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Portugal cost of living vs USA is a very important point to consider before deciding to move here. So let’s dive in into the one crucial factor that often tops the list of considerations: cost of living.
In this article, we examine the comparison between Portugal’s cost of living and that of the US. Both are popular destinations renowned for their diverse cultures, vibrant lifestyles, and promising opportunities.
While the United States is knows for its economic prowess and dynamic cities, Portugal garner attention for its rich history, picturesque landscapes, and a growing reputation as an enticing expatriate haven.
Portugal Cost of Living vs USA: Overview
Living costs in Portugal are generally much more affordable compared to the United States, which is one of the reasons so many expats choose to settle here. According to recent Numbeo data, the overall cost of living in Portugal is about 36.6% lower than in the U.S., making day-to-day life noticeably easier on the budget.
In Lisbon, a single person can expect monthly expenses between €800 and €1,200. This usually covers rent in a modest apartment, groceries, transportation, utilities, and a few leisure activities. While prices have risen in recent years, Lisbon remains far more manageable than major American cities.
By comparison, living in New York City costs significantly more. A single person typically spends between €2,100 and €3,300 a month, with rent alone often reaching €1,300 to €2,200 depending on the neighborhood. San Francisco is similarly expensive, with monthly costs ranging from €2,500 to €3,800 and central one-bedroom apartments commonly exceeding €2,500.
When comparing both countries, it’s clear that Lisbon—and Portugal as a whole—offers a far more accessible lifestyle for those seeking lower living costs without sacrificing quality of life.
Cost of Living in Portugal vs USA
Renting in Portugal
The rent prices in Washington, DC are 101.8% higher than in Lisbon, Portugal. This means that on average, you would have to pay significantly more for rent in Washington, DC than in Lisbon for the same type of accommodation. The rent prices in San Francisco, CA are 160.4% higher than in Lisbon, Portugal.
However, it’s important to note that the cost of living can vary depending on several factors such as location, lifestyle, and personal preferences.
Grocery Prices
When comparing grocery prices between Portugal and the US, there are some notable differences to consider. The cost of groceries can vary depending on the region and individual shopping habits. However, here is a general overview:
In Portugal, the prices of groceries are generally lower compared to the US. For example, a kilogram of rice in Portugal can cost around €1,31 while in the US, it can reach almost €4,00.
Similarly, other basic food items such as bread, milk, vegetables, and fruits tend to be more affordable in Portugal compared to the US. However, imported or specialty products may be more expensive due to transportation costs and import fees.
Dining Out Costs
Eating out in Portugal and the United States offers very different experiences and costs. In Portugal, meals at local restaurants and cafés are generally more affordable, even in popular cities like Lisbon and Porto. A mid-range meal usually costs around €10 to €20, and in smaller towns, prices can be even lower. Portugal is also known for its “menu do dia,” a set daily menu that often includes a main dish, sides, dessert, and sometimes a drink—great value for a full meal.
In the United States, dining out tends to be more expensive, especially in cities like New York or San Francisco, where a mid-range meal can range from €17 to €30 or more. Prices climb higher at fine-dining restaurants, while smaller towns and rural areas offer slightly more budget-friendly options.
Tipping customs also differ. In Portugal, tipping is appreciated but modest—usually 5% to 10%. In the U.S., tipping is a key part of the service industry, with 15% to 20% being the standard.
Transportation Costs
Transportation expenses in Portugal compared to the United States vary depending on factors such as location, distance, and mode of transportation.
Generally, public transportation in Portugal tends to be more affordable than in the US. In Portugal, you can find cost-effective options such as buses, trams, and trains for getting around.
The pricing for public transportation varies by city, but as an example, a one-way ticket for local transport in Lisbon can cost around €2, while a monthly pass can range from €30 to €50.
On the other hand, transportation costs in the US can be higher, especially in major cities where public transportation systems may be limited. For instance, a one-way ticket for local transport in Washington D.C. can cost around €2.50, and a monthly pass can cost €90.
Utilities Expenses
When comparing utilities expenses between Portugal and the USA, it’s important to consider factors such as location, property size, and personal usage. Generally, utilities costs can vary significantly within each country.
In Portugal, the average monthly cost for basic utilities (electricity, heating, cooling, water) for an 85m2 apartment is around €125. Internet services with a speed of 60 Mbps or more and unlimited data typically cost around €36.
In the USA, the cost of utilities can vary depending on the state and city. On average, the monthly cost for basic utilities in a similar-sized apartment is around €150. Internet services with similar specifications can range from $50 to $70 per month.
Healthcare Cost of Living in Portugal vs. USA
Healthcare costs in Portugal and the United States differ greatly, largely due to the structure of each country’s system. Portugal’s public healthcare service, the Serviço Nacional de Saúde (SNS), provides affordable care to residents, with only small fees charged for certain services. Even private healthcare in Portugal remains relatively accessible, with specialist appointments often costing between €30 and €50.
In contrast, the U.S. relies heavily on private healthcare, and individuals usually need insurance to manage expenses. Without coverage, costs can rise sharply. A private specialist appointment in the U.S. can easily exceed €100, with prices increasing further if tests or procedures are needed.
Education Cost of Living in Portugal vs. USA
In Portugal, public education is very affordable, with primary and secondary schooling generally free for residents. Families mainly pay for textbooks and basic supplies, making it a budget-friendly option for both locals and expats. Private and international schools in Portugal, however, come with higher fees, usually between €6,000 and €10,000 per year.
In the United States, education costs vary widely, especially in the private sector. Private school tuition often ranges from €10,000 to €35,000 annually, and university fees can climb from €10,000 to over €50,000 per year depending on the institution.
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The Cheapest Cities to Live in Portugal
Braga
Located in northern Portugal, Braga stands out for its rich history, vibrant culture, and relatively lower cost of living. The average monthly rent for a one-bedroom apartment in the city center is approximately €470, which is around 30% lower than the national average. Outside the city center, the average rent drops to around €350, representing a 40% difference compared to the national average.
Coimbra
Home to one of Europe’s oldest universities, Coimbra offers a charming atmosphere and affordable lifestyle. The average monthly rent for a one-bedroom apartment in the city center is around €500, which is approximately 25% lower than the national average. Looking outside of the city center, the average rent is approximately €400, representing a 33% difference compared to the national average.
Aveiro
Famous for its picturesque canals and colorful boats, Aveiro provides an affordable living option for expats. The average monthly rent for a one-bedroom apartment in the city center is about €550, which is around 10% lower than the national average. Outside the city center, the average rent is around €400, representing a 20% difference compared to the national average.
Leiria
Situated in central Portugal, Leiria offers a peaceful lifestyle at an affordable cost. The average monthly rent for a one-bedroom apartment in the city center is approximately €450, which is about 20% lower than the national average. Moving out from the city center, the average rent drops to around €350, representing a 33% difference compared to the national average.
The Most Expensive Cities to Live in Portugal
Lisbon
As the capital city, Lisbon stands out as one of the most expensive areas in Portugal. Rental prices in Lisbon can be significantly higher compared to the national average.
The average monthly rent for a one-bedroom apartment in the city center is approximately €1,200, while outside the city center, it is around €850.
The living expenses in Lisbon are also higher, with an estimated monthly expense of around €950 for a single person, excluding rent.
Cascais and Estoril
Located near Lisbon, Cascais and Estoril are upscale coastal areas known for their luxurious lifestyle. Rental prices in these areas can be significantly higher compared to the national average.
The average monthly rent for a one-bedroom apartment in the city center is around €1,500, while outside the city center, it is approximately €1,000.
The cost of living in Cascais and Estoril is also higher, with an estimated monthly expense of around €1,200 for a single person, excluding rent.
Algarve (luxury resorts)
The Algarve region, particularly its luxury resorts, caters to an affluent clientele and commands premium rental prices. Rental prices in luxury resorts in the Algarve can be significantly higher compared to the national average.
The average monthly rent for a one-bedroom apartment in these areas can range from €1,500 to €2,000 or more.
Living in luxury resorts is also higher, with additional expenses for amenities and leisure activities.
Porto
While generally more affordable than Lisbon, certain areas within Porto can have higher rental prices. Upscale neighborhoods near the Douro River, for example, may have higher rental costs compared to other parts of the city.
The average monthly rent for a one-bedroom apartment in the city center is around €900, while outside the city center, it is approximately €650.
The cost of living in Porto is also higher, with an estimated monthly expense of around €800 for a single person, excluding rent.
Shipping Costs From US to Portugal
Shipping a 25ft container from Washington, D.C. to Portugal can vary in cost depending on the method you choose. Sending your belongings by sea is the most budget-friendly option, with an estimated cost of around €1,300 and a transit time of roughly 15 days. This method involves loading the container onto a cargo ship and transporting it across the Atlantic to a Portuguese port, making it ideal for those who aren’t in a rush.
Air freight is the faster alternative, with delivery taking around 5 days, but it comes at a higher price—about €2,750. This option is best for those who need their items quickly and are willing to pay for the speed and convenience of air transport.
How to Move to Portugal From The US
If you’re considering moving from the US to Portugal, there are several steps you’ll need to take to make your relocation as smooth as possible. Here’s a general guide to help you get started:
Portugal D7 Visa
D7 Visa, which is perfect for retirees or those with passive income. This visa requires proof of regular income or savings (€870 per month), and the ability to support yourself without working in Portugal.
Portugal Digital Nomad Visa
Digital Nomad Visa for remote workers and freelancers allow them to live and work in the country for up to a year or more, having at least a monthly income of €3,480.
D2 Visa Portugal for Entrepreneurs
D2 Entrepreneur Visa in case you are an entrepreneur looking to start or develop a business in Portugal, which allows you to obtain a residence permit for up to two years.
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Frequently Asked Questions
Is the cost of living in Portugal lower than in the USA?
Yes, the cost of living in Portugal is generally lower than in the USA. According to Numbeo data from May 2023, the Consumer Prices Index in Portugal is 42.65% lower than in the USA.
How do housing prices compare between Portugal and the USA?
Housing prices in Portugal are significantly lower than in the USA. The average price per square meter to buy an apartment in the city center of Lisbon is approximately €4,984, while in New York City, the average price per square meter is around €16,500.
What are the pros of living in Portugal?
Portugal offers a great climate, stunning natural beauty, and a relaxed lifestyle. The cost of living is relatively affordable, and the country has a strong healthcare system.
You can find out more in our Guide Pros and Cons of living in Portugal.
Are groceries cheaper in Portugal or the USA?
Groceries tend to be more affordable in Portugal compared to the USA. For example, the average price of a loaf of bread in Lisbon is €1.28, while in New York City, it is around $3.16 (approximately €2.77).
How do healthcare costs compare between Portugal and the USA?
Healthcare costs are generally lower in Portugal compared to the USA. For example, a visit to a doctor in Portugal can cost between €30-€50, while in the USA, a similar consultation can range from $100 to $200 (approximately €87 to €175) or even more.
How can i immigrate to Portugal?
There are several visa options available: The D7 visa is ideal for retirees. The D2 visa is for those who want to work or start a business in Portugal and for digital nomads, Portugal offers the Digital Nomad visa, allowing individuals to live and work remotely while employed by a foreign company.
Is there any tax benefit for Americans?
NHR is a tax regime that offers attractive tax benefits to eligible individuals, including Americans. Under this program, qualifying individuals can benefit for tax benefits for a period of 10 years.
Is Portugal a good place to retire?
Yes, Portugal is often considered a great place to retire for several reasons. The country offers a warm climate, beautiful coastal areas, and a relaxed lifestyle. It has a low cost of living compared to many other European countries, which can make retirement savings go further.
Where do expats retire in Portugal?
The Algarve region in Portugal is a highly sought-after destination for expats looking to retire. Its stunning coastline, warm climate, and relaxed lifestyle make it an ideal place to enjoy retirement. Cities and towns like Faro, Lagos, Albufeira, and Tavira in the Algarve offer a vibrant expat community.
You may would like to read Why do expats retire in the Algarve.
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