Overview of Living Costs in Portugal
Portugal remains a popular destination for foreign nationals due to its balanced quality of life. However, for 2025 and 2026, the cost of living reflects significant inflationary trends, particularly in the housing sector. Expenses vary greatly depending on the region; Lisbon, Porto, and the Algarve are the most expensive, while inland districts like Castelo Branco or Portalegre offer more affordable alternatives.
When planning a move, it is essential to distinguish between the national minimum wage and the actual "living wage" required for a comfortable life. As of January 2026, the projected national minimum wage is approximately 870 EUR ($913 USD, Jan 2026) per month, based on 14 payments per year. Prospective residents should consult official government resources such as the Official Portal of the Portuguese Government for the most recent labor updates.
Housing and Accommodation
Housing is the single largest expense for foreigners in Portugal. Supply shortages in major urban centers have led to a competitive rental market. Rental contracts typically require a Portuguese tax number (NIF) and often demand several months of rent in advance plus a security deposit.
Average Rental Prices
- One-bedroom apartment (Lisbon City Center): 1,200 EUR – 1,600 EUR ($1,260 – $1,680 USD, Jan 2026).
- One-bedroom apartment (Porto City Center): 900 EUR – 1,300 EUR ($945 – $1,365 USD, Jan 2026).
- Three-bedroom apartment (Outside City Centers): 900 EUR – 1,400 EUR ($945 – $1,470 USD, Jan 2026).
Utilities and Services
Utility costs include electricity, water, and gas. Many modern apartments are "all-electric," which can lead to higher bills in winter due to poor insulation in older buildings. High-speed fiber internet is widely available and usually bundled with mobile and television services.
- Basic utilities (85m2 apartment): 120 EUR – 180 EUR ($126 – $189 USD, Jan 2026).
- Internet and Mobile Bundle: 60 EUR – 80 EUR ($63 – $84 USD, Jan 2026).
Food and Grocery Expenses
The cost of food in Portugal is relatively stable compared to Northern Europe. Shopping at local markets (Mercados Municipais) often provides better value for fresh produce, while large supermarket chains like Continente, Pingo Doce, and Auchan offer a wide range of international goods.
Grocery Staples
- Milk (1 liter): 0.95 EUR ($1.00 USD, Jan 2026).
- Bread (500g): 1.30 EUR ($1.37 USD, Jan 2026).
- Rice (1kg): 1.40 EUR ($1.47 USD, Jan 2026).
- Eggs (12 units): 2.80 EUR ($2.94 USD, Jan 2026).
Dining Out
Portugal maintains a strong culture of eating out. The "Prato do Dia" (Plate of the Day) is a cost-effective lunch option found in most traditional Portuguese tascas.
- Inexpensive Lunch Menu: 10 EUR – 15 EUR ($10.50 – $15.75 USD, Jan 2026).
- Three-course dinner for two (Mid-range): 45 EUR – 70 EUR ($47.25 – $73.50 USD, Jan 2026).
- Coffee (Espresso/Bica): 0.80 EUR – 1.20 EUR ($0.84 – $1.26 USD, Jan 2026).
Transportation and Healthcare
Public transportation is efficient in metropolitan areas. For residents, the "Navegante" or "Andante" passes offer significant savings. Foreigners should note that owning a car involves high taxes (ISV and IUC) and fuel costs are among the highest in Europe.
Transportation Costs
- Monthly Metropolitan Pass (Lisbon/Porto): 30 EUR – 40 EUR ($31.50 – $42 USD, Jan 2026).
- Gasoline (1 liter): 1.80 EUR – 2.00 EUR ($1.89 – $2.10 USD, Jan 2026).
- New Compact Car (Basic): 22,000 EUR – 28,000 EUR ($23,100 – $29,400 USD, Jan 2026).
Healthcare Access
Legal residents have access to the National Health Service (SNS), which is mostly free but can have long wait times for non-urgent procedures. Many foreigners opt for private health insurance to access private hospitals (e.g., CUF, Luz, Lusíadas).
- Private Health Insurance (Basic/Monthly): 40 EUR – 70 EUR ($42 – $73.50 USD, Jan 2026).
- Private GP Consultation: 50 EUR – 80 EUR ($52.50 – $84 USD, Jan 2026).
For more information on healthcare registration, visit the Serviço Nacional de Saúde (SNS) website.
Administrative and Legal Requirements
Moving to Portugal involves mandatory administrative costs. These vary based on whether the applicant is an EU/EEA citizen or a Third Country National (TCN). TCNs must manage their applications through AIMA (Agency for Integration, Migration and Asylum).
- NIF (Tax Number) Registration: 0 EUR (if done in person) to 150 EUR ($157.50 USD, Jan 2026) via a representative.
- Resident Permit Application (TCN): 150 EUR – 600 EUR ($157.50 – $630 USD, Jan 2026) depending on the visa category.
- EU Citizen Registration (Certificado de Registo): 15 EUR ($15.75 USD, Jan 2026).
Residents are also subject to personal income tax (IRS). Foreign nationals should investigate the specific tax regimes applicable for 2025/2026, as the former "Non-Habitual Resident" (NHR) program has been replaced by the IFIC (Incentive for Scientific Research and Innovation) for specific professional categories.