Cost of Living & Helpful Facts about Life in Portugal

Jump right in:

• Practical Information
• Cost of Living
• Culture and Social Etiquette
• Driving in Portugal
• Public Transportation in Portugal

Practical information

Portugal is divided into 18 districts, each with its own municipalities (municípios), also called concelhos. Municipalities are then split into several freguesias (the equivalent of a neighborhood or a local parish), which are the smallest administrative divisions in the country.

You should know that in Portugal, it’s mandatory to carry your ID with you at all times and to present it to the authorities if requested.

• Country name: Portugal (officially República Portuguesa) • Government type: unitary semi-presidential constitutional republic • Climate: temperate maritime in most of the country, with Mediterranean and continental influences in inland areas • Capital: Lisbon (Lisboa) • Official languages: Portuguese (Mirandese is an officially recognized regional language) • Currency: Euro (EUR, €) • Time zone: UTC+0 (UTC–1 in Azores); daylight saving time: UTC+1 (UTC+0 in Azores) • Country calling code: +351 • Driving: right side • Emergency number: 112

Main embassies

The main embassies in Portugal are located in Lisbon. You will find a few consulates in Porto, Faro, and Portimão, and on the islands of Madeira and Azores.

Main airports

The three main airports of Portugal are Lisbon, Porto, and Faro

• Lisbon Airport (LIS): The largest and busiest airport in Portugal, with over 35 million passengers in 2025. • Porto Airport (OPO): The second busiest airport, serving the north of the country. • Faro Airport (FAO): The main airport in the Algarve, popular for holiday travel.

Public holidays in Portugal

There are 14 public holidays in Portugal. Of these, 13 are mandatory. Carnaval is an optional holiday, and it is at each company’s discretion whether or not to give their employees a day or half-day off.

• Ano Novo (New Year): 1 January • Carnaval or Entrudo: mid-February to early March, depending on the exact date of Easter • Sexta-feira Santa (Good Friday): the Friday before Easter, in March or April • Páscoa (Easter): moveable religious holiday in March and April • Dia da Liberdade (Freedom Day): 25 April • Dia do Trabalhador (Labor Day): 1 May • Corpo de Deus (Corpus Christi): moveable religious holiday in May or June • Dia de Portugal (Day of Portugal, Camões, and the Portuguese Communities): 10 June • Assunção de Nossa Senhora (Assumption of Mary): 15 August • Implantação da República (Republic Day): 5 October • Dia de Todos os Santos (All Saints’ Day): 1 November • Restauração da Independência (Restoration of Independence): 1 December • Imaculada Conceição (Immaculate Conception): 8 December • Natal (Christmas Day): 25 December

Cost of living

Is it expensive to live in Portugal? While Portugal is still among the cheapest countries in Western Europe, low salaries and comparatively high rent prices can make it difficult to live here.

The average cost of living in Portugal will hugely depend on the part of the country you choose to live in. Lisbon and Cascais top the list of most expensive cities in Portugal. Porto follows closely, especially in regard to rent prices. In this section, we cover all living expenses in Portugal.

Cost of living in Portugal by district and city

When it comes to the cost of living in Portugal, the country can be broken down into two áreas — the appealing yet expensive west and south coasts, and some of the more affordable interior and eastern regions, though prices vary by location. Many of the regions and cities in this latter part of the country are deserted, and offer few employment opportunities, especially for expats.

For this reason, when we compiled the list of cheapest and most expensive cities in the country, we considered only the most dynamic ones where you are more likely to find an active city life and considerable job offers and services.

By far the most expensive district and city in the country is the capital, Lisbon. Despite Portugal’s overall low cost of living, Lisbon has reached rental prices of over 20 EUR per m2, placing it among the more expensive European capitals. Cascais follows closely as one of the most expensive cities, which is still in the district of Lisbon. As the second most populated city in the country, Porto is also one of the most expensive places to live.

As for the most affordable cities and districts, you will find places like Braga, Viseu, and Coimbra to be the easiest on your wallet. Rent in these cities ranges from around 7.7 EUR per m2 in Viseu to 12.3 EUR per m2 in Coimbra, and costs for groceries, dining out, and leisure remain relatively low.

Rent prices in Portugal’s main cities

The prices listed below are for the monthly rent per m2 for a one-bedroom apartment.

Here are the average monthly utility costs for a one-bedroom apartment:

This adds up to an average of 100–250 EUR (approx. 120–300 USD) a month. This will, of course, depend on your lifestyle, the size of your household, etc. For example, in some city centers you may not have a gas supply, in which case the costs for cooking and heating would be added to your electricity bill.

Food and alcohol prices in Portugal

Below is a table with average grocery and alcohol prices, along with costs of eating out at restaurants.

Education costs

Portugal offers free education to its residents for the mandatory school levels. There will be some education expenses if you opt for private institutions. Here is a general range of monthly education costs in Portugal.

For more information, see our article on Education in Portugal.

Healthcare costs

Keep in mind that healthcare is mostly free in the public system. Any costs for seeing a public doctor, including exams, should be between 5 and 40 EUR (approx. 5.50–45 USD).

For more information, read our article on Healthcare in Portugal.

Travel and transportation costs

Prices may vary depending on the city or region.

Culture and social etiquette

Greeting

Women in Portugal greet people with two kisses, one on each cheek, starting on the right. However, there is not a standardized behavior when it comes to meeting someone for the first time. Some women prefer a handshake, while others may be fine with two kisses. When in doubt, wait for them to make the first move.

Men greet each other with a handshake. This may turn into an embrace or a pat on the back between close friends. In some families, it’s common for men to kiss other men with two kisses on the cheeks.

If you are greeted by a stranger, this may not mean they wish to strike up a conversation with you. It’s common for people to greet others with a bom dia (good morning/day) or boa tarde (good afternoon) in small waiting rooms, queues, or shared spaces.

Portuguese values, family, and religion

The Portuguese have very strong ties to family. This is especially evident in young people, who tend to live with their parents until their late twenties and sometimes into their thirties. This may be for financial reasons, but it’s often blatantly stated that the mother’s cooking and clean laundry are very much appreciated.

In fact, Portuguese households are still very traditional. Women still tend to do most of the chores in many households, including cooking and cleaning at parties and gatherings, although this is slowly changing in urban areas.

However, you should know there is a significant generational gap in Portugal when it comes to values and behaviors. While the majority of Portuguese tend to be traditional, conservative, and support Catholic values, younger generations are more engaged with current social issues and advocate for greater inclusion and awareness.

Religion plays a big part in the upbringing of most Portuguese. It’s common throughout the country for people to be baptized and to have celebrated first communion. Up to 80.2% of the population identifies as Catholic, while 14.1% declare themselves as having no religion, showing a trend of declining religiosity among younger generations.

Portuguese language and socialization

The Portuguese are known for their warm and welcoming nature, and many newcomers find it easy to feel at home here. In the latest Expat Insider survey, Portugal ranked 15th worldwide for local friendliness, with expats giving it an average score of 5.5 out of 7.

While English is widely taught in Portugal, only about 60% of the population has some knowledge of the language. The Portuguese are accommodating towards expats and will often go out of their way to make themselves be understood, in whatever language or gestures necessary. When it comes to their social circle, though, the Portuguese may take longer to open up and often remain close to their established group of friends.

The Portuguese are quiet in most situations in public. Listening to music or speaking loudly is usually frowned upon. However, going out to dinner or drinks is a different story. Portuguese people tend to be more outgoing, relaxed, and a bit louder when out with friends.

Dining etiquette

• The Portuguese follow the continental table manners — fork on the left and knife on the right. Fabric napkins are placed on the lap. • The host usually dictates the start of the meal, so wait for them to wish you bom apetite, or to simply start eating. • Bring a small gift with you when invited to dine at someone’s house. This could be a bottle of wine, flowers, or chocolate. • The Portuguese are fairly relaxed when it comes to time. Arriving 15 minutes late to dinner is generally accepted, but do not keep others waiting for you. If it’s a social gathering or party, it’s acceptable to arrive half an hour to an hour late.

Portuguese cuisine

The country’s typical Mediterranean diet is both savory and healthy. Olive oil, potatoes, rice, meat, and fish are staples in the Portuguese diet. Bread finds its way into most meals from breakfast to dinner, as an entrée, on the side, or as the main source of carbohydrates.

The Portuguese typically eat four meals a day — breakfast, lunch, lanche (a light meal equivalent to afternoon tea), and dinner. Dinner tends to be quite late in the day compared to other European countries — on a typical weekday it can start anywhere between 20:00 and 22:00. When going out, it’s not uncommon to have dinner as late as 22:00 or 23:00, especially when restaurants are fully booked before then.

Driving in Portugal

Driving in Portugal is fairly easy. You will find a good number of highways connecting most cities. This means you can cross the country from one of the most northern cities to the Algarve in around six hours. However, keep in mind you will find many tolls and these can be quite expensive.

In smaller towns, you will find many narrow and winding roads. Two-way streets often only have room for one car.

How to get a Portuguese driver’s license

All driver’s licenses from member states of the European Union and the European Economic Area (EEA) are valid in Portugal. Exchanging these for a Portuguese driver’s license is optional.

However, all foreign residents in Portugal should report to the IMT (Instituto da Mobilidade e dos Transportes), even if their license does not need to be exchanged. You will need to go to one of their offices with the following documents:

• Modelo 13 IMT form • original and a copy of the original driver’s license • ID • proof of residence, if applicable

Exchanging your driver’s license

Portugal has an agreement with some countries that allow their licenses to simply be exchanged for a Portuguese one. These include countries in the OECD and CPLP such as Brazil, Angola, Mozambique, Cabo Verde, Canada, the United States, Switzerland, the United Kingdom, and others, provided certain conditions are met.

If you are not yet a legal resident, you can drive in Portugal with your foreign license for up to 185 days. Once you obtain residency, you have up to two years to exchange your license, provided it meets all the eligibility conditions.

Requirements to exchange your license in Portugal

To exchange your license, you’ll need to go to one of IMT’s offices with your:

• original driver’s license • ID and proof of residence • tax number (NIF) • electronic medical certificate

For certain categories or situations, you may also need to present a psychological evaluation.

Exchanging your license is subject to a fee of 30 EUR (approx. 35 USD). In some cases, a driving test may be required. You will receive your Portuguese license by mail within an average of 60 days.

Driving rules in Portugal

• The minimum age for driving in Portugal is 18, but some motorcycles can be driven at 16. • You drive on the right side and overtake on the left side. • The use of seatbelts is compulsory for every driver and passenger. • It is mandatory to use a helmet on motorcycles. • Children younger than twelve and shorter than 1.50 meters are not allowed to sit in the front seat, except in two-seat vehicles with the airbag deactivated. • It’s illegal to use your mobile phone while driving. • The speed limit can be as low as 30 km/h (18 mph) in some urban areas. On highways, the limit is 120 km/h (72 mph). • You must have your driver’s license at all times when driving. • Your car must have the following compulsory documents: registration documents (DUA), proof of valid insurance, inspection certificate if applicable, and certificate of conformity. • All vehicles must have a reflective vest and a warning triangle at all times. • Having insurance for your car is mandatory. Driving without valid insurance is subject to heavy fines, and if involved in an accident, you may be held fully liable for the damages depending on the case. • Highway tolls have a special “green” lane reserved for those subscribed to the electronic toll system, called Via Verde. Using these without the proper subscription and device in your car will incur a fee.

If you plan on driving around the country, consider using the Via Verde. In exchange for a monthly fee, you can cross tolls around the country without stopping, and be charged for each trip at the end of the month.

Renting a car in Portugal

There are many rental car companies in Portugal. You can do an online search for aluguer de carro to have a look at your options.

If you are planning on driving a rental car out of the country to Spain or France, you will typically be charged extra.

You will need your driver’s license and ID on you at all times when driving.

Public transportation in Portugal

In this section, learn about how public transport in Portugal works, your various options, and how much it costs.

What is public transport like in Portugal?

Public transport in Portugal is extensive in the main cities, but not so much outside of those. Opting for public transport in bigger cities is a good idea to avoid the usual traffic jams during rush hour.

Buses

Buses are the most widely available mode of transportation in the country. In bigger cities, public and private companies provide an extensive network of buses, both within the city and from the center to its surrounding areas. Bus tickets for urban travel usually cost between 1 and 3 EUR (approx. 1–3.5 USD), while intercity or long-distance routes can range from 5 to over 30 EUR (approx. 6–35 USD), depending on the operator and destination.

Bus times are not very reliable, which is why most people opt for the metro when possible. However, in many parts of the country, buses are the only option for those who do not drive, and these may not even cover all freguesias.

You can also find several intercity buses in Portugal if you search for autocarros de/para (buses to/from).

Metros

You can find metro services in the districts of Porto and Lisbon, connecting the city centers to surrounding neighborhoods and municipalities. Both cities also have a tram line, which is used in the most part by tourists. In the area south of the Tagus River (Sul do Tejo), there is a light rail system called Metro Sul do Tejo, which is considerably smaller and serves Almada and Seixal.

Most metro tickets cost between 1.5 and 2 EUR (approx. 2–2.50 USD) for a single ride, while 24-hour passes range from 7 to 11 EUR (approx. 8–13 USD), depending on the operators and zones included. Monthly passes generally cost 30 EUR (approx. 35 USD) for a municipal pass and 40 EUR (approx. 45 USD) for a metropolitan pass, with discounts available for students, seniors, and low-income users.

Trains

Trains in Portugal are run by public company CP, Comboios de Portugal. There are urban lines in Lisbon, Porto, and Coimbra, and many regional trains connect nearby cities. You can find the entire map of railways on CP’s official website, and buy tickets online as well.

The Alfa Pendular is the most extensive line, connecting some of the country’s main cities from north to south — Braga, Porto, Coimbra, Lisbon, and Faro.

Taxis

Taxis in Portugal are typically beige or black — you can spot them by the sign on their roof. Waving at a taxi usually does the trick, unless the driver has already picked up other passengers. The safest way to secure a cab is to find a taxi center or call a company to have a car pick you up.

Taxi fares usually start between 3.5 and 4 EUR (approx. 4 –4.5 USD), depending on the time of day and week.

Alternatively, you can use apps like Uber, Bolt, or Free Now in bigger cities, which are often cheaper than traditional taxis.