How much does it cost to live in Portugal?

Rent is by far the biggest cost in Portugal, and Lisbon is in a league of its own: the same flat costs more than twice as much there as in Braga. Here’s what a typical household spends, using 2026 figures.

Rent by place

Rents are quoted per month. These are typical asking rents for an unfurnished flat, worked out from idealista’s September 2026 median asking rent per square metre in each city, applied to a typical 80m² two-bedroom flat (in Portugal a T2) and scaled for other sizes. They are the figures our calculators use. They are market estimates, not official data, and new contracts in central or sea-view areas often cost more.

Faro city is cheaper than the Algarve as a whole: the Algarve’s median was €20.80 per m² in September 2026, after a 15.2% rise in a year, so coastal towns cost more than our Faro figures. With a written agreement a landlord can ask for a deposit (caução) of up to 2 months’ rent and up to 2 months’ rent in advance. See Where in Portugal should we live? and How do deposits and rental contracts work?

Bills

In most rentals you pay your own electricity, water, gas and internet.

Our calculators allow €100 a month for electricity, water and gas in a flat and €170 in a house, plus €25 for internet and €10 per mobile. Heating in winter can push bills up; see What are the cooler months like, and how do we make the most of them?

Tax on what you buy (IVA)

Portugal’s VAT is called IVA, and shop prices include it. Madeira and the Azores set their own lower rates.

Which rate applies depends on the product and where the sale takes place.

Food and eating out

Portugal’s household budget survey (INE, 2022/23) found that the average household spent €23,900 a year, of which €3,091 went on food. Our calculators allow €150 a month per adult and €90 per child for food at home, allowing for price rises since then. See Food shopping and eating out.

These are crowd-sourced Numbeo prices from June 2026, so treat them as a rough guide. A fixed-price lunch (prato do dia) at a local café is often the cheapest way to eat out.

Getting around

Outside the cities many people rely on a car. See Can I live in Portugal without a car? and Can I drive on my UK licence?

Health cover

Some visas need private health insurance until you are registered with the national health service (SNS), and some people keep it afterwards. Our calculators allow €80 a month for an adult. See How does Portuguese healthcare work for Brits?

A sample monthly budget in Lisbon

This adds up the figures above. It leaves out eating out, childcare, school fees, health insurance, a car and holidays.

With the same household, the total is about €380 to €550 a month lower in Porto and €890 to €1,300 lower in Braga, almost all of it rent. Try your own numbers in the cost of living calculator, and work out how much to save before you go with the moving fund calculator.