Cost of Living in Portugal
Eurostat puts Portuguese consumer prices at 85.3 in 2025, where the EU average is 100, so about 14.7% below average. New lease contracts had a median rent of €10.17 per m² a month in the second quarter of 2026, up 10.2% on a year earlier.
What does it cost to live in Portugal? This page uses official figures only: rents of new lease contracts, consumer prices and household spending from INE, Statistics Portugal, price levels, housing cost burden and electricity prices from Eurostat, and transport pass prices set by the government and CP. Where no official national figure exists, we leave the item out.
Rent of new lease contracts in Portugal, 2nd quarter 2026
Price levels in Portugal against the EU average, 2023 to 2025
Rent in Portugal
New lease contracts signed in Portugal in the second quarter of 2026 had a median rent of €10.17 per m² a month, according to INE. That is 10.2% more than a year earlier, up from a rise of 9.1% in the first quarter. For a 60 m² home, the national median works out at about €610.20 a month. INE counted 35,407 new contracts in the quarter, 0.4% more than a year before.
The median rose in every NUTS 3 region. Grande Lisboa had the highest, at €15.24, followed by Madeira at €12.78, the Setúbal Peninsula at €11.99 and the Algarve at €11.56. The Lisbon municipality had the highest median of the 24 municipalities with more than 100,000 people, at €17.79 per m², about 1.7 times the national figure. INE publishes medians per m² only, so we do not show an average rent per home.
Housing costs weigh less on Portuguese households than the EU average. Eurostat puts the share of people whose housing costs exceed 40% of disposable income at 6.3% in 2025, against 7.6% in the EU. Among people below the poverty threshold, the share was 24.4%.
Consumer prices and inflation
Consumer prices were 3.8% higher in October 2026 than a year earlier, according to the INE flash estimate, up from 3.6% in September. Energy prices rose 17.4%, while core inflation, without energy and unprocessed food, was 2.8%. Unprocessed food rose 3.7%. The harmonised rate used for EU comparisons was 3.9%. Final October figures are due on 11 November 2026.
Eurostat puts the Portuguese price level for household consumption at 85.3 in 2025, where the EU average is 100. That means prices about 14.7% below the EU average. Restaurants and hotels (73.6) and housing and energy (81.1) are furthest below average. Food is at 102.0, slightly above the EU level.
What households spend
Households in Portugal spent an average of €23,900 a year in 2022/2023, about €1,992 a month, according to the final results of the INE household budget survey (IDEF). Housing took 39.3%, food 12.9% and transport 12.1%. Housing spending includes the imputed rent of owners who live in their own home. Spending was highest in the Lisbon Metropolitan Area, at €26,891 a year, and lowest in the Azores, at €19,431. Households with dependent children spent €9,731 a year more than those without, or €811 a month.
| Spending category | Per household a year | Per month | Share |
|---|---|---|---|
| Housing, water, electricity, gas and other fuels | €9,393 | €783 | 39.3% |
| Food and non-alcoholic beverages | €3,083 | €257 | 12.9% |
| Transport | €2,892 | €241 | 12.1% |
| All other spending | €8,532 | €711 | 35.7% |
| Total household spending | €23,900 | €1,992 | 100% |
Transport
The national green rail pass (Passe Ferroviário Verde) costs €20 a month and covers CP trains across the country, except the Alfa Pendular and first class on Intercidades trains. Since 27 September 2026 it is also valid on CP urban trains in Lisbon and Porto. In the Lisbon area, the Navegante pass costs €30 a month for one municipality and €40 a month for all 18 municipalities of the metropolitan area. Local passes in other cities vary.
Energy and local costs
Households using 2,500 to 4,999 kWh a year paid 23.67 cents per kWh for electricity in the first half of 2026, all taxes included, against 28.32 cents in the EU, about 16.4% less. Municipal property tax (IMI) is set by each municipality, so there is no single national figure.
What it means for pay and hiring
Workers in Portugal earned an average of €1,694 gross a month in 2025, with the holiday and Christmas subsidies spread over the year. The minimum wage is €920 a month in 2026, paid 14 times. At the national median, a 60 m² new lease is about 36% of average monthly pay and 66% of the minimum wage. In Lisbon, new-lease rents are about 1.7 times the national median, and pay is higher too: full-time employees in the Grande Lisboa region earned an average of €1,936 a month in October 2024, against €1,576 nationally. See average salary in Portugal, Portugal minimum wage and our city guide to cost of living in Lisbon.
Employers also pay 23.75% Social Security on top of gross pay in 2026, as our guide to hiring in Portugal explains. Hiring in Portugal? We do placement. We source, screen and interview remote professionals across Europe, then deliver a shortlist of 3 candidates within 21 days for a flat $6,500, or your deposit back. Prefer to run the search yourself? Post a job for $299. See how placement works or browse remote jobs in Portugal.
This is general information, not legal or tax advice. Rules change and collective agreements can set different terms. Confirm with a local accountant or lawyer before you hire.
Frequently asked questions
Is Portugal expensive compared with the rest of the EU?
No. Eurostat puts the Portuguese price level for household consumption at 85.3 in 2025, where the EU average is 100, so prices are about 14.7% lower. Restaurants and hotels stand at 73.6, while food is slightly above average at 102.0.
What is the average rent in Portugal?
INE publishes the median rent of new lease contracts: €10.17 per m² a month in the second quarter of 2026, up 10.2% on a year earlier. That is about €610.20 for 60 m². Grande Lisboa had the highest regional median, at €15.24.
How much do households in Portugal spend?
An average of €23,900 a year in 2022/2023, about €1,992 a month, according to the INE household budget survey. Housing took 39.3%, food 12.9% and transport 12.1%.
What is the inflation rate in Portugal?
Consumer prices were 3.8% higher in October 2026 than a year earlier, according to the INE flash estimate. In September the rate was 3.6%. Energy prices rose 17.4%.
How much is a monthly transport pass in Portugal?
The national green rail pass costs €20 a month on CP trains, except the Alfa Pendular and Intercidades first class. In the Lisbon area, the Navegante pass costs €30 for one municipality and €40 for the whole metropolitan area.
Sources
- Eurostat, Price level indices, prc_ppp_ind_1. Checked 5 Nov 2026.
- INE, Statistics Portugal, House rental statistics at local level, 2nd quarter 2026. Checked 5 Nov 2026.
- Eurostat, Housing cost overburden rate, ilc_lvho07a. Checked 5 Nov 2026.
- INE, Statistics Portugal, CPI flash estimate, October 2026. Checked 5 Nov 2026.
- INE, Statistics Portugal, CPI, September 2026. Checked 5 Nov 2026.
- INE, Statistics Portugal, Household budget survey 2022/2023, final results. Checked 5 Nov 2026.
- Eurostat, Electricity prices for household consumers, nrg_pc_204. Checked 5 Nov 2026.
- Portuguese Government, Passe Ferroviário Verde extended to CP urban services in Lisbon and Porto, 26 Sep 2026. Checked 5 Nov 2026.
- CP, Comboios de Portugal, Navegante pass. Checked 5 Nov 2026.
- DREM, Madeira regional statistics office, Monthly earnings of employees by region, 2024 (Quadros de Pessoal). Checked 5 Nov 2026.
