Cost of Living in Portugal vs. USA: What to Expect
Portugal continues to be on the radar of expats, digital nomads, and business owners who want lucrative economic opportunities. Soaking up a vibrant culture, while also being safe (even in the big cities) is another major upside.
From Porto to Lisbon and beyond, many people have begun asking “is Portugal cheap,” “what are the real estate opportunities like in this country,” and much more. Others are curious about which communities are best for expats or other newcomers.
This guide will cover all of these points, while also looking at the day-to-day Portugal cost of living. Depending on your interests, reasons for a possible move, and other factors, the Lisbon cost of living vs. US may very well prove to be worth it.
Let’s explore together.
Living Expenses in Portugal vs USA
Before packing up your bags and booking your flight, you’re probably asking yourself “is it expensive to live in Portugal?” We can assist with this, giving you important information about the costs associated with dining out, transportation, travel, healthcare, and beyond. You’ll find that Portugal is one of Europe’s most affordable destinations, with many of its price points mirroring (or falling below) those seen in America.
Eating out
From the capital city of Lisbon to Aveiro and Sintra, you’ll find no shortage of dining options. While the average meal amounts to $20 (€17.96) to $40 (€35.96) per person, high-end restaurants will be more expensive, whereas fast food establishments cost less. While indulging in Portuguese cuisine, you’ll also find that it’s quite rich in Mediterranean and French influences.
The aforementioned price points are very much reflected throughout America as well. When it comes to eating out, the Lisbon cost of living vs. US cost of living is quite similar. Each of these communities are home to mouthwatering cuisine and different styles of restaurants to try at your leisure.
Transportation
Amid assessing the Portugal cost of living, we’d be remiss not to explore the ins and outs of transportation. Trams, buses, metros, and trains are each publicly available throughout Portugal. Tickets for each depend on a number of factors, but are often purchased at under $10 (€8.98) per person, going one way.
If you prefer more private modes of transportation, you can rent, purchase, or hire car service. Portugal also has rideshare apps, like Uber and FreeNow, making it fairly straightforward to get from point a to point b. All in all, transportation is readily accessible, with a series of options and price points for individuals to select from.
The United States, despite its access to public transportation like buses, Amtrak, etc., is much more geared towards private transit. In fact, across many American states, it’s hard to get by without owning a personal car. As such, the US offers ride share service via apps like Lyft and Uber in all 50 states.
In Portugal, you’ll find that walking is far more common than anywhere in the United States. This largely boils down to the European streets and overall infrastructure that’s far more conducive to moving around on foot. For this reason, when the Portuguese aren’t getting about on wheels, many opt to walk to and from their intended destinations.
Education
Basic education in Portugal does not charge out of pocket, spans nine years and is compulsory for children between the ages of 6 and 15. After this, the country offers public and private universities for young people to continue their studies.
While the former is technically “free,” a roughly $775 (€696.23) annual administrative fee is required before students can commence their studies. Depending on the individual facility, other fees may be baked in as well. Private higher education institutes, on the other hand, cost thousands of euros every academic year.
In many regards, Portugal’s higher education system mirrors that of the United States. While American community colleges are less expensive than private universities, the latter facilities are infamous for charging top dollar.
Traveling
Is Portugal cheap when it comes to travel? Well, in many regards, the answer is yes. Unlike the United States, Portugal offers a robust train system that goes all over the country (and to neighboring nations). Many residents and expats rely on the train system to explore various Portuguese cities, immerse themselves in riveting culture, and broaden their horizons.
Travelers of all varieties, from digital nomads on a budget to investors seeking a five star experience, have a wealth of options at their disposal. Portugal’s tourism infrastructure is impressive and seamlessly integrated with hotels, Airbnbs, and guided tour apps like GetYourGuide and Viator.
As the world’s one of the most sustainable nation, Portugal manages to streamline travel needs without forsaking clean energy, healthy communities, and other worthwhile aims. This is a major win for not just the nation’s expat community, but also its tourism industry.
Healthcare
On average, healthcare coverage in Portugal costs between $22 (€19.75) to $55 (€49.38) per month. Individual costs may be higher or lower, however, depending on one’s age, preexisting health conditions, and their tier of insurance.
In assessing the cost of living in Portugal vs. USA, it’s important to know that healthcare in the latter nation is often far more expensive. Many Americans are spending hundreds of dollars per month on their healthcare coverage, despite various technological advancements made to streamline services. Across the US today, many of the nation’s leaders are discussing ways to lower healthcare costs and make coverage more affordable for everyone.
Mental health is another important factor to consider when asking “is it expensive to live in Portugal.” Similarly to America, Portugal offers telemedicine and mental health services at significantly lower rates than traditional healthcare.
While comparing the Lisbon cost of living vs. US cost of living, remember this: affordable mental health services in Portugal are available in mental health clinics, community health centers, and even public hospitals.
The Cost of Insurance
One commonality exists between the cost of living in Portugal vs. USA, that being insurance fees. Across both nations, insurance costs for healthcare, homes, and other areas are influenced by a number of factors. For instance, an older person with a history of medical complications may face higher insurance rates than a healthy 27-year-old.
Likewise, car insurance rates for a driver who practices safe habits and avoids collisions will likely be less than someone with a history of crashes. While insurance costs vary throughout different American states, the same rule applies throughout various Portuguese municipalities.
The Cost of Electricity, Water and High-Speed Internet
If you’re thinking of moving, you’ll want to factor in various utilities to truly ascertain the Portugal cost of living. The average person in this country spends about $89.09(€80) to $100.22 (€90) per month on electricity and water. High-speed internet, on the other hand, can amount to $43.43 (€38.99) to $112.49 (€101) every month.
Of course, the size of one’s house/apartment and the frequency with which they use these utilities can drive their dues up or down. Typically, people living in big cities, such as Lisbon or Porto, end up with bigger bills than folks in more rural or remote areas of Portugal.
This principle holds true in the United States as well. Urban, highly populated areas almost always carry higher price tags than their more modest counterparts.
Public Safety
On the world stage, Portugal is well known for its safety and stability. This is a major factor in investors, expats, and other foreigners rushing to put down roots here. On the 2024 Global Peace Index, the European country earned a #7 ranking, a far leap from America’s #132.
While Portuguese citizens are allowed to own firearms for target shooting, hunting, collecting, and pest control, there are still far fewer mass shootings than in the US. Many families who are concerned about gun violence in America may consider Portugal as a safer alternative.
While the European nation’s crime rates are notoriously low, violent crime rates are even lower. All in all, the Portuguese have a reputation for a welcoming, amicable nature, one that expats, retirees, and others can appreciate.
Traditionally, public safety isn’t generally viewed as a fiscal cost of living in Portugal vs. USA. However, it contributes to one’s overall wellness and peace of mind as they go about their days. Arguably, this matters just as much as the economics of living in one country vs. the other.
Owning a Car (Gas, Maintenance, and Insurance) – Portugal vs the US
Many people wonder “is it expensive to live in Portugal,” but the answer is a bit nuanced when dealing with car ownership. In America, public transportation is more expensive than Portugal. However, when purchasing fuel in this European nation, the prices are much steeper.
Look at this this way, one liter of fuel in the United States costs $1.08 on average, but in Portugal, the rate spikes to $2.23 (€2). Maintaining and insuring a car is usually more expensive in America; though many factors are baked into individual costs. The car type will play a major role, as will the age and history of the driver behind the wheel.
In Portugal, fewer people, as the country’s infrastructure is very friendly to both walking and public transportation. Given the affordable prices of train, metro, bus, and tram travel, many Portuguese residents find this preferable to car ownership.
Is Portugal Cheap Compared to Living in America?
When tallying up the collective costs, it is significantly cheaper to live in Portugal than the United States. The Lisbon cost of living vs. US is undoubtedly a factor in investors, digital nomads, and others rushing to put down roots in the European country. While Portugal has attracted expats from all over the world, many come from America.
With a diverse real estate market, gorgeous beaches, and wonderful weather year round, it’s easy to see why the Portugal cost of living is popular. People who are eager to stretch their dollars further, without having to sacrifice quality of life, often find this country to be a perfect destination.
Expat Friendly Communities in Portugal
Even if you’re ready to pack your bags and head to Portugal, you’re probably wondering which cities are best. Let us help you with this, as there are so many options to select from.
To date, Lisbon, Madeira, and Braga are among the most popular places for expats to settle down. Many end up buying real estate in these areas, making nice lives for themselves and their families. Lisbon, as the capital of Portugal, is in high demand, especially among those who appreciate the city life.
If you’re looking for something more off the beaten path without being too far away from everything, Ponta, Portimao, and the Azores may strike a chord. These communities offer breathtaking nature views with fishing villages, beaches, and marine life.
Many people who appreciate their peace and quiet appreciate the charm and beauty across Ponta, Portimao, and the Azores. As a bonus, when you want the excitement of heading into the bigger cities, you need only take a train ride!
While considering the Portugal cost of living, it’s also important to know which Portuguese city you wish to call home. There are many benefits that come with settling down in expat friendly areas. Connecting with like minded people and making new friends are only the tip of the iceberg.
Cost of Living in Portugal vs. USA: The Final Round
Throughout this guide, we explored the ins and outs of Portugal vs. America’s living expenses. We also answered popular questions like “is Portugal cheap” and “is it expensive to live in Portugal.” A central part of discovering these answers involved breaking down the costs of education, travel, healthcare, etc., across both nations.
Later on, we explored the various tradeoffs of Portugal living vs. US living, while also diving into the nuances that impact transportation costs. A special review of expat friendly communities likewise provided insight into where most people land after making the move to this European country.
Hopefully, our guide afforded some valuable insight regarding the cost of living in Portugal vs. the USA. Whether you’re a retiree, expat, or a digit nomad looking for a change of scenery, this article can be a valuable resource as you plan your next steps.
Frequently Asked Questions
Where is the cheapest place to live in Portugal?
Both Lisbon and Porto are among the most popular tourist destinations in Portugal. So it is normal for them to be more expensive than other regions. On the other hand, the Algarve or the Silver Coast can offer a more affordable lifestyle.
Is it cheaper to live in Canada or Portugal?
Portugal is more affordable than Canada in many terms, especially considering the housing and food costs. Consumer prices can be compared between the two countries, but there will be some differences between the two countries.
What is the average income of someone who lives in Portugal?
It depends on the location and your lifestyle choices. However, it is known that Portugal’s cost of living is generally lower than many other Western European countries.
How much money will I need to retire in Portugal?
It depends on you, though. It will probably be more affordable than the US, and you will still have a plan for healthcare costs, housing expenses, and other living expenses for you or your family.
How much is house rent in Portugal per month?
It may be around 2500 - 3500 Euros for a four people family. Rent prices in Portugal also depend on the location and property size. Housing prices in tourist areas tend to be higher, like in Lisbon and Porto. If you are one of the foreign residents, it may be useful to search the average rent when you’re planning to move to Portugal, as the prices may change over time.
Is it cheaper to live in the USA or Portugal?
It may be considerable for you to live in the US or in Portugal, depending on many factors. If your plans include looking for private and international schools in Portugal, your general expenses may go higher. Housing costs, grocery prices, electricity and bills expenses, restaurant prices, healthcare systems, and the location of your rental apartment, be it a bedroom apartment according to your choices or for a four-person family, you’ll have your own expectations of prices.
