Can you still afford to move abroad and live somewhere like Portugal in 2025? What does it cost to live here on Madeira in 2025? Have prices gone up significantly this year? Let’s break it down!
The Reality of Portugal’s Cost of Living in 2025
Welcome back to Track Us Down! If you’re new here, we’re Monique and Doug. Our channel is all about early retirement, moving abroad, and embracing a better Second Half of Life. Knowing the cost of living is a crucial factor in making a move abroad, and we’re here to share our yearly expenses in Madeira to help you make informed decisions. We have lived in Madeira for several years, and every January, we break down our costs to give you an honest, year-over-year comparison of living expenses. Let’s dive into our detailed budget for January 2025.
Housing Costs: Rent & Mortgage
Since moving to Madeira, we’ve experienced both renting and homeownership. We recently sold our house and moved into an apartment we absolutely love. While we no longer have rent or a mortgage, we know many expats are still renting. In 2021, our monthly rent was around €1,200, and it climbed due to demand and limited availability. However, we’ve noticed a shift. New buildings are increasing supply, stabilizing rental prices. Our friends, who rent a T1 (one-bedroom apartment) in Old Town, currently pay €1,300/month. When they move, we expect the rent will increase slightly, so for this budget breakdown, we estimate €1,500/month for a T1 in a central location. Prices vary widely—moving outside Funchal can significantly lower rental costs.
Internet, Data, & TV
We have 5G high-speed fiber at home, unlimited data across Europe, and over 200 TV channels through MEO. This service costs us €67/month. One surprise this year? Switzerland isn’t included in MEO’s free European roaming! A quick stopover there resulted in unexpected charges, which we thankfully got waived. For international travel, we highly recommend e-SIMs like Airalo—low cost, reliable, and easy to use. You can check our description box for a discount code!
Dining Out
We love Madeira’s restaurant scene, and socializing often leads to more dining out than planned. In January 2025, we spent €316.37 on dining out, slightly less than last year. For perspective, this covered 8-10 meals out, plus coffees and pastries. Dining out remains extremely affordable compared to North America or other parts of Europe. Want to know our favorite restaurants? Join us on Patreon, where we share recommendations and exclusive content.
Utilities (Water, Electricity, Insurance)
• Water: €16.93/month • Electricity: €37.43/month • House Insurance: €34.62/month • Total: €89.02/month
After moving from the mountains to a more urban setting, our utilities remain about the same. We’re still waiting on our condo fees, which we estimate to be €30-70/month. Our property tax is unknown but should be nominal.
Grocery Prices: A Shocking Increase
Groceries are one of the biggest changes we’ve noticed. Here’s our January grocery spending year-over-year:
- 2022: €319
- 2023: €401
- 2024: €409
- 2025: €623.70
That’s double what we spent just three years ago! While this is a global trend, it’s still significantly cheaper than grocery costs in North America.
Subscriptions & Memberships
This category includes Netflix, Spotify, Amazon Prime, gym memberships, and more. In 2025, our total for subscriptions and memberships was €122.02/month. Prices fluctuate, but overall, these remain reasonable.
Healthcare Costs: Still Zero!
One of Portugal’s biggest advantages is healthcare. While new expats on a D7 visa will need private insurance (around €120/month for two people), we no longer carry private insurance. As residents, we are part of Portugal’s public healthcare system, which includes checkups and exams. So far, we are very pleased with the quality of care. Total healthcare cost for us in January 2025: €0
Transportation: Gas, Parking, Bus, & Insurance
Now that we live in Funchal, we rarely drive. We take the bus more often and walk much more, which is great for our health!
Our January transportation costs:
• Gas, parking, bus pass, car insurance: €114 Our insurance costs increased slightly as we upgraded to full coverage, including vandalism and hit-and-run protection (after an unfortunate incident at our previous home).
Activities & Entertainment
In previous years, we spent little on activities since we enjoy hiking and outdoor adventures. But this year, we indulged a bit more!
• Madeira Orchestra membership: €100 (covers 3 concerts)
• Swimming (Olympic pool & Lido): €18 Total: €118/month
Exploring new hobbies like orchestra performances has been a great addition to our Second Half of Life!
Final Thoughts: Is Portugal Still a Great Value in 2025?
While grocery costs have increased, Portugal—especially Madeira—remains an affordable and high-quality place to live. Healthcare is still a huge advantage, and overall costs are much lower than in North America. Our top takeaways:
• Rental prices are stabilizing and even decreasing in some areas.
• Groceries have significantly increased but are still affordable.
• Utilities, internet, and entertainment remain inexpensive.
• Public healthcare is excellent and virtually free for residents.
• Public transportation is cheap and convenient.
So, is Portugal still a great value for expats in 2025? Yes! While costs are rising in some areas, the overall affordability and quality of life make Portugal a top choice for expats and retirees. Want more insights?
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