12 Expensive Portuguese Cities That Prove Living in Portugal Isn’t Always a Bargain

Some of the links might be affiliate links and, at no extra cost to you, we earn a small commission. See our disclaimer for more info.

From its lovely weather and picturesque coastlines to its rich history and beautiful cities, there are many reasons Portugal remains one of Europe’s most highly sought-after destinations. Many travelers and expats also love the country for its affordability. Compared to other European nations, Portugal is a much more affordable place to live and travel.

However, some cities are more expensive than others, so knowing what to expect is important before moving. With that in mind, here are 12 of the most expensive cities to live in Portugal. These cities make our list because they have a higher cost of living than other Portuguese cities.

Lisbon

Save this!

We'll email this post to you, so you can come back to it later.

We’ll kickstart our list with Lisbon, Portugal’s vibrant capital city. Despite having a much lower cost of living than other major cities across Europe, Lisbon is still a relatively costly place to live. A single person’s average monthly living cost is $2,140.

Lisbon is a beautiful city renowned for its rich cultural heritage, breathtaking architecture, and fascinating history. You’ll never tire of exploring the city’s most iconic attractions, admiring the pastel-colored architecture, searching for the best viewpoints, and partying the night away. You’ll also have easy access to several Atlantic beaches outside the city. Notable attractions include São Jorge Castle, Belem Tower, Praça do Comércio, and Lisbon Cathedral.

Faro

Faro, the capital of Portugal’s postcard-perfect Algarve region, is a popular place for expats and retirees to live. Its blend of authentic Portuguese charm, impressive natural beauty, and modern-day amenities is the main draw. If you moved to Faro, you could expect to spend approximately $1,600 monthly, including rent and utilities.

In Faro, you’ll spend most of your time exploring the historic Old Town, strolling along the golden sand on Praia de Faro Este, and indulging in traditional Portuguese cuisine. We don’t know about you, but that sounds spectacular. Other noteworthy points of interest in the city include the Forum Algarve shopping center, Ria Formosa Nature Park, and Faro Marina.

Cascais

Cascais could be perfect if you’ve always dreamt of living in one of Portugal’s most dreamy seaside destinations. This beautiful seaside resort is famed worldwide for its gorgeous beaches, lively atmosphere, scenic coastal paths, and picturesque city center. Unfortunately, you’ll have to spend more to live in Cascais than other places in Portugal.

A single person’s average monthly cost of living in Cascais is almost $1,700. However, sunny skies, scenic coastal walks, and long sandy beaches are worth the extra cost. When not getting lost exploring the narrow streets and historic squares or wandering along the esplanade, soak up the sun on Poça Beach and visit Santa Marta Lighthouse Museum. You also don’t want to miss Cascais Marina and Boca do Inferno.

Funchal

Travelers and expats who’d prefer to live the island life in Portugal often head to Funchal, the capital city of the Portuguese island of Madeira. With a fascinating history, excellent weather, and mesmerizing natural beauty, it’s not a surprise that Funchal is one of Portugal’s most expensive cities. However, it’s much more affordable than other cities in Europe.

For example, Funchal’s average monthly cost of living is approximately $1,600, almost $600 less than in Paris. In Funchal, you’ll love the old-world architecture and cobblestone streets. You’ll come across elegant colonial mansions, a 17th-century fortress (Forte de São Tiago), lush parks and gardens. Highlights include Madeira Botanical Garden, the Farmer’s Markets, and the CR7 Museum.

Aveiro

Aveiro is a charming city along Portugal’s scenic west coast with a beautiful lagoon called Ria de Aveiro. This vibrant city is best known for its stunning canals, colorful boats (barcos moliceiros), and lovely traditional houses. One of the things I love most about this city is how much there is to do.

When you’re not getting lost in the city’s narrow streets or walking around the lagoon, you’ll likely explore the Museu de Aveiro, shop in Forum Aveiro, or relax in Infante Dom Pedro City Park. You might even want to ride a boat along the canal. In Aveiro, living comfortably costs a single person roughly $1,600 monthly.

Braga

Braga is a fantastic example of how affordable Portugal is to live in. The average cost of living in the city is less than $1,500 monthly, including rent and utilities, but it’s still one of the most expensive cities in the country. Imagine how much you could save if you lived somewhere more affordable in Portugal.

🏨 Explore all your hotel options here

Braga is the third largest city in Portugal, behind Lisbon and Portugal. The medieval city is also one of the oldest cities in the country. As such, you can expect to find many historical landmarks, traditional buildings, and authentic Portuguese charm. However, the city’s crown jewels are the Castle of Braga and Braga Tower, both constructed in the 2nd century.

Porto

The next city on our list is Porto, a serene coastal city in northwest Portugal famed for its medieval district, stately bridges, and vibrant houses. In Porto, travelers and expats seek out the best viewpoints, stroll along the promenade, and sample the local wines. Most of the action in the city centers around the Ribeira (Riverside) district.

This medieval area sits alongside the majestic Douro River, offering many cobblestone streets to explore. You’ll find traditional merchants’ houses, quaint shops, charming cafes, and beautiful restaurants serving Portuguese cuisine. Make sure you visit Porto Cathedral, Palácio de Bolsa, and São Francisco Church. Regarding the cost of living, it costs approximately $1,616 monthly to live in Porto.

Lagos

Lagos, a stunning city in Southern Portugal’s Algarve region, is a big hit with travelers, expats, and digital nomads. It’s one of the best places to live in Portugal if you seek a combination of impressive architecture, a rich history, a scenic coastline, and pristine beaches. On average, it costs $1,638 monthly to live in the city.

While it can be tempting to spend your time in Lagos lazing on the beach and swimming in the sea, there are many things to see and do, including hiking along the Atlantic coastline, exploring the walled old town, and visiting the city’s iconic landmarks. Significant points of interest you don’t want to miss include Marina de Lagos, Praia Dona Ana, and Ponta de Piedade.

Coimbra

Coimbra is arguably one of Portugal’s most underrated cities. Despite being lesser-traveled by tourists and expats, it has much to offer. Located halfway between Lisbon and Porto in Central Portugal, this picturesque riverbank city is jam-packed with old-time architecture, fascinating landmarks, and authentic Portuguese charm. Start your journey in the Old Town.

You’ll find many of the city’s most iconic sights here, including Torre de Anto, Praça do Comércio, and the Barbican Gate. The University of Coimbra is also worth visiting. Established in 1209, it’s one of the oldest universities in the world. Of course, a relaxed stroll along the river is also a must. Coimbra is one of the most expensive cities to live in Portugal, but the cost of living is only $1,434 monthly.

Loulé

Loulé might not be one of Portugal’s largest cities, but it can pack a punch. This gorgeous city in the district of Faro in Southern Portugal is well-known for its Moorish heritage, relaxed atmosphere, and vibrant market. The city’s proximity to Faro gives residents easy access to the southern coast’s best beaches.

Regarding the cost of living, Living Cost reports that the average single person pays $1,495 monthly to live in Loulé. That includes rent, utilities, food, and transport. If you move to Loulé, there are many things you don’t want to miss. Popular attractions include Castelo de Loulé, Praia de Vale do Lobo, and Mercado Municipal de Loulé.

Vila Nova de Gaia

The penultimate Portuguese city on our list is Vila Nova de Gaia, or simply Gaia. Located just south of Porto, this beautiful city is a hub of the port wine industry, making it a popular vacation destination with wine drinkers. Across the city, you’ll find cellars bursting at the seams with booze.

The city is also an excellent base for exploring Western Portugal’s picturesque coastline. The stunning Praia da Madalena is only a short drive away. Besides booze and beaches, Gaia is much loved for its traditional Portuguese architecture, riverside walks, and grilled seafood. Regarding living costs, you’ll pay approximately $1,570 monthly to live in Vila Nova de Gaia.

Amadora

The final city on our list is Amadora, a city and municipality northwest of Lisbon. Admittedly, there aren’t many things to do in Amadora, but it’s one of the best places to live on the outskirts of the capital city. Its proximity to Lisbon is one of the driving factors behind the city being one of Portugal’s most expensive cities.

However, the cost of living is still only $1,379 monthly, including rent and utilities. While you’ll likely spend most of your time in Amadora visiting Lisbon and its main attractions, there are a handful of things to see in the city, including Casa Roque Gameiro, KidZania Lisboa, and the UBBO shopping center.