Portugal is one of the cheapest countries in Europe to live, and every year, Portugal Property Guide pulls together a survey comparing the average cost of life in Portugal to live in the UK.

It’s so important to spend some time considering the cost of living in Portugal before you make your move.

You will soon find that Portugal has one of the lowest costs of living in Europe, although this will always depend on where you spend it. It’s quite possible to find yourself spending between 80 cents and €3.50 for the same bottle of beer – depending on whether you are ordering it at a small locals’ snack bar or glitzy beach front restaurant. The same goes for food shopping; fresh produce is least expensive at the many markets and often actually better quality there – we would always recommend buying fresh produce and seasonal fruit and vegetables at a market instead of a supermarket, where costs can be variable.

You will soon find that Portugal has one of the lowest costs of living in Europe.

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 actually use shipping services to bring these items over in bulk from UK supermarkets.

The costs provided here for items in Portugal are, however, good averages, and the grocery item prices are taken from the Continente supermarket, which can be found all over the country. With a bit of careful shopping, life in Portugal can be very inexpensive indeed. We used the exchange rate on 18th May 2016, GBP/EUR: 1.28.

Grocery basket in average supermarket Cost in Portugal* Cost in UK** Comparison
Loaf of bread £1.01 £0.89 Portugal is 13% more expensive
12 medium eggs £1.48 £1.75 Portugal is 15% cheaper
2 pints of milk £0.51 £1.00 Portugal is 49% cheaper
1kg of apples £1.01 £2.00 Portugal is 50% cheaper
1kg bananas £0.73 £0.68 Portugal is 7% more expensive
500g tomatoes £0.66 £0.69 Portugal is 4% cheaper
500g chicken £2.34 £3.50 Portugal is 33% cheaper
500g beef £3.13 £4.00 Portugal is 22% cheaper
500g fresh fish £4.30 £6.75 Portugal is 36% cheaper
1kg potatoes £0.43 £0.80 Portugal is 46% cheaper
500g pasta £0.58 £0.59 Portugal is 2% cheaper
500 g standard cornflakes £1.16 £0.99 Portugal is 17% more expensive
40g bar of chocolate £0.77 £0.60 Portugal is 28& more expensive
200g Instant coffee (Nescafe) £4.91 £2.80 Portugal is 75% more expensive
20 teabags (Tetley cha preto) £1.01 £0.75 Portugal is 35% more expensive
Bottle of red wine £1.56 £6.50 Portugal is 76% cheaper
Domestic beer £0.39 £1.13 Portugal is 65% cheaper
1.75l Coca-Cola £1.29 £1.84 Portugal is 30% cheaper
500ml washing up liquid £0.53 £0.50 Portugal is 10% cheaper
100ml of toothpaste £1.55 £1.50 Portugal is 3% more expensive
40 wash laundry detergent £3.90 £9.00 Portugal is 57% cheaper
12 x 400g dog food £6.94 £4.75 Portugal is 46% cheaper
Home costs — comparing a two bedroom apartment*** ****
Electricity***** £78.13 £540 (yearly, so £45 monthly) Portugal is 74% more expensive*****
Internet 30 per month £23.44 £20.77 Portugal is 13% more expensive
Mobile phone tariff 30 per month average £23.44 £439 (yearly, so £36.59 monthly) Portugal is 36% cheaper
Council tax (and other housing costs, such as septic tank cost) IMI property tax £156 (yearly) £1200.61 (yearly) Portugal is 87% cheaper
Pool maintenance (if appropriate) £39.06 N/A! N/A
1 litre petrol £1.14 £1.09 Portugal is 5% more expensive
1 litre diesel £0.93 £1.09 Portugal is 15% cheaper
One way train ticket in large town £1.09 £2.30 Portugal is 53% cheaper
Monthly train pass in large town £27.34 £60.00 Portugal is 54% cheaper
Taxi starting tariff £1.56 £3.00 Portugal is 48% cheaper
Taxi Km/mile tariff in large town £0.74 £1.40 Portugal is 47% cheaper
Car tax for the average five door hatchback £97.66 £130 Portugal is 25% cheaper
Three course set meal for two £18.75 £50.00 Portugal is 63% cheaper
Glass of white wine £1.17 £4.50 Portugal is 74% cheaper
Bottle of beer £0.98 £3.50 Portugal is 72% cheaper
Cup of coffee £0.63 £2.51 Portugal is 75% cheaper
Cinema ticket £3.91 £9.00 Portugal is 57% cheaper
Gym membership (monthly) £23.44 £33.56 Portugal is 30% cheaper
£195 £100 Portugal is 95% more expensive
Car (fro the average five door hatchback) £312.50 £400 Portugal is 22% cheaper

Property (for property outlined above)

*Portugal grocery prices from continente.pt , other costs from personal expat experience
** prices from Tesco.com, 18th May 2016
*** Housing costs are very subjective depending on usage etc.
****All UK housing, transport and social costs from www.numbeo.com unless otherwise stated.
***** Please note: electricity costs include TV licence
† https://www.gov.uk/government/statistical-data-sets/annual-domestic-energy-price-statistics
††† www.dvla.gov.uk

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