Portugal news, in English, every morning. Free.

Subscribe

The Portugal Brief
Subscribe
Guides

Cost of Living in Portugal

Researched and written with AI tools from official sources. How we make our guides

Official figures on rent by town, household spending, electricity, transport passes, health fees, and taxes, so you can build a realistic monthly budget.

The Portugal Brief 12 min read

Last verified: October 2026.

Who this is for

  • You are deciding whether you can afford to live in Portugal, on a salary, a pension, or savings.
  • You are comparing towns and want official rent figures for Lisbon, Porto, Braga, the Algarve, and elsewhere.
  • You want to build a monthly budget from real numbers, not guesses.

Not for you if: you have found a home and are ready to sign. Read Renting a Home in Portugal for leases, deposits, and your rights.

Updated October 2026. Regulated electricity prices rose from 1 October 2026, and INE estimates inflation reached 3.6% in September.

Housing is the cost that decides your budget in Portugal. On new leases signed in the second quarter of 2026, the median rent was €10.17 per square metre nationally and €17.79 in Lisbon, according to INE, the national statistics institute.

The minimum wage is €920 a month in 2026, and the average gross monthly pay is €1,835. In INE's last household survey, families spent an average of €23,900 a year, and 39.3% of it went on housing and utilities. This guide gives you the official figures and shows you how to turn them into your own budget.

Where the numbers come from

This guide only uses official figures: INE statistics, the energy regulator ERSE, the transport operators' own fares, and the health service's fees. Where no official figure exists, we say so.

That matters most for rent. Listing websites publish asking prices, which are often higher than what people actually sign for. INE publishes what is agreed in new leases, which includes older homes and cheaper areas. There is no official figure for asking rents. Use INE to compare towns, and expect listings in popular areas to sit above the median.

There is also no official "monthly budget" for a newcomer, and no official price list for groceries or restaurants. The last section shows how to build your own.

The national benchmarks

FigureAmountSource and date
Minimum wage€920 a month2026
Social support index (IAS)€537.13 a month2026; many fees and benefits are set from it
Average gross monthly pay per job€1,835 (regular pay €1,436)INE, second quarter of 2026, up 5.1% on a year earlier
Inflation3.3% in August; 3.6% estimated for SeptemberINE
Energy pricesUp 15.4% on a year earlier (estimate)INE, September 2026
Maximum rent rise on existing leases2.24% in 2026; 2.56% reference for 2027Official coefficient; INE

The average pay figure includes every job covered by social security, from part-time to senior roles. Many people earn less. INE does not publish a figure for take-home pay.

How households spend their money

INE's household budget survey runs every five years. The latest covers 2022 and 2023. It found:

  • The average household spent €23,900 a year.
  • 39.3% went on housing, water, electricity, gas, and other fuels. This includes an imputed value for people who own their home.
  • 12.9% went on food and soft drinks, and 12.1% on transport.
  • Households in the Lisbon metropolitan area spent the most, €26,891 a year on average. Households in the Azores spent the least, €19,431.
  • Households that rent spent €16,975 a year on average, and owners €25,791.
  • Households with dependent children spent €30,617 a year, against €20,886 for those without.

Prices have risen since the survey, so treat these as a guide to the shape of a budget, not today's totals.

Rent: what people actually pay, by town

INE's figures below are the median rent per square metre on new leases signed in the 12 months to June 2026. The last column is our own arithmetic: the median multiplied by 50 m², roughly a one-bedroom flat (T1). It is a guide, not a quote.

MunicipalityMedian rent per m²50 m² at the median
Lisbon€17.43about €870
Porto€14.48about €725
Lagos€12.77about €640
Matosinhos€12.48about €625
Loulé€12.33about €615
Portimão€11.70about €585
Vila Nova de Gaia€10.85about €545
Faro€10.29about €515
Aveiro€9.75about €490
Coimbra€9.44about €470
Évora€8.72about €435
Braga€8.68about €435
Leiria€7.97about €400
Viana do Castelo€7.80about €390
Guimarães€6.92about €345
Viseu€6.83about €340
Castelo Branco€5.32about €265
Portugal€9.76about €490

Rents are rising fast. In the second quarter of 2026 alone, the national median on new leases reached €10.17 per square metre, up 10.2% on a year earlier. Every one of the 24 municipalities with over 100,000 people saw an increase. Lisbon had the highest median (€17.79), and Guimarães the fastest rise (20.7%). By region, Greater Lisbon reached €15.24, the Algarve €11.56, and the Porto metropolitan area €10.83.

Three things the table does not show:

  • Neighbouring towns can cost much less. Compare Matosinhos or Gaia with Porto, or the towns around Lisbon with the capital, and check the transport pass costs below.
  • Small homes cost more per square metre. INE's figures for one-bedroom and studio flats are higher than the average for each town.
  • Moving in costs several months' rent. A landlord may ask for the first month, two months in advance, and a two-month deposit. See our renting guide.

Buying a home

INE's best official guide to prices is the median bank valuation of homes for mortgages. In August 2026 it was €2,254 per square metre nationally, up 14.7% on a year earlier.

On top of the price, you pay stamp duty of 0.8%. You also pay the property transfer tax (IMT), which depends on the price and on whether the home is your permanent residence. Once you own it, you pay the yearly municipal property tax (IMI). See Property Taxes in Portugal for Residents and Foreign Owners.

Electricity and gas

ERSE, the energy regulator, sets the prices on the regulated electricity tariff. About 779,000 customers were on it in June 2026. Most homes buy from suppliers on the open market, whose prices vary.

ERSE's typical monthly bills on the regulated tariff, including taxes, from 1 October 2026:

HouseholdContracted power and useMonthly bill
Couple without children3.45 kVA, 1,900 kWh a year€37.77
Couple with two children6.9 kVA, 5,000 kWh a year€97.73

These figures rose from €36.82 and €95.03 in January 2026. ERSE raised the energy price by €0.005 per kWh from 1 October 2026, after wholesale prices climbed. Your bill will depend heavily on heating and cooling. Many Portuguese homes have no central heating.

Use ERSE's price simulator to compare electricity offers once a year. It is free and lists the suppliers' current prices.

Bottled gas. Many homes, especially older ones, cook and heat water with bottled gas. ERSE publishes a monthly reference price ("efficient price with margins") for gas bottles. For May 2026, the reference for a 13 kg butane bottle was €38.09. Shops set their own prices, so check locally.

How to set up and switch supply is in Setting Up Utilities in Portugal.

Water, internet, and phone

Water. Each council or its water company sets its own tariff, so there is no single national price. Check your council's or water company's tariff page before you move.

Internet and mobile. No official body publishes a typical price. Compare the providers' own price pages, and read the contract term (fidelização) before you sign. A loyalty period can mean early exit charges.

Food and everyday shopping

No official body publishes shelf prices for groceries or restaurant meals in Portugal. INE measures how prices change. In September 2026 it estimated that prices of unprocessed food were 3.6% higher than a year earlier.

Food took 12.9% of the average household budget in INE's survey. Municipal markets (mercados municipais) sell fish, fruit, and vegetables in most towns. Restaurants often serve a set lunch (prato do dia), usually cheaper than dinner.

VAT is 6% on goods on the reduced list, which includes many basic foods. Restaurant meals and some other items pay 13%. Most other goods pay 23%.

Getting around

Public transport passes in the two big cities are cheap, and young people travel free.

Lisbon area (navegante), 2026 prices:

PassCoversPrice a month
navegante metropolitanoAll 18 municipalities of the Lisbon area€40
navegante municipalOne municipality (Lisbon, Amadora, or Odivelas on the metro)€30
navegante metropolitano +65Over-65s, retired people, and pensioners€20
navegante família metropolitanoA household, whole area€80
Young people up to 23navegante metropolitanoFree

A single Carris or metro ticket costs €1.90. A trip paid with prepaid "zapping" credit costs €1.72 on the metro. A personalised navegante card costs €7.

Porto area (Andante):

PassCoversPrice a month
Andante MetropolitanoAll zones in the Porto metropolitan area€40
Andante 3Z or MunicipalThree zones, or one municipality€30
Andante family passesA household€60 (3Z or Municipal) or €80 (Metropolitano)
Young people aged 4 to 23Andante passFree

Some higher education students on integrated master's degrees can travel free until 25.

Coimbra. The SMTUC general network pass for one municipality costs €30 a month. A ticket bought from the driver costs €2.

Braga. The city bus company, TUB, sets its own passes. Check its fares page for current prices.

Trains across the country. CP's Green Rail Pass (Passe Ferroviário Verde) costs €20 for 30 days, €40 for 60 days, or €60 for 90 days. It covers regional and interregional trains, Intercidades in second class with a free seat booking, and CP's urban trains in Lisbon, Porto, and Coimbra. It does not cover Alfa Pendular. Residents of Portugal can buy it.

A car. Outside the big cities, many people need one. Fuel prices change weekly; the Directorate-General for Energy and Geology (DGEG) publishes current prices by station. Budget too for insurance, the yearly road tax (IUC), maintenance, tolls, and parking. See Driving in Portugal.

Healthcare

If you live in Portugal legally, you can register with the national health service (SNS) at your local health centre. See Registering with the SNS in Portugal.

What you pay:

  • Health centre care and consultations you are referred to: nothing.
  • Hospital emergency without a referral: €18 at a full emergency department (urgência polivalente), €16 at a medical and surgical one, or €14 at a basic one. Tests done during the visit can add up to €40 more.
  • No emergency fee if the SNS 24 line (808 24 24 24), your health centre, or INEM sent you, or if you are admitted.

Who pays no fees at all includes children under 18, pregnant women and new mothers, people with a disability of 60% or more, and blood donors. Households with income up to €805.70 a month in 2026, and registered unemployed people on low benefits, are exempt too.

Medicines are partly paid by the state, and you pay the rest at the pharmacy. Many residents also buy private health insurance. No official body publishes typical premiums; ask insurers for quotes. See Healthcare in Portugal.

Children and school

State schools are free, from the 1st to the 12th year. Lessons are in Portuguese.

Textbooks are free for pupils in compulsory education (1st to 12th year) at state schools and at private schools with a state funding contract. Parents request vouchers on the MEGA platform each summer.

Private and international schools set their own fees. Ask each school for its current price list, including enrolment, meals, and transport.

In INE's survey, households with children spent about 47% more than those without.

Taxes on your income

Tax and social security take a large share of a salary. The headline rates for 2026:

  • Income tax (IRS) runs in nine brackets, from 12.5% on the first €8,342 of taxable income to 48% above €86,634. Each rate applies only to the part of your income in that bracket.
  • Social security: employees pay 11% of gross pay, and employers add 23.75%. Self-employed people pay 21.4% on 70% of their income from services.
  • VAT (IVA): 6%, 13%, or 23% on mainland Portugal, depending on the item. The Azores and Madeira set lower rates.

If your income comes from abroad, see Declaring Foreign Income in Portugal. For retirees, Retiring in Portugal covers pensions and tax.

Build your own monthly budget

Work through these steps with the figures above:

  1. Pick two or three towns. Note INE's median rent per square metre for each.
  2. Choose the size of home you need. Multiply its area by the median. Add a margin if you will rent in a popular area or a small flat.
  3. Add moving-in cash. Up to five months' rent at the start (first month, two in advance, two as deposit).
  4. Add electricity. Use ERSE's typical bills as a starting point, then add more if you will heat with electricity.
  5. Add gas, water, internet, and phone. Use your gas supplier's, council's, and providers' own price pages.
  6. Add transport. A €40 metropolitan pass in Lisbon or Porto, or the cost of running a car.
  7. Add food and household shopping. Your own spending at home is the best guide. In INE's survey, food was about one eighth of household spending.
  8. Add health. SNS care is mostly free; add insurance premiums if you want private cover.
  9. Add tax and social security if you will earn in Portugal.
  10. Add a buffer for one-off costs: furniture, appliances, and residence paperwork fees.

If your income is in another currency, a change in the exchange rate changes your budget by the same proportion. Plan for it.

Ways to keep costs down

  • Compare towns before flats. INE's figures show a wide gap between neighbouring municipalities.
  • Buy a monthly pass. A metropolitan pass in Lisbon or Porto is €40, and young people aged 23 or under travel free.
  • Register with the SNS early. Health centre care costs nothing, and calling SNS 24 first avoids the emergency fee.
  • Compare electricity offers on ERSE's simulator once a year.
  • Claim the rent deduction if you are tax resident. You can deduct 15% of your rent, up to €900 for 2026 rent.
  • Use the CP Green Rail Pass for regular trips between cities.

This guide is general information, not financial or tax advice. Prices change; check the official source before you act.

Sources

This guide is written from official sources and, where relevant, organisations' own websites.

Last verified October 2026. Rules and fees change; check the official source before acting.

Read next