Is Moving to Portugal Still Affordable in 2025? A Cost Breakdown for Lisbon

For foreign investors and expats eyeing Portugal, the question of affordability has become more critical than ever. While still offering a superior quality of life compared to many Western European nations, the country has seen a significant boom in prices. A detailed look at the 2025 cost of living reveals that strategic financial planning is essential, especially for those targeting prime markets like Lisbon.

The average monthly budget for a couple is estimated at €1,900, but this can climb to over €2,400 in Lisbon. The key factor remains real estate, with rental prices for a one-bedroom apartment in the capital's center now exceeding €1,500.

What Foreign Investors & Expats Need to Know

The data clearly shows that while the overall cost of living is manageable, the entry barrier for housing in prime locations is substantial. An investment in Lisbon property, whether for rental or personal use, requires significant capital. However, rental yields remain attractive due to high demand. A financial consultant notes, 'Investors must now look at Lisbon with a long-term perspective. The rapid growth phase may be stabilizing, but the fundamental demand for quality housing is stronger than ever. The key is to identify value in emerging neighborhoods.' Actionable Steps for Budgeting Your Move

• Analyze City Costs: Recognize that Lisbon and Porto operate in a different price bracket. If your budget is constrained, explore secondary cities like Braga or Coimbra, which offer excellent value and a high quality of life.
• Factor in Initial Expenses: Beyond monthly rent, account for the cost of furnishing a property, as many long-term rentals come unfurnished, though typically with equipped kitchens. This initial outlay can be substantial.
• Secure Health Coverage: While Portugal's public health system is robust, many expats opt for private health insurance for faster access to specialists. Budgeting €30-€60 per person per month for a basic plan is a prudent step.

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