Living in Lisbon

Lisbon is the largest city in Portugal and one of the oldest capitals in Europe. It sits between the Tagus River and the Atlantic Ocean, with a backdrop of sunny hills and colourful narrow streets.

The city has changed quickly in the last decade, and is now a hub for tech companies, digital nomads, and international startups. Tourism has grown fast too, and rents have gone up along with it. But salaries haven’t kept up with these changes, so for some, Lisbon can feel expensive. For others, it’s still more affordable than many other European capitals.

Lisbon is still considered an affordable city with a good ratio of cost to quality of life compared to many big European capitals. Though salaries in Lisbon are lower than in other nearby cities like Barcelona and Paris, the cost of living remains manageable for most residents. Still, rising rent prices continue to put pressure on residents and newcomers alike. Aside from housing, everyday expenses like food, transportation, and utilities are mostly reasonable.

Lisbon leads Portugal’s startup and tech scene. Nearly half of the country’s startups are based in the city, and while the ecosystem is still growing, investment has been rising steadily for years. According to StartupBlink, Lisbon ranks as Portugal’s top startup hub, with over 360 startups operating across sectors like fintech, AI, and digital services.

Tech and creative professionals will find the most opportunities here. Companies like Catawiki, Farfetch, and Remote regularly hire developers, designers, and product specialists. Lisbon is also popular among remote workers. In fact, Portugal ranked 6th in NordLayer’s 2023 Global Remote Work Index, thanks in part to its relatively low cost of living and reliable internet infrastructure. The country’s visa options also make it easier for remote workers to stay longer.

English-speaking roles are most common in IT, customer support, and marketing. Outside the startup scene, tourism and hospitality continue to employ many people year-round.

Lisbon is the priciest city in Portugal, and rent has been climbing steadily in recent years. One-bedroom apartments in the city centre now average around €1,400—about the same as in Paris. The difference is that salaries in Lisbon don’t match this rise, especially when compared to those in neighbouring countries. In 2023, the Portuguese government introduced a plan to promote access to affordable long-term rentals and restrict Airbnb bookings, but demand from tourism and short-term stays still puts pressure on the market.

To find something more affordable, many expats look beyond the city centre. Some choose neighbourhoods like Marvila or Beato, while others move across the Tagus River to places like Montijo or Alcochete, where rents are lower and the commute into Lisbon is still reasonable.

Lisbon has a wide mix of transport options that include metro, buses, trams, ferries, suburban trains, and even funiculars and public elevators. These are very picturesque to use, but also very practical for getting up and down Lisbon’s steep hills. The Glória Funicular, which connects Restauradores Square to the Bairro Alto area, is the most popular and carries millions of passengers every year.

For day-to-day commuting, people use a mix of metro and bus services. A monthly pass called Navegante Metropolitano covers all public transport across the wider Lisbon Metropolitan Area, which makes it easier to move between Lisbon and nearby towns like Amadora or Sintra. The bike lane network is still small, but it’s growing slowly along the Tagus riverfront.

That said, some visitors and residents point out that public transport in Lisbon doesn’t always run on time, and the infrastructure could use more investment. Car use is very common among the Portuguese (partly for cultural reasons and partly because public transport can be unreliable) and many companies in Lisbon also provide cars to their employees.

Lisbon has a high-standard public healthcare system that’s part of Portugal’s Serviço Nacional de Saúde (SNS). This system covers all legal residents, including expats, and offers access to hospitals, health centres, and specialist care. Some services involve small co-payments, but many remain free, and exemptions exist for children, pregnant women, and people with chronic conditions.

Many residents also choose to get private health insurance to complement SNS health coverage, as plans are very accessible and can cost as little as €20. Expats who use the private system tend to go with companies like Multicare, AdvanceCare, or Tranquilidade, which have a good presence in Lisbon.