If you're thinking of buying a property in Portugal or moving there to study or work, you'll be happy to know that it remains one of Europe's more affordable destinations.

Portugal offers a high standard of living with reasonable living costs. As a rule of thumb, you can live comfortably as a single person on €1,200 ($1,320) a month, particularly outside Lisbon and the more popular coastal resorts.

However, if you haven’t secured a source of income yet, keep in mind that salaries in Portugal tend to be lower than in countries like the UK, France, or Germany.

The average annual household income is approximately €16,000 (about $17,600), still below the OECD average of €27,000. Additionally, the minimum monthly wage as of 2025 is €870 (approximately $957), which may make it challenging to enjoy luxuries on a tight budget. For retirees or remote workers with a stable income higher than this, Portugal can offer excellent value and a high quality of life.

For instance, renting a flat in cities like Porto or Coimbra might cost as little as €600 a month (approximately $660). Even in Lisbon, one-bedroom apartments can start at around €900 a month (approximately $990).

If you’re looking to buy, affordable property prices often mean lower mortgage payments compared to other European countries. In some rural villages, you could even purchase a house for the price of a new car — or less, if you're willing to renovate an older property.

Utilities are relatively inexpensive. Recent data suggests the occupier of an 85-square-meter apartment could pay between €80 and €180 a month (approximately $88–$198) for electricity, water, heating, cooling, and refuse disposal. On average, this totals around €130 ($143). Many Portuguese families manage to lower their energy bills by living without air conditioning in summer and only using heating for a few months in winter. Your actual costs will depend on your usage habits and the energy efficiency of your home.

Portugal has a superb internet infrastructure, with broadband available almost everywhere. Basic packages cost between €25 and €45 a month (approximately $27–$50), depending on speed and usage requirements. For a combined phone, TV, and broadband package, expect to pay up to €80 a month (approximately $88).

Public transport remains very affordable. In Lisbon or Porto, a monthly pass costs just €42 (approximately $46), which compares favorably to £155 ($195) for zones 1-2 in London and €84 ($92) in Paris. However, in rural areas, public transport may be limited.

For drivers, fuel prices are relatively high. Unleaded petrol currently costs around €1.90 per liter (approximately $2.09) compared to €1.77 ($1.95) in France and €1.60 ($1.76) in Spain. Some people living near the Spanish border drive across to refuel and save on costs, often recouping the travel expense in savings.

Motorway tolls are another expense to watch for, as they can add up quickly even for short trips. Using alternative routes can save money but often requires more travel time.

As for daily living costs, food and drink remain very affordable in Portugal. Groceries typically cost around €250 a month (approximately $275) for a single person, unless you frequently buy imported goods or prepared meals. Items like Oreos, Heinz beans, or certain Asian noodles are available but come at a premium.

If you're dining out, lunch at a local tasca in rural areas can still cost as little as €7 (approximately $7.70). Even in the Algarve, the popular 'pratos do dia' (dishes of the day) start at around €5.50 (approximately $6.05).

A bottle of wine can cost as little as €3 (approximately $3.30) if you’re not too particular, and the local Super Bock beer is priced at €1 per half-liter bottle (approximately $1.10) in supermarkets. In bars, expect to pay slightly more, but it’s still very affordable compared to other European countries.

Portugal has an excellent healthcare system. While there is a small fee to see a doctor or receive hospital care, costs are minimal, typically ranging from €5 to €25 (approximately $5.50 to $27.50) for consultations or basic treatments. Once admitted to a hospital, most treatments are covered under the public healthcare system. At Lisbon's main hospital, patients have even reported being entertained by a singing doctor performing verses of fado during blood tests—a uniquely Portuguese touch!

Certain groups, such as pregnant women, children, and pensioners, receive free dental care. If you're a resident in Portugal and registered with the public healthcare system, many routine services will cost you nothing.

When it comes to overall affordability, Numbeo estimates that Portugal is 35% cheaper than France, 27% cheaper than the United States, and 25% cheaper than the United Kingdom. This makes Portugal a highly attractive destination, offering excellent infrastructure, great weather, picturesque towns and villages, and one of Europe’s healthiest and most delicious cuisines.