Cost of Living in Portugal

One practicality that none of us should forget to consider before embarking on our new life in the sun is how expensive it's going to be to live in our dream destination, therefore we're taking a closer look at the cost of living in Portugal.

With its beautiful climate, spectacular Atlantic and Mediterranean coastlines and some of the best golfing the world has to offer it’s no wonder that so many of us dream of living in Portugal.

But one practicality that none of us should forget to consider before embarking on our new life in the sun is how expensive it’s going to be to live in our dream destination, therefore we’re taking a closer look at the cost of living in Portugal.

For many of us the cost of the property in our chosen country is one of the first considerations we need to bear in mind when thinking about whether we can afford to relocate.  Property prices in Portugal have risen considerably over the past 10 years, but in comparison to many other popular sunshine retirement destinations Portugal still remains a very competitive country to consider.  This is a positive factor in Portugal’s favour. 

In this economic climate with so much equity wealth built up in our home many retirees and other ‘home in the sun seekers’ are able to purchase their property without the need for a mortgage, this immediately removes the ongoing affordability of a home in Portugal from the overall ‘affordability of the country’ question.

Therefore, before finally making the commitment to move to our dream destination the next most important consideration will be the cost of living, after all with a home bought and paid for the only real ongoing concern is the cost of day to day life. 

In Portugal as with anywhere in Europe the cost of living varies depending on where you live in the country - location, location, location is not only a factor that affects property prices!  In the most desirable golfing areas on the Algarve for example you can expect to pay quite a substantial amount more to eat out in a quality restaurant than if you chose to eat at a local restaurant away from the fashionable coast.  However in general in Portugal a good night’s entertainment can still be enjoyed for a lot less than it costs in most major cities in the UK nowadays - especially London! 

The economically minded can easily reduce the cost of their weekly shopping basket in Portugal by simply venturing away from the high street supermarkets to the many street markets that all towns have.  The markets offer fresh produce often directly from the farmer and it’s always at a fraction of the cost of what you’d pay for the same in the supermarkets of both Portugal and the UK.  What’s more, it’s a far more entertaining and rewarding way to fill the day than trudging around overcrowded supermarkets!

Lisbon and the desirable suburbs of Cascais and Estoril are definitely among the most costly places to live in Portugal.  But before simply ruling Lisbon out of the equation consideration should be given to the benefits of living in a modern and dynamic commercial city.  For a start the city is undergoing regeneration which will increase the profile and overall desirability of the city.  Lisbon also has an excellent infrastructure and good communication links - important considerations if you’re moving to Portugal to start or run your own business.  Then the icing on what may be a slightly more costly cake is the fact that Lisbon is just a very short drive from the beautiful beaches and fantastic golf courses!  These benefits alone will far outweigh the additional costs of living that you’ll experience living in Lisbon and its suburbs for many people.

If your goal in moving to Portugal is to keep the cost of living down to a minimum then the north of Portugal may well be the best location for you.  Recently Porto, Portugal’s second city and the capital of the north has experienced a significant amount of investment which has led to a general rise in property and the cost of living in the city area, however following the river Douro out of Porto towards the rural regions you’ll soon be surrounded by beautiful agricultural land where the red grapes are harvested for the wine and port that Porto has become so famous for.  Here it’s still possible to find an old farmhouse, almost certainly in need of significant renovation, for a very reasonable price.  With careful planning, a little effort on your part to learn Portuguese and then establish new friendships with the lovely Portuguese locals you can expect your cost of living to be significantly less than in the UK!