Spain vs Portugal cost of living: A comparison guide

According to the Touchdown survey, more than half of respondents (52%) now rank Spain or Portugal as their top relocation choice.

Both countries share a long land border and Atlantic coastlines, but their living costs can differ slightly depending on your income, lifestyle, and housing choices.

In this guide, we’ll compare Spain vs Portugal cost of living, including housing, healthcare, groceries, education, transportation, and other utilities. This will help you make the right relocation decision for you and your family. 

Cost of living in Spain vs Portugal: An overview

Spain and Portugal are two of the most affordable countries in Western Europe. 

An average cost of living for a couple living in Portugal, outside major cities, ranges from €2,500 to €3,000 per month. In comparison, Spain’s cost of living starts from €1,000 per person or €2,700 per household. But this estimate can vary depending on your lifestyle choices, accommodation, and daily expenses. 

In Portugal, the living costs in major cities like Lisbon start from €740 for one person and €2,640 for a family of four. But if you choose to move to smaller cities like Braga, you’ll probably pay around €647 per individual and €2,240 for a family of four. Though, keep in mind that these are the starting cost of living, often not giving you a decent/comfortable living standard. We’ll look into that in detail later.

When compared with Spain, the cost of living in Madrid is 4.8% higher than in Lisbon. Similarly, living costs in smaller cities like Granada, Valencia, or Alicante are much higher than in Portugal. 

Cost of living in Spain vs Portugal: Complete breakdown

Here’s a quick overview of what it’s like living in Portugal vs Spain:

The following is the complete breakdown of the cost of living in Spain vs. Portugal:

Housing costs

Buying property

Buying property in Spain is more expensive than in Portugal, but still more affordable than in much of Western Europe. 

According to Spain’s National Statistics Institute (INE), the average purchase price of housing in 2024 was €205,036. The average price per square meter ranges between €2,300 and €2,800.

Prices are highest in Madrid (€4,200–€5,000/m²) and Barcelona (€4,000–€4,800/m²), while regions such as Extremadura (€1,050/m²) and Castilla-La Mancha (€1,200/m²) remain among the most affordable.

Smaller cities like Granada, Salamanca, and Alicante offer homes between €1,500 and €2,000 per square meter.

The average price for buying property in Portugal is around €1,951 per m² in early 2025. Prices are highest in the Lisbon Metropolitan Area (€3,644/m²) and the Algarve (€3,334/m²). Properties in Central Portugal (€1,448/m²) and Alentejo (€1,507/m²) are much lower.

Renting

When comparing the rental market between Spain and Portugal, there’s a high difference in rates. As of July 2025, Portugal’s average rental housing is about €16.7/m² per month.

If you’re renting in Portugal, a one-bedroom apartment in central Lisbon now averages around €1,200–€1,500, while in cities like Porto or Faro, the rate drops to a more affordable €800–€1,000 per month. Villas and larger homes, especially in coastal or suburban zones, charge higher rents.

Spain’s rental market shows higher starting points in large urban centres. In cities such as Madrid and Barcelona, one-bed apartments in central locations cost around €1,400-€1,600 per month. 

In smaller Spanish cities or suburban zones, rents may drop to €600-€900/month for one-bed units. But they still tend to be above many Portuguese equivalents when comparing like-for-like city size and centrality.

Healthcare cost

Portugal’s healthcare is government-run and provides residents with highly affordable access to medical services. Most treatments come with only a small co-pay, and care for seniors and children is free of charge. 

If you prefer private coverage, health insurance generally costs around €50-€100 per month. A general practitioner visit in private healthcare averages around €51, while dental cleanings cost between €28 and €116, depending on the provider.

In Spain, the public healthcare system offers universal coverage to legal residents. Most general care under the public system is free or requires only a modest co-payment. The prescription costs and some specialist services are the main out-of-pocket items.

Private healthcare services in Spain can cost you between €50 to €200 per month, depending on the provider. The private health insurance costs under €100, based on the plan you choose. 

Transportation cost

Public transport

Getting around in Portugal is very cost-effective if you rely on public transportation. A monthly pass for buses, trams, or metro systems generally costs €40–€50 per month. 

In Spain, monthly public transport passes range from €22 to €79, depending on the city and travel zones. A monthly metro/bus pass in Madrid costs €32.70 to €79, while the same monthly pass ranges from €22 to €41 in Barcelona. 

Buying a car

Owning a car is more costly in both Portugal and Spain, mainly due to fuel prices and taxes. In Portugal, gasoline averages around €1.75 per liter. Fuel prices in Spain are relatively cheaper than in Portugal, with an average of €1.46 per liter for gasoline.

But you also need to consider car ownership costs, such as maintenance, tolls, and parking.

Education cost

The annual tuition fee for international schools in Portugal ranges from €7,000 to €15,000. These schools are especially popular within expat communities for their bilingual programs and globally recognized curricula. 

Public education is free and available to both Portuguese citizens and foreign residents. But most public schools teach primarily in the Portuguese language. 

In Spain, public schools are also free for both local and foreign residents, though the primary language of instruction is Spanish (with some regional variations such as Catalan or Basque). 

International and private schooling options are more common in larger cities like Madrid, Barcelona, and Valencia. The tuition fees in Spain usually range from €9,000 to €20,000 per year.

Groceries and food cost

The groceries and food in Portugal are relatively cheaper than in Spain. Overall, a month’s worth of basics for one person in Portugal costs around €200–€300, while Spain’s grocery prices are about 5–10% higher.

Here’s an item-level comparison for Spain vs. Portugal:

Dining out and alcohol

Eating out in Portugal is an everyday experience rather than a luxury. A casual lunch at a local café costs between €8 and €12, while a three-course dinner at a mid-range restaurant ranges from €25 to €35 for two people.

In Spain, a three-course lunch menu del día averages €12–€18, and a mid-range restaurant dinner ranges between €25–€50 per person. The tapas-style dining can be enjoyed for as little as €15–€25.

Alcohol remains affordable in both Portugal and Spain compared to most of Europe. In Portugal, a domestic beer typically costs €1.10–€1.50, and a glass of local wine is usually €3–€5. 

In Spain, prices are similarly reasonable. A glass of house wine ranges around €3–€6, while cocktails at rooftop bars or lounges generally cost €6–€12.

Local wines from Rioja and Ribera del Duero are widely available by the glass for around €4–€10, making Spain a haven for wine enthusiasts.

Utilities and internet

In Portugal, basic utilities such as electricity, heating, cooling, water, and garbage collection typically range between €100 and €130 per month. Spain falls within a similar range, though slightly higher in larger cities, averaging €110 to €150 monthly, depending on household size and energy use.

For high-speed internet, a basic plan can cost around €28 per month in Spain, while broadband service in Portugal usually costs between €30 and €40 per month.

Entertainment, sports, and leisure

Spain and Portugal offer plenty of affordable activities for recreation and leisure. In Portugal, a monthly gym membership costs around €39. This is similar to Spain, where prices range from €35 to €45, depending on the city and type of facility.

Sports and outdoor activities are similarly priced. Renting a tennis court for an hour in Portugal averages €17, while in Spain, it’s slightly higher at around €20. 

Movie nights are also accessible in both countries. A cinema ticket costs roughly €9–€10 in Spain and €9 in Portugal.

Taxes & mandatory payments

Spain and Portugal maintain progressive tax systems and value-added tax (VAT) frameworks that fund their extensive public services.

In Spain, the general VAT (IVA) rate is slightly lower at 21%. A 10% reduced rate applies to essentials such as food, public transport, housing, and restaurant services, while a 4% super-reduced rate covers basic goods like bread, milk, books, and medicines.

Spain’s income tax combines both national and regional components, so the total rate you pay depends on where you live. The national tax schedule applies across the country, while each region adds its own surcharge. 

For most residents, income between €60,000 and €300,000 is taxed at around 45%. Earnings above €300,000 fall into the top bracket, where the combined national and regional rate can reach 47%–50%.

In Portugal, the standard VAT rate is 23%, while essential categories benefit from reduced rates, i.e., 6% on basic food items and 13% in restaurants.

Income tax in Portugal follows a progressive structure that can reach 35%. But many foreign residents qualify for the NHR 2.0 tax regime. Under this program, expats working in high-value sectors enjoy a 20% flat tax on Portuguese income and possible exemptions on foreign-sourced earnings for up to ten years.

Navigating these tax systems can be complex, especially when factoring in residency rules, double taxation agreements, and regional variations. 

Touchdown offers tax consultation services with personalized tax planning. Our bar-certified Portuguese tax attorney helps you clarify your tax residency, NHR eligibility, and income optimization strategy before or after your move to Portugal.

Spain vs Portugal: Which is best for expats?

Choosing between Spain and Portugal depends on your lifestyle, personal priorities, and income. 

Spain offers energetic urban life, cultural depth, and a robust job market. Cities like Madrid and Barcelona offer international career opportunities, world-class universities, and endless entertainment. 

Portugal, on the other hand, offers a calmer pace with a focus on community, safety, and nature. It is also one of Europe’s fastest-growing innovation hubs. Lisbon and Porto are attracting tech startups, digital nomads, and investors through favorable tax policies and a thriving entrepreneurial ecosystem.

English is also much widely spoken in Portugal than in Spain. 

Best affordable cities to move to in Portugal

If you want to move to Portugal, the following is the list of affordable cities you can live in:

Monção

A peaceful northern town near the Spanish border, Monção offers one-bedroom apartments for around €400 and groceries for two at roughly €200 per month. It’s walkable and scenic, but has limited job opportunities and healthcare access.

Covilhã

Nestled in the mountains, Covilhã blends affordable living with a lively student community. Rent averages €430, groceries €250, and transport costs stay low due to the city’s compact layout.

Castelo Branco

Castelo Branco offers a balance between affordability and organization. The one-bedroom apartments cost around €550, and transport passes are priced at €25. It’s ideal for students, but leisure options are limited.

Bragança

Bragança is known for its cultural richness and tranquil lifestyle. Monthly rents in Bragança range from €400–€500, with groceries around €250 per month. The city has good schools and low transport costs, though winters can be harsh.

Viseu

Consistently ranked among Portugal’s most livable cities, Viseu is clean, family-friendly, and well-planned. You can expect €600 rent, €280 in groceries, and €29 for public transport. But there are fewer job opportunities in this city.

Visa pathways for moving to Portugal

If you’re considering moving to Portugal, here are some visa options you should consider:

D8 Digital Nomad Visa

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

Eligibility and financial requirements

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

• A 12-month rental lease in your name

• Travel insurance valid for at least six months

• A clean criminal record, Portuguese NIF, and bank account

To apply with your family members, you must show additional savings: 50% for spouse and 30% for each dependent child. 

Successful applicants receive a 4-month entry visa, followed by a 2-year renewable residence permit that grants access to healthcare, education, and Schengen-wide travel.

D7 Passive Income Visa

The D7 Passive Income Visa is designed for non-EU citizens who can support themselves on passive income (pensions, rentals, dividends, royalties).

Eligibility and financial requirements

To qualify for a D7 visa, you must earn €870 per month or €10,440 per year. You also need to have savings equal to Portugal’s yearly minimum wage, i.e., €10,440. You’ll also need:

• A 12-month rental lease (or property deed) in your name

• Travel insurance valid for at least six months (Schengen coverage)

• A clean, apostilled criminal record, plus a Portuguese NIF and Portuguese bank account

• Bank statements and supporting proofs (pension letters, rental contracts, dividend slips) showing consistent passive income.

Once approved, you get lawful residency, Schengen travel, access to public services, and a path to citizenship after 5 years.

How Touchdown helps you move to Portugal 

Touchdown is a Portugal-based relocation platform, led by expats for expats. Our team of expert Portuguese lawyers and relocation specialists simplifies every step of your move, so you and your family can start your new life with ease.

We understand that moving to a new country goes beyond just submitting paperwork. Our approach combines legal expertise with personal support, making your move to Portugal smooth and stress-free.

Whether you’re moving solo, with a partner, or with your family, Touchdown designs a personalized relocation plan that fits your lifestyle, goals, and professional needs.

Here’s how we help you move to Portugal:

Eligibility and personalized planning

Start with our free Eligibility Checker to explore the best residency options for your situation. In just a few minutes, you’ll get a clear overview of your pathways to living in Portugal. 

You can then schedule a one-on-one consultation to create a tailored relocation plan based on your situation.

Legal review and application support

Our licensed lawyers take care of all legal aspects. This includes reviewing your paperwork, meeting compliance standards, and preparing your application for success. We make sure every document is accurate and complete before submission.

NIF and bank account setup

Through our verified financial partners, you can open a Portuguese bank account and obtain your NIF (tax identification number) remotely. We manage the details so you receive all approved documents quickly and securely, without needing to navigate the process alone.

Consulate coordination and support

We handle every step of the process for you, from scheduling consulate appointments to reviewing your file with the relevant offices. If any rules or requirements change, we adapt your plan right away to prevent delays.

Settling in after arrival

Our support continues once you’re in Portugal. We help you register your address, attend your AIMA appointment, update your tax information, and complete all local registrations. Our experts help you relocate without any legal issues. 

Book a one-on-one consultation with our team to receive tailored relocation advice and begin your move to Portugal today!

FAQs About Spain vs Portugal Cost of Living

Is it cheaper to live in Portugal or Spain?

Portugal is slightly cheaper than Spain overall. You'll save the most on housing, food, and transportation. Lisbon and Porto cost less than Madrid or Barcelona. However, small towns in both countries offer affordable living. Your actual costs depend on four factors: your income level, lifestyle choices, where you live, and your daily spending habits.

Is it better to retire in Portugal or Spain?

Portugal is often the better retirement destination, but Spain has strong advantages too.

Portugal offers lower living costs, tax incentives for retirees, and easier visa options. The country is known for safety, friendly locals, and a relaxed pace of life.

Spain provides richer urban culture, more entertainment options, and a broader healthcare network. Cities offer more activities and better medical infrastructure.

For most retirees, Portugal edges ahead due to affordability and tranquility. However, Spain suits those wanting vibrant city life and comprehensive healthcare access.

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

Yes, you can live comfortably in Portugal on $3,000 a month. For a single person, $3,000 covers all expenses in major cities like Lisbon or Porto. You'll afford a one-bedroom apartment, groceries, utilities, transportation, and entertainment with money left over. 

For a couple, $3,000 works well in smaller cities like Braga, Covilhã, or Viseu. Rent drops to €400-€600, and groceries cost around €250-€280 monthly. However, living in Lisbon or Porto as a couple requires tighter budgeting on this amount. Families need more than $3,000 monthly, especially in larger cities where housing and education costs increase significantly.

What is the downside to moving to Portugal?

Some downsides to moving to Portugal include bureaucratic delays, especially for visas and public services. 

Touchdown can help you avoid visa issues by managing your entire relocation process. Our licensed Portuguese lawyers handle all administrative steps, so your visa and residency applications are processed smoothly.