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Portugal has a lower cost of living, which makes it perfect for retirees or digital nomads. Portugal also has many visa options for Americans hoping to live there. Although not everyone speaks English, many people in Portugal do. Know how the culture varies to prepare yourself for the adjustment.
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In our guide, we’ll compare the cost of living in Portugal to the United States. We’ll also offer some pointers on adjusting to life in Portugal and some visa applications, and Portugal health insurance basics. Keep reading to see how to prepare for a beautiful life in Portugal!
Most Important Information for Living Abroad in Portugal
Expats should understand the cost of living in Portugal, what visas they are eligible for, and where they want to live in Portugal. Knowing where you want to live will allow you to find more specific recommendations for cost-of-living comparisons and what to plan ahead.
If you want to understand the cost of living in Europe and how Portugal compares, check out our Guide to Living Abroad in Europe!
Cost of Living In Portugal Vs the USA
The cost of living in Portugal is much lower than in the United States. In many estimates, the cost of living in Portugal can be as low as half of what would be spent for a similar standard of living in the United States.
This lower cost of living makes Portugal the perfect destination for Americans who want to retire on a budget.
Housing Cost Comparison: Portugal Vs the USA
Housing in Portugal is less expensive than in the United States. Even in Lisbon, the biggest city in Portugal, the price of renting an apartment downtown is much more affordable than in the downtowns of major US cities.
To compare the housing prices, we used recent crowd-sourced data. Here are some comparisons of the price of housing downtown:
Downtown Comparisons:
- Renting a single-bedroom apartment downtown in Portugal is 57.7% cheaper than in the USA.
- Renting a three-bedroom apartment in the city center is 56.9% cheaper than in the USA.
The purchase price for a downtown condo is 35.4% more affordable in Portugal than in the USA.
Suburban Comparisons:
- A budget one-bedroom apartment is 58.4% more affordable in Portugal compared to the USA.
- A budget three-bedroom apartment is 57.2% more affordable than in the USA.
The purchase price for a house in the suburbs is 38.8% less expensive than in the USA.
Mortgage Advantage:
- For a twenty-year mortgage, interest rates in Portugal are under 2.5%, compared to over 5% APR in the USA.
Food Cost Comparison: Portugal Vs the USA
Food costs in Portugal are cheaper in Portugal than in the United States. Both eating out and groceries are much more affordable. This opens the door to being able to try all of the great traditional food and seafood available in Portugal.
Crowd-sourced data allowed us to compare the cost of eating out and common grocery items.
Eating out in Portugal vs. the USA:
- Inexpensive restaurant lunch: 36.4% cheaper in Portugal than in the USA.
- Mid-range restaurant dinner (for two): 47% less expensive in Portugal.
- Fast food meal (combo): 25.8% more affordable in Portugal.
You can use this guide to compare the cost of common grocery staples:
- Milk is 38.3% cheaper in Portugal.
- Bread is 53.2% more affordable than in the USA.
- Rice is 64.6% cheaper in Portugal.
- Eggs are 47% less expensive in Portugal.
- Chicken is 47% cheaper than in the United States.
- Beef steak is 43.5% less expensive in Portugal.
- Apples are 60.3% more affordable in Portugal.
- Bananas are 25.3% cheaper in Portugal than in the USA.
- Oranges are a whopping 64.6% more affordable in Portugal.
- Tomatoes are 60.3% cheaper than in the United States.
- Potatoes are 57.6% cheaper in Portugal.
- Onions are 51.8% more affordable in Portugal than in the United States.
The key takeaways are as follows:
- Dining out remains significantly cheaper in Portugal, with dinner for two now nearly 47% less expensive than in the U.S.
- Groceries like rice, tomatoes, and oranges are standout bargains (60–65% cheaper).
- Beef affordability has increased sharply (now 43.5% cheaper vs. the original 32.7%).
- Bread and potatoes show slightly smaller gaps than previously reported.
Transportation Cost Comparison: Portugal Vs the USA
Transportation costs in Portugal are lower than in the United States on a big-picture level. Public transportation in Portugal makes getting around more affordable despite the higher gas prices in Portugal.
A monthly pass for public transportation is 39.5% more affordable in Portugal than in the United States. Additionally, public transportation in Portugal includes ferries, buses, trains, trams, and more!
On average, gasoline in Portugal is double the price of gasoline in the United States.
Salaries In Portugal Vs the USA
Salaries in Portugal are significantly lower on average than in the United States. That means that Portugal is best for people with an income from another country. This could be from retirement or from a remote job.
Using crowd-sourced data, we compared the average salary in Portugal to the United States. The average salary after tax in Portugal is 47.4% lower.
For expats hoping to secure a job in Portugal, this may not be a deal-breaker. Even though the salary is lower, the cost of living is also lower. Legal residents of Portugal paying taxes are eligible for healthcare services, which also reduces the after-tax dollars, but not without benefits.
The Affordability of Portugal for Expats
Portugal is an affordable place to live. Its cost of living is only a fraction of what Americans spend. Although salaries in Portugal are also smaller, living off of retirement income or income from a remote job may mean stretching your hard-earned money further.
As an American, you may not be eligible for public healthcare in Portugal. You must be paying into the system to be eligible. The public system is also a little slow. With private health insurance, you can access high-quality private healthcare facilities regardless of eligibility for public care.
Living in Lisbon, the largest city, there is a higher cost of living than Portugal’s average, but even Lisbon is much cheaper than major United States cities.
Living in Portugal as an American
Portuguese is the primary language in Portugal, so Americans will need to learn Portuguese. Making sure you have a basic understanding of the language will help you adjust to life in Portugal. Make sure you know European Portuguese rather than Brazilian, since there are major differences.
You will also need to acclimate to measurements in the metric system. This means temperatures in Portugal are measured in degrees Celsius, and volumes will be in liters.
The good news is that even though you’ll need to understand kilometers for speed and distance while driving, you will be able to drive on the same side of the road as in the United States.
Cultural Adjustments for Americans in Portugal
The rules of politeness are different in Portugal than in the United States or even Portugal’s neighbor, Spain. The Portuguese say good morning or afternoon to anyone they pass but say hello to people they know.
In Portugal, education includes not just academics but also manners and being polite.
Here are some other things to be aware of in Portugal:
- Don’t confuse Spanish and Portuguese.
- Nudity is less taboo in Portugal. Many beachgoers happily go without tops in favor of a whole-body tan.
- Running late for social events in Portugal is normal, but not for business meetings.
- Wearing expensive, luxury, or obviously branded clothing or accessories may be seen as tacky in Portugal.
- The fork is used by the left hand; the knife is used by the right hand. Don’t use your fork to cut food.
- Gift-giving is important in Portugal, as is expressing gratitude for gifts with a proper thank-you note.
Retiring in Portugal from the USA
Portugal allows American citizens to apply for residency visas for the purpose of retiring in Portugal. Once you have obtained your four-month residency visa, you can apply to stay permanently.
One of the benefits of retiring in Portugal is the lower property costs and interest rates. You can still own your home in Portugal!
You cannot collect Portugal’s retirement benefits without working there and paying into the system for a minimum amount of time.
Moving to Portugal from the USA
To move to Portugal from the United States, you will need a visa that applies to your reason for moving. For example, there are fixed residency visas and job-seeker visas. Once you are within the country, you can apply for a residency permit.
There are also student visas available for those who wish to study in Portugal. Find the best fixed residency or work visa for your situation.
Portugal also allows Americans to buy property, so that will make finding a home that much easier!
Visa Requirements for US Citizens In Portugal
Portugal has similar visa requirements to other countries. You will need to complete Portugal’s visa application and provide the correct documentation. This includes passports, proof of identity, and criminal background checks for anyone over the age of 16.
You will also need to provide proof of Portugal health insurance for emergencies and repatriation. For job seekers, Portugal also expects you to have funds for at least three months’ worth of expenses.
Conclusion
Portugal is a wonderful place to live, with its low cost of living, beautiful scenery, and agreeable climate that would please any expat. Portugal also offers a variety of visas to people hoping to relocate there.
If you’d like a backup plan, check out our guides to living in Italy and Spain. There are other great options in Europe with lower costs of living compared to the United States.
Make sure that you contact Pacific Prime if you have any questions or concerns about international health insurance, or use our free quote tool to begin comparing the cost of health insurance today!
Upon graduating from Mahidol University International College’s International Relations program, he spent his career in marketing and business development, working for an international subcontractor, a marketing research firm, an international news agency, a software development company, and a creative agency. His journey now continues at Pacific Prime, where he hopes to make an impact by simplifying insurance and writing a gargantuan amount of SEO articles to draw in billions of leads.
In his free time, Piyanat is an avid martial artist and musician, spending most of his time at boxing gyms in Nakhon Pathom and music studios with his friends in the music industry.
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