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Cost of living in Portugal in 2025: whether it’s worth moving to the country

Home » Blog » Cost of living in Portugal in 2025: whether it’s worth moving to the country

With its mild climate, Mediterranean cuisine and unique cultural atmosphere, Portugal is considered one of the most attractive destinations to relocate to in 2025. The country offers a harmonious combination of affordable prices and a high level of comfort. In this article, we will tell you how realistic it is for a Russian to fit into local society, as well as provide information on the cost of living in Portugal.

Why Portugal is attractive

Portugal remains a magnet for expats due to its unique combination of geographical diversity, high standard of living and affordable cost of services. It’s a place where tradition meets modern amenities: in 2025, the country stands out for its developed infrastructure, security, stable economy and warm climate suitable for long-term residence.

Geographical diversity and climate

Srana offers a stunning geographical diversity:

  1. Famous for its golden beaches and Mediterranean climate, the southern Algarve is ideal for those who appreciate mild winters and warm summers. Albufeira and Lagos are cities where life is relaxed, with cosy cafes, seafood and a measured pace.

  2. Lisbon, the country’s capital, is a striking architecture where modern business centres sit alongside historic monuments. The city rises up the hills, offering views of the Tagus River, and the climate remains comfortable all year round. The average temperature in winter is around 12-14 degrees Celsius, while in summer the temperature does not exceed 30 degrees Celsius. Lisbon is the choice of those seeking a balance between career opportunities and cultural leisure.

  3. The northern regions of Porto and Braga are characterised by green hills and cooler weather. In Porto, history breathes in the streets: ancient bridges, the Douro River promenade and the famous Port wine. These regions are suitable for those seeking inspiration in silence and nature.

  4. The central regions, including Alentejo, delight with plains and authentic villages. The central regions of Portugal, including Alentejo, enjoy the plains and authentic villages.

Standard of living and infrastructure

The level of comfort in Portugal remains one of the best in Europe, despite the relatively low cost of living. Developed infrastructure, safe cities and affordable services make the country attractive to families, young professionals and retirees.

Lisbon and Porto have convenient subways, with single fares costing around €1.5 and monthly passes costing €40. Intercity trains connect the major cities, travelling here is more than affordable.

The medical system deserves special attention. Public hospitals provide high-level services, and insurance for residents costs an average of 40 to 70 euros per month. Private clinics offer more flexible conditions, providing a high standard of service. For example, a consultation with a specialist will cost 50-70 euros.

Education in the country is also of a high standard. Public schools offer free tuition, while international institutions like Carlucci American International School of Lisbon offer programmes in English. Higher education is available not only for local students but also for expats.

Security is one of the key factors that make relocation attractive. Low crime rates provide peace of mind for families and the elderly. Combined with a friendly culture and hospitality, this creates an environment where everyone feels comfortable.

The cost of living in Portugal is determined by a combination of high quality services and affordability. The country offers a comfortable environment for reasonable money, making it one of the best choices for emigration.

How much does it cost to live in Portugal?

For an objective assessment, you should consider the main cost items: rent, food and transport. These categories define everyday spending and help to understand how affordable a country is.

Renting accommodation in Portugal

In 2025, prices vary depending on the city and location. In Lisbon, where demand for housing remains high, renting a one-bedroom flat in the city centre will cost 1200-1500 euros per month. On the outskirts, a similar option will cost 800-1000 euros.

In Porto, which is considered more affordable, you can rent such apartments for 900-1200 euros in the centre and about 700-900 euros on the periphery. For those looking for economical options – there are studios and rooms priced from 400 euros per month.

Many expats choose the Algarve, where rates are lower. A flat in the centre of the locations will cost around 800-1000 euros. In rural areas of the country, the service is noticeably cheaper – from 300-500 euros.

Factors affecting the cost of renting to live in Portugal:

  1. Proximity to the city centre.
  2. The condition of the building and the availability of repairs.
  3. Type of accommodation: flats, studios or houses.
  4. Time of year (there is a higher demand for rentals during the summer months).

Food prices in Portugal

Monthly grocery costs for a family of three are 300-500 euros, depending on preferences and choice of shops. In Pingo Doce or Continente supermarkets, prices are stable:

  1. A litre of milk costs €1.1.
  2. A kilo of chicken fillet is 6.5-7 euros.
  3. A loaf of bread costs €1.2.
  4. A kilo of apples is 1.8 euros.

Local markets, such as the Mercado da Ribeira in Lisbon, offer cheaper fresh fruit and vegetables, especially in season. Dinner in an average restaurant will cost 10-15 euros per person, making café meals affordable for most residents.

Salaries and expenses

The average income of professionals in Portugal is 1100-1300 euros per month. In Lisbon and Porto the salary level is higher than in the provinces – 1500-2000 in IT and financial sector. The minimum salary in 2025 is 850 euros.

The main expenses include rent, food, utilities (about 120 euros per month) and transport (metro pass – 40 euros). For a comfortable stay one person needs about 1500-1800 euros per month, a family of three – 2500-3000 euros.

Total costs: is it worth moving to Portugal from Russia?

Moving to Portugal is increasingly popular among Russians due to its combination of affordable costs and high standard of living. For an accurate assessment, you will need to take into account basic expenses such as rent, food, transport and medical services. Relocation is possible with a relatively small investment if you plan your budget in advance.

Key Points:

  1. Visa requirements. Russian citizens are required to obtain a D7 permit (for persons with passive income) or a work visa. Simplified conditions apply to freelancers and business owners.
  2. Choice of region. Lisbon and Porto are suitable for professionals seeking employment with international companies. The Algarve and the central regions are popular with retirees due to their low costs and relaxed atmosphere.
  3. Language and integration. Despite the popularity of English in major cities, knowledge of Portuguese remains important for full integration.
  4. Financial Preparation. Rent and other initial costs can hit the budget hard. The average amount needed for a comfortable start is about 5000-7000 euros per person.

Conclusion

Portugal’s moderate cost of living makes it an attractive place to move to, especially for those who appreciate culture, mild climate and convenience. Lisbon and Porto are suitable for professionals, while the Algarve is for those seeking tranquillity. Relocating will require careful cost planning, but the results justify the means.

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What is luxury real estate and is it worth investing in?

In the asset market, luxury has taken its own niche, both literally and figuratively. The reflection of prestige, capital power, and taste is concentrated in properties that do not shout about their price, but demonstrate their value through thoughtfulness, privacy, and uniqueness. The answer to the question of what luxury real estate is lies not only in its value, but also in every inch of its space, where comfort and individuality are the driving forces.

What is Elite Real Estate: Key Features

The premium segment is formed not by advertising, but by limited availability, technological sophistication, and quality of materials. The answer to the question of what constitutes luxury real estate is based on strict parameters, including:

  1. Location. First lines by the water, historic streets, and quiet neighborhoods with low noise levels. Only premium infrastructure within the radius.
  2. Architecture and facade. Individual architectural appearance, facades made of natural materials, non-standard geometry, and lighting scenarios.
  3. Internal filling. Thoughtful layout, ceilings from 3.3 meters, panoramic Windows, designer finishes, engineering equipment of business level and above.
  4. Infrastructure. The territory includes a fitness club, a spa, lounge areas, restaurants, children’s clubs, indoor parking, storage rooms, and a private garden with landscaping.

The definition of luxury housing is fixed in complexity: luxury begins with details.

The structure of the premium segment: what is luxury real estate

The premium segment is divided not only by building type, but also by architectural design, service level, and ownership format. Let’s consider what luxury real estate is in terms of functional types.:

  1. Premium class apartments. Apartments with river views, parks, terraces and fireplaces. Integrated climate control systems, multi-format zoning. The decoration is made of natural marble, oak, brass.
  2. Luxury homes. Mansions in gated communities within 20 minutes from the center of the metropolis. The area of 350 sq.m., individual garages, swimming pools, winter gardens, winter-resistant facades.
  3. Luxury apartments in apartment complexes. 24/7 services, management by hotel brands. Five-star service, including cleaning, meals, and maintenance.

This is a wide range of solutions aimed at combining privacy, design, and investment potential.

Living Standards and Investments: How Investment Logic Works in the Premium Segment

The flow of capital into the premium segment is driven not only by prestige. Investments in luxury real estate form a sustainable income model. The main parameters of profitability include:

  1. The average rental rate is from 2000 to 8000 euros per month for facilities in metropolitan and tourist locations.

  2. Cost growth at the level of 7-15% in 3 years with stable macroeconomics.

  3. Stable liquidity due to limited supply.

  4. A high level of tenants are top managers, diplomats, representatives of foundations.

The market has confirmed that when calculating horizons over 5 years, the premium segment ensures stable capitalization. It reveals the practical significance of luxury real estate as an investment mechanism.

Definition: the difference between luxury housing and business class

Luxury housing is not limited by square footage or appearance. The main difference between luxury housing is the approach:

  1. Only small apartment buildings or villas.

  2. A maximum of 2-3 apartments per floor.

  3. The lack of standard solutions in the layout.

  4. The author’s design of each area, including bathrooms and kitchens.

  5. Specialized engineering equipment includes individually controlled climate systems, smart security systems, and isolated elevators.

There is an important feature: luxury housing does not allow for compromises. Here, every element is implemented in favor of individuality, comfort, and technical superiority.

Life Scenarios: Comfort as an Investment Foundation

Luxury properties are designed not for display, but for living. The basis is a comfortable area where every meter works for the owner. The main elements include:

  1. A closed courtyard without cars.

  2. A landscape designer creates an individual recreation and shade area.

  3. Terraces, balconies, indoor gardens.

  4. Parking at level -2 with key access.

  5. Video surveillance around the perimeter, security, personalized entrance control.

What is luxury real estate? It is an infrastructure where security, privacy, and quality create a VIP-level living space.

Criteria for choosing a premium facility

Understanding the segment requires an accurate assessment. What is luxury real estate? It is an asset that combines both tangible and intangible indicators.

Key criteria:

  1. Location in an area of historical or natural value.

  2. Availability of transportation and protection from noise.

  3. The architecture is from a well-known bureau with an emphasis on privacy.

  4. The minimum number of apartments in the building.

  5. Closed—type infrastructure – fitness club, SPA, restaurants, swimming pools.

  6. Design by international-reputed interior design bureau.

  7. Parking with individual spaces.

  8. Energy efficiency and technical equipment indicators.

  9. Stable growth in market value over a 3-5 year horizon.

  10. Guarantee of legal purity of the transaction and transparent registration of rights.

Local focus: what is luxury real estate in Portugal

Portugal has developed its own luxury architecture. Locations such as Cascais, the Algarve, and the historic center of Lisbon have become centers of investor attraction.

Property parameters:

  1. Areas from 150 sq.m, terraces from 30 sq.m.

  2. Panoramic windows overlooking the ocean.

  3. Concierge service, private infrastructure with swimming pools and restaurants.

  4. The cost starts from 1.2 million euros, an increase in value of up to 11% in 24 months.

  5. High demand among European residents and family funds.

The Portuguese model shows what luxury real estate is: in a country with a mild tax regime, a warm climate and a stable economy, the segment creates long-term value.

Functional Approach: Engineering and Technology

Modern premium housing uses complex engineering systems. Technology plays a key role:

  1. Supply and exhaust ventilation with climate control.

  2. Smart lighting and water supply control systems.

  3. Fire and flood prevention systems with sensors in each zone.

  4. Video analytics with facial recognition and automatic alerts.

  5. Stable energy supply and alternative sources such as solar panels and geothermal systems.

The technological base determines not only the comfort level, but also reduces operating costs, ensuring investment efficiency.

Conclusion

What is luxury real estate — a symbiosis of architecture, status, technology and strategy. Investments in premium facilities allow:

  1. Protect capital from inflation.

  2. Get a stable rental income.

  3. Enter the narrow resale market with high margins.

  4. Become part of an exclusive investment pool.

The segment shows steady demand even in the face of economic changes. Long-term value, individual approach, and limited supply create a unique investment space where every square meter works for capital.

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Mortgage in Portugal for foreigners: everything you need to know

Mortgage in Portugal for foreigners confidently retains the status of a sought-after instrument for purchasing residential or investment property in the European Union. The country offers not only a sunny climate and a stable economy, but also loyal financial mechanisms for non-residents. Portuguese banks willingly lend to international buyers, forming conditions that combine predictability, a moderate rate and transparent procedure for registration.

Demand for property is not decreasing. Foreign investors are actively considering the purchase of flats and houses in Lisbon, Porto, Algarve, Madeira and the Azores. Mortgage in Portugal for foreigners gives the opportunity to purchase an object worth from 150 000 euros with a down payment of 30% and a term of up to 35 years. At the same time, the loan rate starts at 3.1%, and the package of documents remains compact and understandable.

Basic mortgage conditions for foreigners in Portugal

Financial institutions offer foreigners a wide range of conditions based on their ability to pay, income structure, citizenship and purpose of purchase. Each bank sets its own parameters, but the general principle remains stable for a number of positions.

Key characteristics:

  1. Loan term – from 5 to 35 years.

  2. The minimum down payment is 30% of the value of the property.

  3. Interest rates range from 3.1 per cent to 5.2 per cent per annum.

  4. The currency of the mortgage is exclusively in euros.

  5. Borrower’s age – from 18 to 70 years old at the time of the last payment.

  6. Property type – ready-made housing, new buildings, secondary market, investment apartments.

Mortgage in Portugal for foreigners applies to residential and commercial properties, but the conditions for the second type are tougher: the term is shorter, the rate is higher, control over the origin of income – stricter.

Procedure for foreigners: how to apply for a mortgage in Portugal

There are several mandatory steps in the process. Each step requires precision, adherence to deadlines, and coordination with a financial advisor or attorney.

Steps:

  1. Selecting a site and signing a preliminary contract (CPCV) – fixes the cost, terms, conditions.

  2. Submitting an application to the bank – includes an application form, income certificates, bank statements.

  3. Property valuation – an independent valuer confirms the market value of the property.

  4. Loan approval – the bank sends a proposal (Term Sheet) with loan parameters.

  5. Signing of the sale and purchase agreement and mortgage agreement – notarised.

  6. Registration of titles and mortgages – formalised in the Land Register (Conservatória).

Banks do not tolerate “grey” income, fictitious certificates and opaque sources of financing.

Down payment and calculations: how much money will be needed

For non-residents, banks require a down payment of 30% of the value of the property. The standard range is 30-40%, depending on the profile of the client and the location of the property. Properties in Lisbon, Porto or on the coast require a larger investment – the average cheque starts at €60,000 for a €200,000 flat.

Additional costs include:

  1. Property valuation – 250-400 €.

  2. Legal support – from 1 500 €.

  3. Notary services and registration – 1-2 % of the cost.

  4. Purchase tax (IMT) – from 0 % to 8 %, depending on the value.

  5. Annual property tax (IMI) – 0.3% to 0.8%.

With a loan amount of 150,000 €, an average term of 25 years and an interest rate of 3.5 per cent, the monthly payment would be about 750 €. A mortgage in Portugal for foreigners allows you to use the rented property as a source to cover the loan payments.

Interest rates: what it depends on and how to reduce them

Mortgages in Portugal for foreigners are based on two parameters: the EURIBOR index and the bank spread. The index is updated every 3, 6 or 12 months, the spread is fixed at the time of signing the contract.

Average range:

  • variable rate – from 3.1 per cent (EURIBOR + 1.5-2.5 per cent);

  • fixed parameter – from 4.2%;

  • Hybrid – from 3.8% (first 3 years fixed, then variable).

The rate is reduced if you have a positive credit history in Europe, official income, a large down payment or additional guarantees. Some banks offer a 0.2-0.5 per cent reduction if you open a deposit, buy insurance or use a salary account.

Banks in Portugal: who lends to foreigners

Mortgages in Portugal for foreigners are available from major national and international banks. Credit organisations will consider applications from citizens of any country, provided that they have a clear income structure and meet age limits.

Formats of organisations:

  • large private banks (Millennium BCP, Novo Banco, Santander);

  • State banks (Caixa Geral de Depósitos);

  • branches of foreign banks, including Spanish and French groups;

  • specialised mortgage brokers and financial advisers.

The most flexible conditions are offered by private banks – term up to 35 years, rate from 3.2%, quick response. Public institutions offer more protection, but limit the term to 30 years and require a larger package of documents.

Mortgage in Portugal as a path to relocation: a financial bridge for foreigners in the EU

Moving to Portugal often starts with buying a home. A mortgage in Portugal for foreigners can serve as a basis for applying for a residence permit. With a purchase of 280,000 euros or more under the terms of the investment programme and the availability of a mortgage loan, the applicant becomes eligible for a residence permit. The “golden visa” programme does not require full payment in cash. It is allowed to partially finance the property through a mortgage, provided that at least 20-30% of own funds are invested. Residence permit is issued for 2 years, with the possibility of extension and subsequent residence permit after 5 years.

Property investment in Portugal: a profitable strategy

Over the last 5 years, the average cost per square metre in Lisbon has increased by 40%, in Porto – by 38%, in the Algarve – by 29%. Renting out provides a return of 4 to 6% per annum.

Property formats:

  • apartments for short-term rentals;

  • houses for long term rentals;

  • commercial property for tourist purposes;

  • renovation projects with subsequent resale.

With an investment of your own 40%, the rental income is able to cover the monthly repayments. After 10-15 years, the property is fully owned, forming a capital and asset in Europe.

Errors in the design

A mortgage in Portugal for foreigners requires care at every stage. Mistakes at the start increase the time to get approval or lead to rejection. The most common problems are:

  1. Insufficient preparation of documents – banks reject applications without translated and notarised certificates.

  2. No NIF tax number – it is not possible to process a transaction without this code.

  3. Unaccounted expenses – 7-10% of the property value will be required in addition to the contribution for taxes and clearance.

  4. Inadequate income assessment – banks only accept white income with proof.

  5. Trying to hide debts – having debts in other countries leads to rejection.

  6. Choosing an unstable bank – co-operation with an unreliable bank increases the risk of rejection at a later stage.

  7. Wrong choice of rate – variable rate is suitable for short-term investments, fixed rate for life.

  8. Purchase without legal advice – Portuguese law requires the property to be checked for encumbrances.

  9. Incorrect timing – loan approval takes 4-8 weeks.

  10. Neglected counselling – an experienced counsellor shortens the journey and avoids unnecessary costs.

Conclusion

Mortgages in Portugal for foreigners have long ceased to be a rarity. It is a working, clear and favourable tool for buying a home, building capital and moving to a country with a high standard of living. The terms and conditions of banks are loyal, the procedure is clear, and taxes are predictable. With a competent approach, a foreign investor not only gets the keys to a house in Europe, but also builds a new financial and legal base within the EU.

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