I’m a Retiree Living in Portugal: Here’s My Monthly Budget
Written by
Jordan Rosenfeld
Edited by
Molly Sullivan
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Kyle M., age 54, a retired in-house counsel for a technology company, and his wife first visited Portugal in September 2023. After extended visits back and forth over the past 15 months, they’ve since bought a home there and are applying for permanent residency.
Portugal was top of their list for countries in which to retire due to its beauty and affordable cost of living, especially around expenditures that are hugely expensive in the United States, such as healthcare and even food.
“It is shockingly difficult to come back to the U.S. pricewise,” Kyle said. When they return to the U.S., he said, “it’s staggering how expensive things are here.”
Kyle shared their monthly budget and how prices compare in Portugal to the U.S. For 2025, Kyle and his wife have budgeted for $181,000 in expenses for everything, which includes travel to and from the U.S. as well, as costs of living and some expenses they still pay for their young adult daughters. They draw income from several rental properties and their retirement accounts.
Healthcare
One of the biggest changes to their budget has been how much they pay for healthcare.
“[In the U.S.], I was budgeting around $4,000 a month for healthcare for a family of four, and that included both health insurance, which was about $2,800 a month, and copays and deductibles,” Kyle explained
On Portugal’s public health system, that cost is around $3,250 Euros (approximately $3,347 USD) for himself and his wife for the year, plus an additional $1,000 per month for one of their daughters. That’s a shift from around $50,000 per year to more like $15,000 per year.
Mortgage Payments and Home Expenses
They were able to purchase their home in Portugal by selling a property in the U.S., but they do still have mortgage payments they mostly break even on with two income-generating rental properties. Mostly they have some associated expenses such as insurance, property taxes and other maintenance. Property taxes in Portugal are significantly lower.
Commuting Expenses
Since Kyle and his wife are both retired, they no longer have commuting costs. Their monthly budget for gas and transportation has gone down from about $300 per month, or $3,600 per year, to around $600 per year.
Groceries and Dining Out
Kyle budgets $800 a month for groceries and $750 a month for dining out. They don’t typically have trouble staying under this budget for either form of eating. Dining out is significantly cheaper in Portugal.
“We have money left over at the end of the month when we go out to dinner,” he said. And this includes things like ordering fresh fish and “a good bottle of wine.”
Travel and Entertainment
Travel is important to Kyle and his wife, not only for recreation, but because their two daughters and other family members still reside in the U.S. They budget $1,500 a month for travel and another $750 per month for entertainment and recreation.
Electricity and Other Utilities
Electricity and other utilities are also significantly cheaper in Portugal. Kyle said their electricity, water and garbage come to about $100 per month total — though garbage works a little bit differently.
“They don’t come to your house and pick it up. You take your garbage to central receptacles that are on many corners in the neighborhood.”
Home Insurance
Homeowner’s insurance is around $500 for the year, and for that, the insurance company would pay for a total rebuild of his home if they suffered a complete loss of some kind.
Vet Bills
Other expenses, such as those related to veterinary care for their dog, are also significantly lower in Portugal. A recent house call with an exam and vaccinations was under $100.
Future Budgeting Concerns
Things may change in their budget when they become Medicare eligible in about 10 years, at which time they also may also begin drawing on Social Security. This could change some of their expenses, but he said they’ll deal with that and rebalance their budget when the time comes.
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