Cost of living in Portugal versus the UK

Last Updated on February 7, 2023 by Maryam Siddiqui

We’re not saying the two countries have essentially the same lifestyles. But there’s definitely something about Portugal that entices the British to relocate and find a home away from home. People’s preferences are changing into simpler wishes, and what better way to give yourself that without compromising on the quality of life? Let’s talk about the cost of living in Portugal versus the UK to help you decide your pick.

Luckily, the difference isn’t poles apart. Even though you’ll notice a striking contrast between some living costs in the UK and in Portugal, it might not be a determining factor after all. There’s only one way to know! 

Keep reading for an in-depth analysis of everyday expenses, groceries, leisure, schooling, and more. We’ll get into all the details to help you evaluate which country suits your family more and why that is so. Stay tuned till the end for a comparison between the most famous cities in the two countries!

How expensive is living in Portugal?

Like all other countries, people from all social classes can find something worthwhile in Portugal. But one thing is for sure; the cost of living in Portugal versus the UK is at least 25.6% lower. Several factors contribute to this, for example, the currency exchange rate, taxes, wages, cost of housing, and basic demand and supply.

That being said, despite an upward trend in Portugal’s real estate market, rent is still 27.4% lower than in the United Kingdom. Affordable housing is a major reason why many British relocate to Portugal. Not only is it cheaper to live here, but it also means saving more money to invest in other things. 

To help you understand, an average citizen in Portugal can live comfortably for under €600 (£537) without rent. If you add rent to this, it can be an additional €500 (£447), depending on where they live. Similarly, a family of four spends an estimated €2,030 (£1,818) per month without rent. As mentioned above, the difference between the two European countries isn’t extremely drastic. 

How expensive is living in the UK?

Now that you have an idea of what an average Portuguese citizen spends per month, let’s compare it with how much a UK citizen spends. 

Several factors contribute to the higher cost of living in the UK. First off, the pound sterling is a stronger currency than the euro, hence making imported goods slightly more expensive. Then, there is a higher tax on goods and services in the UK, thus adding to costs that were already high. 

While some cities are way more expensive, the cost of living can vary greatly depending on your lifestyle preferences, location, and personal circumstances. Even though the cost of living is expensive, some people may find that they’re able to live comfortably.

Let’s give you some perspective. An average citizen in the UK can live comfortably for under €786 (£701), excluding rent. Adding rent into this can be an additional €700 (£627), depending on the location. Similarly, a family of four can live under €2,708 (£2,426) without rent. As you can tell, it is still relatively more expensive to live in the UK as compared to Portugal.

Cost of living in Portugal versus the UK

There are various reasons why people prefer one over the other. For some, it’s the ideal location, stunning beaches, and slow pace of life, and for others, it’s the cost of living. They’re all valid reasons. 

When deciding which country gets to be your pick, you must first look at all the aspects that you absolutely not live without. Starting from renting a property to live in and how you’re going to commute for work. Or perhaps, for some, the leisure and entertainment! 

Let’s get started!

Cost of rent

Starting with the most important comparison, one can make – the difference in real estate costs. A similarity between Portugal and the UK is how fast the real estate market has picked up pace in recent years. According to data from the Office for National Statistics (ONS), the average house prices in the UK increased by 5.6% in 2021 and 7.8% in 2022.

London, Oxford, and Cambridge continue to be the top three most expensive cities in the United Kingdom. The factors that contribute to the highly valued real estate are the high demand for housing and services and them being top locations for universities. 

The average rent of a one-bedroom apartment in the center of London can easily go up to €2,277 (£2,039) per month. Whereas the rent for a one-bedroom apartment outside the city center comes down to €1,621 (£1,541) per month. That is more than one person’s total living costs in Portugal! Can you believe that? 

Let’s compare that to the rent prices of Portugal’s most expensive city, Lisbon. On average, a one-bedroom apartment in the center of Lisbon is €1,207 (£1,081) per month. That’s almost €1,000 less than London! Whereas the rent for a one-bedroom apartment outside the city center comes down to €785 (£700) per month. 

Check out the comprehensive summary down below:

All price estimates in the article are from Numbeo (as of February 2023).

Utilities

Utility expense in Portugal is nearly 90% cheaper than in the UK. You’ll find that basic utilities are priced almost the same all around the country, for an average of €110 per month. 

Whereas utility bills can cost as much as £260 for an 85m² apartment in London, so the difference is significant. However, internet and mobile tariff are almost the same in both countries. Of course, the average expenditure on these things depends on your usage and needs.

Groceries

The Portuguese culture really values cooking meals at home and sharing them with family and friends. It’s seen as an opportunity to socialize and connect with others to cherish every moment as much as possible. This might mean that you’d end up with more groceries every month, but the prices are economical, thanks to local producers. 

Local farmer’s markets are also a big part of Portugal’s food culture. They’re held in town squares or public spaces, often once a week, offering the freshest produce at cheaper rates. As a result, the fast food culture is pretty negligible in Portugal. 

On the other hand, the United Kingdom has a mix of both fast food and traditional home-cooked meals. Fast food chains and takeaways are widespread in the UK and are very helpful for people running short on time. 

Here’s a comparison of some everyday grocery items in Portugal versus the UK:

Eating out and drinks

Everybody likes to have a bit of extra fun once in a while! Even the Portuguese can’t stick to home-cooked meals every week. On days when the Portuguese like to eat out, it costs one person €9 (£8.03) at an inexpensive restaurant and nearly €40 (£17.96) at a mid-range restaurant with a three-course meal.

The same activities can cost one person an average of €16.82 (£15.00) in the UK at an inexpensive restaurant and €30.83 (£27.68) at a mid-range restaurant with a three-course meal.

Transport cost

Public transport options in both countries are generally good. You’ll find well-equipped trains, trams, and buses. The public transport facilities in London are more extensive, like the London Underground (also known as the Tube).

Similarly, public transport in Lisbon also consists of metros, trams, and buses that can get you around the city and to the ones nearby. Most cities are interconnected through public transport, and most Lisboetas prefer to travel via public transportation instead of their own cars. 

A Monthly Pass for public transport can cost up to €40.00 (£35.68) in Portugal and €73.12 (£65.22) in the UK. 

Leisure expenses

Both Portugal and the UK have a reputation for their vibrant nightlife and parties but in different ways. 

Portugal’s most famous cities, Lisbon and Porto, are known for lively bars, clubs, and music festivals like the Rock in Rio and NOS Alive, which attract thousands of visitors each year. The United Kingdom is also well-reputed for its diverse and electric nightlife in major cities such as London, Manchester, and Bristol.

Smaller towns also have lots of leisure activities to entertain you whenever you need a boost of energy! 

Education

Education in the UK can be more than twice as expensive as in Portugal. Expats and Portuguese nationals have free access to public education in Portugal. But due to the language barrier, a lot of expat parents enroll their children in the best International Schools here. 

You can expect to pay anywhere around €344 (£307) per month for a preschool grade in Portugal. Whereas, in the UK, it would cost €1,160 (£1,035) per month for the same grade. Many International Schools in Portugal follow the British curricula, and the standards are at par with any other private schooling in another country. 

Healthcare

Let’s talk about something incredibly important when deciding to relocate to a new country. When estimating the cost of living in Portugal versus the UK, you should consider any expected hospital visits or health insurance plans that your family needs. 

Fortunately, public healthcare in Portugal is free for all legal residents, and the systems are excellent and well-equipped. A lot of people rely on this system to the point of not having any insurance plans, and it works out fine. Like public hospitals worldwide, you might have to wait longer to see a doctor. 

It’s pretty similar in the UK. The National Health System (NHS) provides free healthcare to all legal residents, including a wide range of medical treatments. Some people do choose private health insurance to avoid waiting in long queues, and it can cost around €1669 (£1,500) annually. In Portugal, it can cost around €400 (£359) to €1,000 (£897) annually, depending on your plan.

What are the cheapest areas in Portugal?

When you compare it to the UK, even the most expensive Portuguese cities are significantly cheaper than the cost of living in the UK. But let’s dive into what an average resident thinks is the cheapest place to live without compromising on the quality of life. 

First, we have Braga, a beautiful city in the North of Portugal. Known for its rich history, cultural heritage, and ancient landmarks. Despite inviting visitors all year, Braga is still considered a cheap city to live in, with rent prices 47% lower than in Lisbon. 

Coimbra is another cheap city in Central Portugal, famous among international students for the University of Coimbra. Even though it’s popular, the cost of living remains lower than in the most famous regions, with rent prices 55.9% lower than in Lisbon.

Lastly, a cheap city in the famous Algarve region, Portimão is another popular spot for expats on a budget. Rent prices are 46.4% lower than in Lisbon, and you have access to the most stunning beaches in all of Portugal. 

What are the most expensive areas in Portugal?

The most expensive areas in Portugal barely require any introduction, thanks to being famous for many different reasons, but let’s give you an estimate of what it would cost you. 

Lisbon, Porto, and the Algarve remain the most expensive regions in Portugal, and many can agree that it’s rightfully so! The ideal location, infrastructure, tourist hot spots, beautiful beaches, and quality of life make it a pretty good deal for anyone living there. 

Average rent prices for a one-bedroom apartment in the center of Lisbon are €1,200, but it depends on the neighborhood. For Porto, you can expect to pay €808 for a one-bedroom apartment in the city’s center. And for the Algarve, rent prices for a one-bedroom apartment are €900. 

Still not as expensive as in the UK, right?

Is Lisbon more expensive than London?

Housing, food, transportation, healthcare, and education are generally much lower in Lisbon than in London. But, of course, you can upgrade your lifestyle to live even more luxuriously than an average citizen. 

You would need around €3,634 (£3,262) to maintain a similar standard of living in Lisbon which would cost you €5,900 (£5,300) in London. There are many luxurious cities near Lisbon that would still not cost anywhere equal to that of London, for example, Cascais. 

Is Porto more expensive than Manchester?

Another comparison we’ll make to give you a better idea of the cost of living in Portugal versus the UK is between Porto and Manchester. These two cities come in as the second most famous cities in their respective countries. 

Similar to the comparison above, Porto is considered to be an affordable city for people moving here from the UK. Nonetheless, the cost of living can vary greatly depending on lifestyle choices and where you’d like to rent or purchase a property. 

You would need around €3,077 (£2,760) in Porto to maintain a similar standard of living that would cost you €4,006 (£3,600) in Manchester. Although the two cities have economic differences, the quality of life is pretty similar. 

What is the average wage in Portugal and the UK?

A reason for the difference in the cost of living in Portugal versus the UK is the difference in wages in both countries. 

Wages in Portugal are known to be low, which results in many students moving abroad for better opportunities. However, most citizens are happy with what they make because the Portuguese are generally not too focused on making money but rather on living a good quality of life and being happy. 

The average monthly net salary (after tax) in Portugal is €979 (£879), whereas it is €2,556 (£2,296) in the UK. So yes, there is a big difference, but the cost of living is also appropriate for what a person earns in each country.

• We have a detailed article on the Salaries in Portugal for you to learn more about each profession.

Is it worth the cost of living in Portugal?

As discussed above, assessing the cost of living in Portugal versus the UK can not be the only measuring scale to decide whether Portugal is worth it. If peace, fulfillment, great weather, and good infrastructure are what you value, then this is the right place for you!

By now, you can tell that the cost of living in Portugal is brilliant for all that it offers. Most expats relocate only for the quality of life and safety that they feel for their families. We recommend that you research deeply into the life of expats here and decide whether it’d be worth your while.

When are you moving to Portugal?

This article got you thinking, didn’t it? There’s a significant difference in the cost of living in Portugal and the UK, so it can be confusing to decide. However, living costs aren’t the only thing you should ponder over when seeking out options to relocate. We suggest going on a scouting trip to assess whether you like the neighborhood, the people, the food, and the overall quality of life. 

One thing is for sure, there’s something for everyone in Portugal! And you can easily upgrade your lifestyle by choosing appropriate options for your needs. Join our Facebook Group – All About Portugal For Expats, and find your British expat community!

Need any help with the process? Experts at Viv Europe are here to make your relocation free of worries and absolutely seamless. Contact us today and book a consultation on how to get started!