Cost of Living in Lagos: All you need to know

Last Updated on August 10, 2023 by Victor Queiroz

There’s no doubt that there are plenty of beautiful destinations in Portugal; however, if you want a fun, laidback city located within the popular Algarve region, Lagos might be ideal. This city, located in the western Algarve, is not just fascinating; but is also packed with plenty of history. If you are an avid sports fanatic, this destination will, by all means, cater to your needs. But before we lock in your preferences, let’s talk about the cost of living in Lagos.

For any expat choosing to live in the large and well-loved Algarve region, one thing you have to contend with is the relatively higher cost of living. Although the Algarve region is generally more expensive according to Portuguese standards, is the cost of living in Lagos the same? Here is a breakdown of the cost of living in Lagos to give you some insight into what to expect.

How expensive is Lagos?

By its location, it is fair to mention that there might be more affordable destinations in Portugal than in Lagos. It is a known fact that the Algarve region has a heavy foreign influence, which often drives the cost of common goods and services high. 

That said, is Lagos the most expensive city in Portugal? Absolutely not; in fact, you will be surprised to find out that Lagos’s living cost might be lower than expected. It is possible to lead a relatively cheap life in this destination if you choose to.

Compared to the average Portuguese standard, the cost of living in Lagos is generally higher, but for the right reasons too. This destination has so much to offer that it is no coincidence that tourists flock to this region from all over the globe every year. You have the privilege of enjoying warm weather all year round and also get access to some of the most pristine beaches in the world.

What is the cost of living in Lagos for expats?

As mentioned earlier, the cost of living in Lagos is higher than the Portuguese average. However, while this is true, it is still way affordable, especially when you compare it with other major cities worldwide. For instance, data from Numbeo suggests that you will need €3,382 in Lagos to maintain a lifestyle that you will get for about €5,000 in London.

Remember, when it comes to the cost of living, your individual spending and lifestyle will determine how much your monthly spending will be. That said, here is a breakdown of the cost of living in Lagos concerning some of the main indicators of cost of living, like rent, house bills, the cost of food, and transportation costs.

Cost of rent in Lagos

The cost of rent is one of the most significant bills not only in Lagos but all over the world. There is no denying that Lagos is a popular destination in the Algarve, and because of that, it is also true to infer that accommodation is in high demand and at a premium. 

However, how much you will pay for rent will depend on the specific type of house, location, and size of the rental house. According to Idealista, the average cost of renting a property in Lagos is €12/m².

Of course, just like any other destination, there are different types of housing that you can go for. Generally, prices range from midrange to expensive; however, choosing to move further inland will increase your chances of getting a relatively affordable rental property. 

During summer, when there is an exponential increase in the number of tourists, it is common for the cost of rent to go up. During these peak tourism months, short-term rentals are more common but often more expensive.

House bills

The beauty of living in Portugal is that house bills are often standard all over the country, including Lagos. Usually, how much you are expected to pay will depend on the number of services you need for convenience in your home. 

The most common utility services in Lagos include gas, internet, phone packages, electricity, water, and TV packages. Here is a breakdown of how much such services will cost you in Lagos.

Estimates are from Numbeo (as of February 2023).

Average spending on food

Although not mentioned enough, the cost of food is relatively high, especially if you have a large family. This is particularly true if you choose to eat out often instead of preparing home-cooked meals. Although sharing a proper meal with friends and family is a huge part of Portuguese culture, it is no coincidence that the locals find it easy to prep their meals instead of eating out in a restaurant.

Expenses aside, the other benefit of preparing meals at home is that you get to choose the cooking methods, which also gives you the luxury of eating healthy. With that out of the way, here is a rundown of some of the main things that might show up on your grocery list regularly.

Estimates are from Numbeo (as of February 2023).

 Expected transport cost in Lagos

Similar to most destinations in Portugal, there is a reliable public transportation system in Lagos that will take you to other parts of the Algarve region or the rest of Portugal. The two common means of public transportation are buses and trains that ply different routes within this destination.

However, if you are interested in exploring the city center, you can do so on foot. The well-preserved cobblestone streets will lead you down different paths that will help you discover and explore the hidden gems within the city.

Besides public transportation, plenty of taxis will take you to different parts of Lagos and beyond. Remember that taxis are generally more expensive and the cost will only go higher if you hire one during the night because of the special night rates. Here is a breakdown of the transport cost according to the specific means.

Leisure expenses

Lagos has no shortage of things to do; in fact, if you are the adventurous type, you will love exploring the history, cliff-lined beaches, and secret coves all located in this destination. Although touring the city on foot is possible, hiring a bicycle at about €20 a day will help you cover more ground and make more discoveries.

As you explore the different places, be sure to stop by the local restaurants and enjoy a glass of wine for your trouble. If you are new to the Algarve region, you must visit the stunning beaches. There are a few beaches only a short walking distance from the old town, for example, Praia do Camilo and Praia, Dona Ana.

Another excellent leisure activity for the whole family is a boat ride from the marina drive. A typical dolphin show will leave you yearning for more adventure in this part of the great Algarve region. Here are other common leisure activities and their cost breakdown.

What are the cheapest areas in Lagos?

If you are searching for an affordable destination to live in Lagos, then the Old town might be a good option for you. Here you will find accommodation of every type, including those within your budget options.

Also, the fact that this neighborhood is within the city puts you right in the middle of all the action. This is an excellent destination with an active light life; it is particularly ideal for anyone without a family.

What are the most expensive areas in Lagos?

Lagos has a lot of luxury destinations; however, it is hard to beat Alvor’s appeal and suburban vibe. A town in its own right, Alvor is one of those destinations that has a bit of everything. Whether it is a rich history or even a blue flag beach, you can find it in this destination. Alvor is also one of the best neighborhoods as far as fine wining and dining are concerned.

There are plenty of high-end restaurants where you can enjoy a nice meal with friends and family. Meia Praia is another excellent place for a family that doesn’t come cheap. Located 5 km east of Lagos Old Town, Meia Praia is home to the largest beach in Lagos, and there are plenty of water sports fit for children and adults.

• Read Also: Discover the Top 10 Cities For Expats In Portugal and see whether Lagos made it to the list!

Is Lagos more expensive than Lisbon?

The cost of living in the great Algarve region is often not so different from Lisbon, and Lagos is no different. While this is true, it is worth mentioning that Lisbon is relatively costlier than Lagos. To put some context to this, data from Numbeo suggests that consumer prices are 4.7% lower in Lagos compared to Lisbon.

Also, you will need about €3,415 in Lagos to support the same lifestyle that €3,700 can give you in Lisbon. Living in Lisbon has its own fair share of advantages since it is the capital of Portugal. There are more employment opportunities in Lisbon compared to Lagos. Living in Lagos, however, gives you the unique opportunity of experiencing life in the Algarve region.

Is Lagos more expensive than Porto?

Although Porto is the second largest city in Portugal, you will be surprised to find out that the cost of living in Lagos is higher. The consumer prices are 1.9% lower in Porto compared to Lagos. You will need approximately €3,131 in Porto to lead the same lifestyle that you can get for €3,400 in Lagos.

The heavy foreign influence brings a lot of differences. The major differentiating factor between these two destinations is that the cost of rent in Porto is 19% lower than in Lagos.

How much do the Portuguese earn in Lagos?

It is worth pointing out that Portugal is among the 13 nations in Europe whose minimum wage is below the recommended €1,000. Currently, the minimum wage in Portugal stands at €760, which is quite low by European standards.

The average Portuguese employee working in Lagos earns an average of €866 monthly after taxes. However, there is a potential for earning significantly more, especially for highly skilled professionals in fields such as technology and innovation. Despite the low salaries, people living here are happy because the cost of living remains low too.

• Read Also: How Are The Salaries In Portugal? See Average Values By Profession In 2023.

Is it worth the cost of living in Lagos?

Let’s face it, the cost of living in Lagos is not the cheapest in the country. However, there are several reasons to justify this cost of living. To begin, the opportunity to live in one of the most sought-after destinations in the world is a dream come true for many expats. Also, the proximity to some of the most beautiful and well-preserved beaches in the world is also a significant draw to this destination.

Back to the question, is the cost of living in Lagos worth it? Well, there is no one true answer to this question; it all comes down to your individual preference and also who you ask. Lagos means a lot of things to different people; however, if you are among the many who would love to live in the Algarve, then Lagos might be ideal.

 When are you moving to Lagos?

There you have it, a comprehensive breakdown of the cost of living in Lagos. It is no coincidence that 34.8% of the resident population is of foreign descent. This destination must be of value to expats from across the globe. So, when are you making your move to this destination in Western Algarve?

Whenever you are ready, be sure to reach out to our experts at Viv Europe to help you deal with the bureaucracies and tie-downs in the immigration process. For further questions or concerns, join our Facebook Group – All About Portugal For Expats. The active community will be more than willing to help you out!