Cost of living in Portugal vs UK: The 2026 relocation guide

More Britons are exploring a move to Portugal as they look for warmer weather, a slower pace, and monthly expenses that feel far more predictable than back home. The cost of living in Portugal vs UK is a major part of that decision, especially for people who want a better balance between lifestyle and affordability.

According to the Touchdown report, 38% of UK entrepreneurs and self-employed workers plan to relocate abroad within the next year, rising to 62% within two years, with Portugal emerging as the top choice.

But the appeal goes far beyond the sunshine. People are drawn to Portugal for its safety, friendly communities, and the predictability of everyday costs. Retirees appreciate the stability, remote workers settle in easily thanks to reliable internet and coworking spaces, and younger families value the balance between affordability and quality of life.

If you’re considering the move yourself, this guide breaks down housing, food, utilities, healthcare, transportation, and more to help you understand what life in Portugal really costs.

Is Portugal cheaper than the UK?

On average, Portugal is 30 to 40% cheaper than the United Kingdom. This places Portugal among the most affordable countries in Western Europe. Excluding rent, everyday items such as groceries, public transport, and leisure activities are 20 to 35% cheaper than in the UK. A single person can often live comfortably in Portugal on €1,200 to €1,500 per month, and a couple on €2,200 to €2,800 per month, depending on the region. 

Living expenses also vary by location. In Lisbon, monthly costs average around €740 for one person and €2,640 for a family of four, while in cities like Braga, the same budgets drop to €647 and €2,240. These amounts are for daily living costs only and do not include rent.

Portugal’s inflation rate reached 2.6% in July 2025, remaining lower and more stable than the UK’s rate, which has hovered close to 3.8%.

Portugal cost of living compared to the UK

Portugal is consistently more affordable across nearly every major spending category, and the cost of living in Portugal vs the UK comparison highlights just how noticeable the difference can be. Housing, food, transportation, education, and private healthcare all cost less, and the gap becomes clear when comparing rent and property prices. 

One-bedroom rentals are often 40 to 60% cheaper in Portugal, and groceries tend to cost around 25% less. Public transport can be 50 to 70% cheaper, while utilities and internet typically cost 15 to 30% less than the average UK prices. 

For families, international school fees in Portugal are nearly half the cost of private schools in the United Kingdom.

Here is a simplified comparison of average 2025 prices:

Housing costs

Portugal offers a diverse range of regions and cities, each with its own unique blend of affordability, culture, and quality of life. When comparing Portugal to the UK, some areas stand out as especially budget-friendly for expats. Below is a breakdown of housing costs across different parts of Portugal and how they compare to typical prices in the United Kingdom.

Buying property

Buying a home in Portugal is generally far more affordable than buying in the United Kingdom. National Statistics Institute (INE) data show that the median selling price in Portugal was €1,777 per square meter in 2024, while market averages from April 2024 place typical listings at around €2,622 per square meter. 

Prices do rise in high-demand areas like Lisbon and the Algarve, but interior regions remain significantly cheaper, allowing buyers to stretch their budget further. In the UK, the housing market is significantly more expensive. 

The average UK price for a house was £271,500 in September 2025, and cost-per-square-metre figures across England and Wales often fall in the £3,600–£4,400 per m² range. In London, those numbers climb dramatically higher, especially in prime central areas.

Renting

Renting also highlights the gap between the two countries. In Lisbon’s city centre, a one-bedroom apartment usually costs €1,200 to €1,500 per month, while similar apartments in Porto, Faro, or Coimbra fall between €800 and €1,000. Rents in Portugal tend to be even lower in inland regions and smaller cities, where many expats choose to settle due to affordability.

In comparison, major UK cities are far more expensive. A one-bedroom flat in central London commonly ranges from £1,850 to £2,200, and even regional cities such as Bristol and Manchester average well above £1,200. For many Britons, rent is the single biggest monthly saving when moving to Portugal.

Groceries and food

Groceries remain noticeably cheaper in Portugal than in the UK. A month of basic groceries for one person usually costs €200 to €300, while a similar basket in the UK typically ranges from £300 to £450. Fresh produce, bread, eggs, and bottled water consistently cost less in Portugal, which helps lower monthly expenses without requiring significant lifestyle changes.

Dining out and alcohol

Eating out is a regular part of daily life in Portugal, thanks to affordable prices. An everyday meal at a mid-range restaurant generally costs €10 to €15, while the same meal in the UK often ranges from £18 to £25. Alcohol also shows a large difference.

A domestic beer in Portugal averages €1.20, while in the UK, a pint commonly costs £5 to £6.50. Portugal’s wine regions, including Douro and Alentejo, make high-quality wine available at very low prices, which is a major advantage for expats who enjoy dining and socialising.

Transportation

Transport is another area where the cost of living in Portugal compared to the UK becomes apparent, especially when considering the price of monthly passes and the necessity of owning a car.

Public transportation

Public transportation in Portugal is affordable and widely used. A monthly pass in most major Portuguese cities costs €40 to €50, making it easy for residents to rely on buses, metros, and trams rather than owning a car. In the UK, public transport costs are among the highest in Europe. A monthly London travel pass can range from £80 to £150, depending on zones and travel frequency. 

Owning a car

Owning a car in Portugal can be more affordable overall, even though petrol prices average around €1.75 per litre. Insurance, maintenance, and parking tend to be cheaper than in the UK, where insurance costs have risen sharply and service fees are considerably higher. While fuel in the UK averages £1.62 per litre, these additional expenses often make car ownership more costly in the long run.

Healthcare

Portugal healthcare offers outstanding value. The national health service (SNS) provides accessible care with low co-payments, and many treatments for children and seniors are free of charge. Private health insurance is also affordable, with plans typically costing between €50 and €100 per month. A private GP visit typically costs between €50 and €60.

In the UK, the NHS is free at the point of use, but private insurance for expats and long waiting times mean many residents rely on paid healthcare services. Private insurance typically ranges from £120 to £200 per month, and private GP visits cost between £80 and £110.

Education

Public education in Portugal is free for residents, including foreign families, and the school system provides solid academic foundations. International schools are also widely available, with tuition generally ranging from €7,000 to €15,000 per year. This is significantly lower than the annual fees of UK private schools, which frequently exceed £15,000 and can rise above £25,000.

Utilities and internet

Utilities in Portugal remain moderate and predictable. Most households pay between €100 and €130 per month for electricity, heating, cooling, water, and waste collection. In the UK, the equivalent bill often ranges from £150 to £220, resulting in higher monthly operating costs.

Internet services in Portugal cost around €30 to €40 per month, while UK plans commonly range from £35 to £60.

Entertainment, sports, and leisure

Recreation and leisure costs are generally lower in Portugal. A gym membership averages €39, while the equivalent in the UK often costs £45 or more. Cinema tickets typically cost €9 in Portugal, compared to £14.50 in the UK. 

Tennis court rentals and other sports facilities are also more affordable, making it easier to maintain an active lifestyle without straining your budget.

Taxes and mandatory payments

Portugal’s VAT rate is 23%, but essential items are taxed at 6%, and restaurant dining is taxed at 13%. These revenues support public healthcare, education, and social services. 

Income tax can reach 35%, but many expats qualify for Portugal’s NHR 2.0 regime, which provides reduced tax rates for up to ten years.

In the UK, the top income tax rate stands at 45%, and National Insurance contributions further increase the financial burden.

Most affordable cities to live in Portugal

Portugal offers a wide range of affordable cities where British expats can enjoy a comfortable lifestyle without stretching their budget. Each place has its own unique blend of culture, cost, and day-to-day convenience, offering newcomers a range of choices depending on what they value most.

Monção

Monção is a quiet town in northern Portugal, located near the Spanish border, renowned for its scenic views and laid-back pace of life. A one-bedroom flat typically costs around €400, and groceries for two average about €200 per month.

The town is walkable, but public transport options are limited. While Monção is charming and inexpensive, job opportunities and access to major services are not as strong as in larger cities.

Bragança

Bragança offers a good quality of life at a relatively modest cost. One-bedroom rents typically range from €400 to €500, with monthly grocery expenses for a couple averaging around €250. A public transport pass is roughly €24. The city is known for its cultural events and reputable educational institutions, although winters can be cold, and the local job market remains small.

Covilhã

Set in Portugal’s mountainous region, Covilhã boasts a youthful atmosphere due to its large student population. Rent for a one-bedroom home averages €430, and groceries for two come to around €250 per month. Much of the city can be navigated on foot, which keeps transport costs low. The main drawbacks are harsh winters and its distance from Portugal’s larger urban centres.

Castelo Branco

Castelo Branco is well organised and budget-friendly. A one-bedroom flat costs around €550, and groceries for a couple average €300 monthly. Public transport passes typically cost around €25. It is popular among students and those seeking a practical lifestyle, although summers can be extremely hot, and entertainment options are limited.

Viseu

Viseu is often rated as one of Portugal’s most liveable cities. It is clean, structured, and well-designed, making it ideal for families. A one-bedroom flat typically costs €600, groceries for two average €280, and a transport pass costs around €29. The only challenge for expats is the smaller professional job market.

Paredes

Situated near Porto, Paredes provides access to a major city while keeping costs low. Rent for a one-bedroom home averages €500, and groceries for a couple cost about €300 per month. Public transport usually ranges from €20 to €30. The town is affordable but quieter, with fewer cultural or leisure activities.

Évora

Évora, a UNESCO World Heritage city, combines historic charm with modern living. One-bedroom rentals typically cost around €600, and groceries for a couple amount to roughly €300. Public transport is affordable at €20 per month. Rising living costs and a tourism-focused job market are the main downsides.

Aveiro

Aveiro is known for its canals and brightly coloured boats, offering a scenic lifestyle at a reasonable cost. A one-bedroom flat averages €700, and groceries for a couple cost around €300. Transport passes typically fall between €30 and €40. The city has a strong infrastructure but experiences high humidity and frequent rainfall.

Braga

Braga is a vibrant city in northern Portugal, rich in culture and history. Costs remain below the national average, with one-bedroom flats in the centre priced around €470, and outside the centre, around € 350. This makes local housing 30 to 40% cheaper than the national average in Portugal. Braga is lively and welcoming, though job competition can be tough.

Coimbra

Famous for its historic university, Coimbra offers a lively and affordable environment. A one-bedroom flat usually costs about €500 in the city centre and €400 outside it. The city offers a diverse blend of education, culture, and value, although winters are often characterized by rain.

Leiria

Located in central Portugal, Leiria is a calm and organised city, making it great for families. One-bedroom flats cost around €450 in the centre and about €350 outside. This results in local housing being 20 to 33 percent below the national average. While peaceful and affordable, Leiria is quieter and less dynamic than Portugal’s larger cities.

How can Touchdown assist your move to Portugal?

Every move to Portugal starts differently. Some people come for work, others for family, and many for a better lifestyle, but everyone begins with the same question. Which visa do I actually qualify for? Touchdown is built by expats for expats and simplifies this first step by giving you a clear starting point. 

You can use the free Eligibility Checker to understand your options.

Once you know where you stand, it becomes much easier to understand your visa choices. Most people end up between the D7 Passive Income Visa, which suits retirees and individuals with stable passive income, and the D8 Digital Nomad Visa, designed for freelancers and remote professionals. 

Touchdown explains the requirements for each and helps you understand which one aligns with your goals, but the support doesn’t stop at choosing a visa. 

The team guides you through every step of the process, preparing documents, submitting applications, reviewing your rental contract to ensure it meets immigration rules, obtaining your NIF, opening a bank account, and handling tax matters such as NHR 2.0 or setting up a company if your work model requires it.

You can book a 1:1 consultation where the team reviews your situation and outlines the path that fits your income, family setup, and long-term plans.

FAQs about cost of living in Portugal vs UK

Is £2,000–£2,500 enough to live comfortably in Portugal?

Yes. A monthly budget in this range is more than sufficient for a comfortable living in most Portuguese cities, covering essentials such as rent, groceries, transportation, healthcare, and leisure activities.

Can a single person live in Portugal on £1,000 a month?

It is possible, but it requires living in smaller inland towns where rent is low and lifestyle costs are minimal. Major cities, such as Lisbon or Porto, would be challenging at this level.

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

A single person can live comfortably on €1,200 to €1,500 per month, while couples usually spend between €2,200 and €2,800, depending on their lifestyle.

Is it better to live in Portugal or the UK?

The UK offers higher salaries, but Portugal provides a more affordable lifestyle, accessible healthcare, safer cities, and stable monthly expenses. For many, the lower cost of living in Portugal compared to the UK makes it a better long-term choice. 

The question of how easy is it to move to Portugal from the UK depends on the visa route you choose, but many expats find the process manageable with the right support.