Is it cheaper to live in Portugal or Spain?

Portugal is slightly cheaper than Spain on the moderate benchmark: Portugal runs $2,025 per person per month against Spain at $2,150, a gap of $125 a month or about 6 percent. Housing accounts for most of the difference. A one-bedroom in Lisbon or Porto runs $900 to $1,400, while Madrid and Barcelona run $1,100 to $1,700; secondary towns in both countries are far cheaper. Outside the capitals the gap narrows or reverses: Valencia and Seville are roughly the price of Coimbra and Braga. Groceries are similar in both. The fairer comparison is composition, not totals: Portugal’s NHR retirement tax regime was rolled back in 2024, and Spain’s Beckham Law applies to working professionals only. For the full Spain breakdown, see our Spain cost of living page.