The cost of living in Portugal depends on the location, as well as the lifestyle of the visitor, but compared to other European Union countries, the cost of accommodation, food, transportation and basic necessities is still much lower in Portugal.
Currently much of the purchasing power of the Portuguese population has been weakened by unemployment and high inflation with the cost of living going up, salaries coming down and benefits being reduced.
Compared to the United States, where the median monthly disposable salary averages US$2,793.36, in Portugal the average monthly salary is 60 percent less, down to about US$1,112.58.
Portugal is in recession but for the frugal tourist it is still a bargain. Portugal is the country where two adults can easily survive on a food and drink budget below US$500 per month. It is also the place where the visitor still can enjoy a stay at a luxury hotel for about US$100 a night, and where a basic restaurant meal, with gratuities and wine included, will go for less than US$15.
As for public transportation, the country is small and can be visited North to South in a week. Public urban transportation is reliable and for a monthly urban pass, below US$40, the visitor can travel anywhere. Trains are aplenty and also reliable.
The Euraill offers unlimited rail travel, up to two months, aboard a speedy Alfa Pendular train, within Portugal between popular destinations such as Lisbon,Coimbra,Porto, Braga, and Faro and as far as Spain including Madrid and Barcelona from under US$500. Most trains will offer affordable onboard cafeteria meals with wine included.