A No-Nonsense Breakdown for Families in 2025

Let’s talk money.

Because while the sunshine, slower pace, and pastel de nata habit might sell the dream, it’s the monthly bills that make or break whether it works long-term — especially if you’re moving to Portugal with kids.

We moved to Portugal in early 2025 with two children and two dogs.

No job offers lined up.

No inheritance.

No spreadsheets.

Just a suitcase, and a fucking chaotic plan to start over.

This is what it’s actually costing us to live here — no filters, no fluff, just real numbers from a real family.

If you’re wondering what your life in Portugal might look like, financially speaking, this should give you a solid starting point.

💡 Let's break it down.

Here’s a rough breakdown of our monthly living costs in the Algarve, as a family of four:

Your costs might be less (or more) depending on where you live, how you school your kids, and whether you have a wife who has an obesession with Zara home.

Rent / Mortgage – The Big One

We currently pay €2,000/month for a 3-bedroom house with a small garden in the Algarve.

We're currently renting but once we move into our house in 8 weeks we'll just be paying around €1,200 for our small mortgage.

Thankfully we’re close to the beach and schools, but in order to live in this area, in a house we wanted to live in we had to renovate somewhere, otherwise we'd be priced out for sure. But honestly? Life out here feels far more affordable compared to what we were paying back in the UK.

💡 Tip: Rent is much cheaper inland. Places like Coimbra, Castelo Branco, or even Alentejo can be half the price for double the space.

Utilities – Slightly Chaotic, but Manageable

We installed PV pannels to harness UV for energry, this power two heat pumps, one to heat the pool and the other to heat the water in our house.
It's still not installed yet so these are our current bills for our three bedroom villa.

• Electric: €100
• Water + Gas: €50

In the UK this was more than double.

Groceries – Surprisingly More Expensive

We mostly shop at Lidl, local markets, and occasionally splash out on imported cheese when we’re feeling homesick.
On average, we spend €500–€800/month on groceries.

Some items are more than double the price compared to the UK — some even triple. A jar of pasta sauce, for example, might cost around £2 in the UK, but out here it's often closer to €6.

On average, I find our grocery shopping is about a third more expensive out here.

Fresh produce is cheap and really good. Local bread, wine, olive oil? Bargains. But anything imported (nut butters, oat milk, weirdly specific cereal your kids are suddenly obsessed with) will cost you a lot more.

Internet & Phones – Fast and Cheap

We pay around €60/month for decent fibre optic internet and two prepaid mobile plans.

Honestly, this part was way easier than we expected. Portugal’s internet is fast, even in more rural areas.

Health Insurance

While public healthcare is good, it takes a while to get into the system.

Right now, with renovation costs and the joy of paying both rent and a mortgage, every penny counts — so we just can’t justify spending around €500/month on private insurance for the whole family.

We’re simply choosing not to take any risks... and always leave the house wearing crash helmets.

Transport – Driving is a Big Cost If You’re Rural

Petrol isn’t cheap (around €1.70/litre as of writing), and we use the car most days.

We budget around €150/month for fuel & insurance.

If you’re in a city with good public transport, you can cut this in half.

Schooling & Activities – Variable

Our kids go to a bilingual international school, which costs us about €800 a month for both of them — so definitely on the more affordable end of the international school scale.

If you’re considering schools in Portugal, here’s the rough breakdown:
Public schools are free but fully Portuguese-language based.

International schools can range from €500 to €1,000 per child, per month.

Bilingual schools (like ours) tend to sit somewhere in the middle, both in terms of cost and curriculum — a great option if you want your kids to learn Portuguese but still have a soft landing with English-speaking teachers.

The kids are super happy in their new school. It's far more relaxed than their school in the UK which they love and we're still getting used to.

Eating Out – Dangerously Tempting

This could easily be our biggest expense if we let it.

But even eating out affordably is doable.

You can still get a menu do dia (starter, main, drink, dessert) for around €10–€15 in many places.

We budget around €150–€200/month for meals out, coffee stops, and snacks for the boys.

Hidden Extras – Always Plan for the Unexpected

There’s always something. A broken washing machine.

A spontaneous trip to IKEA. A birthday party. We keep an extra €100–€200 in the budget for whatever life throws at us.

So… Is Portugal Really Cheaper Than the UK or US?

Well, yes. And no.

Rent (in most areas), healthcare, and lifestyle are all cheaper.
Petrol, electronics, and imported goods? Often more expensive.

But the biggest difference?

Quality of life.

More sunshine, more time outdoors, more balance.

Fewer late-night Amazon purchases just to feel something, and less dread when opening the front door only to be greeted by a brown envelope.

Final Thoughts

Moving to Portugal with your family is 100% doable — even without a huge budget. But don’t come expecting it to be “cheap.” Come expecting it to be worth it.

Budget realistically. Be flexible. And always, always account for the extra pastel de nata budget.

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