Cost of living in Portugal vs Canada: A 2026 comparison guide for expats

With the rising cost of living in Canada, many expats are considering settling abroad. According to Statistics Canada, around 27,000 Canadian citizens and permanent residents emigrated in the first quarter of 2025..

Portugal is one of the most popular destinations among Canadians who want to move to Europe. It offers affordable housing and daily expenses, a relaxed lifestyle, public healthcare services, and access to the European region. 

In this article, we’ll compare the cost of living in Portugal vs. Canada, including housing, groceries, transportation, healthcare, and utilities. This will help you make the right decision and plan your savings accordingly.

Is it cheaper to live in Canada or Portugal?

Overall, Portugal’s cost of living is 27% cheaper than Canada's. But this difference depends on location, type of housing, and lifestyle. 

In Canada, most residents spend 30% to 50% of their income on housing and utilities. The average monthly cost of living in Canada for a single person is €1,880–€3,340 and €4,700–€6,600 for a family of four, including rent. 

In Portugal, a couple living outside major cities of Portugal can expect to pay around €2,500 to €3,000 per month, including housing, groceries, and leisure.

But costs can vary depending on the location. In Lisbon, a single person usually spends around €740 per month, excluding rent, while a family of four may need about €2,640 per month, excluding rent.

Cost of living in Portugal vs Canada: Complete Breakdown

Portugal is more affordable than Canada, but this can also depend on where you live, how much you pay in rent, and what’s your daily lifestyle. 

Here’s a quick overview:

The following is a detailed comparison of the cost of living between Portugal and Canada:

Housing costs

Buying a house

Buying a property in Canada is more expensive than in Portugal. According to Portugal’s National Statistics Institute (INE), the average property rate was €1,951 per square meter in early 2025.

Property prices in Portugal vary a lot by region, so where you buy matters as much as what you buy. The housing prices in the Lisbon Metropolitan Area average around €3,644 per m², Porto’s property rates are €3,066 per m², and in the Algarve, it’s €3,334 per m². 

If you want cheaper options, Central Portugal (€1,448/m²) and Alentejo (€1,507/m²) are much more affordable. Smaller cities like Évora and Elvas have property prices under €1,000 per m², which can be a great deal if you don’t want to live in the biggest hotspots.

In Canada, the average property price was €592,187 in October 2025. Alberta’s average home price was €455,433, while Vancouver Island was priced at €607,100.

Renting

Renting in Portugal is usually cheaper than in Canada, especially when you compare big cities. While Canadian rents in places like Toronto and Vancouver can take up a large share of a monthly budget, Portugal still offers lower average rents in many areas.

In Portugal, the average rent reached €16.7 per m² in July 2025, with Lisbon around €19.6 per m². A one-bedroom in central Lisbon often costs €1,200–€1,500 per month, while Porto or Faro is closer to €800–€1,000 per month.

Rents in Canada are more expensive. The highest average asking rent for a one-bedroom was in Vancouver (€1,544), followed by Toronto (€1,451), Victoria (€1,285), and Ottawa–Gatineau, Ontario (€1,236) in Q1 2025.

Groceries and food

The groceries and food in Canada are more expensive than in Portugal. A single month’s worth of basic groceries for one person in Portugal costs around €200–€300. In Canada, you need to spend around €250–€400 per month for a similar basket of essentials.

Here’s a complete comparison of basic food and drinks that are included in groceries.

Dining out and alcohol

Dining out and alcohol are generally cheaper in Portugal than in Canada, especially for casual meals and coffee. In Canada’s big cities, even a simple lunch or dinner can add up quickly once you include tax and tip.

A local beer in Portugal costs about €1.10–€1.50, while a domestic draft beer in Canada costs around €4. Wine is widely produced locally and commonly priced for everyday dining in Portugal.

A classic lunch menu in Canada can cost you around €11. In Portugal, you might have to pay about €8.

Healthcare cost

Portugal offers government-funded healthcare services that make medical care much more affordable for residents. Most treatments require a small co-pay, and many services for seniors and children are free.

Private health insurance is priced at around €50–€100 per month. In private care, a general practitioner visit averages about €51, and dental cleanings usually cost €28–€116, depending on the clinic.

In Canada, a doctor’s visit can cost you around €70. Private health insurance commonly costs about €70–€150 per month for an individual. 

Transportation costs

Public transportation

Portugal offers wide transportation options, including trams, the metro, and buses. You can buy a monthly pass for €40–€50 to commute daily. In Canada, a monthly pass is priced at €63, depending on the city. For example, the monthly pass in Toronto costs €95.

Fuel costs

If you prefer commuting by car, you need to consider the fuel costs in both countries. In Portugal, the gasoline’s average cost is €1.75 per liter. Canada offers cheaper fuel prices, but buying a car also requires you to pay for the insurance, maintenance, and parking. 

Education costs

Portugal offers several schooling options for expat families. Public schools are the cheapest route because they’re state-funded. But the main language is Portuguese, so it may not be suitable for foreign students.

Many expats prefer sending their children to international schools in Portugal that offer an international curriculum and bilingual teaching. The annual tuition fee for these schools costs between €6,000 to €26,000. 

In Canada, the tuition fees in schools are much higher than in Portugal. You can expect to pay around €9,000–€18,000 per year for private schooling. 

Utilities and internet

In Portugal, basic household utilities, like electricity, heating, water, and garbage collection, usually cost €100–€130 per month, which is manageable for most single people and couples. The Internet is also fairly affordable, with a reliable high-speed plan costing €30–€40 per month.

In Canada, utilities are generally more expensive, especially during winter in colder provinces, where heating bills can rise. You can expect to pay around €130. The internet bill also costs around €52.

Entertainment, sports, and leisure costs

Both Canada and Portugal offer a variety of entertainment and recreational activities. A gym membership for both countries costs almost the same, averaging around €35.

A cinema ticket in Portugal costs around €7.95, while in Canada it’s about €9.83. Although these prices aren’t much different, the total cost depends on your lifestyle and how often you go out. 

Taxes and mandatory payments

Canada and Portugal both use progressive income tax systems and consumption taxes to fund public services.

In Canada, a consumption tax is charged as the goods and services tax (GST) at 5%, plus a provincial tax that varies by province. Some provinces use the harmonised sales tax (HST) (a combined federal–provincial sales tax), while others charge a separate provincial sales tax (PST) or Quebec sales tax (QST). 

In Portugal, the value-added tax (VAT) rate is 23%, with reduced rates such as 6% on basic food items and 13% for restaurants. Income tax is progressive and can reach 35%, but many expats may qualify for the NHR 2.0 regime. This offers a 20% flat tax on Portuguese income for eligible high-value roles and potential relief on some foreign-sourced income. 

Touchdown offers tax consultation services to help you plan your taxes in Portugal. Our in-house tax attorney provides tailored tax planning and strategy. We help you optimise your residency path and income to meet NHR 2.0 requirements or other regimes. 

Canada vs Portugal: Which is the best country to live in?

Choosing between Canada and Portugal depends on your personal preferences, income, savings, and lifestyle.

Canada often suits people who want higher earning potential, strong job markets, and a familiar North American setup. But Canada’s increasingly big-city housing and everyday costs can be tough on a budget.

Portugal is a better fit if you want milder weather, an entrepreneur-friendly environment, and an affordable cost of living. 

In fact, the Touchdown 2025 survey shows that the majority of respondents (64%) quoted weather as a key reason to relocate to Portugal, 59% cited work-life flexibility, and 33% pointed to tax benefits. 

Affordable cities to live in Portugal

Here are some affordable cities to live in Portugal:

Castelo Branco

Castelo Branco is a small inland city in central Portugal. It’s also the capital of the Castelo Branco District. The rent for a one-bedroom apartment is around €450, and the groceries cost around €200 per month.

Monção

Located near the Spanish border, Monção is a calm and small town for people who like nature and quiet streets. A one-bedroom rent is for about €400, and a couple’s monthly grocery spend can be around €200, depending on habits and season.

Covilhã

Covilhã sits near Portugal’s mountains. The city has a strong student feel. You can reach ski areas quickly. Rent often costs about €430. Groceries for two can cost about €250 per month. Many people walk to get around, so they spend less on transport.

Paredes 

Paredes is located near Porto, so you can live outside the city and still reach it easily. A one-bedroom place costs about €500. Food shopping for two can come to about €300 a month. A transit pass or regular rides usually cost €20 to €30.

Coimbra

Coimbra is a city in central Portugal, built around the Mondego River, and it’s best known for the University of Coimbra, one of the oldest universities in Europe. A one-bedroom apartment in Coimbra is priced at €500 in the city center.

Leiria

Leiria is known for its hilltop castle overlooking the city, its walkable center with cafés and local shops, and a relaxed, family-friendly feel. A one-bedroom in the center often costs about €450. Outside the center, it can fall to about €350. 

Visa options to move to Portugal

If you want to relocate to Portugal, the following are some of the residency pathways you can take:

D7 Passive Income Visa

The D7 Visa is a Portugal residency visa for non-EU citizens who can support themselves with steady passive income. This visa type is suitable for:

• Retirees and pensioners
• Financially independent people
• Applicants with passive income such as pensions, rental income, dividends, royalties, or interest

Eligibility and financial requirements

To qualify, you must show steady passive income that meets Portugal’s minimum income level for 2025. You’ll also need:

• Proof of long-term accommodation in Portugal, such as a 12-month lease or property documents
• Travel insurance valid for at least six months
• A clean criminal record certificate
• A valid passport
• Bank statements and documents that prove your passive income

Successful applicants receive a 4-month entry visa, followed by a renewable residence permit that supports long-term residence in Portugal.

D8 Digital Nomad Visa

The D8 Digital Nomad Visa allows non-EU remote workers and freelancers to live in Portugal while working for foreign clients or companies.

Eligibility and financial requirements

To qualify, you must earn at least €3,480 per month (4× the 2025 Portuguese minimum wage). It is also suggested to show about €10,440 in savings to prove financial stability. You’ll also need:

• Proof of accommodation in Portugal, such as a 12-month rental lease
• Travel insurance valid for at least six months
• A clean criminal record
• A Portuguese NIF and a Portuguese bank account

If you apply with family members, you must show additional funds, typically +50% for a spouse and +30% for each dependent child. 

Once approved, you will receive a 4-month entry visa, followed by a renewable residence permit that supports access to healthcare, education, and Schengen-area travel.

Golden Visa

Portugal’s Golden Visa is a residency-by-investment program for non-EU citizens who want Portuguese residency with flexible stay rules. 

Eligibility and investment requirements

To qualify, you must be a non-EU citizen, make an approved investment of €250,000–€500,000+, show a clean criminal record, and prove your funds come from a legal source.

Stay requirement

Once approved, the applicant must meet the minimum stay rules:

• 7 days in the first year
• 14 days in each following two-year period

Successful applicants get visa-free Schengen travel, access to services like healthcare and education, and a path to permanent residency or citizenship after five years.

How Touchdown simplifies your move to Portugal

Touchdown is a relocation platform based in Portugal, built by expats for expats. Our lawyers and relocation specialists guide you through the move from start to finish, so you and your family can settle in with confidence.

We combine legal expertise with hands-on support, so your move feels clear, organised, and as stress-free as possible. If you are moving alone, with a partner, or with family, we create a personalised plan that matches your lifestyle, goals, and work needs.

Here is how Touchdown supports your move to Portugal:

Eligibility and personalised planning

Use our free Eligibility Checker to understand which residency options fit your profile. Then book a one-on-one consultation to map out a clear plan for your timeline.

Legal review

Our licensed lawyers review your documents, check compliance, and prepare your application properly. We focus on accuracy and completeness to reduce delays.

NIF and bank account setup

We help you secure a Portuguese NIF (tax identification number) and open a Portuguese bank account remotely through trusted partners, so you do not have to handle the process alone.

Consulate coordination and guidance

We assist with consulate steps, appointment preparation, and document checks. If requirements change, we adjust your checklist and next steps quickly.

Support after you land in Portugal

We continue helping you in Portugal with key setup tasks, like your AIMA appointment, address registration, and tax updates, so you stay compliant and settle faster.

Book a one-on-one consultation with our team for personalised guidance to get started on your relocation plan to Portugal today.

FAQs About Cost of living in Portugal vs Canada

Why are Canadians moving to Portugal?

Many Canadians are moving to Portugal due to its mild climate, safety, affordable cost of living, and healthcare access. The country offers visa pathways for people who live on passive income (D7 visa) or earn remote income (D8 visa), which gives them an easy way to relocate and settle legally.

Can you live in Portugal on $1000 a month?

Yes. If you choose to live in the smaller cities of Portugal and budget well, a monthly budget of $1,000 can be enough to afford rent, groceries, transport, healthcare, and leisure for a single person. But you will need more if you want to live in main cities like Lisbon or Porto. 

What is the downside to moving to Portugal?

The slow bureaucracy and visa delays are some of the downsides of moving to Portugal. But if you follow the right rules and submit the right documents, you don’t have to worry about the delays.

Touchdown reviews your paperwork, provides legal advice, and guides you through each step of the visa application process, so you avoid common mistakes that cause delays.

Can I live in Portugal as a Canadian citizen?

Yes. As a Canadian, you can stay in Portugal short-term as a visitor. If you want to live there long-term, you’ll need a residence visa such as D7, D8, or Golden Visa, depending on your situation.

How much income do you need to live comfortably in Portugal?

A single person can live comfortably in Portugal on about €1,200–€1,500 per month, depending on rent and lifestyle. A couple may need around €2,500 to €3,000 per month in outside major Portuguese cities to cover housing, groceries, and leisure.