Cost of Living Showdown: Lisbon vs Berlin for Tech Expats (2025)

Lisbon vs Berlin: Monthly cost comparison at a glance

While both cities attract international tech talent, Berlin is the more established hub for expats working in tech. The city is home to thousands of startups and a strong technology sector spanning fintech, AI, and the newest tech trends. English is widely spoken in Berlin—both socially and professionally—and the city’s sizeable international community makes integration relatively straightforward. Higher living costs are balanced by higher average tech salaries, which are among the most competitive in Europe.

Lisbon, by contrast, is still emerging as a tech destination. Though smaller in scale, its tech sector is increasingly international, and English is commonly used in the workplace, especially within startups. Portugal’s favourable visa policies—especially for remote workers—have accelerated its growth: since launching its digital nomad visa in October 2022, Portugal has granted over 2,600 approvals.

While Portugal’s flagship Digital Nomad Village is located in Ponta do Sol on Madeira Island, the initiative has helped position the country more broadly, including Lisbon, as a top destination for digital nomads. With a mild climate, coastal lifestyle, and lower cost of living, Lisbon draws tech workers looking for flexibility and long-term residency options.

Here’s a detailed breakdown of Lisbon vs. Berlin key cost-of-living factors to help you evaluate which city aligns better with your lifestyle and budget:

Rent: Tight markets, steep gaps

Lisbon and Berlin are both dealing with intense housing demand, but for different reasons. While Lisbon has traditionally been more affordable, its ongoing housing crisis—stimulated by a surge in tech migrants, digital nomads, and limited housing supply—has pushed rents up to levels on par with, or even slightly above, Berlin. A one-bedroom flat in central Lisbon now averages €1,408, with three-bedroom units reaching €2,630. In Berlin, comparable figures are €1,257 and €2,383 respectively.

Berlin’s overall cost of living is higher than Lisbon’s: You’ll need roughly €2,300 to have the same lifestyle in Berlin than what €1,835 buy you in Lisbon. This means you can expect to spend 25% more if you move from Lisbon to Berlin. This is evident in daily expenses like groceries, dining out, and basic services, which are generally more affordable in Lisbon. Still, Berlin's rental market is still very competitive because there isn't much new housing, especially in popular neighborhoods like Mitte, Prenzlauer Berg, and Friedrichshain. In Lisbon, expats may find better value in suburban areas like Amadora or Loures, where rents are typically 15–25% lower than in the city centre. But availability is proving increasingly limited, so much that the government set out to shut off Airbnb!

Utilities and internet

Utility bills in Berlin are substantially higher, at an average of €305 per month for an 85m² flat compared to €130 in Lisbon. Germany’s elevated costs stem largely from post-2022 energy policy shifts following the Russian invasion of Ukraine, which led to the loss of low-cost gas imports. To cushion the impact, the government introduced Energiepreisbremsen (energy price brakes), which cap electricity and gas rates for baseline consumption—though average utility expenses in Berlin remain among the highest in Europe.

Broadband internet is slightly cheaper in Lisbon, at approximately €34 per month, compared to €42 in Berlin. Mobile plans in Lisbon vs Berlin are nearly identical (€17–€18), but Portuguese providers often require a local NIF (fiscal number) to sign up.

Getting around: Public transport and urban mobility

Both Lisbon and Berlin offer strong public transit. Berlin’s D-Ticket is a monthly pass that costs €58 and includes U-Bahn, S-Bahn, buses, and trams. Lisbon’s transport network—while smaller—is affordable, with the Navegante Metropolitano monthly pass at €40 and a metro system that’s clean and reliable.

Berlin’s cycling infrastructure is superior, with widespread bike lanes and rentals. Lisbon, by contrast, is hillier and less bike-friendly.

Groceries and dining out

Groceries in Lisbon vs Berlin are comparably priced. In Lisbon, expect to spend €150–€250 monthly as a single person. Berlin’s range is €150–€300. Both cities offer discount chains (Lidl, Aldi), premium supermarkets, and busy markets—Winterfeldt in Berlin and Mercado da Ribeira in Lisbon stand out.

Dining out tends to be more budget-friendly in Lisbon, where a typical inexpensive restaurant meal costs around €13 compared to €15 in Berlin. Lisbon stands out for its affordable wine and fresh seafood, while Berlin offers more variety overall—especially for vegetarians, vegans, and fans of international cuisine.

Childcare and schooling

Lisbon offers a mix of public, private, and international childcare options. Nurseries for children under age three are mostly private, while kindergartens for older children include free public programmes. The Portuguese government provides a family allowance to help offset costs, and is in the process of rolling out free childcare for under-threes. For expats, access to public subsidies generally requires a temporary or permanent residence permit. Full-day private preschool in Lisbon costs around €537 per month, while annual fees for international primary schools average €14,230.

Berlin offers a broader range of childcare setups, but getting around them can be more complex. Public daycare is heavily subsidised, with prices starting as low as €15 per month and averaging €168. Private daycare can cost up to €1,000 monthly. For parents who prefer alternative care, childminders and nannies are common, with costs ranging from €800 to over €1,500 per month depending on hours and employer responsibilities. International school fees range from €4,000 to €12,000 annually, significantly lower than Lisbon’s.

Note: Berlin’s Kindergeld system provides financial support for legal residents, which can significantly reduce childcare costs over time.

Tech job market: Scale in Berlin, growth in Lisbon

Berlin stands out for tech job density. It’s a pan-European startup capital, home to major players like N26, Delivery Hero, and Zalando. The city attracts funding, talent, and new ideas across fintech, SaaS, and AI sectors. For expats, especially those in engineering or product roles, Berlin offers a wide range of English-speaking positions and a mature hiring ecosystem.

Lisbon’s tech scene, while smaller, is gaining ground. The annual Web Summit has helped boost its international profile, and government incentives continue to attract early-stage startups and remote-friendly companies. Salaries, however, remain lower: software engineers in Lisbon typically earn between €32,000 and €58,000 annually, compared to €64,000 to €95,000 in Berlin. That said, some of this gap is offset by Lisbon’s more affordable cost of living—especially when it comes to everyday expenses like dining, transport, and groceries.

Quality of life

Lisbon wins for sunshine (over 300 days/year), beach access, and a slower pace of life. The lifestyle is more Mediterranean: relaxed, outdoor-focused, and social. Berlin, meanwhile, offers an active urban life, cultural variety, and better infrastructure for families, including green spaces, museums, and community programmes.

Winter weather is a notable downside in Berlin—long, grey, and cold—whereas Lisbon enjoys mild winters. However, Berlin’s summers are fun and filled with open-air festivals and events.

Expat community and integration

Berlin is an international city. Nearly one in five residents is foreign-born, and English is widely spoken in social and professional settings. Its multicultural atmosphere and strong expat networks make it relatively easy to experience day-to-day life without fluent German. Many expats report feeling welcomed overall—though German bureaucracy can be frustratingly complex. However, despite the openness, some newcomers still encounter challenges with social integration: Only about 13% of expats rate locals as “very friendly,” and 56% say it’s hard to make local friends.

Lisbon, while historically warm and open, has seen growing local frustration over housing affordability, which many attribute to the influx of foreign workers and digital nomads. While outright hostility is rare, expats occasionally report feeling like outsiders, especially in tourist-heavy areas. That said, integration is very much possible—particularly for those who make an effort to learn Portuguese and seek out community beyond the expat bubble.

Final verdict

Both Lisbon and Berlin offer compelling advantages for tech professionals relocating with a job offer in hand. Your choice will ultimately depend on what you prioritise most—whether it’s career growth and infrastructure, or lifestyle and affordability. Here’s a quick summary to help you weigh the trade-offs:

Choose Lisbon 🇵🇹 if you want:

• Lower cost of living
• A sunnier, slower-paced lifestyle
• Access to beaches and nature
• A budget-conscious environment for families

Choose Berlin 🇩🇪 if you value:

• A solid tech job market
• Excellent public transport and infrastructure
• Cultural diversity and career mobility
• High-quality childcare and education options

Talk with immigration experts before you relocate to Lisbon or Berlin with a job already in hand

Thinking about making the move to Lisbon vs Berlin? With Relocate.me, you don’t have to figure it out alone. We have a niche job board built for tech professionals who are ready to relocate, and we feature companies that are willing to help expats relocate.

Browse relocation-friendly tech jobs in Berlin and Lisbon, apply from your home country, and secure the right offer before you move. The companies on our platform are actively hiring international talent. At Relocate.me, we also have trusted partners who specialise in visa and relocation services, so we may be able to connect you with the ideal expert.

While you wait, you might also want to sign up for The Global Move, our newsletter with hand-picked tech jobs and moving-related content.