2025 Portugal vs. US Cost of Living Guide: Is Moving to Portugal a Better Deal?

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As living expenses in the US continue to rise—driven by skyrocketing housing costs, expensive healthcare, and living costs—many Americans are exploring more affordable options abroad. Major cities like New York, San Francisco, and Los Angeles have become unaffordable for many families. In contrast, Portugal offers a lower cost of living, a mild climate, and an excellent quality of life. This article provides a detailed Portugal cost of living vs US comparison, highlighting housing, groceries, transportation, healthcare, and education expenses, helping you decide if moving to Portugal in 2025 is the right choice.

Cost of Living in Portugal vs US: A Detailed Breakdown

On average, the cost of living in Portugal is about 45% lower than in the US. From housing to groceries, key expenses in Portugal are significantly cheaper, making it easier for Americans to save or stretch their budgets. Below is a detailed cost of living Portugal vs USA comparison:

1. Housing Costs

PortugalUnited States
• Rent for a 1-bedroom apartment in Lisbon’s city center: €1,200–€1,500 ($1,300–$1,700).
• In smaller cities like Porto or Faro, rent drops to €800–€1,000.
• Purchase price: €4,000–€6,000/m² in prime areas.		• Rent for a similar apartment in New York or San Francisco: $2,800–$3,500+.
• Prime urban properties in the US cost $10,000–$14,000 per square meter.

2. Groceries & Dining Out

PortugalUnited States
• A monthly grocery basket (bread, milk, eggs, meat): €200–€300 ($220–$330).
• A three-course dinner for two in a mid-range restaurant: €35–€45 ($38–$50).		• Similar groceries cost $400–$500, 40%–60% higher.
• The same meal in the US: $70–$90.

3.  Transportation

PortugalUnited States
• A monthly public transportation pass: €40–€50 ($44–$55).
• Gasoline costs €1.75 per liter ($7 per gallon).		• Public transport passes range from $75–$130 in major US cities.
• Gas in the US is cheaper, but car insurance and maintenance costs are significantly higher.

4.  Healthcare

PortugalUnited States
• Public healthcare is nearly free for residents.
• Private health insurance in Portugal costs €50–€100 per month ($55–$110).		• Monthly private health insurance premiums: $400–$800, often with high deductibles.
• A doctor’s visit in the US averages $100–$200.

5. Education

PortugalUnited States
• Public education is free and of high quality.
• International and private schools in Portugal: €7,000–€15,000 annually ($7,700–$16,500).		• Private schools in the US cost $15,000–$25,000 per year.
• Top-tier schools are going much higher

6. Utilities and Internet

PortugalUnited States
• Utilities (electricity, heating, water, garbage): €100–€130 per month ($110–$145).
• Internet: €30–€40 per month ($33–$44).		• Utilities cost $150–$200 monthly in the US.
• The Internet in the US costs $60–$80 monthly.

Cost of Living in Portugal in US Dollars (2025)

Lisbon, the capital of Portugal, offers an excellent balance of affordability and quality of life, attracting expats from around the world. Below is the estimated monthly cost of living in Portugal in US dollars* for individuals, small families, and larger households in 2025:

CategorySingle PersonFamily of 3(Parents + 1 Kids)Family of 4(Parents + 2 Kids)
Rent$1200$1,800 (2–3 bedrooms)$2,000(3-bedroom city center)
Utilities & Internet$150$205$230
Groceries$285$570$685
Public Transport$51$134$170
Dining/Entertainment$170$285$340
Health Insurance$70$170$205
Childcare/SchoolNA$455 – $1,140$1,710 – $2,280
Miscellaneous NA$170$230
Total~$1950~$3,650 – $4,200$5,600 – $6,150 

(*Estimates are for reference only.)

Is Portugal Cheaper Than the US?

In short, yes, Portugal is significantly cheaper than the US. With housing costs often less than half of those in major US cities, substantially lower healthcare expenses, and more affordable groceries and transportation, Portugal offers an attractive cost-saving opportunity.

Is the Quality of Life in Portugal Better Than in the US?

When it comes to the cost of living Portugal vs USA, Portugal offers significantly lower expenses, allowing people to enjoy a high quality of life without the financial stress often experienced in the US. Beyond affordability, Portugal stands out in healthcare, safety, culture, and climate, making it a compelling destination for relocation.

1. High-Quality Healthcare

Portugal provides universal public healthcare (SNS) that delivers high-quality, nearly free essential medical services to all residents. Expats are also eligible to access the public healthcare system, while private healthcare offers shorter wait times and modern facilities. Compared to the US, where healthcare costs are notoriously high, the cost of living in Portugal for healthcare is far more affordable.

2. Exceptional Safety

Portugal is consistently ranked as one of the safest countries in the world, and in 2025, it remains in the top 10 of the Global Peace Index—well ahead of the US. With low crime rates and a welcoming environment, Portugal provides a safe and secure lifestyle, whether in urban cities or rural areas.

3. Relaxed Lifestyle

The Portuguese prioritize quality of life, embracing a laid-back culture that values family, friends, and social connections. Work-life balance is a cornerstone of Portuguese life, creating an environment where expats can easily adapt and truly enjoy their day-to-day experiences. This slower, more fulfilling pace of life contrasts with the often fast-paced and high-pressure culture in the US.

4. Rich Culture and Natural Beauty

Portugal boasts over 800 years of history, offering a unique blend of cultural heritage and breathtaking landscapes. From the historic streets of Lisbon to the stunning beaches of the Algarve, every corner of Portugal is captivating. With a mild climate, over 300 days of sunshine annually, and temperate winters, Portugal is a haven for outdoor enthusiasts.

5. Affordable Cuisine and Wine Culture

One of the highlights of living in Portugal is the cost-effective food and wine culture. Dining out is very common, with a three-course dinner for two costing only €35–€45 ($37–$47), roughly half the price of a similar experience in the US.

  • Fresh seafood: Enjoy grilled sardines, cod (bacalhau), and octopus dishes.
  • Iconic desserts: The world-famous pastel de nata (Portuguese custard tart) is a must-try.
  • Wine: Portugal’s port wines and Douro Valley reds are of exceptional quality and surprisingly affordable.
a man opening his businness doors

6. Prime Location and Convenient Transportation

Portugal’s location makes it a gateway to Europe and beyond:

  • From Lisbon and Porto’s international airports, you can fly directly to the US, UK, or major European cities.
  • Within Portugal, public transportation is affordable and efficient, with a network of trains, buses, and metros that make traveling easy.

7. English Proficiency and Friendly Locals

Portugal has one of the highest English proficiency rates among non-English-speaking countries, especially in cities and tourist areas, ensuring smooth communication for expats. Additionally, the Portuguese are known for being warm, friendly, and helpful, making it easy for newcomers to integrate into the community and feel a sense of belonging.

Beyond Cost of Living: Why Are Americans Choosing Portugal?

While the cost of living in Portugal vs the USA is undoubtedly a major factor, there are several other compelling reasons why Americans are relocating to Portugal. From favorable exchange rates to flexible visa options, Portugal offers unique advantages that make it an ideal destination for expats.

Flexible and Accessible Visa Options

Portugal offers a variety of visa options tailored to meet the needs of different types of expats, making it particularly attractive to Americans.

D7 Visa – Ideal for Passive Income Holders and Retirees

The D7 Visa is a popular choice for retirees and individuals with non-work-related income. Designed for those with a stable passive income—such as rental income, dividends, investments, or pensions, the D7 Visa ensures residency rights in Portugal.

Application Requirements:

  • A stable monthly income of at least €870 for the main applicant.
  • Higher income thresholds for families, depending on the number of dependents.

Golden Visa – Perfect for Investors

The Golden Visa is an excellent option for Americans looking to gain residency through investment. With minimal residency requirements, the Golden Visa also paves the way for future EU citizenship.

Investment Options:

  • Fund Investment: Flexible options based on personal preferences.

D8 Digital Nomad Visa – Tailored for Remote Workers and Travelers

The Digital Nomad Visa is specifically designed for remote workers, freelancers, and digital entrepreneurs who earn income from outside Portugal. This visa is ideal for those who want to enjoy Portugal’s vibrant lifestyle while continuing to work for international clients or companies.

Application Requirements:

  • Proof of a minimum monthly income of €3,480 (four times Portugal’s minimum wage).
  • Valid employment contracts or proof of freelance income from foreign sources.

Best Portuguese Cities for Americans to Live, Work, and Retire

As more Americans move to Portugal, the following cities and regions have become top choices, offering a blend of high quality of life, affordability, and thriving expat communities.

City Highlights
LisbonA cosmopolitan city with rich culture and a booming tech industry. While costs are higher than other parts of Portugal, they remain significantly lower than New York or San Francisco.
CascaisA seaside town near Lisbon known for its upscale lifestyle, safety, and excellent international schools, making it a magnet for affluent families.
PortoPortugal’s second-largest city, with a lower cost of living than Lisbon, famous for its port wine cellars, charming history, and a rapidly growing expat population.
AlgarveThe sunny southern coast is ideal for retirees, offering beaches, golf resorts, and English-speaking communities in towns like Lagos and Faro.
SintraA fairy-tale town outside Lisbon, perfect for families and remote workers seeking a tranquil lifestyle close to nature while remaining within commuting distance of the capital.
CoimbraA university town suited for remote workers and families looking to reduce housing costs. It boasts vibrant cultural activities and convenient amenities.

How to Plan Your Move to Portugal

Relocating from the United States to Portugal requires careful preparation, especially in visa applications, financial planning, and logistics.  Our team of immigration experts will help to guide you throughout the process.

Conclusion

Portugal is an ideal destination for Americans, offering affordable living costs, high-quality healthcare, flexible visa policies, and a diverse lifestyle. Not sure which Portuguese visa suits you best? Take our questionnaire to quickly assess your eligibility!

At The Golden Portugal, we specialize in helping you achieve your dream of moving to Portugal through expert investment and immigration planning. Schedule your free consultation today, and let us provide you with professional advice!

We have helped more than 500 families on their Portugal Golden Visa journey. 

We are also the pioneer firm to help clients to invest through funds back from 2020 until now. Come talk with us.

Book a consultation with us
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