For years, Portugal has been viewed as one of Europe’s most attractive destinations for expats, remote workers, and retirees. With its mild climate, strong quality of life, and relatively affordable lifestyle, the country has experienced a surge in international interest. However, as more people move to Portugal, the question is changing: is Portugal still affordable?
The answer is more complicated than it used to be.
Portugal’s Rising Cost of LivingPortugal remains cheaper than many Western European countries, but living costs have increased significantly in recent years, particularly in housing.
Average rental prices have risen sharply, especially in popular areas such as Lisbon, Porto, and the Algarve. In 2026, average rents across Portugal were estimated at around €16.40 per square metre, meaning an 80m² apartment could cost approximately €1,300 per month.
In Lisbon, a one-bedroom apartment in the city centre can cost around €900–€1,000 per month, while properties outside central areas are typically closer to €700 per month, depending on location and condition.
This increase has created pressure for local residents, as wage growth has not always kept pace with housing costs.
Salaries vs Expenses: The Biggest ChallengePortugal’s cost of living remains attractive for people earning foreign salaries, but affordability is more challenging for local workers.
The national minimum wage increased to €920 gross per month in 2026, continuing a gradual increase in Portuguese wages. However, when compared with rising rents in major cities, many households are feeling increased financial pressure.
The average monthly net salary in Portugal is estimated at around €1,150, meaning housing costs can represent a significant portion of income, particularly in Lisbon and other high-demand areas.
Why People Are Still Moving to PortugalDespite rising prices, Portugal continues to attract international talent because it offers advantages that go beyond cost alone.
Lower everyday expenses compared with countries such as the UK and US, access to healthcare, safety, climate, and lifestyle continue to make Portugal appealing for professionals and families.
The growth of remote work has also changed the market, allowing people earning international salaries to benefit from Portugal’s lifestyle while working for companies abroad.
Looking Towards 2027Portugal’s affordability will likely remain one of its biggest attractions, but the country is entering a new phase. The era of Portugal being an extremely cheap European destination is disappearing, particularly in major cities.
Future growth will depend on increasing housing supply, improving wages, and creating opportunities that allow local workers to benefit from economic growth.
For those considering relocation, Portugal in 2027 will likely remain a great place to live—but affordability will depend heavily on location, income level, and lifestyle choices.
Portugal is no longer Europe’s hidden bargain. It is becoming a more expensive, but increasingly international, destination.
