If you're weighing up a move to southern Europe, Spain and Portugal are two of the most appealing destinations for expats and retirees alike.
Both countries offer beautiful weather, historic cities, a relaxed pace of life, and world-renowned cuisine. But when it comes to your monthly expenses, how do they compare?
In this guide, we’ll break down the cost of living in Spain vs. Portugal in 2025, covering housing, utilities, transport, groceries, healthcare, and lifestyle to help you decide which destination better suits your budget. Whether you're a single person, a couple, a family or retiring in Spain or Portugal, this is everything you need to know.
Housing costs
Is housing more affordable in Spain or Portugal? Like most countries, moving costs vary massively depending on the location you choose, so this might be your first decision when evaluating if life in Spain or Portugal is affordable for you.
Spain
Housing costs in Spain vary widely depending on the region. Major cities like Madrid and Barcelona are the most expensive, with average monthly rents for a one-bedroom apartment in the city centre exceeding €1,000.
Smaller cities and rural areas offer much more affordable options. In cities like Valencia, Seville, or Granada, monthly rents can range from €600-€900.
Property purchase prices are also higher in urban hubs and tourist destinations such as the Costa del Sol. Though costs may be higher, these locations can offer a lot in terms of lifestyle, so it’s important to carefully weigh up your options.
Portugal
Portugal is generally more affordable than Spain in terms of housing. Lisbon is the most expensive city, with central one-bedroom rentals averaging €900 to €1,300 per month. Porto and Faro are slightly cheaper, and in smaller towns or rural areas, rents can drop to under €600.
Property prices, especially in less touristy areas, remain generally lower than in Spain.
Utilities and internet
Anyone moving to Spain or Portugal will also face monthly utility costs. What do these costs look like in each country?
Spain
Basic utilities (electricity, heating, cooling, water, and rubbish collection) for a standard apartment cost around €100-€150 per month. Internet plans range from €30 to €50 per month, depending on speed and provider.
Portugal
Utility costs are again slightly lower in Portugal, averaging €90-€130 per month for a similar-sized apartment. Internet packages are competitively priced, typically ranging from €25 to €40 per month.
Both locations are fairly affordable for utilities compared to some other areas of Europe.
Groceries and food
Both Spain and Portugal offer affordable, fresh groceries and lots of different food options. Which is better when it comes to cost?
Spain
Spain offers a diverse and affordable range of groceries. Fresh produce, bread, olive oil, and wine are particularly inexpensive. A typical monthly grocery bill for a single person is about €200-€300, depending on dietary habits.
Portugal
Portugal’s food costs are comparable to Spain’s and sometimes even lower. Seafood, in particular, is abundant and well-priced.
Monthly grocery bills tend to be around €180-€280 for one person. Dining out is also slightly cheaper in Portugal, with many restaurants offering full meals for under €12.
Transportation
Spain
Spain has an excellent public transport network. Monthly passes for city buses and metros average around €40-€55. Fuel prices and car maintenance are in line with the EU average. Trains (especially high-speed AVE) can be costly without discounts.
Portugal
Public transport in Portugal is generally more affordable. Monthly passes range from €30-€45 depending on the city. Fuel is similar in cost to Spain, but parking and tolls can add up. Intercity buses and regional trains are cheaper than Spain’s high-speed options.
Healthcare
Both Spain and Portugal have reliable healthcare services, though non-residents may need private health insurance as part of their visa requirements.
Spain
Spain’s public healthcare system is ranked among the best in the world. Residents (including retirees under certain visas) can access public healthcare once registered. Private insurance plans range from €50-€150 per month depending on age and coverage.
Portugal
Portugal also has a high-quality public healthcare system that residents can access. Private insurance is more affordable than in Spain, typically ranging from €30-€100 per month.
Lifestyle and entertainment
Many move to Spain and Portugal for the lifestyle, but this can also come with costs. To fully experience the culture, it’s important to also budget for these costs if you’re planning a move.
Spain
Spain offers a vibrant cultural life, with festivals, concerts, and exhibitions often subsidised or free. Gym memberships cost around €30-€50/month, and cinema tickets around €8. Nights out vary by region but can be relatively affordable compared to northern Europe.
Portugal
Portugal’s cost of living also supports a high quality of life. Gym memberships are slightly cheaper, and leisure activities like cinema, live music, and cultural events are well priced. Dining out regularly is more accessible to locals due to lower menu prices.
Taxes and social contributions
Spain
Spain has a progressive income tax system, with rates ranging from 19% to 47%. Social security contributions are higher than in Portugal. Expats may face additional taxes on worldwide income if they become tax residents.
Portugal
Portugal did offer favourable tax conditions for some expats under the Non-Habitual Resident (NHR) scheme, although this has been phased out from 2024 and now is aimed at individuals with expertise in high-value industries such as technology, research, and innovation. Personal income tax rates range from 14.5% to 48%, and social contributions are generally lower.
- How much money do you need to live comfortably in Spain?
- How much money do you need to live comfortably in Portugal?
Overall verdict: which country is cheaper to live in?
When comparing Spain vs. Portugal for cost of living, Portugal consistently comes out slightly ahead in terms of affordability, though both options are often considered cheaper than other European destinations and the UK.
Housing, groceries, healthcare, and transportation are all more budget-friendly in Portugal, especially for those living outside Lisbon.
That said, Spain offers greater regional variety, a larger economy, and access to more major cities and services. If lifestyle variety and connectivity are your priorities, Spain might still be the better choice despite a slightly higher cost of living.
No matter your choice, both countries deliver a rich, affordable lifestyle in the heart of the Mediterranean.
Looking to relocate? Compare housing options on idealista to find the perfect home in Spain or Portugal.
Farewell to gas boilers in Spain: replacement systems and costs
Gas boilers, responsible for 10% of global CO₂ emissions, are being phased out across the EU from 2025 under energy efficiency directives. Cleaner alternatives like heat pumps and biomass systems offer savings, subsidies, and increased property value.
Spanish economic growth powers property market momentum
Spain’s economy continues to outperform expectations, strengthening the nation’s property market and inspiring confidence among both domestic and international buyers.
Changing from NIE to DNI in Spain: everything you need to know
If you’re a foreign national in Spain with a Foreigner Identification Number (NIE by its Spanish acronym) and have recently acquired Spanish citizenship, you may be wondering how to change your NIE to a National Identity Document (or DNI) to update and regularise your administrative status. In this article, we explain all the steps you need to follow.
Spain plans major increase in self-employed contributions from 2026
The Spanish government is set to significantly raise social security contributions for self-employed workers, known in Spanish as "autónomos", starting in 2026. This proposed reform aims to strengthen the pension system and align contributions with actual earnings, but it has sparked controversy among freelancers and self-employed associations.
The wealthiest towns in Spain: Pozuelo de Alarcón (Madrid) leads again
In 2023, Pozuelo de Alarcón (Madrid) retained its position as the Spanish town with the highest average declared gross income for the fifth consecutive year, reaching €88,011 – a 3.2% increase on 2022.
IBAN in Spain explained
Every time we make a bank transfer, an alphanumeric code appears – one we might overlook but which is crucial to ensuring the money reaches its intended destination without error: the IBAN (International Bank Account Number).
Spain's housing prices set to rise 7% in 2025, surpassing €1,900/m²
The Spanish residential market enters 2025 with a renewed surge in prices. According to donpiso, the average home value is set to rise 7% over the year, surpassing €1,900 per square metre. Driving this trend are moderate interest rates, strong demand and a limited supply of new homes.