If you’re considering moving to Portugal, one of the most important factors to consider is the cost of living. In this article, we’ll take a look at the local currency, compare the cost of living in Portugal to the UK and the USA, break down costs for singles, couples, and families of 4 in different categories, and explain the most common forms of payment in Portugal.
Local Currency in Portugal
The local currency in Portugal is the Euro (EUR). One Euro is divided into 100 cents. The Euro is widely accepted throughout Portugal, and you can exchange your currency at banks or exchange offices.
Cost of Living in Portugal Compared to the UK and USA
According to the Numbeo cost of living index, the cost of living in Portugal is generally lower than in the UK and the USA. The index takes into account factors such as housing, food, utilities, transportation, and entertainment.
As of February 2023, the index shows that the cost of living in Lisbon, the capital city of Portugal, is about 46.68% lower than in London and 47.74% lower than in New York. The cost of living in other cities in Portugal varies, but generally, the cost of living in Portugal is lower than in the UK and the USA.
Breakdown of Costs in Portugal
To give you an idea of what you can expect to pay for different expenses in Portugal, let’s break down costs for singles, couples, and families of 4 in different categories.
Housing is one of the biggest expenses in Portugal, but it is relatively affordable compared to other countries. The cost of housing varies depending on where you live and the type of housing you choose. According to Numbeo, the average cost of a one-bedroom apartment in the city center is EUR 800 per month. A three-bedroom apartment in the city center costs around EUR 1,500 per month.
If you’re on a tight budget, you may be able to find a room to rent for around EUR 400 per month. However, keep in mind that housing in Portugal can be challenging to find, especially if you’re looking for a specific type of accommodation.
The cost of food in Portugal is generally lower than in the UK and the USA. You can expect to pay around EUR 10-15 for a meal at an inexpensive restaurant and around EUR 25-35 for a meal at a mid-range restaurant.
If you’re on a tight budget, you can save money by shopping at markets and cooking your meals. A week’s worth of groceries for one person costs around EUR 30-50.
The cost of utilities in Portugal varies depending on the size of your home and your usage. On average, you can expect to pay around EUR 100-150 per month for utilities such as electricity, water, and gas.
The cost of leisure activities in Portugal varies widely depending on what you enjoy doing. A movie ticket costs around EUR 8, and a fitness club membership costs around EUR 30-50 per month.
If you enjoy going out, expect to pay around EUR 3-5 for a beer in a bar or around EUR 10-15 for a cocktail. Entrance fees for museums and other attractions vary widely but usually range from EUR 5-15.
The cost of transport in Portugal is relatively low, and the country’s public transportation system is well-developed. A one-way ticket on public transport in Lisbon costs EUR 1.50, and a monthly pass costs around EUR 40.
If you prefer to drive, you can expect to pay around EUR 1.50 per liter of gasoline. Car insurance is also relatively affordable, with an average cost of around EUR 500-800 per year.
The cost of clothing in Portugal is generally lower than in the UK and the USA. Prices vary depending on the brand and quality of the product. A pair of jeans can cost around EUR 30-50, while a shirt can cost around EUR 20-30.
If you’re looking for affordable clothing options, there are several chain stores in Portugal that offer reasonably priced clothing, such as Zara and H&M.
The cost of household goods in Portugal varies depending on the item and brand. For example, a new television can cost anywhere from EUR 200 to EUR 2,000 depending on the size and features. A washing machine can cost around EUR 300-500, while a refrigerator can cost around EUR 300-800.
If you’re on a tight budget, you may be able to find used household goods on websites such as OLX and CustoJusto. Many people sell their used items at a fraction of the cost of new items.
Forms of Payment in Portugal
The most common forms of payment in Portugal are cash and debit or credit cards. Most stores and restaurants accept credit and debit cards, especially in larger cities like Lisbon and Porto.
Contactless payments and mobile payments are becoming more popular in Portugal, and many stores now offer these payment options. Some banks offer mobile payment services, but these services are not yet widely used.
In addition to cash and cards, some stores in Portugal accept payment through popular mobile apps like MB Way and Revolut.
The cost of living in Portugal is generally lower than in the UK and the USA. Housing, food, and leisure activities tend to be more affordable in Portugal, while transportation and clothing are comparable in price.
When it comes to payment methods, Portugal primarily relies on cash and debit/credit cards, but mobile payment services are becoming more popular.
Before you move to Portugal, it’s essential to research the cost of living in your desired location and create a budget that takes into account your income and expenses. By doing so, you can ensure that you can live comfortably in Portugal without breaking the bank.