Cost of living in Portugal in 2025

Renting a place.  I have found that the cost has continued to rise, and places are scarce around my area.  I am quite near Sintra and Cascais, although my area is not classed as a prime location, it is close enough by car to be classed as such, I suppose. To buy now is out of my reach.

Utilities. Even though I live alone and use relatively little water and electricity, it is not so much the cost of consumption it is the IVA that is charged that is the killer. I use bottled gas, and I am frugal as it would cost me over 100€ a month to buy the bottles, then electric heaters on top of that, and that is only to heat one room.

Other Observations. I have been in Portugal for 10 years and have seen it change, I have lived in the Algarve and am now near Lisbon. It has become a country for those with money. Health insurance has tripled since I came here, dental insurance too, food prices have gone up, a weekly shop would cost me €40 4 years ago now €100. Car insurance has doubled. Going out for a meal, even at a typical Portuguese restaurant, which would cost around €6, with a glass of wine, for a 3-course meal, now costs at least  €16.

Area: Sao Miguel in the Azores.

Rent: Very few rental apartments to be had. Lots of ALs. Rents are therefore high - around 600€ for a 2 bed apartment (if you can find one).

Water (5 bed house with two inhabitants): 10-12 euros per month

Electricity: 40 - 55 € per month

Gas: 18€ - we buy one bottle every 8 weeks

Property tax: 180€ per year

Groceries (we buy our fruit and veg at the local market and our meat at a local butcher): Around 300€ per month

Internet (Fixed line phone, television, WiFi, 2 mobile phones): 63€ per month

Car insurance (fully comprehensive): 600€ per annum

House insurance: 280€ per month

Health insurance (expensive because only one company will consider insuring us): 380€ per month.

Compared to our home country, we find Portugal (Azores)’s cost of living reasonable, but costs are definitely rising, compared to what it was 7 years ago when we arrived.

As 2025 has just recently started, I wouldn't be able to say much about the Cost of Living in 2025. However, according to my numbers I can only see a small-ish increase from 2023. The most noticeable increase was in the day to day shopping of food and household items. It feels like for us there was not a difference between 2023 and 2024. So let's see what 2025 brings.

@Wibble2024

Hello,

It seems as if you are spending way too much on insurance especially for your home insurance. Have you tried different agencies? I got one through my bank that is only 200 a year . Of course, I don't have a house but a flat.

Yes health insurance has become very expensive too (I am not young either but still quite high) especially that we still have to pay a co-payment for everything. I have Fidelidade that never forget to increase my premium every year.

For food, I don't complain too much as I often buy what's on sale but it's ok anyway.

Another big expense is the mobile phone company.

Julia

@juliajonesjy

I agree that the insurance is high. One really has to shop around to get a good deal. By doing so I saved as much as 40%.

Health related costs (insurance, co-payments, medication, dental) can be very high in Portugal. No wonder that e.g. the dental status of Portuguese is getting worse instead of better. It is simply very expensive.

I also agree with the food related costs. There is always something on sale that we like.