This report is the Portugal Inflation Updates for 2025.
We were last in Portugal in 2019. We traveled around by train as we explored the best places to retire. We created cost-of-living reports as we traveled to our four favorite cities at the time. We are now updating the cost-of-living data in the summer of 2025.
The following table includes inflation in Portugal and the number of Euros exchanged for $1 USD on June 1 for each year from 2020 through 2024.
|
Portugal |
2020 |
2021 |
2022 |
2023 |
2024 |
|
Inflation |
-0.012 |
1.265 |
7.843 |
4.311 |
2.416 |
|
$1USD |
0.899 |
0.817 |
0.939 |
0.930 |
0.921 |
In 2020, living on $2,000/month, which would be about 1799 Euros/month. After adjusting for Portuguese inflation (2020–2024), the same local lifestyle would cost about 2101 Euros/month. Using the June 1, 2025, exchange rate of 0.921 Euros per USD, it would now cost about $2281 USD/month to maintain the same standard of living in Portugal.
However, if your pension was US social security, because of the social security cost-of-living adjustments, your $2000 per month would have increased to $2,478/month in 2025, if my math is right.
We initially only did cost-of-living estimates for the cheapest lifestyle, but recently we have been adding middle-range cost-of-living estimates, because not everyone can do it that cheaply. There is a large range in what expats spend living in Portugal.
Local Differences
Our original cost-of-living reports were generated with our feet on the ground for the dates shown. Of course, inflation is not uniformly distributed across geographical regions, so we have made a few minor adjustments based on observed differences in rent and other expenses between areas.
The lower estimated cost of living for each city would be for two people living there on a tight budget. But most expats spend more, so we are adding more middle-of-the-road data points.
So, we are also including a middle estimate for each city below. The middle estimate is an example of what more typical expats might spend. There is no “high estimate” because the sky is the limit for high rollers all over the world.
However, none of these numbers represent your actual cost of living, which will vary significantly based on your lifestyle and needs.
Instead, we always recommend that people make a temporary, exploratory visit before making any permanent decisions about where to relocate. The cost-of-living data you gather during your exploratory visit is really the most critical.
Your advanced feet-on-the-ground exploratory visit (before deciding to move anywhere) is necessary to determine whether you have enough money to live in a specific location.
Expats living in Portugal incur expenses ranging from approximately $1500 to $5000 USD per month. People who spend more have higher savings, incomes, or pensions. They often report spending more on accommodations, entertainment, eating out more, traveling, and alcohol. Many also have more expensive cars, houses, or apartments.
You should also add any expenses you incur in your home country that are not listed in the tables below. Presumably, you find those things necessary in life. During your exploratory visit, you must gather and add those additional expenses to your budget.
If you are going to try to retire cheaply offshore, make sure to read my report, the Two Biggest Risks of Retiring Early for Cheap Offshore, which explains why you should have emergency funds available for unexpectedly large expenses.
The rents used for these updates are generally lower than the monthly rents available on Airbnb. To find rent as low as shown in these reports, we use this process: How we find great apartments all over the world.
We will start with updated inflation data for Porto, Portugal, but you can scroll down to see updates for the other cities in Portugal where we have reports on retiring.
|
Porto Portugal |
Lower (USD) |
Middle (USD) |
|
Rent |
882 |
1411 |
|
Utilities |
90 |
150 |
|
Groceries |
250 |
450 |
|
Restaurants |
300 |
500 |
|
Cell Data |
25 |
50 |
|
Laundry |
50 |
80 |
|
Water filters |
8 |
8 |
|
Internet |
45 |
45 |
|
Transportation |
80 |
120 |
|
Basic Costs |
$1730 |
$2814 |
|
|
|
|
|
Alcohol |
100 |
200 |
|
Optional Total |
$1830 |
$3014 |
|
|
|
|
|
Entertainment |
200 |
300 |
|
Optional Total |
$2030 |
$3314 |
I will adjust the basic cost of living for each city in Portugal based on our historical cost differences and other differences we observe between cities. But I will keep alcohol and entertainment costs separate from the basic cost adjustments.
Here are my 2025 inflation updates for the other three cities in Portugal for which we have reports.
|
Lisbon |
Lower (USD) |
Middle (USD) |
|
Basic Costs |
$2050 |
$3270 |
|
+Alcohol |
100 |
200 |
|
Optional Total |
$2150 |
$3470 |
|
+Entertainment |
200 |
300 |
|
Optional Total |
$2350 |
$3770 |
|
Coimbra |
Lower (USD) |
Middle (USD) |
|
Basic Costs |
$1325 |
$2105 |
|
+Alcohol |
100 |
200 |
|
Optional Total |
$1425 |
$2305 |
|
+Entertainment |
200 |
300 |
|
Optional Total |
$1625 |
$2605 |
|
Sintra |
Lower (USD) |
Middle (USD) |
|
Basic Costs |
$1535 |
$2245 |
|
+Alcohol |
100 |
200 |
|
Optional Total |
$1635 |
$2445 |
|
+Entertainment |
200 |
300 |
|
Optional Total |
$1835 |
$2745 |