According to Numbeo, the overall cost of living in Portugal, including rent, is around 32% lower than in the United States.

When comparing major cities, the differences are even more striking:

• Lisbon is 39% cheaper than Washington, D.C.
  
• Lisbon is more than 52% cheaper than New York City
  

However, these averages can be misleading, as some categories are much more affordable in Portugal, while others remain more expensive.

Goods and Services Cheaper in Portugal

• Education: Preschool and international primary schools are on average 46–62% less expensive.
  
• Mobile services: Phone plans cost around 64% less.
  
• Transportation: Taxis are 41% cheaper.
  
• Dining: Meals in simple restaurants are about 36% less expensive.
  
• Housing: A one-bedroom apartment in a city center can be up to 38% cheaper.
  
• Wine: 61% cheaper.
  
• Rice and staples: Up to 64% cheaper.
  

Goods and Services More Expensive in Portugal

• Gasoline: Roughly 120% more expensive.
  
• Cars: Up to 50% higher for the same model.
  
• Mass-market clothing (e.g. jeans): Around 81% more expensive.
  

Healthcare Costs: A Key Advantage

One of the strongest advantages of Portugal is healthcare affordability:

• Public healthcare is nearly free for residents.
  
• Private healthcare plans cost less than €100/month, compared to 4–8 times more in the US.
  

Purchasing Power Differences

It’s important to note that average salaries in Portugal are 71% lower than in the United States, which means Portuguese residents have far less purchasing power, even when accounting for the lower cost of living.

For Americans, this means:

• Living in Portugal makes the most financial sense if you’re retired, living on US-based income, remote working, or investing.
  
• Relying on a Portuguese salary alone may not support the lifestyle many expats expect.
  

Beyond Finances: Why Americans Love Portugal

While financial savings are important, most Americans moving to Portugal highlight lifestyle factors as the real value:

• Safety: Portugal is one of the safest countries in the world, with strict gun control.
  
• Relaxed lifestyle: A healthier balance between work and life.
  
• History and culture: The oldest borders in Europe, 17 UNESCO World Heritage sites, and a deep cultural heritage.
  
• Food & wine: High quality and affordable compared to US prices.
  

In addition to Lisbon, popular destinations such as Porto, Cascais, and the Algarve attract many American retirees, remote workers, and families who are looking for a balance of affordability and quality of life.

Real Estate and Housing Opportunities

Beyond renting, buying property in Portugal can also be more accessible compared to many parts of the US. Real estate prices in Lisbon, Porto, and coastal areas remain attractive, making Portugal a strong option not only for those looking to relocate but also for long-term investment.

Final Considerations

While the recent EUR/USD exchange rate slightly narrows the savings gap, Portugal still offers substantial cost-of-living advantages—especially in housing, healthcare, and lifestyle.

This is why more and more Americans are choosing Portugal not just as a retirement destination, but also as a place to invest in real estate, work remotely, and raise families.

At The Blue Portugal, we help US citizens navigate the move: from Golden Visa investments to banking, tax planning, and relocation support.