Portugal offers a calm lifestyle, beautiful weather and stunning beaches, a low crime rate, and good quality in terms of healthcare, infrastructure, and education – what’s not to love? If you’re thinking about swapping life in the UK for all this and more as an expat, it’s important to be aware of the cost of living in Portugal before making the big move.

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The Currency in Portugal

Portugal is a member of the EU, and the country’s currency is the Euro (€) which replaced the Portuguese Escudo in 2002. The Euro’s official currency code is EUR, which is how it is displayed at Moneycorp. One Euro is subdivided into 100 cents. Banknotes are available in denominations of 5, 10, 20, 50, 100, 200 and 500 Euro, and coins are available in denominations of 1 and 2 Euros and 1, 2, 5, 10, 20 and 50 cents. £1 is worth €1.12 as of 8.19am on 17 February 2023.

Where to Live in Portugal

British people currently are the second-largest expat community in Portugal. Many British expats have made their home in Lisbon, the capital, while others have moved to towns such as the Algarve, Porto, Coimbra, and Cascais. The cost of living in Portugal can be slightly higher if you choose to live in one of the large cities or in a town which is a particularly popular tourist destination. According to the 2022 Mercer Cost of Living Survey, Lisbon is the 109th most expensive city in the world. 

How Much Does Accommodation Cost in Portugal?

While accommodation in Lisbon is slightly more expensive or similar to average rental and property prices in the UK, the cost of accommodation in other towns and cities tends to be lower. This is to be expected, as the average cost of living in Portugal is much lower than in the UK. The table below offers an idea of rental and property prices in Lisbon and a few other towns.

All figures were taken from Numbeo and exchange rates were calculated at 8.19am on 17 February 2023.

Lisbon

Porto

Cascais

Algarve

How Much Does Transport Cost in Portugal?

In keeping with the low cost of living in Portugal, public transport is cheaper than in the UK. However, the price of petrol per litre and the price of new vehicles in Portugal are slightly more expensive than in the UK. It’s more cost-effective to use public transport than private vehicles in this beautiful country on the Iberian Peninsula.  

What is the Cost of Living in Portugal Compared to the UK?

The low cost of living in Portugal means you should pay less for food, other groceries, and a variety of goods and services here than you would in the UK. The table below offers a good overview of the cost of various foods and beverages, as well as leisure, health and fitness, and children’s education services.

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The low cost of living in Portugal, as well as the laid-back lifestyle, and beautiful beaches certainly are good reasons to consider moving to this country. Whether you intend to start a business, work remotely, or enjoy your retirement, moving here is a process that will require sending money to Portugal. Sign up for a personal account with Moneycorp and manage this safely and conveniently.