Portugal on a Budget: Top Cheapest Cities to Live in 2025

Did you know that living in Lisbon or Porto can cost you more than twice what it would in other Portuguese cities? If you're considering moving to Portugal, this could be a big mistake—but don’t worry, we’ve got you covered!

In this guide, we’ll reveal the cheapest cities in Portugal for 2025, breaking down costs and lifestyle factors to help you make the best decision. But before you get too excited, there’s a catch—some of these cities have downsides that could cost you thousands if you’re not prepared. Read on to find out where you should (and shouldn’t) live in Portugal!

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Table of Contents

• Lisbon & Porto: The Costly Urban Centers

• Affordable Cities in Portugal

  • 1. Monção

  • 2. Bragança

  • 3. Covilhã

  • 4. Castelo Branco

  • 5. Viseu

  • 6. Paredes

  • 7. Évora

  • 8. Aveiro

• 9. The Algarve: A Surprising Exception

• Visa & Residency Considerations

• Key Takeaways for Expats

Lisbon & Porto: The Costly Urban Centers

Lisbon and Porto are Portugal’s two largest metropolitan areas, offering excellent infrastructure, entertainment, healthcare, and job opportunities. However, living in these cities comes at a high cost:

• Rent for a 2-bedroom apartment: €1,200+

• Public transportation pass: €40-€50/month

• Grocery expenses for a couple: €400+

If affordability is your main concern, exploring smaller cities is a better option.

Affordable Cities in Portugal

1. Monção

• Rent for a 1-bedroom apartment: €400

• Grocery expenses for a couple: €200

• Public transport: Mostly walkable, limited buses

• Pros: Peaceful, scenic, close to Spain, affordable

• Cons: Few job opportunities, limited schools and hospitals

2. Bragança

• Rent for a 1-bedroom apartment: €400-€500

• Grocery expenses for a couple: €250

• Public transport: €24/month

• Pros: Quality of life, good education, cultural scene

• Cons: Cold winters, limited job market

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3. Covilhã

• Rent for a 1-bedroom apartment: €430

• Grocery expenses for a couple: €250

• Public transport: Walkable, very cheap

• Pros: Vibrant student life, close to ski resorts

• Cons: Harsh winters, far from major cities

4. Castelo Branco

• Rent for a 1-bedroom apartment: €550

• Grocery expenses for a couple: €300

• Public transport: €25/month

• Pros: Well-organized, good student opportunities

• Cons: Few leisure options, extremely hot summers

5. Viseu

• Rent for a 1-bedroom apartment: €600

• Grocery expenses for a couple: €280

• Public transport: €28.80/month

• Pros: Clean, organized, good infrastructure

• Cons: Limited job market for professionals

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6. Paredes

• Rent for a 1-bedroom apartment: €500

• Grocery expenses for a couple: €300

• Public transport: €20-€30/month

• Pros: Close to Porto, affordable housing

• Cons: Fewer leisure and cultural activities

7. Évora

• Rent for a 1-bedroom apartment: €600

• Grocery expenses for a couple: €300

• Public transport: €20/month

• Pros: Historic, sunny, excellent university

• Cons: Rising costs, job market mostly in tourism

8. Aveiro

• Rent for a 1-bedroom apartment: €700

• Grocery expenses for a couple: €300

• Public transport: €30-€40/month

• Pros: Great infrastructure, scenic canals

• Cons: High humidity, frequent rain

9. The Algarve: A Surprising Exception

Although the Algarve is a dream destination, it’s not the cheapest option. Cities like Portimão and Beja offer some affordability, but high tourist demand drives up rents. Seasonal rentals are common, meaning you may have to relocate during peak season or pay double.

Visa & Residency Considerations

Moving to Portugal requires planning beyond just choosing a city. Residency applications, visas, and healthcare access can be complex. To simplify your transition, download our free e-book, From Nomad to Neighbor, which covers visas, taxes, and healthcare. Get it here!

Key Takeaways for Expats 

Some of the cheapest cities to live in Portugal include Monção, Bragança, Covilhã, Castelo Branco, Viseu, Paredes, Évora, and Aveiro. These cities allow for an affordable lifestyle while maintaining good quality of life.

Before making your move, consider the pros and cons: smaller cities offer lower living costs but fewer job opportunities and infrastructure.

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