Living

Living in Lisbon: An Introduction to Portugal’s Captivating Capital

Get to know the charming capital of Portugal in this introduction to living in Lisbon. Click to find out more.

Lisbon, Portugal’s charming capital, has cemented itself as one of the most exciting cities in Europe, fast becoming the location of choice for expats and investors from across the world. The array of advantages to living in Lisbon—the balmy climate, incredible gastronomy, and high quality of life—are just a few of the reasons why expats have come to call Lisbon home.

The luxury market here is also blossoming, with locations such as Avenida da Liberdade and Príncipe Real particularly appealing. In this article, we’ll explore this sought-after international city and weigh the pros and cons of living in Lisbon. We’ll delve into key reasons to consider living here, introduce the top neighborhoods to live in, and provide practical information to make the move as stress-free as possible.

Top Reasons to Consider Living in Lisbon

From the captivating Lisbon city center to coastal areas like Cascais nestled along the shores of the Atlantic Ocean, Lisbon is one of the best major European cities that offers expats an affordable, high-quality, thriving environment to relocate to. Retirees, families, or digital nomads searching for a fresh start might consider moving to Lisbon, Portugal, for the city’s cosmopolitan vibe, rich history, and laid-back pace of life. Below are some of the key reasons why expats in Portugal are increasingly moving to Lisbon, whether it’s the incredible weather, delectable cuisine, or high quality of life.

Outstanding business location

Lisbon has emerged as a thriving business hub, attracting entrepreneurs and businesses to its shores, perhaps fueled by Web Summit’s relocation to the Portuguese capital in 2016.

The city’s strategic geographical location within Europe makes it a gateway for international trade and investment. With its excellent infrastructure in the cosmopolitan center and a modern business ecosystem, Lisbon offers a dynamic environment for startups, tech companies, and international companies to flourish.

Many co-working spaces are popping up across the city, as well as several incubators and accelerators, further enhancing the city’s appeal to those seeking a vibrant business community or who are looking to set up a start-up in Europe.

Safe and tolerant

Lisbon is renowned for its safety and inclusivity. Portugal ranked 7th in the 2024 Global Peace Index and has very low crime rates. Legislation is also generally progressive, another key selling point for expats looking to relocate.

You’ll also find that English is widely spoken, particularly by the younger generation, with Portugal ranking in 8th position on the 2023 English Proficiency Index. However, picking up some basic Portuguese and even learning to speak Portuguese fluently can be advantageous. Plus, Portuguese people are generally very friendly and go out of their way to help you, whether it’s pointing you in the right direction to the post office or providing top restaurant recommendations.

Sublime climate and world-class beaches

Lisbon boasts a Mediterranean climate characterized by mild winters and warm, dry summers. Proximity to the Atlantic means that the city never becomes stiflingly hot in the summer months.

The city’s delightful weather allows for an outdoor lifestyle throughout the year, encouraging residents to explore its charming parks and picturesque neighborhoods. Moreover, Lisbon is situated near stunning beaches, such as Praia de Santo Amaro bordering Oeiras west of Lisbon and Praia da Rainha in Cascais, providing easy access to beautiful coastal landscapes. Watersport fanatics will be able to get their fix throughout the year. If you are into golf, Lisbon is a prized location, with over 20 top-quality golf courses in the Lisbon area. Discover more about Lisbon’s coastal area in this buying property in Cascais, Portugal, guide.

High quality of life

Effortlessly blending contemporary design with traditional architecture, Lisbon fully embraces its historical charm while looking to the future. The low cost of living in Portugal certainly doesn’t compromise on quality, Lisbon – as is the case for Portugal in general – provides a haven for residents to enjoy their day-to-day lives to the fullest.

With countless parks scattered around the city, a range of family-run local eateries and international restaurants, and proximity to fabulous beaches Praia do Guincho and Praia de Carcavelos as well as the Sintra-Cascais Natural Park, it is easy to live a high-quality life in one of the most charming European capitals.

Portugal boasts some of the best wines in the world. Due to its long coastline, seafood is particularly good here, alongside incredible meat dishes that pair wonderfully with a good red Douro wine.

Potential Cons of Living in Lisbon

Portugal is an amazing country to live in. Still, despite its vibrant culture, welcoming nature of Portuguese nationals, delicious food, great weather, and beautiful beaches, there are always cons to consider when relocating to a new country. Below, we offer a few of the cons to weigh against the top reasons to consider living in Lisbon, Portugal, which we discussed in the previous sections.

Portuguese salaries living in Lisbon

One potential disadvantage of living in Lisbon is the relatively low local salaries compared to other major European cities, the USA, and the UK. According to Numbeo, in 2024, the average salary in Lisbon, Portugal, after taxes, is €1,211.39 per month, while in Spain’s capital city of Madrid, average monthly salaries stand at €2,315.52. However, Lisbon, Portugal, offers a more affordable cost of living compared to most European cities, so depending on where you live and your lifestyle, your salary can go a lot further.

High rental costs living in Lisbon

Compared to other Portuguese cities like Porto and the Algarve region, apartments in Lisbon are pricier, especially in the big city center. However, with more expats and digital nomads expressing interest in living in Lisbon, the Portuguese capital’s real estate market makes finding affordable apartments for rent tricky.

You can find cheaper rental apartments in the outer districts of Lisbon, Portugal, and still enjoy city life and the pleasant climate surrounded by open green spaces and easy access to the city. We advise you to seek expert advice as it will help you effortlessly navigate Lisbon’s real estate market. Keep in mind that although rental and property prices are higher in the capital of Lisbon, it is still relatively affordable compared to other Western European countries.

Language barrier living in Lisbon

Living in Lisbon, you will find English widely spoken, and the language barrier should not be much of a problem in daily life. However, it is a good idea to learn Portuguese as this can come in handy, particularly for bureaucratic processes, and will also make your transition to Portuguese life much easier.

Key Neighborhoods

Choosing where to live in Lisbon and the Greater Lisbon Metropolitan Area will depend on your lifestyle preferences. Whether you seek tranquility in a quiet neighborhood or the vibrant energy of neighborhoods that host regular cultural events and live music venues closer to the center, Lisbon offers a diverse range of options. Families may prioritize proximity to schools, while digital nomads might prefer somewhere closer to the buzzing center.

If you are looking for a quiet retreat, Estrela and Campo de Ourique will be to your liking, while if you are looking for a historic part of the city, Alfama and Graça should be on your radar. Arroios and Avenidas Novas are more practical areas where you can easily get around the city and have access to charming parks. Then you have Parque das Nações, which is unlike anywhere else in the city, with its modern, futuristic buildings and cutting-edge restaurants spilling out onto the street.

Additionally, for luxury buyers, neighborhoods like Avenida da Liberdade, Lapa, and Chiado are highly desired for their upscale amenities and premium real estate options, offering a sophisticated and lavish living experience in Lisbon.

What is the cost of living in Lisbon?

Portugal is one of the most affordable countries in other Western European cities. According to Numbeo, consumer prices in Lisbon are 5.8 percent lower than in Spain’s capital city, Madrid. Although the cost of living will vary considerably depending on your lifestyle, you will be pleasantly surprised by its affordability. Take healthcare, for example, which is considerably less expensive than it would be in the USA.

However, bear in mind that Lisbon is pricier compared with other parts of the country. Dinner at a mid-range restaurant and grocery shopping won’t break the bank. At the same time, transportation in Lisbon is very affordable, particularly if you opt for a city monthly pass, which costs just €40. However, if you prefer to live in upmarket neighborhoods like Avenida da Liberdade and Principle Real, which offer a thriving cafe culture and international designer stores, prepare to pay more for rental apartments and other living costs.

It is also important to note that the cost of living greatly depends on your lifestyle. If you frequent fine-dining restaurants and enjoy designer shopping experiences, you can expect to pay international prices.

Practical Information about Living in Lisbon

Moving to a new city can be challenging. Here, we provide practical information that will come in handy if you are considering moving to Lisbon.

Schools

You will find a wide array of international schools in Lisbon, with many different curricula and languages to choose from, including the American system, British school system, and French curriculum. There are eight international schools in Lisbon and 20 in the Greater Lisbon Area. If you are interested in brushing up on your Portuguese, there is also a great selection of Portuguese language schools and private national schools that you can enroll in.

Healthcare

Healthcare is generally very good in Portugal, with public healthcare available to residents at minimal cost through Portugal’s National Health Service (SNS). Private medical insurance is also an often-favored option for expats and can be found at an affordable cost compared to the United States and other Western European countries. You will be able to see a specialist quicker with private health insurance.

Transportation

Like other European capitals and major cities, Lisbon’s extensive metro, bus, and tram systems allow quick and easy travel. Trains can also quickly take you around the country, while Lisbon International Airport offers flights to Europe, Africa, the Americas, and Asia.

Festivals and attractions

In Lisbon, you’ll be able to enjoy festivals throughout the year, from the lively Santo António Festival to summer jazz festivals. There is also an array of museums and art galleries where you can get your culture fix. At night, the city comes alive with a booming nightlife fueled by hip bars and swish nightclubs. Many renowned international musicians drop by Lisbon to perform in the capital, and there are several top international festivals in the summer months, such as Nos Alive, Super Bock Super Rock, and MEO Kalorama, attracting top artists from across the world.

Shopping

Lisbon’s shopping scene caters to diverse tastes. The historic Baixa district hosts high-end boutiques, while the trendy Chiado area is a hub for fashion enthusiasts. For authentic souvenirs, explore the vibrant markets like Mercado da Ribeira. You’ll also find several food markets scattered around the city, such as Mercado de Campo de Ourique, where you can find incredible fresh produce.

The Bottom Line on Living in Lisbon, Portugal

Each person will have their reason for moving to or investing in Lisbon, whether it’s the high quality of life, warm weather, high-quality healthcare, excellent international schools – or a combination of factors. Plus, the real estate market has experienced massive growth in recent years, with high yield potential if planned correctly. If the luxury market is what interests you, there is a wide array of luxury properties, from swish modern apartments to spacious houses with waterfront views on the Lisbon and Cascais luxury real estate markets.

Frequently Asked Questions About Expat Living in Lisbon

Is Lisbon a good place to live in?

Families, young professionals, and investors from all walks of life are drawn towards expat life in this captivating city’s vibrant culture, rich history, and high quality of life. Depending on your personal requirements and preferences, living in Lisbon as an American, non-EU expat, or EU citizen is a more affordable option compared to other European capital cities, and the city’s warm and welcoming community and sublime climate make the Portuguese capital city one the best places to live in Western Europe.

Is Lisbon safe?

Lisbon is considered a safe city for residents and tourists. Compared to other European countries, Portugal has a reputation for being one of the safer countries on the continent and ranks 7th on the 2024 Global Peace Index.

What are the visa requirements for living in Lisbon long-term?

Once they have secured an entry visa through one of the various programs the Portuguese government provides, including the Portugal Golden Visa, Portugal, Digital Nomad Visa, and the Portugal D7 Visa, many expats who are non-EU citizens and want to live in Lisbon long-term apply for a residency visa.

For non-Portuguese individuals, opening a Portuguese bank account, applying for a Portuguese NIF number, and learning a bit of the local language can make this process easier. Non-EU citizens are also advised to appoint a fiscal representative to assist with the process. The general eligibility requirements for securing a Portuguese Residency Visa are as follows:

Proof of employment
Proof of self-employment or entrepreneurial activities
Proof of scientific research or teaching
Proof of study, student exchange, internship, or voluntary service
Proof of enrolment in higher education programs (for students already residing in Portugal who want to further their studies)
Proof of family reunion application
Proof of income for pensioners and people with passive income

Our migration and residency partner, Global Citizen Solutions, has created a Portugal Immigration Guide offering more in-depth information.

What is the cost of living in Lisbon for expats?

For expats who are EU citizens and non-EU citizens, the cost of living in Lisbon, Portugal, including rent, is 99.8 percent lower than it is in in San Francisco, USA. Assuming you earn above the Portuguese minimum wage, which currently stands at €820 per month, you will be able to find rental apartments at an affordable cost.

Portugal is also one of the most affordable countries to live in compared to other countries in Western Europe and has an extensive and easy to navigate public transport network, making getting around affordable and seamless. Assuming you rent in both cities, you would need around €8,992 in San Francisco, USA, to maintain the same standard of life that you can have with €4,500 in Lisbon, Portugal.

What is the healthcare system like in Lisbon for foreigners?

The healthcare system provided by the Portuguese government is generally excellent. Portugal’s national health service, Serviço Nacional de Saúde (SNS), makes affordable public healthcare accessible to legal residents in the country.

Due to Portuguese bureaucracy that may come into play at any local health center and because private healthcare allows quicker access to specialists, expats generally opt for private healthcare, which is more reasonably priced compared to many other countries, including the USA or the UK.

You can consult our Portugal healthcare guide for more information about how to access public healthcare services in Lisbon and other questions you may have related to healthcare in the Portuguese capital.

How to find a rental apartment in Lisbon?

You can begin the process of finding a rental apartment in Lisbon by researching real estate agencies and rental properties online. Lisbon is a very walkable city with many expats, especially in central Lisbon, which features good quality homes in historic architecture and modern rental properties with features like central heating. Real estate agencies often list rental apartments, and engaging with real estate agencies experienced with expats can be beneficial.

If you are interested in finding apartments for sale or houses for sale in Portugal, a Portuguese company specializing in luxury properties like BE Global can offer services that can help streamline the process. For international property investors who would like to purchase property in the Lisbon city center or Lisbon Metropolitan area for rental income, working with a buyer’s agent like Goldcrest, which also offers property management services, is ideal.

What are the best places for shopping in Lisbon?

Lisbon caters to diverse tastes, making it one of the best places for shopping in the country. The historic Baixa district, located in the city center, features high-end boutiques along its narrow streets. The trendy Chiado area is perfect for fashion enthusiasts, offering numerous shops, cafes, and cultural activities such as museums and theaters.

For authentic souvenirs, explore vibrant markets like Mercado da Ribeira. The city also has several shopping centers, parks, gyms, and fitness centers, along with lively nightlife spots and restaurants serving delicious Portuguese cuisine. Compared to other European capitals, the cost of living in the international city of Lisbon is fairly affordable.

How to learn Portuguese while living in Lisbon?

While living in Lisbon, Portugal, you can learn Portuguese by enrolling in one of the many Portuguese language schools. Additionally, private international schools offer language courses, providing excellent opportunities to brush up on your skills and immerse yourself in the local culture.

What are the pros and cons of living in Portugal?

Living in Lisbon, Portugal offers a mix of advantages and challenges. The city is a beautiful, historic place with plenty of attractions and a vibrant nightlife. The weather is pleasant most of the year, and the cuisine, particularly the fresh fish and seafood, is excellent. Lisbon boasts a low cost of living and a warm expat community, with Portuguese nationals being notably friendly and accommodating.

The array of stunning beaches, such as Costa da Caparica and Carcavelos, offers great opportunities for surfing. However, there are some downsides. Rents can be expensive, and bureaucratic processes can be slow and challenging to handle without assistance. Learning Portuguese can be tough, and many properties lack central heating, making winters chilly. The city’s hills and cobbled streets can be cumbersome, and overtourism during summer months can be overwhelming. Additionally, finding a rental property can be difficult.

What are the best neighborhoods to live in Lisbon for families?

Cascais is an excellent area for families due to its proximity to beautiful beaches and welcoming Portuguese people. The area is similar to Sintra, offering excellent international schools such as Park International School and St António International School. Families will find it easy to locate good quality rental apartments or homes to purchase, with many expats already residing in the region. Reliable public transport connects all the major villages, making daily commutes convenient. Open green spaces are abundant, providing a serene environment.

In Lisbon, Estrela offers a tranquil family atmosphere just minutes from the city center, while Campo do Ourique provides a family-oriented urban vibe. This quaint neighborhood’s central location grants quick access to all major parts of the city, perfect for expat families and young professionals. Sintra and Cascais, with their excellent properties in stunning parts of the country, offer the best of both worlds: a peaceful living environment within striking distance of Lisbon.

What are the transportation options in Lisbon for daily commuting?

Navigating Lisbon is easy thanks to its efficient transport network, which includes a reliable metro service, trams, buses, and trains. The metro offers convenient connections throughout the city, while iconic trams wind through historic streets and are used by both locals and tourists. Buses operate across the city, and trains can take you further afield.

For international travelers, Lisbon has its own airport with cheap flights across Europe, Africa, the Americas, and beyond. Taxis, Uber, and Bolt are also very affordable compared to other European capitals. Additionally, it’s pretty easy to get around on foot, allowing you to visit any other big city and beautiful beaches and explore historic architecture and different cultures. These transportation options suit the balance in your bank account, providing affordability and convenience.

How to open a bank account in Lisbon as a foreigner?

To open a bank account in Lisbon as a foreigner, you need to follow several essential steps. First and foremost, you must obtain a Número de Identificação Fiscal (NIF) number, which is your Portuguese tax number. This number is required for any official activities, including financial transactions, investments, and business dealings in Portugal.

You can acquire a NIF through a tax representative in Portugal. The Portuguese tax office issues this NIF number, and it is necessary for everyday activities like getting a phone subscription or signing up for health insurance. Once you have your NIF, you can proceed to open a bank account.

The specific documents required by banks in Portugal may vary slightly depending on the bank, but generally, Portuguese residents need to provide proof of identification, proof of address, and their NIF number to complete the application. For more detailed guidance on obtaining a NIF, you can refer to the How To Get A NIF guide by Global Citizen Solutions, a residency and citizenship partner.

Proof of identification (e.g., passport).
Provide proof of address (e.g., a utility bill received in the previous three months with your name and address visible).
Portuguese NIF number.
Proof of income or employment (e.g., contract, employment letter, recent payslip). Note that if you are unemployed, you can still open a bank account in Portugal. You just need to show proof of registration with the Portuguese employment center (Centro de Emprego) or a work contract assurance.
A Portuguese phone number for SMS activation (in some banks, this is not necessary).
For new accounts, a minimum cash deposit of €250 to €300 is typically needed, although the amount may vary from bank to bank.