Discover the real cost of living in the Algarve in 2025—from groceries and healthcare to housing, utilities, and lifestyle expenses.
Known for its relaxed lifestyle and beautiful landscapes, the Algarve is more than just a tourist hotspot—it’s also one of the most affordable regions in Western Europe. But what does day-to-day life actually cost in 2025?
Housing Costs
Rental (long-term):
1-bedroom in city center: €800–€1,200/month
2–3-bedroom home outside center: €900–€1,600/month
Home purchase:
City apartments: €3,000–€4,000/m²
Coastal villas: €4,000–€7,000/m²
Inland homes: €2,000–€3,500/m²
Utilities & Internet
Electricity, water, and gas: €100–€150/month
Fiber internet: €30–€40/month
Efficient homes with solar panels or energy-efficient systems can significantly reduce monthly costs.
Groceries & Dining
Monthly groceries for two: €300–€450
Coffee at a café: €1.20
Mid-range dinner for two: €35–€50
Bottle of local wine: €3–€8
Fresh produce, fish, and local products are both high-quality and affordable.
Healthcare
Public healthcare: mostly free or low cost
Private insurance: €50–€120/month per person
Specialist visit (private): €60–€100
Portugal’s healthcare system is ranked among the best in the EU, and English-speaking doctors are widely available in the Algarve.
Transportation
Gasoline: ~€1.80/litre
Public transport pass: €30–€40/month
Car rentals: €300–€500/month for long-term
The Algarve offers a high quality of life at a lower cost than most Western European destinations. Whether you’re a digital nomad, retiree, or property investor, the region delivers value without compromising on comfort or lifestyle.
