A sun-soaked paradise with a relaxed culture, Portugal is a haven for British expats seeking easy overseas living at an affordable cost. Portugal is renowned for its sunny climate, stunning beaches and delicious food. Popular locations for expats include the capital Lisbon, its nearby resort Cascais, the second city Porto and the famous Algarve region.

Portugal is a relatively inexpensive country compared to the rest of Western Europe, with the capital city Lisbon ranking as the 95^th most expensive city in the world according to Mercer’s 2019 Cost of Living Survey.

The currency used in Portugal is the euro, with 1 British pound equalling approximately €1.73 (as of 31^st December 2019). As a result, you may need to convert prices into British pounds to compare the cost of living in Portugal with the UK. You can monitor the EUR to GBP exchange rate from our Currency Zone. 

(All figures taken from Numbeo.com and exchange rates calculated on 31^st December at 10.30am).

 

How much does accommodation cost in Portugal?

Both rent and house prices are generally more affordable in Portugal compared to the UK, with many retirees able to purchase a property in Portugal for a fraction of their budget. However, the cost of accommodation varies depending on the area you choose to live, whether it’s Lisbon, the Algarve or Porto. Below are a few examples of the average cost of property you can expect to find throughout Portugal.

 

Lisbon

Monthly rent for 1 bedroom apartment (city centre)	£754.83 (€886.06)
Monthly rent for 1 bedroom apartment (outside centre)	£529.55 (€621.61)
Monthly rent for 3 bedroom apartment (city centre)	£1,441 (€1,691.41)
Monthly rent for 3 bedroom apartment (outside centre)	£958.69 (€1,125.36)
Price per square meter to buy apartment (city centre)	£3,588 (€4,210.29)
Price per square meter to buy apartment (outside centre)	£1,995 (€2,341.12)

 

Porto

Monthly rent for 1 bedroom apartment (city centre)	£584.20 (€685.58)
Monthly rent for 1 bedroom apartment (outside centre)	£439.25 (€515.48)
Monthly rent for 3 bedroom apartment (city centre)	£1,107 (€1,298.61)
Monthly rent for 3 bedroom apartment (outside centre)	£736.98 (€864.71)
Price per square meter to buy apartment (city centre)	£2,280 (€2,674.62)
Price per square meter to buy apartment (outside centre)	£1,329 (€1,558.96)

 

Cascais

Monthly rent for 1 bedroom apartment (city centre)	£890.28 (€1,044.44)
Monthly rent for 1 bedroom apartment (outside centre)	£587.07 (€688.89)
Monthly rent for 3 bedroom apartment (city centre)	£1,758 (€2,062.50)
Monthly rent for 3 bedroom apartment (outside centre)	£1,268 (€1,487.50)
Price per square meter to buy apartment (city centre)	£4,380 (€5,140.00)
Price per square meter to buy apartment (outside centre)	£2,156 (€2,530.00)

 

Algarve

Monthly rent for 1 bedroom apartment (city centre)	£447.43 (€525.00)
Monthly rent for 1 bedroom apartment (outside centre)	£326.69 (€383.33)
Monthly rent for 3 bedroom apartment (city centre)	£745.71 (€875.00)
Monthly rent for 3 bedroom apartment (outside centre)	£553.95 (€650.00)
Price per square meter to buy apartment (city centre)	£2,037 (€2,389.59)
Price per square meter to buy apartment (outside centre)	£1,138 (€1,334.72)

 

Cost of transport in Portugal

Public transport provides the cheapest option for travel within Portugal, with cities boasting trains, trams and buses, while cross-country travel is often done via rail or coach. However, the cost of buying and owning a car is more in line with prices you’d expect to find in the UK, making it an exception to Portugal’s inexpensive cost of living.  

Single bus ticket	£1.32 (€1.55)
Monthly public transport ticket	£29.83 (€35.00)
Petrol (1 litre)	£1.30 (€1.53)
Volkswagen Golf	£21,309 (€25,000.00)
Toyota Corolla	£21,005 (€24,634.58)

 

What is the cost of living in Portugal?

Altogether, Portugal commands a relatively inexpensive cost of living for British expats, with the cost of eating out at restaurants and shopping in supermarkets significantly cheaper than in the UK. Of course this depends on the area in which you emigrate to, however below are a few examples of the average prices of goods and services within Portugal. 

Milk (1 litre)	£0.54 (€0.63)
Bread (500g loaf)	£0.95 (€1.11)
Eggs (12pk)	£1.45 (€1.70)
Water (1.5 litre bottle)	£0.48 (€0.56)
Chicken Breast (1kg)	£4.46 (€5.23)
Cappuccino (regular, in a restaurant)	£1.13 (€1.33)
Beer (500ml, in a restaurant/pub)	£1.53 (€1.80)
Cinema ticket	£5.93 (€6.95)
Gym membership (monthly)	£27.93 (€32.76)
Preschool/Kindergarten (monthly)	£297.24 (€348.60)
Primary School (yearly)	£5,864 (€6,876.95)

 

If you are moving to Portugal, you will need to make at least a few international payments in order to take your funds from the UK with you. With a moneycorp account, you can enjoy great exchange rates, low transfer fees and expert guidance, helping you to get the most out of your currency exchange. Our team of dedicated specialists can also help you set up a Regular Payment Plan and make overseas pension payments to fund your new life in the sun.