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What is the cost of living in Portugal?


Whether you're planning to live in Portugal permanently or simply enjoying a holiday break, day-to-day life in this beautiful southern European country comes with financial considerations. But what about the price tags? Are they kind to your wallet? Let's take a look at the everyday expenses you can expect.


Groceries at the supermarket


When it comes to everyday necessities, Portugal is far below average, according to the Groceries Index of European countries (2023). Basic foodstuffs such as bread, vegetables and fruit are generally very affordable. Especially at the local markets, where you can often find regional products at very reasonable prices. The number of large supermarkets has also risen sharply in recent years, which has increased competition. You will often find fine wines on offer in the extensive wine departments in particular, as larger quantities can be purchased here.


A drink on the terrace


Portugal is known for its rich coffee culture. Whether you are visiting a large city or a sleepy village, you will always find a 'pastelaria' where you can enjoy a delicious cup of coffee with a sweet pastry. The price of a Portuguese espresso (bica) is still around 1 euro.

If you want to enjoy the sun later in the day on a terrace with a refreshing drink, you will also be pleasantly surprised. According to the website, the average price of a beer in Portugal is around 2 euros. This is the cheapest price in Europe after some Eastern European countries. However, it makes a big difference whether you are sitting on the terrace of a trendy new beach club or on a traditional Portuguese terrace whose owners have at most adjusted the prices to inflation in recent years.


Eating out in Portugal


Eating out in Portugal is often not much more expensive than cooking for yourself. The locals also eat out regularly. Especially for lunch. Many restaurants offer a "Prato de Dia", a reasonably priced menu of the day. According to, a three-course meal for two people in an average restaurant currently costs around €40. However, in typical Portuguese restaurants, "Prato de Dia" dishes are available from as little as €9.50 for a main course. Add a drink and a dessert and you can eat deliciously for a very reasonable price. Don't forget to leave a tip of around 10 per cent on the bill, as is customary in Portugal.


To summarise, living in Portugal is a relief not only because of the wonderful climate and beautiful surroundings, but also because of the friendly prices that daily life here entails.