What Life and Property in the Algarve Really Cost Compared to Canada
Portugal is often seen as a more affordable place to live but what does that really mean for Canadians thinking about making the move? Beyond the lifestyle appeal, it’s the lower cost of daily living that can make a real difference over time.
According to data from Numbeo, consumer prices in Portugal, including rent, are around 35.6% lower than in Canada. Grocery prices are approximately 54.4% lower and eating out at restaurants costs about 48.8% less. These savings can significantly reduce monthly expenses, especially for those relocating from high-cost cities.
Combine that with a high quality of life, Portugal ranks 6th globally in the Global Citizen Solutions’ Quality of Life Index, citing strong scores in safety, climate, healthcare and overall lifestyle satisfaction. We breakdown below the difference of living expenses in Portugal vs. Canada
Disclaimer: The figures provided in this article are based on publicly available data and local estimates as of early 2025. Actual costs may vary depending on lifestyle, location, currency fluctuations and market changes.
Exchange rate used: €1 ≈ CAD $1.54 (March 2025 estimate)
Grocery Shopping
Grocery bills in Portugal are generally 30–50% lower than in most Canadian cities. This is due to a combination of lower labour costs, local food production and reduced transport costs, especially for fresh items.
Groceries in Portugal, particularly in local markets and discount supermarkets, are notably cheaper than in Canada. You’ll pay less for dairy, produce, meat and everyday pantry items. Fresh food is a big part of Portuguese culture and seasonal availability keeps prices affordable. Many expats report spending about half what they did in Canada for the same basket of goods.
Seasonal produce and seafood are especially affordable and local markets often beat supermarket prices. Many residents buy weekly at local farmers' markets, which can lower food bills even more.
Eating Out
Dining in Portugal is far more accessible than in Canada, where even a casual lunch can cost upwards of $20 per person.
Portugal remains a much more affordable place to enjoy food and drink, especially compared to Canada’s rapidly rising restaurant prices.
In Canada, dining out regularly is often reserved for weekends or special occasions because of the cost, especially when tipping is factored in.
Public Transport and Travel
Portugal’s public transport is reliable, affordable and widely used. A monthly pass in most cities costs €40–€50, compared to $100–$156/month in Canadian cities like Toronto or Vancouver.
Even though fuel is slightly expensive in Portugal (€1.70–€2.00/L), many people don’t need a car for everyday life, especially in cities with good metro, tram and bus systems.
Healthcare and Essentials
Although Canadians benefit from public healthcare, many are surprised to learn that private healthcare in Portugal is high-quality and affordable. While most doctor visits in Canada are fully covered by public healthcare, private insurance is common for additional services like dental, physiotherapy, and chiropractic care.
For those considering private healthcare, Portugal offers competitive pricing, with private insurance plans starting at around €40–€80/month and many appointments or treatments costing less than their Canadian private equivalents.
In Canada, general practitioner (GP) visits are fully covered by public healthcare, with no out-of-pocket costs for most Canadians. Private insurance is primarily used to cover services not included in the public system, such as dental care, physiotherapy, vision, and prescription medications. In contrast, Portugal offers affordable private healthcare options even for general care, making it a popular supplement to the public system for expats.
While both countries offer strong public healthcare systems, Portugal’s private healthcare options are significantly more affordable than Canada’s private coverage for those who opt for additional services. Additionally, over-the-counter medicine and prescription drugs in Portugal tend to be more affordable, with pharmacies often providing shorter wait times and more direct service than in Canada.
Education
International and private education is significantly cheaper in Portugal than in Canada. Portugal and the Algarve in particular boasts a wide range of high quality school options.
Estimated Monthly Cost in Lagos for a Couple
You can explore average prices in both countries through Numbeo’s Cost of Living Comparison tool, a widely used database based on crowdsourced cost data.
Summary
Portugal consistently ranks as a top destination for expats due to its climate, safety and affordability. The overall cost of living is lower, and for Canadians, the long-term financial differences can support a more stable and comfortable lifestyle. Covering essentials without financial stress makes Portugal especially appealing to retirees, remote workers and digital nomads.
If you’re interested in browsing properties for sale in Lagos, Algarve, our team can help you find the right home and guide you through every step of the move.
