Lisbon, Portugal’s vibrant capital, has become a magnet for expats and digital nomads in recent years. With a population of around 500,000 in the city proper and 2.8 million in the greater metropolitan area, Lisbon offers a unique blend of historic charm and modern amenities.
Perched on the Atlantic coast, the city is renowned for its stunning vistas, mild climate boasting over 300 days of sunshine annually, and a relaxed Mediterranean lifestyle that’s hard to resist.
Living in Lisbon means embracing a city that’s both steeped in tradition and rapidly evolving. Its seven hills provide breathtaking viewpoints (miradouros) over terracotta rooftops and the sparkling Tagus River. The city’s rich history is evident in its Moorish castle, ornate monasteries, and streets lined with azulejo-tiled buildings. Yet, Lisbon is also a hub for innovation, with a burgeoning startup scene and a growing international community.
For expats and retirees, Lisbon presents an enticing proposition: a high quality of life at a cost that’s still relatively affordable compared to other Western European capitals. The city’s compact size makes it walkable, though be prepared for steep climbs. An efficient public transport system, including charming vintage trams, connects all parts of the city.
With its welcoming atmosphere, diverse culinary scene, and proximity to beautiful beaches, Lisbon offers a lifestyle that balances urban excitement with coastal tranquility.
Renting & Buying Property
Lisbon’s property market has seen significant changes in recent years, with prices rising due to increased foreign investment and tourism. However, compared to other major European cities, it can still offer value for money, especially for those coming from more expensive markets.
Buying
Property prices in Lisbon vary widely depending on the neighborhood and property type. The types of properties available range from historic buildings with original features to modern apartments in new developments.
Search properties for sale in Lisbon
Renting
Rental prices in Lisbon have increased significantly in recent years. A one-bedroom apartment in the city centre typically costs between €800-€1,200 per month, while a three-bedroom apartment might range from €1,500-€2,500. Prices tend to be lower in outlying areas.
Long-term rentals are available, but competition can be fierce, especially for well-maintained properties in desirable areas. It’s worth noting that during peak tourist seasons, some landlords may prefer short-term holiday lets.
For more information on renting in Portugal, including tips on contracts and deposits, check out this helpful guide.
Lisbon Neighborhoods
- Alfama: Lisbon’s oldest neighborhood, known for its maze-like streets, traditional Fado houses, and stunning viewpoints. While charming, it has become quite touristy, with many local businesses replaced by Airbnbs and souvenir shops.
- Baixa: The flat, central area of Lisbon with grand buildings and impressive squares. It’s a major shopping district and tourist hub, but can be quiet in the evenings due to limited nightlife.
- Chiado: A trendy shopping area with a rich cultural history, home to iconic cafes and bookshops. It’s central and lively, but can get very crowded with tourists.
- Príncipe Real: A cool, laid-back neighborhood known for trendy restaurants, boutique shops, and a beautiful park. It offers a relaxed atmosphere while still being close to the city center.
- Graça: A traditional area with stunning city views, particularly from the Miradouro da Graça. It retains a local feel despite being near touristy areas.
- Bairro Alto: The heart of Lisbon’s nightlife, with streets packed with bars and clubs. It’s quiet during the day but can be very noisy at night.
- Cais do Sodré: Once a gritty area, now a vibrant nightlife destination with the famous “Pink Street” and the popular Time Out Market.
- Belém: Home to some of Lisbon’s most famous landmarks and the original pastéis de nata bakery. It’s touristy by day but quiet and residential at night.
- Campo de Ourique: An upscale residential area popular with young professionals and families, known for its gourmet market and fashionable restaurants.
- Alcântara: A former working-class area transformed by the hipster haven LX Factory, now full of trendy shops and eateries while still retaining some traditional charm.
- Santos: A quiet, residential neighborhood known for its design school and shops, popular with art lovers and students.
- Mouraria: A historic, multicultural area known as the birthplace of Fado. It’s experiencing gentrification but still retains its diverse character.
- Parque das Nações: A modern area developed for Expo ’98, featuring contemporary architecture, riverside walks, and a large shopping mall.
- Marvila: An up-and-coming neighborhood transforming from its industrial past into a creative hub with art galleries, craft breweries, and coworking spaces.
Cost of Living
While Lisbon was once known for its affordability, the cost of living has increased in recent years. However, it remains more affordable than many other Western European capitals. Housing is typically the most significant expense, with rental costs having risen substantially.
Despite this, many everyday expenses remain reasonable. Dining out can be affordable, especially if you opt for traditional Portuguese restaurants rather than trendy international spots. A meal in a local tasca can cost as little as €10-15 for a hearty three-course lunch.
Groceries are generally less expensive than in countries like the UK or US, especially when it comes to fresh produce, wine, and seafood. Public transportation is efficient and reasonably priced, with a monthly pass costing around €40.
For a comfortable lifestyle in Lisbon, a couple might need a budget of €2,000-€3,000 per month, excluding rent. However, this can vary greatly depending on individual lifestyle choices and location within the city.
Can I move to Lisbon?
Portugal offers several visa and residency options for those looking to make Lisbon their new home. Here are the most common pathways:
- EU/EEA/Swiss nationals: Can move to Portugal easily without a visa. This also applies to their spouses/partners and some qualifying family members.
- D7 Visa: Ideal for retirees or those with passive income from pensions, rentals, investments, or royalties.
- D8 Visa: Designed for digital nomads, freelancers, and remote workers.
- Golden Visa: For those willing to make significant investments in Portugal, requiring only an average of 7 days per year spent in the country.
- D2 Visa: Aimed at entrepreneurs planning to start a business in Portugal.
Attractions
Belém Tower
This 16th-century fortification is a UNESCO World Heritage site and one of Lisbon’s most iconic landmarks. Standing guard at the mouth of the Tagus River, it’s a testament to Portugal’s maritime history and Age of Discoveries. The tower offers stunning views of the river and is particularly beautiful at sunset.
Jerónimos Monastery
Another UNESCO site, this magnificent monastery is a masterpiece of Manueline architecture. Built in the 16th century to commemorate Vasco da Gama’s voyage to India, it houses his tomb and those of other historical figures. The intricate stonework and peaceful cloisters make it a must-visit attraction.
Alfama District
Lisbon’s oldest neighborhood, Alfama, is a maze of narrow, winding streets and staircases. It’s one of the few areas that survived the 1755 earthquake, retaining its medieval charm. Here, you’ll find cozy restaurants, Fado houses, and stunning viewpoints like the Miradouro de Santa Luzia.
Time Out Market
Located in the Cais do Sodré area, this gourmet food hall showcases some of Lisbon’s best chefs and restaurants under one roof. It’s a perfect place to sample a variety of Portuguese cuisines and international dishes, making it popular with locals and tourists alike.
Expat Life
Lisbon has a thriving expat community, attracting people from all over the world. The city’s international atmosphere is evident in its diverse neighbourhoods, multicultural events, and growing number of international schools and businesses.
Many expats are drawn to areas like Príncipe Real, known for its trendy cafes and boutiques, or Campo de Ourique, a family-friendly neighbourhood with a village-like feel.
Networking opportunities abound, with numerous expat groups organizing meetups, language exchanges, and cultural events. There is a huge digital nomad community in particular, which is considered to be one of the largest and most social digital nomad communities in the world.
However, some expats find it challenging to form deep connections with locals, as Portuguese social circles can be tight-knit. Learning Portuguese and making an effort to integrate into local culture can go a long way in bridging this gap.
Retiring Here
Lisbon offers an attractive option for retirees seeking a balance of culture, climate, and quality of life. The city’s relatively affordable cost of living (compared to other Western European capitals) and high-quality healthcare system make it appealing for those on a fixed income.
However, retirees should be prepared for some challenges. The hilly terrain can be difficult for those with mobility issues, though many areas are becoming more accessible. The rising cost of housing is also a consideration, particularly in popular central areas. Your pension or social security will go a lot further in most other places in Portugal.
On the plus side, Lisbon’s mild climate, rich cultural offerings, and excellent cuisine provide plenty to enjoy in retirement. The city’s international airport and good transport links also make it easy for retirees to travel or receive visits from family and friends.
Food
Lisbon’s culinary scene is a delightful mix of traditional Portuguese fare and international cuisines. Here are some local specialties:
- Bacalhau à Brás: A comforting dish of shredded cod, onions, and thinly sliced potatoes, all bound with scrambled eggs.
- Ameijoas à Bulhão Pato: Clams cooked in olive oil, garlic, and cilantro, often served as a starter.
- Pastéis de Belém: The original custard tarts, crispy and creamy, with a secret recipe dating back to 1837.
- Bifana: A simple but delicious pork sandwich, perfect for a quick lunch or snack.
- Ginjinha: A sweet cherry liqueur, traditionally served in small chocolate cups.
You’ll also find national Portuguese dishes like caldo verde (kale soup), grilled sardines, and the iconic pastel de nata (custard tart) throughout the city.
Of course, Lisbon has plenty of international restaurants too. If you’re looking for Mexican, Thai, Indian, or anything else, you’ll find it here — and often great versions of those cuisines too. Because this is quite a multicultural city, it’s also a good place to try food from some of the former Portuguese colonies such as Goa, Brazil, and Mozambique.
For vegans and vegetarians, Lisbon has a ton of options and the quality is really high. This is in modern or vegan-specific restaurants, of course. Traditional restaurants, even those in Lisbon, are still very meat and fish focused and many won’t have a vegetarian or vegan option. Gluten free options are similarly increasing too, but also mainly in specific restaurants.
Upsides & Downsides of Living Here
Pros
- Beautiful weather and abundant sunshine
- Rich cultural heritage and vibrant city life
- Relatively affordable compared to other Western European capitals (particularly London or Paris)
- Excellent healthcare system
- Good public transport and international connections
- Thriving expat and especially digital nomad community
- Proximity to beautiful beaches and natural parks
Cons
- Rising cost of housing, particularly in popular areas
- Hilly terrain can be challenging for some
- Portuguese salaries make it hard to survive in Lisbon
- Job opportunities for non-Portuguese speakers are limited, despite this being a capital city
- Popular areas like Alfama and Belem can be crowded with tourists, especially in summer
Climate
Lisbon enjoys a Mediterranean climate with mild winters and warm, dry summers. Summer temperatures typically range from 20°C to 35°C (68°F to 95°F), while winter temperatures usually stay between 8°C and 18°C (46°F to 64°F). The city receives an average of 300 days of sunshine per year.
While Lisbon itself has urban beaches, the stunning beaches of Cascais and the Costa da Caparica are just a short train or bus ride away, perfect for cooling off during hot summer days. If you prefer freshwater swimming, there are several praias fluviais (river beaches) within driving distance in the surrounding regions.
Will I Need to Learn Portuguese?
While English is widely spoken in Lisbon, especially in tourism-related businesses and among younger generations, learning Portuguese will greatly enhance your experience living here.
It’s essential for deeper integration into the local community and culture. Portuguese people are generally helpful and enjoy speaking other languages, but they greatly appreciate when foreigners make an effort to learn their language. However, you will find that many locals will speak to you in English, despite you making an effort to speak Portuguese (English is almost a second language in Lisbon).
Learning Portuguese is not just about day-to-day communication; it’s also a legal requirement if you’re considering long-term residency or citizenship. To obtain Portuguese citizenship, you’ll need to pass an A2 level language exam.
Ready to start learning Portuguese? Check out this comprehensive guide on learning the language. It offers tips, resources, and strategies to help you on your language learning journey.
Schools
Lisbon offers a range of educational options for families with children:
- Public Schools: Free and generally of good quality, but instruction is in Portuguese.
- Private Schools: Often bilingual, offering instruction in Portuguese and English.
- International Schools: Several in the Lisbon area, including St. Julian’s School, Carlucci American International School of Lisbon, and Deutsche Schule Lissabon.
Lisbon is also home to several renowned universities, including the University of Lisbon and the New University of Lisbon, attracting both domestic and international students.
For more detailed information about the Portuguese school system and your options as an expat, take a look at this comprehensive guide on schools in Portugal.
Getting Around
Lisbon is a relatively compact city, but its hilly terrain can make walking challenging in some areas. The city offers an efficient public transportation system:
- Metro: Clean, fast, and reliable, perfect for getting around the city quickly.
- Trams: Iconic yellow trams are both a practical way to navigate steep hills and a tourist attraction.
- Buses: Extensive network covering areas not reached by metro or tram.
- Trains: Excellent for day trips to nearby towns like Sintra or Cascais.
- Uber and Taxis: Widely available and reasonably priced.
Generally speaking, though, a lot of people just walk.
Lisbon’s international airport is just 7 km from the city centre, offering flights to major European cities and intercontinental destinations.
Day trips from Lisbon are plentiful and diverse. You can visit the fairytale-like palaces of Sintra (30 km northwest), enjoy the beaches of Cascais (30 km west), or explore the medieval town of Óbidos (80 km north). The historic city of Évora in the Alentejo region (130 km east) makes for a fascinating day trip, offering Roman ruins, Gothic architecture, and excellent wineries. The Algarve is also a short train-ride away — perfect for weekend breaks.
Similar Locations
When comparing Lisbon to other Portuguese locations for living:
- Porto: Smaller and with a lower cost of living, Porto offers a more traditional Portuguese experience but with fewer job opportunities and a cooler, rainier climate.
- Cascais: A wealthy coastal town near Lisbon, offering a more relaxed lifestyle but with higher living costs.
- Coimbra: A historic university city with a lower cost of living, but fewer international amenities and job opportunities.
- Faro: The capital of the Algarve region, offering beautiful beaches and warm weather year-round, but with a more seasonal economy and smaller expat community.
Each of these locations has its own charm and benefits, but Lisbon stands out for its balance of urban amenities, cultural offerings, and international atmosphere, making it a top choice for many expats and digital nomads.