Portugal vs USA Cost of Living: How Much Can You Really Save in 2025?

If you're an American thinking about moving to Portugal, you've probably heard it’s more affordable. But what does that really mean?

We’ve put together a practical, side-by-side breakdown of the cost of living in Portugal vs the U.S., so you can get a clear picture of how far your dollars can go in 2025.

Spoiler: For many Americans, these are life-changing savings and they are significant savings for wealthy people as well.

 Portugal vs USA Cost of Living Monthly Comparison

Category	Portugal (Lisbon)	USA (San Jose, CA)
Rent (1BR apartment)	$1,000–$1,300	$2,500–$3,200
Utilities (electric, water, internet)	$130–$180	$300–$400
Groceries (monthly, for 2)	$350–$500	$850–$1,100
Private Health Insurance	$50–$100	$600–$900
Transportation (public + occasional Uber)	$60–$100	$250–$350
Dining Out (4 meals/month, mid-range)	$100–$160	$400–$600

Total Estimated Savings: $2,000–$3,000+

Even if you factor in slightly lower salaries or fixed retirement income, the lower cost of housing, food, and healthcare in Portugal can make everyday life dramatically more affordable.

Where the Big Savings Really Add Up

🏠 Housing

Rent and real estate costs are significantly lower across Portugal. Even in Lisbon, a one-bedroom apartment in the city center typically rents for 40–60% less than in most U.S. metro areas.

Want more space? You can rent a 3-bedroom in smaller cities like Coimbra or Braga for under $1,000/month.

🛒 Groceries

Portugal has excellent access to fresh produce, seafood, and wine, all at local prices. For many expats, grocery bills drop by 30–50% compared to what they were spending in the States. Even with this drop in spending you still get high-quality produce and ingredients leading to a better and fuller life.

❤️‍🩹 Healthcare

This is often the most shocking difference for Americans. Private health insurance plans in Portugal can cost as little as €50/month—and that includes excellent care with short wait times. Many expats also gain access to the public system as residents. Healthcare costs along over a long term can save you thousands of dollars that you can use for other aspects of your life.

🚗 Transportation

In cities like Lisbon and Porto, a car isn’t necessary. Public transit is reliable, affordable, and well-connected. Monthly passes average €40–€60, and Uber is widely available for short trips.

What About Taxes?

Portugal’s tax system is different, and it’s important to plan ahead. Some Americans once benefited from the NHR (Non-Habitual Resident) tax regime, which ended for new applicants in 2024, but may still apply to early arrivers. Still when it comes to Portugal vs USA cost of living comparisons, the tax burden is very manageable.

If you're living in Portugal part-time or investing for residency, your tax exposure can vary. That’s why it's always best to consult a professional before making the move.

The Hidden Value: Living Well on Less

Lower costs are just part of the story. Many Americans in Portugal report that they spend less but enjoy more—more fresh air, more time with family, more walks by the ocean, and more evenings without financial stress.

Photo by Nate Holland on Unsplash

You may find that a modest pension or fixed income suddenly stretches far enough to support a comfortable, dignified, and even luxurious lifestyle.

Curious what life could cost you in Portugal?

We can help you map out a personalized relocation budget—based on where you want to live, how often you’ll travel, and what kind of lifestyle you’re looking for.