The cost of living in Portugal has risen steadily since the country joined the European Community in 1986, and especially over the last decade, with the tourism boom and the arrival of many foreigners. For many items, such as food, restaurants, public transport and services, it remains lower than in much of Western Europe; for housing, however, Lisbon and Porto have become some of the least affordable cities in Europe relative to wages. Until about ten years ago people said you could live well in Portugal on a thousand euros a month: that is still possible in provincial towns and rural areas, much less so in the capital.
Everything depends on where you live and how. Lisbon, like all capitals, is the most expensive, followed by Porto, the Algarve and Funchal; the north and the interior, with towns such as Braga, Viseu, Guarda or Castelo Branco, still offer very good value. The prices below are indicative averages for 2025-2026. For the broader economic picture see the page on the Portuguese economy.
Housing
This is what has changed most. According to Idealista data, in September 2025 the median asking rent was about 22.5 euros per square metre in Lisbon, 18 euros in Porto, 15 euros in Funchal and under 8 euros in inland district capitals such as Bragança, Castelo Branco and Viseu, with a national median of about 17 euros. A studio or one-bedroom flat (T0 or T1) in central Lisbon costs on average over 1,300 euros a month, in Porto over 1,100 euros: close to the city's average net salary. In smaller towns a good-sized flat can still be found for 500-800 euros. Electricity, water, gas and internet for a flat cost on average 100-180 euros a month.
Purchase prices have also risen sharply, by more than 15% in 2025 alone; in rural areas, however, houses and land can still be found at affordable prices. For the procedure see the page on buying a house in Portugal.
Groceries
Food remains good value by Western European standards, though prices rose considerably after 2022. A couple spends on average 400-500 euros a month at the supermarket. Fruit, vegetables, bread, eggs, chicken and pork are cheap, and above all fresh fish: sardines, mackerel, sea bream, octopus, prawns and clams are everywhere, and in local markets outside the big cities prices are even lower. Wine is plentiful and good at very low prices: 4-6 euros buys an excellent bottle at the supermarket. Portuguese cheeses are also good value, while imported products cost more.
Cafés and restaurants
An espresso, called a bica in Lisbon, costs between 0.80 and 1.20 euros at the counter of a traditional café; a galão, milky coffee in a glass, 1.50-2.20 euros; a pastel de nata 1.20-1.60 euros; a small draught beer (imperial) 1.50-3 euros. A sandwich, tosta or pastry costs 2-4 euros. At lunch many restaurants offer a prato do dia, dish of the day, often with a drink and coffee, for 10-15 euros. A full dinner costs on average 20-30 euros per person in a home-cooking restaurant and 40-60 euros in a good restaurant; a fado house usually costs 50-80 euros with dinner. Prices are higher in the most touristy areas of Lisbon, Porto and the Algarve.
Clothing, cars and technology
Clothing and footwear are somewhat cheaper than in many EU countries, helped by strong domestic production; shopping centres have the same international chains. Cars, on the other hand, are expensive because of high taxes, and electronics are similarly priced to elsewhere in Europe. Flea markets such as Lisbon's Feira da Ladra offer low prices, though quality varies.
Services and health
The national health service is of good standard and largely free, but with long waiting lists, so many residents also have private insurance, generally costing 30-80 euros a month per person. See the page on healthcare in Portugal. A gym costs 30-50 euros a month, a phone and internet contract 15-40 euros.
Culture and leisure
Admission to a museum or monument generally costs 5-20 euros, with discounts for young people and seniors and free-admission days for residents at national museums. A cinema ticket costs about 7-8 euros; theatre 10-40 euros; concerts, opera and ballet from 15 to over 80 euros. A bullfight, in season from April to October, costs 15-70 euros depending on the arena and seats.
Fuel and driving
Fuel is expensive because of high taxes: in autumn 2026, according to DGEG data, petrol averaged about 2.10 euros a litre and diesel about 2.15-2.20 euros. Motorways are mostly tolled, and some have electronic-only tolls: when renting a car, ask for a Via Verde device or register the number plate with the payment systems.
Trains
A trip between Lisbon and Porto on the Alfa Pendular, the fastest and most comfortable train, generally costs 30-45 euros depending on class and offers, while the Intercidades is a little cheaper; booking ahead on the railway website, CP, often brings discounts. Fares from Lisbon to Faro are similar. For residents, a 20-euro monthly passe ferroviário introduced in 2024 is valid on regional, interregional and Intercidades trains. Suburban trains from Lisbon to Sintra and Cascais cost under 3 euros one way.
Buses
Portuguese cities are linked by a good long-distance bus network, run mainly by Rede Expressos and FlixBus. Lisbon to Porto usually costs 10-25 euros, Lisbon to Faro about the same, Lisbon to Coimbra 8-15 euros.
Taxis and ride-hailing
City taxis have regulated fares: the minimum fare is around 3-4 euros, with surcharges at night, at weekends, for phone bookings and luggage. For out-of-town trips the price is per kilometre and includes the vehicle's return, so agree it in advance. Ride-hailing apps such as Uber and Bolt are widespread and often cheaper.
Urban transport in Lisbon
Lisbon uses the rechargeable navegante card, which costs 0.50 euros from metro stations. In 2026 a one-hour trip on the metro and Carris buses costs 1.90 euros (1.72 with zapping credit), while tickets bought on board cost 2.30 euros on buses and 3.30 euros on trams, such as the famous 28. Funicular lifts such as Glória and Bica cost 4.30 euros for two rides and the Santa Justa lift 6.20 euros. The day ticket for metro and Carris costs 7.25 euros, and there is also a version including suburban trains. For residents the monthly navegante pass costs 30 euros for the city and 40 euros for the whole metropolitan area.
The Lisboa Card, available for 24, 48 or 72 hours, covers city public transport and trains to Sintra and Cascais and gives free or discounted entry to monuments, museums and tours: it pays off if you visit many sights in a few days. Information on the official tourism website, visitlisboa.com, and on the Carris and metro websites.
Urban transport in Porto
Porto uses the Andante card, valid on the metro, STCP buses and suburban trains, with zone fares: a trip in the central zones costs under 2 euros, and there are day and multi-day tickets. The Porto Card offers unlimited transport, or discounts only, plus free or reduced entry to museums, monuments, Douro cruises, tours and restaurants. Information at metrodoporto.pt, stcp.pt and the tourism site visitporto.travel.
For moving there, see moving to Portugal; for the economic and social picture, see Portugal today.