Portugal Cost of Living: How Much I Spent Monthly After Living in Lisbon for 1 Year

How Much Does it Cost to Live in Lisbon

When I first moved to Lisbon, Portugal, I had no idea what to expect in terms of cost of living. I had read articles, watched YouTube videos, and even joined expat groups, but nothing compares to actually living in a place and tracking your own expenses. Now, after a full year of calling Lisbon home, I want to break down exactly how much I spent each month and what you can expect if you're thinking about moving here.

Spoiler alert: Lisbon isn’t as cheap as it used to be, but it’s still more affordable than many major U.S. and European cities.

Housing: My Biggest Expense

Monthly Cost: €1,100 – €1,500 ($1,200 – $1,650)

Housing is easily the biggest cost in Lisbon, especially if you live in the city center. Rent has been rising fast due to Lisbon's popularity with expats and digital nomads. Here’s what I experienced:

  • 1-bedroom apartment in central Lisbon (Bairro Alto, Alfama, or Chiado): €1,200 – €1,500

  • 1-bedroom apartment just outside the city (Alcântara, Alvalade, or Benfica): €900 – €1,100

  • Room in a shared flat: €450 – €700

I started off living in a small but modern 1-bedroom apartment in central Lisbon for €1,350, but after six months, I moved to a quieter area in Alvalade and paid €1,100. Utilities (electricity, water, and internet) cost me about €120 – €150 ($130 – $165) per month.

💡 Tip: If you want to save on rent, consider living in the suburbs like Almada, Oeiras, or Cascais where you can find cheaper housing while still being close to the city.

Food: Eating Well Without Overspending

Monthly Cost: €250 – €500 ($270 – $550)

I found that groceries were very affordable in Lisbon compared to the U.S. Here’s what I spent:

  • Groceries for one person (shopping at Lidl, Continente, or Pingo Doce): €200 – €300

  • Eating out (restaurants, cafés, and takeout): €100 – €250

A typical grocery trip for me included fresh produce, fish, meat, bread, and wine. Eating out was also relatively cheap, but it adds up. For example:

  • Pastel de nata (traditional Portuguese custard tart): €1 – €1.50

  • Coffee at a café: €1 – €2

  • Lunch at a local tasca (casual Portuguese eatery): €8 – €12

  • Dinner at a mid-range restaurant: €15 – €30

💡 Tip: To save money, cook at home and take advantage of cheap, fresh produce at local markets.

Transportation: Public Transit is King

Monthly Cost: €40 – €100 ($45 – $110)

Lisbon has great public transportation, and I used it daily. I didn’t own a car because parking is a nightmare and gas is expensive. My transport costs:

  • Monthly metro/bus pass: €40

  • Occasional Uber/Bolt rides: €30 – €60

  • Train to nearby beach towns (Cascais, Sintra, etc.): €5 – €10 round trip

💡 Tip: The Navegante pass (€40 per month) gives you unlimited access to Lisbon’s metro, buses, and trams. It’s the best deal if you’re living here long-term.

Healthcare: Affordable and High-Quality

Monthly Cost: €50 – €150 ($55 – $165)

Portugal has one of the best and most affordable healthcare systems in Europe. Since I wasn’t a citizen, I used private healthcare, but even that was much cheaper than in the U.S.:

  • Private health insurance: €50 – €100 per month

  • Doctor’s visit (without insurance): €50 – €80

  • Prescription medications: €5 – €20

💡 Tip: If you have residency, you can access Portugal’s public healthcare system, which is practically free.

Other Essential Expenses

Entertainment & Leisure

Monthly Cost: €100 – €300 ($110 – $330)

  • Gym membership: €30 – €50

  • Cinema ticket: €7 – €10

  • Night out (drinks & food): €20 – €50

  • Day trips to nearby cities: €20 – €50

I also spent money on weekend getaways, festivals, and cultural events, which are plentiful in Lisbon.

Utilities & Internet

Monthly Cost: €120 – €150 ($130 – $165)

  • Electricity & water: €80 – €100

  • Internet & phone plan: €30 – €50

Internet in Lisbon is fast and reliable, and I paid €35 for fiber-optic service.

Taxes

If you're working remotely, Portugal’s Non-Habitual Resident (NHR) tax scheme allows expats to pay lower taxes for 10 years. If you’re earning from abroad, you might even pay as little as 10% in income tax.

💡 Tip: Work with a Portuguese tax advisor to make sure you qualify for NHR benefits.

Total Monthly Cost of Living in Lisbon

How Much Does it Cost to Live in Lisbon

Is Lisbon Affordable for Expats?

Yes—but it depends on your lifestyle. If you live outside the city center, use public transport, and cook at home, you can live on €1,600 per month. But if you prefer a modern apartment in the best areas and enjoy frequent dining out, expect to spend closer to €2,500+.

Would I recommend Lisbon? Absolutely. The quality of life, vibrant culture, and relatively affordable cost make it an amazing place to live. Just be prepared for rising prices as the city becomes more popular with expats and digital nomads.

Thinking about moving to Lisbon? Have any questions? Drop them in the comments!

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