Cost of living in Portugal vs USA (2025 comparison)

Portugal has quietly transformed into one of the world’s favorite places to call home. More and more Americans are settling here, drawn by the sunshine, relaxed pace of life, friendly locals, and a healthcare system that doesn’t break the bank.

Retirees trade long winters for coastal walks, digital nomads set up their laptops in Lisbon cafés, and families find safety and stability in welcoming communities. 

When planning a move abroad, cost is one of the most important factors to think about. The cost of living in Portugal vs USA often highlights just how big the difference can be. 

In this guide, we’ll dive into a full Portugal vs USA cost of living breakdown, covering housing, groceries, utilities, healthcare, and transportation to give you a clear picture of what life in Portugal might look like financially.

Is Portugal cheaper than the US?

Yes. Overall, the cost of living in Portugal is about one-third lower than in the United States, making it the most affordable country in Western Europe. 

Excluding rent, daily expenses like food, transport, and entertainment are roughly 28.4% lower than in the U.S. This affordability means a couple can live comfortably outside Portugal’s major cities on $2,500–$3,000 per month, covering housing, groceries, and leisure without major sacrifices.

Costs do vary by location. In Lisbon, living expenses average around €740 for one person and €2,640 for a family of four, while in Braga the same budgets drop to €647 and €2,240. 

The annual inflation rate in Portugal rose to 2.6% in July 2025 from 2.4% in June, but overall costs remain relatively stable compared to other parts of Europe and the U.S., giving expats more predictability when planning long-term budgets.

Portugal cost of living compared to us

Portugal is more affordable than the U.S., but the real picture depends on where your money goes each month. Housing, groceries, healthcare, and transportation all come in at lower costs, with some categories showing especially dramatic differences. 

Let’s take a look at how your expenses in Portugal break down compared to life in the U.S.:

Housing costs

Buying property

Buying property in Portugal is significantly cheaper than in the U.S. According to Portugal’s National Statistics Institute (INE), the average property price in April 2024 was €2,622 per square meter. 

Prices are highest in the Lisbon Metropolitan Area (€3,644/m²) and the Algarve (€3,334/m²), while regions like Central Portugal (€1,448/m²) and Alentejo (€1,507/m²) remain much lower. In smaller cities such as Évora, Elvas, Coimbra, and Aveiro, homes can even be found for under €1,000 per square meter, offering excellent opportunities for buyers seeking both character and value.

In the U.S., the numbers are far higher. The median sales price for new homes in June 2025 was $401,800, with the average price reaching $501,000. This means that in Portugal you can often buy a city-center apartment for less per square meter than a suburban home in many mid-sized American cities. 

Renting

Renting also highlights the gap between the two countries. In Lisbon’s city center, a one-bedroom apartment generally costs €1,200–€1,500 ($1,300–$1,650) per month. In smaller Portuguese cities like Porto or Faro, rents usually fall to €800–€1,000 ($870–$1,100). 

By contrast, in major U.S. urban centers such as New York or San Francisco, similar apartments often run $2,800–$3,500 or more, making Portugal’s rental market far more accessible.

Groceries and food

Everyday groceries cost noticeably less in Portugal than in the United States. On average, a month’s worth of basics for one person comes to about €200–€300 ($234–$351), while a similar basket in the U.S. is typically $400–$500. 

To give a clearer picture, here’s a comparison of common items and their average prices in both countries:

Dining out and alcohol

One of the great pleasures of living in Portugal is how affordable it is to enjoy the country’s food and wine culture. Eating out is a normal part of daily life, not a luxury, because prices are far lower than in the United States. 

Alcohol is also inexpensive. A Portuguese beer averages $1.17, while a domestic beer in the U.S. costs about $2. Local wines, including reds from the Douro Valley and Portugal’s famous ports, are widely available and surprisingly affordable, making good wine accessible to everyone.

Beyond the numbers, Portuguese dining is about quality as much as cost. Fresh seafood such as sardines, cod (bacalhau), and octopus is common on menus. For dessert, the pastel de nata, a small custard tart, is an everyday treat that has become a symbol of Portuguese cuisine.

Transportation

Public transportation

Getting around in Portugal is very cost-effective if you rely on buses, trams, and metro systems. A monthly pass usually costs €40–€50 ($44–$55), making it an affordable option for daily commuting. In the U.S., public transportation tends to be more limited, and passes in major cities often range from $75 to $130 each month.

Owning a Car

Gasoline in Portugal is more expensive, averaging €1.75 per liter (≈$7 per gallon). However, many expats decide not to own a car because public transport is reliable and well-connected across cities. In the U.S., while fuel is cheaper, the overall cost of car ownership is higher due to insurance, parking, and maintenance. This often makes driving more expensive overall than relying on Portugal’s transit options.

Healthcare

Portugal’s healthcare system is government-run and provides residents with highly affordable access to medical services. While it isn’t entirely free, most treatments come with only a small co-pay, and care for seniors and children is free of charge. 

For those who prefer private coverage, health insurance generally costs €50–€100 per month ($55–$110). A general practitioner visit in private healthcare averages around $55 in Portugal, compared to $110 in the U.S., and dental cleanings cost between $30 and $125, depending on the provider.

In the United States, healthcare is one of the biggest financial burdens. Monthly private insurance premiums typically range from $400 to $800, often with high deductibles, and a standard doctor’s appointment can cost $100–$200 out of pocket. By contrast, public healthcare in Portugal is nearly free, making the overall cost of staying healthy dramatically lower for residents and expats alike.

Education

Education in Portugal is accessible and affordable, especially for families moving from the U.S. Public schools are free for both Portuguese citizens and foreign residents, and they provide a solid standard of education. For families who prefer international or private schools, annual tuition generally ranges from €7,000 to €15,000 ($7,700–$16,500). These schools are popular among expats for their bilingual curricula and international programs.

In the United States, private education comes at a much steeper price. Typical tuition costs $15,000 to $25,000 per year, with top-tier schools charging even more. Compared to Portugal, where international school fees remain relatively moderate, families can access quality private education at nearly half the cost of what they’d expect to pay in the U.S.

Utilities and internet

In Portugal, household utilities such as electricity, heating, water, and garbage collection usually cost between €100 and €130 per month ($110–$145). In the U.S., the average monthly bill for the same services is higher, generally ranging from $150 to $200.

Internet service is also more budget-friendly in Portugal. A reliable high-speed plan is usually €30 to €40 ($33–$44) per month, while in the U.S. similar packages often cost $60 to $80.

Entertainment, sports and leisure

Recreation costs in Portugal are generally lower, making it easier to enjoy an active and social lifestyle. A monthly gym membership is nearly the same in both countries, averaging around €39 ($45), so fitness costs won’t change much for expats.

Other activities, such as renting a tennis court for an hour on the weekend is about €17.33 ($14.78) in Portugal, compared to $22 (€18.77) in the U.S., a difference that adds up if you play regularly.

Leisure activities such as going to the movies are also more affordable. A cinema ticket for an international release is about €9.32 ($7.95) in Portugal, whereas in the U.S. the same ticket averages $14.50 (€12.37). These price differences mean expats can enjoy sports, cultural activities, and entertainment more frequently in Portugal without straining their budget.

Taxes & mandatory payments

In Portugal, most purchases include a 23 percent value-added tax (VAT). Essential categories are taxed at lower rates, with 6 percent on basic foods and 13 percent in restaurants. These revenues help fund public services such as healthcare, education, and pensions, which significantly reduces the personal cost of these essentials for residents.

Income tax in Portugal can reach 35 percent, yet many expats benefit from the Non-Habitual Resident (NHR 2.0) scheme. Under this program, foreign residents may qualify for reduced rates or exemptions on certain types of income for up to ten years. For many, this makes Portugal a true tax haven, combining high-quality public services with favorable treatment of foreign earnings.

In the United States, the top federal income tax rate is about 37 percent. On top of this, most workers must also pay state income tax and contribute 7.65 percent toward Social Security and Medicare. 

Because public coverage is limited, Americans often spend much more directly on health insurance, college tuition, and retirement planning, which increases the overall burden beyond what income tax rates suggest.

Most affordable cities to live in Portugal

Portugal is home to several budget-friendly cities where expats can enjoy a comfortable lifestyle without overspending. Each city offers its own mix of affordability, culture, and quality of life.

Monção

In northern Portugal, Monção is a peaceful and scenic town close to the Spanish border. Rent for a one-bedroom apartment is around €400, and groceries for a couple average about €200 per month. 

Most areas are walkable, though public transport is limited. While the town is charming and affordable, job opportunities and access to schools or hospitals are limited.

Bragança

Bragança offers a high quality of life at a modest cost, with one-bedroom rents ranging from €400–€500. Grocery bills for a couple average €250 per month, and a public transport pass costs about €24. The city has a strong cultural scene and good educational institutions, though cold winters and a small job market are common drawbacks.

Covilhã

Nestled near Portugal’s mountains, Covilhã is known for its vibrant student life and proximity to ski resorts. Rent averages around €430, while groceries for two cost about €250 per month. Most of the city is walkable, keeping transport costs low. Winters are harsh, however, and the city is far from Portugal’s main urban centers.

Castelo Branco

Castelo Branco combines affordability with a well-organized urban environment. A one-bedroom apartment costs around €550, and groceries for a couple are about €300 monthly. A transport pass is roughly €25. It’s a great place for students, though leisure options are limited and summers can be extremely hot.

Viseu

Clean, organized, and with strong infrastructure, Viseu is often ranked among Portugal’s most livable cities. Rent for a one-bedroom is around €600, groceries for a couple average €280, and transport passes cost €29. The city is ideal for families, but the professional job market remains small.

Paredes

Located near Porto, Paredes offers affordable housing and convenient access to a major city. Rents average €500 for a one-bedroom, with groceries for two costing about €300 per month. Public transport costs between €20 and €30. While housing is affordable, cultural and leisure activities are limited.

Évora

A UNESCO World Heritage city, Évora combines history with modern living. A one-bedroom apartment rents for around €600, and grocery bills for a couple are close to €300. Public transport is very affordable at €20 per month. The main downsides are rising living costs and a job market focused mostly on tourism.

Aveiro

Famous for its canals and colorful boats, Aveiro offers scenic living at a relatively low cost. Rent for a one-bedroom averages €700, with grocery expenses for a couple around €300. Transport passes cost between €30 and €40. While infrastructure is strong, the city faces frequent rain and high humidity.

Braga

Braga is a northern city rich in history and culture, and its costs are below Portugal’s national average. Rent for a one-bedroom in the city center is about €470, reducing to €350 outside the center. This makes housing around 30–40% cheaper than the national average. Braga is lively and dynamic, though job competition can be stiff.

Coimbra

Known for its ancient university and student-driven energy, Coimbra is another excellent choice for affordable living. Rent averages €500 in the city center and about €400 outside. The city offers a great mix of history, education, and affordability, though winters can be rainy.

Leiria

Located in central Portugal, Leiria provides a peaceful lifestyle at a low cost. One-bedroom apartments in the city center average €450, while outside the center they drop to €350. This is about 20–33% below the national average. Leiria is calm and family-friendly, though not as lively as Portugal’s bigger cities.

How can Touchdown assist your move to Portugal?

Touchdown is Portugal’s trusted relocation platform, created to make your move abroad simple and stress-free. With the support of our experienced legal team, we combine expert guidance, smart technology, and personal support so you can focus on building your new life instead of worrying about paperwork.

Portugal offers a variety of visa options to suit different lifestyles. The D7 Passive Income Visa is designed for retirees and those with stable passive income, while the D8 Digital Nomad Visa is tailored for freelancers and remote workers.

Families may apply through reunification, and investors consider the Golden Visa. Another major advantage is that Portugal allows dual citizenship, making it possible to keep your existing nationality while gaining all the rights of Portuguese residency.

Your move to Portugal starts with Touchdown

Relocating abroad should be an exciting step forward, not a maze of bureaucracy. Touchdown gives you expert legal support, a clear roadmap, and the reassurance that every detail is taken care of. 

Use our free Eligibility Checker to see which visa suits you best, or book a 1:1 consultation with our team today.

FAQs

Can you live in Portugal on $3,000 a month?

Yes. A monthly budget of $3,000 allows a single person to live very comfortably in Portugal, covering rent, groceries, transport, healthcare, and leisure. In smaller cities outside Lisbon or Porto, this budget can even stretch to include savings or travel.

Can you live in Portugal on $1,000 a month?

It is possible but challenging. A single person could manage in smaller towns with low rent, simple groceries, and minimal extras. However, in Lisbon or Porto, $1,000 per month would not be enough to cover housing and daily expenses.

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

For a single person, €1,200–€1,500 ($1,300–$1,600) per month usually covers a comfortable lifestyle. A couple can expect to spend $2,500–$3,000 depending on location and lifestyle choices.

Is it better to live in Portugal or the USA?

The answer depends on your priorities. The United States offers higher salaries and stronger local purchasing power, but everyday expenses and housing make it one of the most expensive countries to live in. When looking at Portugal's cost of living vs US, Portugal clearly stands out as the more affordable option. It is also safer, provides universal healthcare, and offers a relaxed lifestyle that many expats find more appealing.