First coffee on a terrace, first receipt: about €1 for a bica, the local espresso, in 2026. The reflex is immediate: "everything is cheaper here". Three weeks later, looking at a listing for a two-bedroom flat in Lisbon and a supermarket receipt that looks suspiciously like the ones back home, the cost of living in Portugal suddenly seems less simple.
The truth fits in one sentence: some items are much cheaper, others not at all. Here are the official figures, item by item, to build a budget that holds up.
Is the cost of living in Portugal really lower?
On average, yes. Every year, Eurostat measures the level of household consumer prices in each country, with the European Union average set at 100. In 2025, Portugal was at about 87, France at 110, Belgium at 116 and Switzerland at 171. If you are moving from France, that means prices about 20% lower on average; from Switzerland, almost half.
But that average hides huge gaps, and this is where many people get their budget wrong:
- Restaurants and hotels are much cheaper: an index of about 76 in Portugal against 110 in France in 2024, according to Eurostat.
- For food, the gap is small: about 102 in Portugal against 110 in France the same year. At the supermarket, the saving is therefore modest.
- Housing depends entirely on the city, as we will see.
Remember the idea: Portugal is cheap for going out, average for eating at home, and expensive for housing in the two big cities.
How much does housing cost in Portugal in 2026?
This is the item that makes or breaks your budget. INE, the national statistics institute, publishes the median rents of newly signed contracts, per square metre. Over the twelve months to June 2026:
| City | Median rent (€/m²) | For 70 m², about |
|---|---|---|
| Lisbon | 17.4 | €1,220 |
| Cascais | 16.8 | €1,180 |
| Porto | 14.5 | €1,010 |
| Funchal (Madeira) | 14.0 | €980 |
| Faro | 10.3 | €720 |
| National average | 9.8 | €680 |
| Coimbra | 9.4 | €660 |
| Braga | 8.7 | €610 |
| Viseu | 6.8 | €480 |
Rent prices in Portugal are climbing fast: in the second quarter of 2026, the national median was up about 10% year on year. And these are signed contracts: in listings, especially for furnished flats, asking prices are often higher.
To reduce the bill, there is no miracle: move away from the centre or aim for a medium-sized town. We compared eight options in our article on where to live cheaply in Portugal, and the pitfalls of the lease are covered in our guide to renting a flat in Portugal.
Groceries and restaurants: how much should you spend on food?
At the supermarket, expect prices close to the ones you know, with a few notable differences. Fresh fish, seasonal fruit, wine and olive oil are cheap and good quality. Imported products, French cheeses and some dairy products cost more than in France. The weekly promotions of the big chains and loyalty cards make a real difference: our guide to supermarkets in Portugal explains how to make the most of them.
At the restaurant, on the other hand, Portugal remains generous. The prato do dia (dish of the day) in neighbourhood tascas, often served with soup or a drink at lunchtime, can still be found for around €10 to €14 in 2026 outside very touristy areas. A coffee at the counter, a pastel de nata and a sopa remain small pleasures at gentle prices.
The trap: the tourist districts of Lisbon, Porto or the Algarve, where menus follow European prices. Eat where office workers eat at 1 pm, not where menus are translated into six languages.
How much do electricity, internet and transport cost?
Electricity. On the regulated tariff, which ERSE sets for 2026, the average bill for a couple without children (3.45 kVA of contracted power, about 1,900 kWh a year) is about €37 a month, taxes included. For a couple with two children (6.9 kVA, 5,000 kWh a year), count on about €95 a month. On the free market, offers vary: compare before you sign. Be careful, these averages hide the winter: in a poorly insulated home heated with electric radiators, the January bill can sting.
Internet. Fibre is almost everywhere: according to ANACOM, the telecoms regulator, about 95% of homes and businesses were covered by fibre at the end of 2025. Operators mostly sell internet, TV and mobile bundles, often with a minimum contract period. Our article on electricity, internet and phone explains the steps.
Transport. In Lisbon, the metropolitan navegante pass costs €40 a month and lets you travel throughout the metropolitan area (metro, buses, suburban trains, ferries). The municipal pass costs €30. To travel around the country, the Passe Ferroviário Verde gives you access, for €20 a month, to regional trains and Intercidades in second class (the Alfa Pendular is not included). Since the end of September 2026, it also covers CP urban trains in Lisbon and Porto.
Does healthcare cost a lot in Portugal?
The Serviço Nacional de Saúde (SNS), the national health service, is funded by taxes. Since 2022, the taxas moderadoras (the small charges you used to pay for each treatment) have disappeared everywhere, except at hospital A&E when you turn up without having been referred by the SNS, for example via the SNS 24 line, and are not admitted afterwards.
Medicines, however, remain partly at your expense depending on their reimbursement rate. And waiting times for some specialists lead many residents, Portuguese and foreign alike, to take out private health insurance for faster access to clinics. Its price depends heavily on age and cover: ask for several quotes before you choose.
What budget should you plan for, depending on the city?
There is no official "typical budget" by city. But with the figures above, you can build your own, starting with the heaviest item:
- Rent: take your city's median and multiply it by the floor area you want. Add a margin if you are looking for a furnished flat or a sought-after neighbourhood.
- Energy: about €37 to €95 a month depending on the size of the household on the regulated tariff, plus bottled gas or heating if needed.
- Groceries: if you are moving from France or Belgium, start from your current food budget and take off only a small part.
- Transport: a €30 or €40 pass in Lisbon, or a car in medium-sized towns, with insurance, fuel and tolls.
- Everything else: internet and phone, private health insurance if you want it, and going out, the item on which Portugal really saves you money.
The result is often the same: in Lisbon, the budget is not far from that of a big French city, whereas in Braga, Viseu or Évora the gap becomes clear, almost entirely thanks to the rent.
What salary do you need to face the cost of living in Portugal?
This is the other side of the coin. Since 1 January 2026, the minimum wage has been €920 gross a month on the mainland. It is paid fourteen times a year, including the holiday and Christmas bonuses, and employees pay 11% in social security contributions.
The average salary remains modest. According to INE, the average gross monthly pay per job was about €1,694 in 2025, bonuses included, and about €1,277 for basic pay alone. Set against Lisbon rents, these figures explain why housing has become the country's big political issue, and why so many young Portuguese people live in flatshares or with their parents.
For you, this means one simple thing: the cost of living in Portugal is very favourable if your income comes from abroad (a pension, remote work, clients outside the country). It is much less so if you are counting on a local salary, especially in the capital. Do your calculations with your real income, your real city and a margin for the unexpected.