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.

Some of the best and cheapest countries to live in Europe

We’ll now guide you through some of the continent’s most cost-effective destinations to help you gauge the affordability of each location. 

1. Croatia

Croatia’s quickly becoming a go-to spot for expats who want to live in a country with an interesting cultural heritage, beautiful beaches, and a laid-back style of living. In cities like Zagreb and Split, you won’t have a problem getting by with English, which makes it easier to find a place to live, build connections, and settle in. Croatia’s healthcare system is known for being both high-quality and accessible, which is great news for families thinking about moving there. Such a reliable healthcare setup is comforting for anyone relocating, and the option to choose international health insurance plans adds an extra layer of security and choice. 

Plus, being smack in the middle of Europe means weekend getaways to other countries are easy. For example, a Flight from Zagreb to Paris will only set you back around €50, and takes only 2 hours. Now, let’s talk numbers, since that’s where Croatia really shines:

• Rent in the city centre: You’re looking at about €550 a month.
• A meal out: About €10 will get you a decent feed.
• Coffee fix: Just €2.

When you stack these costs up against other European cities, Croatia’s value is crystal clear. Renting a spot in Zagreb (€670) is way cheaper than shelling out €2,500 for a place in London or even €1,400 in Paris. And, with a cost of living index sitting at 31.5, Croatia is way more wallet-friendly compared to places like Switzerland at 84.0, Ireland at 57.4, or even the Netherlands at 50.2. Croatia is also a practical option for people aiming for a better lifestyle in Europe. Its high appeal is evident, with Croatia having the second-highest emigration rate in the EU.

Living in Croatia, especially for remote workers, offers a blend of economic and lifestyle benefits that are hard to ignore. With the Croatian Digital Nomad visa, remote workers who are employed by companies outside Croatia enjoy an exemption from paying income tax for a year. And, the warmer climate, proximity to beautiful beaches, and the affordability of life here add to its allure. On average, life in Zagreb is about 40% cheaper than in London, excluding rent, which means significant savings for expats. This cost advantage, combined with a median annual salary for remote software developers of around €48,000, allows for a great quality of life.

 

2. Estonia

Estonia is on the map as a prime destination for expats craving a mix of innovation and history, without the financial pinch often felt in Western Europe. Its capital, Tallinn, meshes cobblestone charm with a digital-forward attitude, and is the centre of an emerging food scene. English is widely spoken, especially in tech circles, smoothing the transition for newcomers. Plus, Estonia’s compact size means you’re never too far from either a digital hub or a tranquil forest retreat.

Now, let’s dive into the specifics that make Estonia so appealing:

• City-center rent: Expect to pay around €600 for a cozy spot.
• Dining out: A hearty meal in a local eatery will set you back about €11.
• Your morning coffee: Only €3 to kick-start your day.

When comparing Estonia’s living conditions to other destinations, the contrast becomes clear. For example, living in Tallinn comes with significantly lower expenses than in Helsinki (€975) or Paris (€1,400), where rents are approximately 16.56% and 67.71% higher, respectively. Moreover, while the average salary for software developers in Estonia may seem modest at around €27,000 — considerably lower than Germany’s €52,000 — the cost of living remains low, with estimated monthly costs for a single person at €840 without rent. This means that if you are a remote worker earning a Western European salary in Estonia, you can live comfortably due to the lower cost of living.

Moreover, due to its advanced digital infrastructure and straightforward visa processes, such as the Estonia Digital Nomad Visa and the E-Residency program, getting into the country and starting a business is pretty straightforward. And, its reputation as the birthplace of Skype highlights its status as one of Europe’s most digitally forward nations. The capital, Tallinn, and Tartu, are at the heart of a growing expat community, thanks to initiatives like the Settle in Estonia programme, which offers free adaptation and language courses for newcomers and their families. 

Find IT jobs in Estonia →

 

3. Spain

Spain really has it all — gorgeous beaches, lively festivals, and that famous laid-back lifestyle. Here, life is about enjoying the moment, whether that’s savouring a plate of paella, tapping along to flamenco music, or soaking in the mix of old and new in cities packed with history. Spain isn’t just about the big cities, either. It’s got tranquil villages and stunning coastlines that offer something for everyone, blending the old-world charm with a splash of modern life.

You can lead a comfortable life across Spain without facing the high costs common in other parts of Western Europe, which is why it is also a top holiday destination for Western Europeans and UK residents.

Let’s break down what makes Spain so wallet-friendly:

• Average rent in city centres: Around €930.
• Grabbing a meal: About €12 can get you a great meal at a restaurant.
• Coffee time: Just €2 for your coffee fix.

Choosing Spain as your home means you’ll be able to afford a great lifestyle. As a comparison, the combined monthly costs for a single person, including living expenses and rent, tally up to €2,300 in the Netherlands. However, Spain offers a much lighter financial load with a total of €1,630 per month for similar expenses. This means living in Spain is about 29.3% cheaper and you get the beauty, the culture, and the lifestyle for a lot less than some other Western European countries.

Spain is a top choice for expats, with its appealing lifestyle drawing about 6 million expats to cities such as Barcelona, Madrid, Valencia, Malaga, and Seville. The Digital Nomad Visa is perfect for remote workers, allowing them to live and work in Spain, bring family along, and travel around the Schengen Zone. There are multiple paths to EU residency, and many large international companies are hiring, making Spain an excellent spot for both lifestyle and career opportunities.

Find IT jobs in Spain →

 

4. Hungary

Hungary is Europe’s underrated star, blending cool history with a fresh, lively vibe. Imagine kicking back in one of Budapest’s ruin pubs, where the past and present collide in the most awesome way, or wandering through Buda Castle’s ancient corridors. But Hungary’s more than just a pretty place; it is famous for its culture, history, nightlife, cuisine, and much more. The thermal baths here are a great way to chill out after exploring the city or to recover from a night on the town. Plus, the countryside is packed with vineyards and festivals that showcase the local way of life.

Let’s look at the numbers that make Hungary so appealing:

• Average city-centre rent: A steal at €420.
• Eating out: A tasty meal for just €9.
• Coffee break: Only €2 for your caffeine hit.

With a cost of living index of 28.2 on a scale that goes to 100, Hungary is the cheapest European country to live in — on our list for sure, and one of the cheapest on the whole continent. You’re not going to find yourself stressing over rent like you might in Berlin, where you’d be forking out around €1,300. Based on just the cost of renting a city-center flat, living in Budapest, one would save approximately 68.2% compared to the rent in Berlin. This means you’ve got more cash to splash on enjoying everything Hungary has to offer, from delicious food to exploring UNESCO World Heritage sites.

With a Western EU salary, you can afford experiences like wine tasting in Eger or relaxing in the Széchenyi Baths — luxuries that might be too expensive elsewhere. Living in Hungary allows you to enjoy life to a high standard while saving money.

 

5. Montenegro

Montenegro is a country that packs a big punch when it comes to natural beauty. Picture yourself waking up to views of the majestic Adriatic Sea or planning weekend hikes in its rugged mountains. It’s not just the scenery that’ll catch your heart; Montenegro’s laid-back lifestyle in its historic towns and seaside villages offers a perfect retreat from the hustle and bustle. Plus, who can resist the charm of the Bay of Kotor or the sandy beaches of Budva?

Living in Montenegro doesn’t ask you to break the bank:

• City-center apartment rent: Just €600.
• Dining out: A tasty meal for about €9.
• Morning coffee: Only €2.

The low cost of living in Montenegro is most obvious when you compare it to pricier European destinations. For example, paying rent in a city like Montenegro’s capital, Podgorica (€530), is significantly cheaper than navigating the costs of life in cities such as Paris (€1,400) or Amsterdam (€1,900). While salaries in Montenegro may not top the charts, remote developers can expect a respectable yearly income of around €45,000.

Living in Montenegro is great for remote professionals or those with EU citizenship, as local English-speaking jobs are scarce. It’s a place where life’s cheaper, from housing to dining, allowing you to save or spend on enjoying the outdoors. While English isn’t common, you’ll manage, especially in expat-friendly spots. Montenegro’s perfect if you work remotely and crave adventure without the high costs of more popular expat destinations.

 

Make your move with Relocate.me

Are you worried about the costs but want to make the move? On Relocate.me, you can find a tech job from a company that supports international relocation, including some of the cheapest countries to live in Europe. There are new job opportunities every day in Europe, the US, and the UK, plus many of the countries mentioned above.