no way bashing how gorgeous this country is. It is merely an article to demonstrate the realities of MY experience living in Portugal and the expenses that go with it. 

So how much do I need to live in Portugal?

As a family of two, I would say that our costs vary from €2,000-€2500 per month. We also have a car payment + insurance and medical insurance that is factored into that total cost. This also doesn’t include any more significant purchases.

So what do you think? Is Portugal expensive to live in? Do you live in Lisbon or anywhere in Portugal and agree or disagree with what I wrote? I would love to hear about it.