Living in Portugal: Visas and Living Costs

I haven’t covered Portugal much lately on this Cheapest Destinations Blog because it’s just not as cheap as it used to be compared to Spain next door or the current bargain destinations like Albania and Bulgaria. It has gone from expat secret to being the most popular destination in surveys for Americans looking to move to Europe. The word is definitely out and for the last few years, prices have gone up quite a bit in the most desirable areas of Lisbon, Porto, and the Algarve.

It’s still quite a deal compared to the UK, France, or other pricey places though and the quality of life is quite good. It stays relatively warm and sunny in Portugal in the months where most of Europe is gray and cold. Add in plenty of coastline, great wine, picturesque villages, and a slower pace of life and it’s easy to understand why so many gravitate to this part of the Iberian Peninsula.

While getting a residency visa here is easier for Brits than for Americans or Canadians, there are still plenty of North Americans getting it done each year. That not only allows you to stick around in Portugal for the whole year if you want, but it also allows you to travel around Europe without worrying about Schengen Zone limits.

When Susan Korthase and her husband were looking to move abroad from Milwaukee, Wisconsin, they started diving into the options and considered all the usual “retire abroad” suspects. They started in Europe, with plans to begin on the Atlantic coast and make their way east.

The first place they went in Europe was Portugal and then spent two weeks traveling around. “At the very end of our two-week trip we got on a train and went to Cascais and said, “Wow, this is it!” We had planned to move on and check out other places, but we never did. We just stayed. We have been here since January of 2011.”

Plenty of people have followed in that path and Portugal is no longer close to being a secret for people looking to move abroad from the USA. In one recent survey I saw, it topped the list of desired destinations for the whole world. Naturally this has meant an increase in prices, especially in Lisbon. It’s still a good value compared to most other countries in Western Europe though, especially if you’re willing to go somewhere besides Lisbon, Porto, or the Algarve.

Unless you’re loaded, it’s hard to imagine moving to Western Europe unless you’re working for a big company that’s posting you there on a job transfer. To live and work in Milan, Paris, or London is going to require a very high salary. Most European countries in this part of the map are as expensive or more so than the USA or Canada. Portugal is still the odd man out though. This has long been a country that was drastically less expensive to travel in than its other euro-using counterparts. That has been changing as it has gotten more popular, but there’s been inflation everywhere else too, so there’s still a sizable gap.

Visa Options for Living in Portugal

If you have plenty of patience, Portugal is a country where you can stay on longer than in most. This country offers a clear legal path for remote workers who want to live in Europe. US citizens who work online can now apply for a Portugal Digital Nomad Visa and live in this sunny country for up to five years. This visa is a good option for anyone looking for stability, legal residence, and a low cost of living—without giving up their US income.

Traveling around to find your own place in the sun, you’ll find lots of lodging options in this warm coastal country: boutique hotels, apartment rentals, castle hotels, or bed and breakfasts with plenty of character. Once you’re settled in, you’ve got gourmet restaurants, bars, nightclubs, spas, and beautiful beaches where you can drink your bargain-priced wine from up the road.

Portugal introduced the Digital Nomad Visa in October 2022, so we’ve had enough time to see people receive it and settle in. It allows remote workers to live in the country while working for companies or clients outside Portugal. This visa is part of Portugal’s broader immigration reform to attract international talent.There is a short-term visa for stays up to 12 months and a long-term residence visa, which leads to residency cards valid for two years, renewable up to five. Most applicants choose the long-term route because it gives access to public services and future citizenship.

You must be self-employed or work for a company that allows you to work remotely. Your employer or clients must be outside Portugal. Freelancers and business owners are eligible too, as long as they can show regular foreign income that meets the income requirements. That’s currently at least €3,480 per month, proven by statements of some kind. Consulates usually ask for proof over the last 3 to 6 months.

You must also show proof of US tax residency, a valid passport, a national visa application form, proof of accommodation, and proof of insurance, Then you pay around 260 euros if you start the process in your home country.

Go here to see more details on requirements.

A Portuguese Residency Visa

If you want to move to Portugal and get permanent residency, the ease of doing so depends a lot on what kind of passport you have. “For EU residents, the visa situation is quite straightforward,” says British expat Julie Dawn Fox. “The most important thing is to be able to prove income, to show that you can support yourself. You need to have ample documentation to show them. Assuming that’s in order, you go to the foreigners service desk and soon you’ll have a residency permit for five years, which you can then renew.”

For those without a local spouse or EU citizenship, living in Portugal can be much tougher. “Almost all the articles you read about moving to Portugal talk about Brits or other Europeans,” says Susan Korthase. She and her husband spent around $400 in fees to get their residency visa, then another $3,600 for attorney fees. Each time they renew, they have to do it all again, though sometimes you can renew for two years instead of one.

“There are a set of steps, with very explicit requirements,” she says. “Then you have to overcome the language barrier, which is where the attorney comes in. You quickly forget how painful it was when it’s done, but it was. Start to finish first time was about six months. If we had tried to do it without an attorney it would have taken longer and they treat you differently. You have to accept that bureaucracy will be a lot more complicated than you’re probably used to and people in the offices will be asking for things they don’t really need.” Once they hit the five-year mark though they were able to switch to a five-year residency permit, getting rid of all the renewal hassles

Susan writes about living in Portugal for ExpatExchange.com and also does consulting for people considering a move to her adopted country. “I’ve been able to help a few dozen people who are considering Portugal but can’t find a path through the confusing, capacious, and contradictory information about the process, costs, resources, and difficulties.

Some expats find the expense well worth it to employ a local lawyer to get them through the process. There are a lot of Catch-22 quirks in the application process for residency. Listen to this podcast episode with some explanations from a local fixer to see what I mean.

Portugal Living Costs for Rental Housing and Utilities

 Be advised that the situation in Portugal has changed quite a bit in the 2020s as the country emerged from a long economic slump and location-independent workers started moving to Portugal by the thousands. There’s been a bit of a backlash in the city center of Lisbon as free-spending foreigners—especially American and British expats—have driven up rent prices, including more than a few transplanted tech workers from California. The U.S. dollar’s strength against the euro (before a new president took office in 2025) only made the place more affordable for foreigners just as locals were dealing with high inflation that erodes their wages.  

You can still live a half priced life in Portugal if you’re coming from New York City and Numbeo.com says that Lisbon is around 40% less expensive than London. If you’re a couple, figure on €2,500 to €4,000 per month in living expenses, more if you want to be in the very best areas of the two biggest cities or near the ocean in the south. This is more of a weather and quality of life destination than one where you’re doing it to keep your expenses low.

 Portugal’s economy got out of its long negative growth phase nearly a decade ago now, when prices were much lower for housing, and it’s certainly no secret now among those looking to move abroad. It’s still a buyer’s market for real estate in some rural areas and villages, but definitely not among the two biggest cities and the Algarve region.

 Numbeo says that the average rent nationwide is €735 to €925 for a 1-bedroom apartment, €1162 to €1,580 for a 3-bedroom place. You could pay less in a village but you’ll pay a lot more than that in prime areas of Lisbon or Porto. And as the market has gotten more competitive, there can be bidding wars. A British friend of mine paid more than €2,400 per month for a large apartment in the center of the historic district and had to pay 6 months of rent up front to beat out the other candidates and move in.

Porto is a bit less expensive than Lisbon. A central one-bedroom apartment costs between €800 and €1,500 per month. Suburban neighborhoods have apartments for €600 to €1,100. Three-bedroom units in Porto often rent for €1,700 to €2,400 centrally, with cheaper options further out. Rental contracts are commonly for one year or longer, and deposits of 1–2 months’ rent are standard.

 It’s important to remember though that an average monthly salary in Portugal is under €1,100 after taxes. Sure, several family members will generally pool resources in one home, but still, if you move here as a couple that can bring in €4,000 a month—roughly the after-tax median monthly median household income in the USA—you’re going to be considered well-off by local standards. If you’re earning far above that, you’ll have no problem living well.

 Prices for mid- to long-term rental accommodation in Lisbon are going to be on the high end if you’re trying to rent a furnished short-term apartment. Here are monthly rates from Airbnb for Cascais near Lisbon in the fall after the summer tourist rush, for places that will sleep three:

 While prices have gone up in the cities of Portugal since I talked about the country in my book, A Better Life for Half the Price, they’re still quite reasonable in the smaller towns and rural areas. A two-bedroom furnished apartment can be less than 1,000 euros in many walkable villages with historic architecture all around.

When I interviewed Jonathan Look for my book, he had lived in Asia for years before doing a 30-day house hunting trip through Portugal to find the ideal spot. “We rent a big, modern, 4-bedroom, 3-bath house with a swimming pool for €1,000 per month. The house overlooks the Atlantic Ocean in an area known as the Silver Coast, about an hour from Lisbon. Our cable TV, fiber internet, and phone package cost about €35 per month. Service for our Smartphones is €17 a month with ample data and more texts and phone minutes than we ever use.

 I would say that I would have to spend at least a third more than I spend in Portugal to live a comparable life back in ‘Middle America’ United States. Living directly on the coast, as we do here, would be substantially more than that, maybe double or triple.”

 Utility costs generally add up to €140 to 200 for everything added together for a couple: electricity, gas, garbage pickup, internet, and mobile phone.

 Foreigners can own real estate outright in Portugal, but closing costs can be high: figure on 7-8 percent. 

Transportation Costs for Living in Portugal

 The cost of getting around in Portugal has a lot to do with whether you’re driving a car on the highways or not. 

A monthly public transit pass is €40 in Porto or Lisbon, or double that and the whole family can use it. One subway, bus, or tram ride in Lisbon is €1.85, but an all-day unlimited pass is €7.

 A taxi in the capital for two people is officially €3.50 to start, then €1 per km.

 A trip from Lisbon to Porto is around €30 to €60 one-way, and a journey from Lisbon to the Algarve can range from €22 to €60 depending on the route and time. There are generous discounts for booking tickets in advance. Frequency of services can be a problem in some rural parts of the country though and you will probably need a car if you move to the countryside.

 For buses, expect to pay €7 to €15 per hour of travel depending on the competitiveness of the route and the comfort level of the coach you’re on. This is partly because fuel is expensive in Portugal. Currently, unleaded costs €1.70 per liter. (One U.S. gallon is 3.785 liters.)

 What can really kill your budget in a hurry here though are the tolls on the expressways. Below Lisbon to Algarve, there’s a stretch of road that’s €24, paid by a transponder you need to pick up (or will be supplied in a rental car). These do save time though because the highways are seldom crowded. 

Health Care in Portugal

 The cost of living in Lisbon and other parts of the country is a great value when it comes to your health. The World Health Organization ranks the effectiveness of healthcare in Portugal at number 12 in the world, well ahead of the United States, England, and Canada. Portugal also has the 10th-highest life expectancy for women in the world, at 84. Pregnant women get 120 days of paid leave at full salary and you won’t get stuck with a hefty bill if an ambulance picks you up at the scene of an accident.

 You might only pay €10 or €15 for a doctor’s appointment or hospital visit if you’re on the national scheme as a resident. In general terms, you will be treated like a local in terms of the healthcare system, which makes a big difference if you’re an American comparing what it costs to live in Portugal.

 Some services are free, while others require a token payment. Dental costs are mostly covered by taxes, plus children, pregnant women and pensioners have the right to receive dental care for free.

 To choose your own doctor or hospital outside the national health care system, various insurance schemes are available at a reasonable cost. Is Lisbon the care is excellent and if you ask around you’ll easily be able to find an English-speaking doctor. This also applies to tourist zones like the Algarve and larger cities such as Porto. In smaller towns you may just have a local clinic, which is fine for basic problems, but then you’ll likely want to travel to a larger city for surgery or serious tests. 

Portuguese Wine, Good Food, and a Life Lived Well

Portugal cost of living can feel like even more of a bargain if you like to drink wine regularly. Drinking good local wine in Portugal is not something you do for a special occasion. Prices are low across the board from the vineyards dotted around the country. This is one of the best values in the country when looking at all the costs when considering a move to Portugal. 

 “Our weekly shop tends to be around €120, including wine and beer,” says Julie, “and that’s always more than we need. It pays to keep full cupboards when you live in the sticks as we do. We could cut back if necessary.”

 “Wine is very affordable, and a pleasant bottle of wine typically costs between €3-€8 in the supermarket. There are wines above and below that price, but that’s the average,” says James of The Portugalist. Plus it’s an expected part of your meal, even with a set menu. “A lunch menu in a Portuguese tasca can cost as little as €5-6, particularly in non-touristy parts of the country, but on average is somewhere around €10. This typically includes the couvert (bread, butter, sardine paste), a main meal, wine, and either coffee or dessert.”

 If you chill out by other means, Portugal has a clear “live and let live” stance on soft drugs. Holland may get all the attention, but Portugal quietly dropped penalties for purchase and possession of any drug and has stuck with it. Despite the conservatives’ fears, crime hasn’t gone up and cities haven’t turned squalid. What’s defined as enough for “personal use?” That would be a 10-day supply.

 Grocery prices are on par with Spain, with a lot of seasonal fruit and vegetables going for less than two euros a kilo. Bread and pastries are a good value, a cup of coffee will cost you under two euros, and you can get some great cheese in the markets for good prices. Restaurants for normal working people are reasonably priced. Just don’t expect to find much street food. People sit down for a long stretch to dine.

 If you want to cut your costs in half in a liberal country with real democracy and no harsh winters, here’s your spot. You get warm weather, sunny days, and plenty of fresh fish, fruit, vegetables, cheese, and olives. In other words, a nice everyday life on a regular basis, with a slow pace of life if you want it. 

Pros and Cons for Foreigners Moving to Portugal

 While the pros and cons of living in Portugal exist just as in any other country, there are fewer cons here. “You can usually get broadband or Wi-Fi anywhere so if you can work on the internet then Portugal is a great place to be,” says expat resident Alicia Sunday. “You can realistically ‘live the dream’ here, be working on your laptop under a palm tree and then a quick dip in the pool in a property that is half or less what you would pay in the UK.”

 You can drink the water, crime is low, and the infrastructure is constantly improving, so most expats say they enjoy a high quality of life in this country. Public transportation is robust, the roads and good, and most public works are well maintained.

 The downsides that come up the most among expats are highway toll charges, a somewhat difficult language that’s only useful here and in Brazil, and a rather limited selection of cuisines from other countries, especially Asian ones.

 These are mostly minor compared to the upsides though. It may not top the list of the cheapest places to live in the world, or even in Europe, but in terms of value for money, it’s at or near the top for overall cost of living value.

 There are winter months here, sure, but they’re much milder than in the rest of Europe. There’s a long Spanish border too, so you can drive or get there by train or bus for other food and fun options.

 Lisbon is a big international airport, of course, so you’re certainly not cut off from the rest of the world unless you’re on Madeira or the Azores. You can get from mainland Portugal to almost anywhere in the rest of the world and there are loads of budget flights to other spots in Europe.

 Alicia Sunday sums it all up like this: “The health care is good. Foreign investment is going into the area. School fees are reasonable. People are generally friendly and helpful. The scenery is stunning and there is so much beautiful coastline it’s easy to live near the sea and have spectacular views. To know that within half an hour of where we live is the opportunity to go surfing, swimming, sailing, etc. is just wonderful.”

 Jonathan says, “We love living here because it feels very genuine. The Portuguese tend to focus on relationships and living a good life rather than having a lot of money, and that is how we prefer to live as well. Since Sarah and I are both passionate travelers, we like to base ourselves in different areas of the world and explore. We love the food and the culture as well as the cultural and outdoor activities.”

 Yes, in recent years the costs have gone up and this is no longer some off-the-radar spot: it’s a popular destination. Overall though, the living costs in Portugal are not as low as in the former Iron Curtain countries or some of the ones in the Balkans, but for a Western Europe experience without the high prices, this is the best destination.

Article and all photos by Tim Leffel, author of the books A Better Life for Half the Price and The World’s Cheapest Destinations.