Which is Cheaper to Live In: Portugal or Spain?

When considering which country offers a more affordable lifestyle, many individuals weigh the costs of living in Portugal against those in Spain. The comparison between these two countries can be nuanced, with variations depending on the region. Here, we delve into several key areas—housing, food and dining, transportation, utilities and services, and tourism—to provide a comprehensive analysis.

Housing

Housing costs in Portugal tend to be relatively lower compared to Spain, especially in the capital cities of Lisbon and Porto. While both cities are popular tourist destinations, the affordability gap becomes more pronounced outside of these major urban centers. In cities like Lisbon and Porto, rent and property prices are often more affordable than in major Spanish cities such as Madrid and Barcelona.

Food and Dining

When it comes to grocery prices and dining out, Portugal generally offers more economical options. Traditional Portuguese cuisine is often less expensive than its counterparts in Spain, particularly in areas with a significant amount of tourism. However, recent experiences shared by travelers indicate that the cost of living in Portugal, especially in cities like Lisbon, can be significantly higher than in areas like the Costa Blanca in Spain. Our recent experience in an 85k population small city, 40 minutes north of Lisbon, showed that grocery and restaurant bills can be even higher than in Germany, which is known for its relatively high costs.

Transportation

The cost of public transportation is relatively similar in both countries, providing comparable options for commuters and tourists. However, in some areas, Portugal may offer slightly lower prices, making it more convenient and cost-effective for individuals who rely on public transport. Whether it's the metro, buses, or trams, one can typically expect similar rates in both nations.

Utilities and Services

For utilities such as internet and mobile plans, Portugal generally offers lower costs. This can be a significant factor for individuals looking to establish a stable internet connection or mobile plan without breaking the bank.

Tourism

While both countries are popular tourist destinations, Spain tends to be more expensive, especially during peak tourist seasons. Popular areas in Spain, such as Barcelona and Madrid, can see skyrocketing prices for accommodations, restaurants, and general expenses. This makes it a more expensive option for travelers looking to explore tourist-heavy areas.

However, it's essential to note that the salary levels also vary between these two countries. Portugal's lower cost of living often comes with lower salaries compared to Spain, which means that the overall quality of life might be balanced differently in each country. Still, for those seeking a more affordable place to live, Portugal generally remains the better option, particularly outside of major tourist spots.

Conclusion

The decision between Portugal and Spain largely depends on individual needs and preferences. While Portugal offers a more affordable cost of living in many regions, particularly outside of major tourist hotspots, it's crucial to consider the overall quality of life, including salaries and tourism costs. If you are looking for a more affordable place to live or travel, Portugal might be the better choice, but if you are prioritizing luxury and high standards in tourist areas, Spain could be the better option.