A Must-Read For Anyone Considering Relocating to Portugal
For many Americans considering an international move, Portugal is emerging as a top choice. With its stunning coastlines, mild climate, and affordable lifestyle, it’s easy to see why expats are drawn to this European gem.
But how much cheaper is it really to live in Portugal compared to the United States?
If you’ve been wondering whether your dollars will stretch further in Lisbon, Porto, or the charming countryside, this comprehensive guide to relocating to Portugal will break down the key cost differences.
From housing and healthcare to groceries and entertainment, here’s everything you need to know about the cost of living in Portugal vs. the USA.
Housing Costs – Rent and Real Estate Prices
One of the most significant ways Americans can save money in Portugal is on housing. Whether renting or buying, the cost of accommodation is noticeably lower than in major U.S. cities.
In Lisbon, the most expensive city in Portugal, renting a one-bedroom apartment in the city center typically costs between $1,200 and $1,800 per month.
A similar apartment in New York City or San Francisco could easily set you back $3,500 to $5,000 per month. Even in a mid-tier U.S. city like Austin or Denver, a one-bedroom in a prime location will usually cost at least $2,000 per month.
If you’re looking outside Lisbon, prices drop dramatically. In Porto, Portugal’s second-largest city, you can rent a comparable apartment for $900 to $1,500 per month. In smaller towns or rural areas, it’s not uncommon to find comfortable homes renting for as little as $600 per month.
For those considering buying property, Portugal also offers incredible value. A modern apartment in central Lisbon averages $4,500 per square meter (about $418 per square foot), whereas a comparable property in New York City is typically priced at $1,300 per square foot. In Porto, home prices are even lower, averaging $3,000 per square meter ($280 per square foot).
Food and Dining – Grocery Bills and Eating Out
Food is another major expense where Portugal offers substantial savings. A typical monthly grocery bill for a couple in Portugal is around $300 to $500, depending on shopping habits and dietary preferences.
In the U.S., that same couple could easily spend $700 to $1,000 on groceries, particularly in expensive cities like Los Angeles or Boston.
Fresh produce, dairy, and meats are significantly cheaper in Portugal, thanks to local sourcing and lower production costs. A dozen eggs in Portugal costs around $2.50, compared to $5 to $8 in parts of the U.S. A loaf of fresh bread can be bought for $1.20, while in the U.S., it’s often $3 or more.
Eating out is another area where expats in Portugal can enjoy a high quality of life for much less. A meal at an inexpensive restaurant in Lisbon or Porto costs $10 to $15, while a similar meal in the U.S. would likely be $20 to $30 before tax and tip. A three-course dinner for two at a mid-range restaurant in Portugal typically runs $40 to $60, compared to at least $80 to $120 in a comparable American restaurant.
Coffee lovers will also appreciate the savings. In Portugal, an espresso at a local café costs $1 to $1.50, while a similar coffee at Starbucks in the U.S. can be $4 to $6.
Healthcare – Public and Private Options Compared
For many Americans, one of the most attractive aspects of moving to Portugal is the lower cost of healthcare. The U.S. has some of the highest medical expenses in the world, with private insurance premiums often exceeding $500 to $1,000 per person per month, depending on coverage and deductibles.
In Portugal, residents and legal expats have access to the country’s public healthcare system, where costs are extremely low compared to the U.S.
A routine doctor’s visit typically costs around $5 to $10 in out-of-pocket expenses. Prescription medications are also significantly cheaper, often priced at 30-70% lower than in the U.S.
For those who prefer private healthcare, Portugal offers excellent private hospitals and clinics at a fraction of U.S. prices. A comprehensive private health insurance plan costs around $50 to $150 per month, depending on coverage and age. Even without insurance, a private doctor’s consultation typically costs $60 to $100, compared to $200 to $500 in the U.S.
Major medical procedures, such as surgery or childbirth, can cost tens of thousands of dollars in the U.S., while in Portugal, private hospitals charge a fraction of that amount. Many expats find that even paying out-of-pocket for healthcare in Portugal is still more affordable than dealing with insurance co-pays and deductibles in the U.S.
Transportation – Getting Around for Less
Portugal also offers substantial savings when it comes to transportation. In Lisbon and Porto, public transit is widely used and incredibly affordable. A monthly metro pass costs around $45, compared to $130 or more in major U.S. cities like New York or Washington, D.C.
Gasoline prices in Portugal are generally higher than in the U.S., averaging around $6 to $7 per gallon due to European fuel taxes. However, Portugal’s compact cities and well-connected train network make owning a car unnecessary for many residents. If you do choose to own a vehicle, annual car insurance in Portugal costs around $300 to $600 per year, significantly lower than the $1,000 to $2,500 per year that many Americans pay.
Utilities and Internet – Monthly Bills Compared
Utility costs in Portugal are generally lower than in the U.S., though electricity prices can be high depending on usage. A typical monthly utility bill for a one-bedroom apartment (electricity, heating, cooling, water) ranges from $80 to $150. In the U.S., a similar bill can be $150 to $250, particularly in areas with extreme weather.
Internet and mobile phone plans in Portugal are also much cheaper. High-speed internet costs around $30 to $50 per month, compared to $70 to $120 in many parts of the U.S. A mobile phone plan with unlimited data costs $25 to $40, while in the U.S., similar plans often exceed $70 per month.
Entertainment and Leisure – A More Affordable Lifestyle
One of the greatest benefits of living in Portugal is the ability to enjoy a rich and fulfilling lifestyle without spending a fortune. Movie tickets cost around $8 to $10, compared to $15 to $20 in the U.S. A gym membership costs about $35 to $50 per month, while in the U.S., it’s often $60 to $100 or more for premium facilities.
For outdoor lovers, Portugal offers an abundance of free or low-cost activities, from scenic hiking trails and stunning beaches to historical sites with affordable entrance fees. Many museums and attractions offer discounts or free entry on certain days of the month.
So How Much Cheaper is Portugal Than the U.S.?
On average, expats can expect their overall cost of living in Portugal to be 30% to 50% lower than in the U.S., depending on lifestyle choices and location. While Lisbon is pricier than other Portuguese cities, it’s still significantly more affordable than most major U.S. metro areas.
For retirees (the D7 visa), digital nomads (the Portugal DNV), and those seeking a better work-life balance, Portugal offers a financially attractive alternative to life in the U.S.
With lower costs for housing, healthcare, dining, and entertainment, many Americans find they can live comfortably in Portugal for $2,500 to $4,000 per month, while maintaining the same standard of living in the U.S. would require $5,000 to $8,000 per month or more.
If you’ve been dreaming about relocating to Portugal, now is the perfect time to explore your options.
The savings, combined with the quality of life, might just make it one of the best financial decisions you ever make.
