This guide sets out the cost of living in Portugal for expats in 2026, from rent and bills to food, transport, healthcare and tax.
What changed in 2025 and 2026
Rents have continued to rise in Lisbon and the Algarve while falling slightly in Porto, the minimum wage rose to €920 in 2026 with €970 agreed for 2027, and a new rental law is under debate in parliament.
| Change | Date in force | What it means for you |
|---|---|---|
| Minimum monthly wage of €920 | 2026 | The benchmark for local salaries and for visa income thresholds linked to the minimum wage |
| 2026 personal income tax (IRS) table | 1 January 2026 | Nine bands from 12.5% to 48%; the top rate applies above €86,634 of taxable income |
| New Andante fare table in Porto | 1 January 2026 | A single Z2 journey costs €1.40 |
| National asking rents up 6.1% in a year (Idealista) | September 2026 data | Lisbon municipality up 8.8% to €25.1 per m²; Algarve up 15.2% to €20.8 per m²; Porto municipality down 4.4% to €19.0 per m² |
| Average mortgage interest rate of 3.194% (INE) | September 2026 data | Borrowing costs for buyers have risen; INE reported that the rate increased in September |
| Minimum wage of €970 agreed for 2027 in the tripartite agreement | Planned for 2027 | Local wages, and thresholds linked to the minimum wage, are set to rise again |
| New rental law under debate | October 2026, not yet in force | The opposition Socialist Party has asked the government to shelve the proposal, arguing it would make evictions easier; check the final text before you sign a long lease |
Correcting an outdated assumption. Many English-language guides still describe Portugal as a place where a couple can live comfortably anywhere on a modest pension. That is no longer true in Lisbon, where an average 70 m² flat was advertised at around €1,760 a month in September 2026, or in much of the Algarve. It remains broadly true in many inland and northern towns, where asking rents are less than half of Lisbon’s.
How much does it cost to live in Portugal?
For most expats the monthly budget is rent plus a fairly predictable layer of bills, food and transport; rent is the item that changes most between cities, by a factor of more than two between Lisbon and Braga.
A useful benchmark is the national minimum wage, €920 a month gross in 2026. Many Portuguese households live on salaries not far above it, which keeps the prices of local services, everyday food and public transport relatively low by Western European standards. Housing is the exception: in Lisbon, Porto and the Algarve, rents have been driven by demand from tourism, foreign buyers and remote workers, and they are high relative to local earnings.
| Budget item | What drives the cost | Where expats spend most |
|---|---|---|
| Rent | City, neighbourhood, size, furnished or not | Lisbon, Cascais area, Algarve coast |
| Utilities | Season, insulation, air conditioning, heating | Older, poorly insulated flats in winter |
| Food | Supermarket versus imported brands; eating out | Imported products and tourist-area restaurants |
| Transport | Public transport pass versus running a car | Car owners outside the cities |
| Healthcare | Private insurance and private appointments | Those not yet registered with the SNS |
| Tax | Residence status and income type | Higher earners on the 2026 IRS table |
If you are planning the move itself, the one-off costs (visas, apostilles, removals and deposits) are covered in how much it costs to move to Portugal.
Rent by city: 2026 comparison
Average asking rents in September 2026 ranged from about €10.7 per m² a month in Braga to €25.1 in Lisbon, according to Idealista. These are asking prices on Idealista listings, not signed rents, and they move month by month.
| Area | Asking rent, September 2026 (€ per m² a month) | Annual change | 50 m² flat (approx.) | 90 m² flat (approx.) |
|---|---|---|---|---|
| Lisbon (municipality) | 25.1 | +8.8% | €1,255 | €2,259 |
| Oeiras | 18.0 | +1.3% | €900 | €1,620 |
| Sintra | 16.8 | +18.6% | €840 | €1,512 |
| Porto (municipality) | 19.0 | -4.4% | €950 | €1,710 |
| Matosinhos | 15.3 | +4.1% | €765 | €1,377 |
| Vila Nova de Gaia | 13.4 | -1.5% | €670 | €1,206 |
| Portimão | 20.3 | +26.8% | €1,015 | €1,827 |
| Loulé | 18.8 | -2.3% | €940 | €1,692 |
| Faro | 14.8 | -12.6% | €740 | €1,332 |
| Tavira | 14.4 | -23.3% | €720 | €1,296 |
| Funchal (Madeira) | 16.8 | Not given | €840 | €1,512 |
| Coimbra | 12.8 | Not given | €640 | €1,152 |
| Braga | 10.7 | Not given | €535 | €963 |
| Guimarães | 10.6 | Not given | €530 | €954 |
| Portugal average | 18.3 | +6.1% | €915 | €1,647 |
The flat-size columns are our own multiplication of Idealista’s averages and are a guide only. Smaller flats usually cost more per square metre than larger ones.
Where sources conflict. The Algarve shows how volatile asking-rent data can be. In September 2026 Idealista reported Algarve rents up 15.2% in a year and 24.5% in a quarter, yet Faro was down 12.6% and Tavira down 23.3% year on year, while Portimão was up 26.8%. Seasonal listings and small samples in individual towns explain much of the swing. Use these figures as ranges and check live listings in the street you are considering.
For leases, deposits and your rights as a tenant, see our guide to renting in Portugal. If you are still choosing where to settle, the best places to live in Portugal compares regions on more than price.
Find a rental agent who knows your target area
Compare housing services and rental agents that help newcomers find and secure a lease in Portugal
Buying instead of renting
Buying can cost less each month than renting in some areas, but mortgage rates have risen: INE put the average interest rate on housing loans at 3.194% in September 2026. INE also reported in October 2026 that house prices accelerated in 10 of the 24 most populous municipalities in the second quarter of 2026.
| Factor | Renting | Buying |
|---|---|---|
| Upfront cost | Deposit and rent in advance | Deposit, transfer tax, stamp duty, notary and registration fees |
| Monthly cost | Rent, rising each year at lease renewal | Mortgage repayments at a rate linked to market rates |
| Annual property tax (IMI) | Paid by the owner | Paid by you |
| Flexibility | High | Low; selling takes time and costs money |
| Best for | Your first year, or if you may move on | Long-term residents who know the area |
Most expats rent for at least the first year before buying. The process, taxes and fees for buyers are set out in how to buy property in Portugal as a foreigner.
Utilities and household bills
Expect household bills of roughly €120 a month for electricity, heating, cooling, water and rubbish collection in an 85 m² flat, plus around €18 for a mobile plan and €36 for broadband, according to Numbeo’s crowd-sourced data updated on 25 October 2026. Your own bills depend heavily on the season and the building.
| Bill | Numbeo average, October 2026 | What changes it |
|---|---|---|
| Basic utilities, 85 m² flat (electricity, heating, cooling, water, rubbish) | €120.79 a month | Insulation, air conditioning, electric heating in winter |
| Mobile phone plan with 10 GB or more of data | €17.81 a month | Contract length, bundles with home internet |
| Broadband, 60 Mbps or faster | €35.77 a month | Fibre availability; bundles with television and mobile |
Numbeo figures are averages of prices reported by users rather than official statistics, so treat them as a starting point.
Warning: Portuguese winters cost more indoors than you might expect. Many older Portuguese homes have little insulation and no central heating, and are heated with electric heaters or air-conditioning units. Ask the landlord for the energy certificate and recent bills before you sign, and budget more for December to February, particularly in the north and the interior.
Food and groceries
Supermarket food prices have kept rising: DECO PROteste’s basket of 63 essential foods reached a record €259.52 in April 2026, €22.65 more than a year earlier. Fresh produce, fish and bread are good value by Western European standards, but imported brands and products aimed at foreign shoppers can cost far more.
| Item | Typical price (Numbeo, October 2026) |
|---|---|
| Meal at an inexpensive restaurant | €12.00 |
| Three-course meal for two, mid-range restaurant (no drinks) | €45.00 |
| Cappuccino | €1.89 |
| Milk, 1 litre | €0.95 |
| Fresh white bread, 1 lb (about 450 g) loaf | €1.30 |
| Eggs, 12 | €3.06 |
| Chicken fillets, 1 lb (about 450 g) | €3.04 |
| Local cheese, 1 lb (about 450 g) | €4.67 |
| White rice, 1 lb (about 450 g) | €0.64 |
According to the Lusa report of DECO PROteste’s figures, the April 2026 record was the highest level since the consumer association began tracking the basket in 2022, with kale, horse mackerel and broccoli showing the largest increases over the year.
Tip: Shop like a local. The weekly market (mercado municipal) and the fish counter usually offer better value than pre-packed supermarket ranges, and the set lunch menu (prato do dia or menu do dia) in an ordinary café or restaurant is often the cheapest way to eat out. Tourist-area restaurants in Lisbon, Porto and the Algarve charge considerably more.
Transport costs
Public transport is inexpensive in Lisbon and Porto: Numbeo users report a typical monthly pass at €40, and a single Z2 journey on Porto’s Andante network costs €1.40 from 1 January 2026. Outside the two metropolitan areas, many expats need a car, which is where transport costs rise.
| Item | Cost | Source |
|---|---|---|
| Monthly public transport pass (typical) | €40.00 | Numbeo, October 2026 |
| Porto Andante single journey, zone Z2 | €1.40 | Metro do Porto, from 1 January 2026 |
| Porto Andante single journey, zone Z3 | €1.85 | Metro do Porto, from 1 January 2026 |
| Personalised Andante card for monthly passes | €6.00 | Metro do Porto |
| Petrol, 1 litre | €1.88 | Numbeo, October 2026 |
If you plan to drive, budget for fuel, insurance, the annual circulation tax, tolls on motorways and inspections for older cars. GOV.UK says UK licence holders resident in Portugal can drive on their UK licence until it expires; the rules on insurance, tolls and documents are covered in driving in Portugal as a foreigner.
Healthcare costs for expats
Once you are resident and registered with the national health service (SNS), state healthcare is low-cost at the point of use; until then, and for faster access, most expats pay for private health insurance. GOV.UK says registration with the SNS requires a residence certificate, your passport and your tax number (NIF).
| Your situation | How your healthcare is usually paid for |
|---|---|
| Resident and registered with the SNS | State healthcare through the SNS; ask whether any charge applies to the service you use |
| UK State Pensioner with a registered S1 | UK-funded state healthcare in Portugal, according to GOV.UK |
| UK student, S1 pensioner or frontier worker | May use a UK-issued GHIC or EHIC in limited cases, according to GOV.UK |
| Visa applicant or newly arrived | Private health insurance, which is often required for the visa and useful until you are registered |
| Wanting shorter waits or English-speaking doctors | Private appointments or private health insurance alongside the SNS |
GOV.UK states that you generally cannot use or renew a UK-issued GHIC or EHIC while living in Portugal, unless you are a UK student, a UK State Pensioner with a registered S1 or a frontier worker with a registered S1. Private insurance premiums depend on your age, health, the level of cover and the excess, so ask for quotes for exactly the cover you want. How the public system works, and how to register, is explained in healthcare in Portugal for expats.
Compare health cover for life in Portugal
Browse insurance providers listed for Portugal that cover international residents, before and after you register with the SNS
Income tax and your take-home budget
Portuguese tax residents pay income tax (IRS) on their worldwide income at progressive rates from 12.5% to 48% in 2026, while non-residents pay a flat 25% on most Portuguese-source employment, self-employment and pension income. According to PwC’s Portugal tax summary, reviewed on 3 October 2026, the 2026 table is:
| Taxable income (€) | Rate | Amount deducted (€) |
|---|---|---|
| Up to 8,342 | 12.5% | 0 |
| 8,342 to 12,587 | 15.7% | 266.94 |
| 12,587 to 17,838 | 21.2% | 959.26 |
| 17,838 to 23,089 | 24.1% | 1,476.45 |
| 23,089 to 29,397 | 31.1% | 3,092.77 |
| 29,397 to 43,090 | 34.9% | 4,209.94 |
| 43,090 to 46,566 | 43.1% | 7,743.27 |
| 46,566 to 86,634 | 44.6% | 8,441.48 |
| Over 86,634 | 48.0% | 11,387.17 |
To use the table, multiply your whole taxable income by the rate for your band and subtract the amount in the last column. For example, taxable income of €30,000 gives €30,000 × 34.9% − €4,209.94 = €6,260.06, an average rate of about 20.9%. An additional solidarity rate of 2.5% applies to taxable income above €80,000 and 5% above €250,000. Married and de facto couples who opt for joint taxation divide their combined taxable income by two to find the rate.
Callout: Your pension and your tax residence. How UK pensions and other foreign income are taxed in Portugal depends on the type of income, the UK–Portugal double taxation agreement and any special regime you qualify for. GOV.UK confirms that a double taxation agreement exists so that you do not pay tax on the same income in both countries. Get advice before your first Portuguese tax year, not after.
The full picture, including the IFICI regime that replaced the old NHR scheme, is covered in taxes for expats living in Portugal, and you can compare expat tax advisers in Portugal before you file.
Sample monthly budgets
On the figures in this guide, a single person renting an average 50 m² flat in Porto can expect core monthly costs of about €1,420, a couple in a 70 m² flat in Lisbon about €2,550, and a couple in a 90 m² flat in Braga about €1,750, before healthcare, leisure and tax.
The budgets below combine Idealista’s September 2026 asking rents with Numbeo’s October 2026 averages. For food we use DECO PROteste’s 63-item essentials basket (€259.52 in April 2026) once per person as a reference point; it is not a measure of actual monthly food spending, which depends on your habits.
| Monthly item | Single, Porto, 50 m² | Couple, Lisbon, 70 m² | Couple, Braga, 90 m² |
|---|---|---|---|
| Rent (Idealista average) | €950 | €1,757 | €963 |
| Utilities (Numbeo, 85 m²) | €121 | €121 | €121 |
| Broadband | €36 | €36 | €36 |
| Mobile plans | €18 | €36 | €36 |
| Public transport passes | €40 | €80 | €80 |
| Food reference (DECO basket per person) | €260 | €519 | €519 |
| Core monthly total | about €1,424 | about €2,548 | about €1,754 |
| Approximate sterling equivalent | about £1,194 | about £2,136 | about £1,470 |
Sterling figures use the European Central Bank reference rate of 26 October 2026 (€1 = £0.8382) and are approximate. Add private health insurance, eating out, leisure, car costs and income tax to these figures. Families should also budget for schooling: Numbeo users report average annual fees of €10,311.67 per child at an international primary school, and our guide to international schools in Portugal explains what affects fees.
Callout: Rent against local earnings. Numbeo puts the average monthly net salary in Portugal at €1,171.86. An average 50 m² flat in Lisbon, advertised at about €1,255 a month, costs more than that whole salary. This is why housing dominates public debate in Portugal, and why you should expect competition for well-priced rentals in the capital.
Is Portugal cheaper than the UK?
For most British movers, Portugal is cheaper for everyday services, eating out and public transport, but Lisbon and the Algarve are no longer cheap for housing, and the difference depends mainly on where in Portugal you settle and where in the UK you are leaving.
| Area of spending | How it usually compares for a UK mover |
|---|---|
| Rent in Lisbon, Cascais area and much of the Algarve | Can be similar to many UK cities outside London |
| Rent in Braga, Coimbra, Guimarães and inland towns | Usually well below most UK cities |
| Eating out and coffee | Usually cheaper; a café cappuccino averages €1.89 |
| Public transport | A typical monthly pass is €40 |
| Household bills | Comparable or lower, but older homes cost more to heat in winter |
| Income tax | Depends on your income type and any special regime; take advice |
The fairest test is to price your own life: take your current UK rent or mortgage, bills and weekly shop, and compare them line by line with the tables above for the city you are considering. The wider question of whether the move suits you, from climate to bureaucracy, is covered in is Portugal a good place to live, and the full sequence of steps is in our complete guide to moving to Portugal. You can also browse providers on the ExpatListing Portugal hub.
Frequently asked questions
