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Where to live cheaply in Portugal: 8 towns worth a close look

By The Hello Expat editorial team·Updated on 23 October 2026·7 min read

In this article
  1. Where are the cheapest places to live in Portugal, and why not Lisbon?
  2. How much is rent in Portugal's mid-sized towns?
  3. Which towns in the North: Braga or Guimarães?
  4. Coimbra, Leiria, Viseu: is the Centre worth a look?
  5. Guarda and Castelo Branco: how far should you go to pay less?
  6. Évora: is the Alentejo right for you?
  7. Which pitfalls should you avoid when looking for a cheap place to live in Portugal?

On the platform at Coimbra-B station, the Alfa Pendular from Lisbon stops for barely two minutes. The people getting off have often done the maths: an hour and a half from the capital, the same flat costs almost half as much. That is the whole question when you look for the cheapest places to live in Portugal: leaving Lisbon and Porto without exiling yourself to a village with no doctor and no connection.

We picked eight mid-sized towns, all with a hospital and higher education, and looked at their real rents in the latest figures from INE, Portugal's national statistics institute. For each one, here is what appeals and what does not.

Where are the cheapest places to live in Portugal, and why not Lisbon?

Let us start with the painful figure. Over the twelve months to June 2026, the median rent on new contracts reached about €17.4/m² in Lisbon and €14.5/m² in Porto, according to INE. The national median was around €9.8/m². For a 70 m² flat, that means about €1,200 a month in the capital, compared with less than €700 in a good part of the country.

The trend is not on your side: in the second quarter of 2026, INE recorded a rise of about 10% year on year, and an increase in every sub-region. In other words, mid-sized towns are going up too, but they start from much lower.

Looking for the cheapest places to live in Portugal therefore means accepting a trade-off: lower rent in exchange for less choice (jobs, direct flights, cultural life, international schools). If you are still hesitating between the two big cities, our comparison Lisbon or Porto will help you lay the groundwork.

How much is rent in Portugal's mid-sized towns?

Here are the median rents on new leases, per square metre, over the twelve months to June 2026. The amounts for 70 m² are a simple order-of-magnitude calculation.

Town Median rent (€/m²) For 70 m², approx.
Lisbon 17.4 €1,220
Porto 14.5 €1,010
National average 9.8 €680
Coimbra 9.4 €660
Évora 8.7 €610
Braga 8.7 €610
Leiria 8.0 €560
Guimarães 6.9 €485
Viseu 6.8 €480
Castelo Branco 5.3 €370
Guarda 5.3 €370

Two words of caution. These are medians of signed contracts, not asking prices: on property portals, recent or furnished homes are often listed higher. And a municipal median mixes the historic centre with the outskirts. For negotiating, guarantees and lease pitfalls, read our guide to renting in Portugal.

You will notice that Aveiro is missing. Its canals and moliceiros (the colourful boats) are the stuff of dreams, but its median rent, about €9.7/m², is now at the level of the national average. A lovely town, but no longer really cheap.

Which towns in the North: Braga or Guimarães?

Braga ticks a lot of boxes. The Universidade do Minho gives it a large student population, Porto airport is less than an hour's drive away, and the Alfa Pendular links it directly to Lisbon. The sanctuary of Bom Jesus do Monte, a UNESCO World Heritage site, overlooks the town with its baroque staircase. Living in Braga means having a real city, with its traffic jams and lively centre, at about €8.7/m².

The downside: Braga is no longer a secret. Rents have climbed, and the Minho winter is frankly rainy. Budget for a good dehumidifier and shoes that do not mind the water.

Guimarães, some twenty kilometres away, presents itself as the cradle of Portugal (berço da nação), and its medieval centre is a World Heritage site. With a median rent of about €6.9/m², it is one of the most affordable options in the North. Be careful, though: in the second quarter of 2026, according to INE, it was the city of more than 100,000 inhabitants where rents rose most over a year (around 20%). It is catching up.

Coimbra, Leiria, Viseu: is the Centre worth a look?

Coimbra is the university city par excellence, with one of the oldest universities in Europe and a large hospital complex. Living in Coimbra means enjoying an Alfa Pendular stop between Lisbon and Porto, the Mondego river and a cultural life driven by students. The flip side: a median rent close to the national average (about €9.4/m²) and fierce competition for small flats at the start of every academic year in September.

Leiria is less well known among expats, and that is partly what makes it interesting. A castle on the hill, the river Lis, a polytechnic institute, and the coast half an hour away by car, with the beaches of São Pedro de Moel and Nazaré. The median rent is around €8/m². Leiria's weakness is the train: the town is poorly served by rail, and a car quickly becomes essential.

Viseu has an excellent reputation among the Portuguese for its quality of life: a well-kept historic centre, parks, and the Dão wine region all around. At about €6.8/m², it is one of the most balanced towns on this list. But Viseu has had no railway station for decades: everything is done by road, via the A24 and A25 motorways. And like any inland town, it has cold winters and hot summers.

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Guarda and Castelo Branco: how far should you go to pay less?

This is where rents get really low, with a median of around €5.3/m². For the price of a studio in Lisbon, you can rent a house.

Guarda is the highest city in the country, perched at about 1,000 metres above sea level, at the gateway to the Serra da Estrela. The air is crisp, snow is not unusual, and Spain is less than an hour away on the A25. It is a modest-sized town, with a polytechnic institute and a hospital, but a limited range of shops and jobs. The Portuguese call it the city of the five Fs: fria, farta, forte, fiel e formosa (cold, generous, strong, faithful and beautiful). You will be able to check the first F in January.

Castelo Branco, in Beira Baixa, is the opposite in terms of weather: summers there are scorching. The town is well kept and well equipped for its size, with a polytechnic institute, a hospital and the A23 motorway heading towards Lisbon. It suits people who work remotely or retirees looking for peace and quiet, much less those who want a dynamic job market.

In the same area, Covilhã (about €6.2/m²), a university town at the foot of the mountains, and Fundão (less than €5/m²) are worth a detour. Further north, Vila Real and Bragança also have low rents, at the price of a certain isolation.

Évora: is the Alentejo right for you?

Évora is the Alentejo's postcard: a UNESCO-listed historic centre, a Roman temple, whitewashed lanes, an ancient university. It is about an hour and a half from Lisbon by motorway or by Intercidades train, which makes it an interesting compromise if you need to go to the capital from time to time.

At about €8.7/m², Évora is not the cheapest on the list, and the very touristy historic centre costs more than the outer neighbourhoods. The other limit is the climate: Alentejo summers are among the hottest in the country. If the heat wears you out, read our article on Portugal's climate, region by region before you decide.

Which pitfalls should you avoid when looking for a cheap place to live in Portugal?

The first pitfall is choosing a town on a single figure. A €370 rent is worth nothing if you have to drive 80 km to see a specialist, or if your spouse cannot find any work. Look at the nearest hospital, the distance to the airport, and the schools on offer if you have children.

The second is the car. In almost all these towns, it becomes necessary. Add insurance, fuel and tolls to your budget: the rent you save can melt away on the motorway.

The third is the home itself. Many older flats are poorly insulated: you feel the cold in winter, even in the South. Ask for the energy certificate and, if possible, visit between December and February. To compare all your expenses, from electricity to groceries, our article on the cost of living in Portugal goes through them one by one.

Finally, test before you commit. A month in a furnished rental in the low season, in the town you like, will teach you more than ten comparisons. You will find out whether the Saturday market is enough for you, whether the corner café becomes your headquarters, and whether inland Portugal really suits you.

Frequently asked questions

What is the cheapest town in Portugal for housing?+

Among the mid-sized towns that have a hospital and a university or polytechnic institute, Guarda and Castelo Branco have some of the lowest rents: a median of about €5.3/m² on new leases signed between mid-2025 and mid-2026, according to INE. That is about a third of the Lisbon level. On the other hand, the range of services and jobs is more limited.

Where can you live cheaply in Portugal while staying close to Porto?+

Guimarães and Braga are the two options most often mentioned. Guimarães has a median rent of about €6.9/m² and Braga about €8.7/m² over the twelve months to June 2026, against nearly €14.5/m² in Porto. Both towns are linked to Porto by motorway and by train.

Is Coimbra an expensive city?+

Coimbra is cheaper than Lisbon and Porto, but not cheap: its median rent, about €9.4/m², is close to the national average. Student demand tightens the market at the start of every academic year. Coimbra remains attractive if you are looking for a real university city with a large hospital.

Is living in inland Portugal a good idea?+

Yes, if you are looking for low rents and peace and quiet, and if you accept that you will need a car. Summers are hotter and winters colder than by the sea, and international flights leave from Lisbon, Porto or Faro. Spend some time there in winter before signing a lease.

Are rents falling in Portugal?+

No. According to INE, the median rent on new contracts rose by about 10% year on year in the second quarter of 2026, and it went up in every sub-region of the country. Mid-sized towns remain much cheaper than Lisbon, but they are not spared by the rise.

Sources consulted

  • INE – Estatísticas de Rendas da Habitação ao nível local, 2.º trimestre de 2026 (local housing rent statistics, second quarter of 2026, published 29 September 2026)
  • INE – Estatísticas de Rendas da Habitação ao nível local, 1.º trimestre de 2026 (local housing rent statistics, first quarter of 2026)

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In this article

  1. Where are the cheapest places to live in Portugal, and why not Lisbon?
  2. How much is rent in Portugal's mid-sized towns?
  3. Which towns in the North: Braga or Guimarães?
  4. Coimbra, Leiria, Viseu: is the Centre worth a look?
  5. Guarda and Castelo Branco: how far should you go to pay less?
  6. Évora: is the Alentejo right for you?
  7. Which pitfalls should you avoid when looking for a cheap place to live in Portugal?

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