Portugal remains one of Western Europe's most affordable countries, but it is no longer the bargain it was a decade ago, especially in Lisbon. A single person can live comfortably on about €1,600 to €2,300 a month, and a couple on €2,400 to €3,400, depending heavily on the city and on rent. This guide breaks down typical costs in 2026 and explains what changed for newcomers, including the end of the old NHR tax regime.

Prices below are typical ranges from rental listings and crowdsourced data such as Numbeo. Official statistics from Statistics Portugal (INE) show rents have risen faster than wages for several years, so always check current listings.

Rent: the biggest cost

  • Lisbon: a one-bedroom apartment in the centre typically costs €1,200 to €1,600 a month; in outer neighbourhoods or the suburbs, €850 to €1,200.
  • Porto: roughly €900 to €1,250 for a central one-bedroom, and €700 to €950 further out.
  • Smaller cities such as Braga, Coimbra, Aveiro and Faro: often €550 to €850.
  • Rural interior regions: much lower, sometimes under €450, though you will usually need a car.

Landlords commonly ask for one to three months' deposit plus rent in advance, and some want a Portuguese guarantor or tax number (NIF). Long-term rentals in the Algarve are scarce in summer because of holiday lets.

Food and eating out

A monthly grocery budget for one person is typically €220 to €320. Fresh fish, fruit, vegetables, bread and wine are good value, especially at local markets; imported products cost more. Eating out remains a highlight: a "prato do dia" (dish of the day) at a neighbourhood restaurant is usually €10 to €14 including a drink, and dinner for two at a mid-range restaurant runs €40 to €70.

Transport

Public transport is cheap. Lisbon's Navegante metropolitan pass costs €40 a month and covers metro, buses, trams, ferries and suburban trains across the whole metropolitan area, according to Navegante. Porto's Andante pass offers similar value. Petrol is around €1.70 to €1.85 a litre, and motorways charge tolls, so running a car is relatively expensive.

Utilities, internet and phones

Electricity, water and gas for a one-bedroom apartment cost about €90 to €150 a month, higher in winter because many older buildings have poor insulation and no central heating. Fibre internet costs around €30 to €40 a month, often bundled with TV and mobile. Mobile plans with generous data start at about €10 to €20.

Healthcare

Legal residents can register with the national health service, the Serviço Nacional de Saúde (SNS), which charges low or no fees for most care. Waiting times for specialists can be long, so many expats buy private health insurance, which costs roughly €40 to €150 a month depending on age and cover. Private hospitals in Lisbon and Porto have English-speaking staff.

What a month really costs

  • Single person in Lisbon: about €1,900 to €2,400.
  • Single person in Porto or a mid-sized city: about €1,500 to €1,900.
  • Couple in Lisbon: about €2,800 to €3,500.
  • Couple outside the big cities: about €2,200 to €2,800.

For context, Portugal's national minimum wage is €920 a month in 2026, so local salaries are far below these budgets. Portugal is most affordable for people earning from abroad or bringing savings.

Taxes: the NHR regime has ended

Portugal's Non-Habitual Resident (NHR) regime, which offered reduced tax rates for ten years, closed to new applicants at the start of 2024. Its replacement, the Tax Incentive for Scientific Research and Innovation (IFICI), often called "NHR 2.0", applies a flat 20% rate to qualifying employment and self-employment income for ten years, but only for specific roles such as researchers, certain tech workers and employees of qualifying start-ups, according to the Portuguese Tax Authority and adviser summaries such as Global Citizen Solutions. Retirees and most remote workers are now taxed under Portugal's normal progressive rates, which reach 48% on high incomes. Factor this into your budget.

Visas for non-EU citizens

  • D7 visa: for people with regular passive income, such as pensions or rental income, above a minimum linked to the minimum wage.
  • D8 digital nomad visa: for remote workers earning at least four times the minimum wage — about €3,680 a month in 2026.
  • Work visas: for people with a Portuguese job offer.

Applications are made through the Portuguese visa portal, and residence permits are then processed by AIMA, the immigration agency, which has faced long backlogs.

Ways to make your budget go further

  • Rent outside the tourist core. In Lisbon, areas across the river such as Almada and Barreiro, or along the Sintra train line, cost much less and connect easily by ferry or train.
  • Sign a longer lease. Twelve-month or longer contracts are usually cheaper than furnished short lets aimed at digital nomads.
  • Shop at markets and discount supermarkets. Chains such as Lidl, Pingo Doce and Continente have regular promotions, and local markets are cheapest for produce.
  • Use the "prato do dia". Lunch menus are much cheaper than dinner at the same restaurant.
  • Plan for winter heating. Portable heaters and dehumidifiers make older homes far more comfortable, but budget for higher electricity bills from December to February.
  • Get a NIF early. A Portuguese tax number is needed for leases, bank accounts, phone contracts and utilities, and obtaining one first makes everything else easier.

How Portugal compares with its neighbours

Portugal is generally a little cheaper than Spain for rent in its main cities outside Lisbon, and considerably cheaper than France, Ireland or the Netherlands. Groceries and eating out are among the cheapest in Western Europe. However, Portuguese salaries are also lower than in Spain, so local job seekers feel the rent squeeze most. For a side-by-side view, try our country comparison tool.

Is Portugal still worth it?

For many people, yes. Portugal offers safety, a mild climate, good food, excellent public transport in its two main cities and a welcoming culture. But the gap between local wages and big-city rents is wide, and the tax advantages that attracted many expats have largely gone. If you want to stretch your budget, look beyond Lisbon: Porto, the Centro region and the Alentejo offer much of the same lifestyle for considerably less.