Clear answers for your move to portugal

Honest guidance from an english expat on the silver coast. no hype. no pressure. just practical help.

Cost of Living in Portugal 2026

Is Portugal Affordable?

The Short Answer

Portugal is more affordable than the UK, USA and most of Western Europe.

But costs have risen significantly since 2020.

The Honest Answer

  • Lisbon is expensive

  • Tourist parts of the Algarve are expensive

  • Porto is increasingly expensive

  • The Silver Coast and interior remain good value

  • Your lifestyle determines your costs

Affordability depends entirely on where and how you live.

Detailed cost breakdown

The single biggest worry people have about the cost of living in portugal is housing.

Renting

Silver Coast:

  • 1-bed apartment: €500-700

  • 2-bed apartment: €650-900

  • 3-bed house: €800-1,200

Lisbon:

  • 1-bed apartment: €900-1,400

  • 2-bed apartment: €1,200-1,800

  • 3-bed house: €1,500-2,500

Algarve (year-round rental):

  • 1-bed apartment: €700-1,000

  • 2-bed apartment: €900-1,300

  • 3-bed house: €1,100-1,800

Buying

Silver Coast averages:

  • Apartment (2-bed): €150,000-250,000

  • Townhouse: €200,000-350,000

  • Detached villa: €300,000-600,000

Renovation projects available from €50,000-150,000 (plus renovation costs).

Please note this is just a guide, if you need help finding a rental, please contact me.

An honest breakdown of what life in portugal actually costs

Utilities

Electricity: €60-150 monthly depending on:

  • Property size

  • Heating/cooling use

  • Energy efficiency

Portugal has relatively expensive electricity by European standards.

Water: €20-35 monthly for normal usage.

Gas: €20-50 monthly if applicable. Many properties are all-electric.

Internet: €30-50 monthly for good speeds. Fibre available in most areas.

Food

Supermarkets:

Major chains and typical costs:

  • Continente: widest range, mid-price

  • Pingo Doce: good value, quality own-brand

  • Lidl: budget-friendly

  • Aldi: budget-friendly

  • Intermarché: reasonable

Weekly shop for couple: €70-100

Local Markets:

Fresh produce often cheaper than supermarkets:

  • Fruit and vegetables: excellent value

  • Fish: very fresh, good prices

  • Meat: comparable to supermarkets

  • Build relationships with vendors

Eating Out:

  • Local restaurant main course: €8-15

  • Tourist area main course: €15-25

  • Coffee: €0.70-1.50

  • Beer: €1.50-3.00

  • Wine (glass): €2-5

Eating out remains affordable compared to Northern Europe.

Transport

Car Costs:

  • Fuel: €1.60-1.80 per litre

  • Insurance: €200-600 annually

  • Road tax: €0-300 annually (based on vehicle)

  • Maintenance: varies

  • Tolls: depends on usage

Public Transport:

  • Bus ticket: €1.50-3

  • Train (regional): €3-15

  • Monthly passes: €30-50 in cities

Less practical in rural areas.

Healthcare

Private Insurance: €40-150 monthly per person depending on age and coverage.

Public Healthcare: Minimal costs once registered:

  • Consultations: €4.50-15

  • Many services free

Dental (private):

  • Check-up: €30-50

  • Cleaning: €40-60

Phone and Communications

Mobile:

  • Basic plans: €10-15 monthly

  • Unlimited data plans: €25-40 monthly

Home Phone: Usually bundled with internet.

Hidden costs people forget

Setting Up

  • Deposits (often 2-3 months rent)

  • Utility connection fees

  • Furniture if rental unfurnished

  • Kitchen equipment

  • Bureaucratic costs (translations, apostilles)

Budget €3,000-10,000 for initial setup depending on situation.

Ongoing

  • Property maintenance (if owner)

  • Annual property tax (IMI)

  • Vehicle inspections

  • Healthcare deductibles

  • Home contents insurance

  • Travel back home

Lifestyle 

Many expats spend more than planned because:

  • Eating out is affordable (so you do it more)

  • Wine is cheap (so you drink more)

  • Visitors come often (entertaining costs)

  • Projects accumulate (that renovation, that garden)

Budget honestly for the life you will actually live.

Saving Money Tips

Housing

  • Look beyond popular towns

  • Consider inland areas

  • Negotiate rent for longer leases

  • Avoid English-language listings (premium prices)

Food

  • Shop at local markets

  • Cook at home more

  • Buy seasonal produce

  • Supermarket own-brands are good quality

  • Lunch menus cheaper than dinner

Utilities

  • LED lighting throughout

  • Efficient appliances

  • Good insulation if buying/renovating

  • Solar water heating common

  • Off-peak electricity if available

Transport

  • Smaller, efficient car

  • Combine trips

  • Use toll-free roads when practical

  • Public transport in cities

How Far Do Pensions Go?

UK State Pension

The full UK state pension (approximately £900 monthly / €1,050) provides:

  • Modest lifestyle if owning property outright

  • Tight budget if renting

  • Comfortable combined with private pension

Private Pensions and Investments

Additional €1,000-2,000 monthly allows comfortable lifestyle in most areas outside Lisbon.

Social Security

Portugal has minimum income thresholds for some visas. Ensure you meet requirements.

Currency Considerations

Pound to Euro

Exchange rate fluctuations significantly impact UK income.

Plan for volatility:

  • Use currency specialists (Wise, CurrencyFair)

  • Consider regular transfers to smooth rates

  • Keep emergency fund in both currencies

Dollar to Euro

Similar considerations for US income.