The lower cost of living is, for many of us, one of the main reasons to move to Portugal. Towards the end of every year, we conduct the Cost of Living Overseas Index across 13 countries. It compares the prices of a basic supermarket shop and other everyday living costs, especially geared to expatriates. So how does the Portuguese cost of living compare to the UK?

The cost of living in Portugal often seems notably low, and it’s clear that many everyday food items remain much cheaper than they are in the UK. Overall, our “shopping basket” was 26% cheaper in Portugal than in the UK, but with careful shopping, life in Portugal can be even less expensive.

Click here to visit the full Cost of Living Overseas Index

That said, the cost of living in Portugal is a nuanced subject. Despite recent figures that show Portugal getting inflation back under control, the country hasn’t been immune to the cost-of-living crisis. Some specific items have become more expensive. Furthermore, an awareness of pricing quirks, especially around imported items, can help residents keep their cost of living in Portugal as low as possible.

Concerned about the living cost abroad? Download our handy guide to affordable living overseas for free today!

As is the case in many small countries, many products are imported, which results in some interesting price disparities. Cosmetics, for example, are often more expensive than they are in Spain, because they’re imported from there. In addition, anyone who insists on having lots of UK products on hand will pay a heavy price, as these imported products don’t come cheap. Many people use shipping services to bring these items over in bulk from UK supermarkets.

So it does pay dividends to get to know local shops and stall owners. You won’t just enjoy better prices – you’ll enjoy the best of the produce too – so get out there and put your Portuguese language skills to the test.

In the supermarket

The Portugal cost of Living Index

Continente supermarket, in the Algarve (insideportugal / Shutterstock.com)

Portugal ranks 8th in our affordability rankings, with a basket of supermarket essentials and a few luxury items costing £73.82.

By comparison, the same items cost £79.99 in the UK, and £66.85 in Italy, with Spain emerging as the most affordable at £52.23.

Grocery shopping is an area where it pays to research. The cost of everyday items can vary considerably between supermarket chains. Locals remark that Aldi and Lidl have kept prices low throughout the inflation crisis. Additionally, small local supermarkets – such as those revived by Spar following the collapse of the AliSuper chain – often offer surprising bargains.

You will pay a substantial premium for insisting on Heinz, Kingsmill and cheddar!

Highlights:

  • Fresh produce is reasonably priced when in season.
  • Portugal offers a variety of local wines at competitive prices.
  • Basic food items like bread and milk are cheaper in Portugal than in some other European countries.

Expat tips

In supermarkets, caution is advised for those insistent on specific brands from back home. Anybody who can’t do without their Twinings English Breakfast Tea is advised to ask relatives to bring them a stash when they visit – unless they’re willing to pay €3.89 for just 25 bags!

Travel

Tavira train

Train on bridge in Tavira I Image: Markus Mainka via Shutterstock

The Cost of Living Overseas Index revealed that travel in Portugal is relatively cheaper than in some of its neighbouring countries. Portugal ranked 4th out of 13 countries in terms of affordability. The index considered the cost of a tank of petrol (50 litres, unleaded), the hire of a small car (one week, Mon to Fri, no insurance or extras) and a return train fare (one hour journey, off-peak, booked that morning).

Highlights:

  • Petrol prices in Portugal are more affordable compared to many other countries.
  • Car hire is also cheaper in Portugal than in places like the UK, Germany, New Zealand and Australia.
  • Train travel is relatively affordable, with a one-hour return journey costing less than in many other countries.

Expat insight:

Fuel and energy provide a great example of the subtleties of Portugal’s cost of living. At around 20 cents per kWh, Portugal’s electricity cost is low by European standards. By contrast, consumers in The Netherlands, Belgium, Romania and Germany all pay at least twice as much. Portugal’s work on renewable energy has paid off.

If you’re ready to buy in Portugal, we can introduce you to a trusted estate agent and lawyer. Don’t risk your dreams – and money – with anyone else. Click here to be put in touch.

In the home

Your dream home in Portugal?

The Home category looks at items you’d need as a new buyer in Portugal. This includes prices of a 1.5-litre pot of paint, an Ikea bookcase, a new TV, a Ninja air fryer, and ongoing payments, like a phone contract and a week’s worth of electricity. Portugal ranked 4th of 13 in terms of affordability.

Highlights:

  • Electricity in Portugal is cheaper than in the UK, Spain, Cyprus and France.
  • Home appliances like air fryers are also more affordable in Portugal.
  • The cost of paint in Portugal is markedly lower than in other countries.

For deliveries, although Amazon doesn’t deliver to Portugal, you can buy an Alexa from Spain and use it for all the other tasks it helps with, such as the weather. “Alexa, will it be sunny again today?” “Yes of course it will Ben, we’re in the Algarve.”

There are several IKEA in Portugal, including in the Algarve.

Leisure

One of the best things about life in Portugal is the comparatively low cost of everyday “luxuries.” A life built around bottles of good wine, excellent coffee in friendly cafés and affordable set lunch menus is still possible on a real budget – and the sunny weather is always free!

Portugal ranked 3rd out of 13 countries for its affordability when it comes to leisure spending. This category included the price of a coffee in your local independent coffee shop, a McDonald’s Big Mac, a three-course meal in a mid-range restaurant, a cinema ticket and more.

Highlights:

  • Socialising and having fun is around 10% more affordable in Portugal than the UK
  • A half-pint of beer is the cheapest in Portugal, costing just £1.72.
  • A Big Mac will cost you the least amount of money in Portugal which is more than 25% less than you’ll pay in France!
  • A three-course meal at a mid-range restaurant is cheaper in Portugal than in the UK and France.

What did our expat have to say?

Eating out remains an area where the cost of living in Portugal shines. While €20 is a fair average for a three-course meal in a local mid-range restaurant, bargains abound for those willing to look for them. From pratos do dia aimed at local workers to set meal offers aimed at tourists, there are many ways to enjoy low-cost dining, especially at lunchtime.

Similarly, coffee and beer are still available at extremely low prices, especially for those willing to seek them out. Heading for local bars instead of those aimed at visitors can vastly reduce the cost of these everyday luxuries. One euro beer and 70-cent espressos still very much exist in Portugal.

Healthcare

iving-healthcare-Doctorandpatient

Healthcare in Portugal isn’t extortionate but if you compare it with Germany or Spain, it can be a bit more pricey. Our 2024 Index looked at the price of a basic check-up at the dentist, a pack of 16 paracetamol, nappies and tampons. This would total £53.16 in Portugal.

That’s certainly a fair price, especially with the dentist just costing £9 more than in the UK, but it’s nappies that were rather spenny in Portugal* coming in at almost £14* for a pack of 30 branded medium nappies.

Highlights:

  • Paracetamol will cost you up to 4x more in Portugal than in the UK and Spain

Other

Our final category looked at items you might treat yourself to every once in a while but aren’t typically recurring monthly purchases. These included a pair of jeans from a high-street shop, a typical men’s haircut and a night’s stay at a mid-ranged city hotel.

Highlights:

  • Portugal ranked 3rd out of 13 for affordability
  • The total cost for these three items in Portugal will cost you just £106.23!
  • The same haircut, hotel stay and jeans would cost you a whopping £150 more in the UK!

Conclusion

Overall, out of the 13 countries we surveyed, Portugal ranked 3rd out of 13 countries for its affordability, behind Spain and Italy. Read our full methodology on the Cost of Living Overseas homepage on Property Guides for a top-line look at the campaign’s findings!

We found the cost of living in Portugal to be 25% cheaper than in the UK

As is so often the case when living abroad, the key is to embrace the local way of doing things. Sitting in the sun outside a local café remains a low-cost pleasure. So too does tucking into fresh, regional food at restaurants, washed down with jugs of local green wine. The quirks of the cost of living in Portugal often creep in when trying to recreate life from “back home”. Live like the locals, and Portugal remains great value. 

Read the full Cost of Living Overseas Index here.

 

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