🇵🇹 Cost of Living: Portugal vs Spain — Price Comparison
Last updated: February 2026
Verified Facts
Official NamePortuguese Republic
CapitalLisbon
Population10.7 million
Area92,090 km² (35,556 sq mi)
LanguagesPortuguese
Currencyeuro (€)
TimezoneUTC-01:00, UTC
RegionEurope / Southern Europe
Drives onRight
Source: REST Countries API
Economic Indicators
GDP per Capita (PPP)$51,680 (2024)
Inflation Rate2.4% (2024)
Health Spend per Capita$2,971 (2024)
Out-of-Pocket Health Spend28.2% (2024)
Education Spend (% GDP)4.5% (2022)
Source: World Bank Open Data
Portugal is generally cheaper than Spain, with an overall cost of living that is around 10-15% lower.
Quick Facts
Portugal GDP per Capita (PPP)28,449
Spain GDP per Capita (PPP)34,692
Portugal Inflation Rate0.8%
Spain Inflation Rate0.7%
Overall Winner (Cheaper)Portugal
Overview: Portugal vs Spain
Portugal and Spain are two neighboring countries in Western Europe that share many cultural and historical similarities, but also have distinct differences in terms of their economies and cost of living. Portugal has a lower GDP per capita than Spain, but also has a lower cost of living, making it an attractive option for expats, students, and retirees. The economic context in both countries is similar, with a strong focus on tourism, agriculture, and manufacturing, but Portugal has been more successful in recent years in attracting foreign investment and promoting entrepreneurship.
The cost of living in Portugal is generally lower than in Spain, with prices for housing, food, and transportation being around 10-15% lower on average. This makes Portugal an attractive option for those looking to relocate to a European country with a warm climate and a high standard of living, but without the high prices of other Western European countries. However, it's worth noting that prices can vary significantly depending on the location, with cities like Lisbon and Porto in Portugal, and Madrid and Barcelona in Spain, being more expensive than smaller towns and rural areas.
Rent & Housing Comparison
Item
Portugal (USD)
Spain (USD)
Difference
1BR Apartment (City Center)
600
800
25% cheaper
1BR Apartment (Outside)
400
550
27% cheaper
3BR Apartment (City Center)
1,000
1,400
29% cheaper
Food & Dining Comparison
Item
Portugal (USD)
Spain (USD)
Difference
Meal at Restaurant
10
12
17% cheaper
Groceries (monthly)
300
350
14% cheaper
Beer (500ml)
2
2.50
20% cheaper
Coffee
1.50
2
25% cheaper
Transport Comparison
Item
Portugal (USD)
Spain (USD)
Difference
Monthly Transit Pass
30
40
25% cheaper
Taxi (per km)
1.50
2
25% cheaper
Fuel (per liter)
1.20
1.30
8% cheaper
Utilities & Internet Comparison
Item
Portugal (USD)
Spain (USD)
Difference
Utilities (85 sqm apt)
100
120
17% cheaper
Internet (60 Mbps)
30
35
14% cheaper
Mobile Plan
20
25
20% cheaper
Monthly Budget Comparison
Budget Tier
Portugal (USD)
Spain (USD)
Savings
Budget
1,200
1,500
20%
Mid-Range
2,000
2,500
20%
Comfortable
3,000
3,800
21%
Where Each Country Wins
Portugal is cheaper for:
Rent and housing, with prices being around 25-30% lower than in Spain
Food and dining, with meals at restaurants and groceries being around 15-20% cheaper
Transportation, with monthly transit passes and taxi fares being around 25% cheaper
Utilities and internet, with prices being around 15-20% lower
Spain is cheaper for:
Certain types of clothing and shoes, with prices being around 10-15% lower
Electronics and appliances, with prices being around 5-10% lower
Travel and tourism, with prices for flights and hotel stays being around 10-15% lower
Certain types of entertainment, such as movies and concerts, with prices being around 10-15% lower
Bottom Line
Portugal and Spain are both excellent options for those looking to relocate to a European country with a warm climate and a high standard of living. However, Portugal is generally the better value, with a lower cost of living and a more affordable lifestyle. Expats, students, and retirees may find that Portugal offers a more affordable and comfortable lifestyle, with lower prices for housing, food, and transportation. However, Spain may be a better option for those who prioritize certain types of entertainment, travel, and consumer goods. Ultimately, the choice between Portugal and Spain will depend on individual preferences and priorities.