Living in Lisbon: a complete guide to life in the Portuguese capital

Lisbon is known for its picture-postcard cobbled streets, scenic waterfront setting, and colourful culture. As one of the oldest cities in Europe, it is also steeped in fascinating history. Due to its great quality of life and sunny weather, Portugal's hilly capital is a popular destination for foreigners looking to relocate, propelled by the digital nomad visa programme and the city's affordability. It's no surprise Lisbon has become one of Europe's most sought-after cities for long-term living. 

Living in Lisbon means getting stuck into the city's dynamic tech and arts scenes, enjoying hearty meals at the local tascas and getting around the city on the iconic tramway.

Is Lisbon a nice place to live?

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Highlighting what makes Lisbon so special is tricky, as it depends on your personal preferences and lifestyle choices. Whether you enjoy a fun Friday night out or prefer a long hike on a Saturday, the city can offer you different things.

Gastronomy

Lisbon is a true paradise for food lovers. It is known for its diversity of flavours, spices, colours, fresh ingredients and rich culinary tradition. From traditional pastéis de belém, Portuguese custard tarts, to fresh fish and seafood, the city boasts plenty of tasty local dishes.

Surroundings

Another great advantage of living in Lisbon is its proximity to nature. The city is surrounded by beautiful beaches and natural parks, perfect for outdoor getaways. In addition, the city has several gardens and parks where you can relax, enjoy the sun, read a book and play with the kids.

Working in Lisbon

Lisbon has a growing economy with opportunities in various industries. The city is also a centre for innovation and entrepreneurship, attracting start-ups and technology companies from all over the world.

Nightlife

Lisbon's nightlife is lively and diverse, with a wide variety of bars, clubs and cultural events to enjoy on a weekend. Whatever your lifestyle, you're sure to find something you like in this city.

Why choose to live in Lisbon?

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There are countless reasons someone might choose to move to Lisbon, each contributing to the city's high quality of life. Along with the large digital nomad community, many international students choose to study in Lisbon, and it's also a popular destination for expat families looking for somewhere to settle.

Pleasant climate almost all year round

One of the great advantages of living in Lisbon is the climate. With over 2,800 hours of sunshine a year, Lisbon is one of the sunniest cities in Europe. This means you can enjoy outdoor activities such as hiking or watersports almost all year round.

Diverse culture

The city is renowned for its traditional music, fado, which you can enjoy in many bars and restaurants. Additionally, there are numerous live music venues featuring a variety of styles, and you're likely to encounter plenty of buskers along the city's picturesque streets. Lisbon also boasts a rapidly growing art and design scene.

Delicious food

Lisbon offers a wide variety of restaurants, serving everything from traditional Portuguese dishes in tascas to modern international grum. You can find a Nepalese restaurant, an upscale Japanese spot, and even an authentic American burger joint. The city is also home to countless irresistible Portuguese bakeries serving up fresh pastries and tarts.

Laid-back way of life

Despite being the capital of Portugal, Lisbon has a sense of calm and tranquillity that many big cities don't have. The pace of life is relaxed, people are usually friendly and welcoming, and there's a sense of community that makes life in the city very pleasant.

Best areas to live in Lisbon

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The Lisbon district in Portugal is a diverse region, offering a wide range of options for those looking for a place to call home. The best place to live in Lisbon varies based on your personal preferences, budget, and purpose for being in the city. If you're living in Lisbon for a month, you might prefer to live in the city centre, whereas the best areas for students might differ significantly.

Alfama

This is Lisbon's oldest neighbourhood and is famous for its narrow streets and colourful houses. This historic neighbourhood is perfect for those who appreciate old architecture and traditional Portuguese culture.

• Property for sale in Alfama
• Long-term rentals in Alfama

Parque das Nações

For those looking for a more modern and cosmopolitan vibe, Parque das Nações is an excellent option. This area was renovated for Expo '98 and is now one of the most modern parts of the city, with a wide variety of restaurants, bars and shopping centres.

• Property for sale in Parque das Nações
• Long-term rentals in Parque das Nações

Loures and Odivelas

These are popular choices for those looking for more affordable suburban living, but still with good access to Lisbon. With quiet neighbourhoods and a variety of shops and services, these areas are ideal for families and those looking for work in the centre of Lisbon.

• Property for sale in Loures and Odivelas
• Long-term rentals in Loures and Odivelas

Oeiras

With parks, beaches and a wide range of services, this area is attractive to families and professionals. Places like Paço de Arcos and Algés offer a pleasant residential atmosphere, with easy access to Lisbon and other surrounding areas.

• Property for sale in Oeiras
• Long-term rentals in Oeiras

Torres Vedras and Alenquer

For those looking for a life closer to nature and a rural atmosphere, Torres Vedras and Alenquer offer that charm. With vineyards, green fields and a tranquil atmosphere, these areas are perfect for escaping the hectic pace without being too far from the city.

• Property for sale in Torres Vedras and Alenquer
• Long-term rentals in Torres Vedras and Alenquer

Pros and cons of living in Lisbon

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If you're considering living in Lisbon, it's important to have a balanced view of the advantages and disadvantages this city has to offer. Like anywhere, Lisbon has its pros and cons, and understanding them will help you make an informed decision.

Advantages of living in Lisbon:

• A good network of schools and universities - Lisbon has a variety of renowned educational institutions, from primary schools to prestigious universities, including international schools. The universities in Lisbon are known for their academic quality, making it a destination city for many students.
• Exemplary public transport network - one of the great advantages of living in Lisbon is the transport network. The train connects various areas of the city and makes it easy to travel beyond the capital's boundaries.
• Possibility of getting around on foot - you can get to know a lot of Lisbon on foot, and it's also an economical and healthy way of travelling.
• The city's cultural scene - there's always something exciting happening in Lisbon, with a robust schedule of events and activities available every day of the week.

Disadvantages of living in Lisbon

• The cost of living can be high - the cost of living is increasing, especially in terms of housing. This can be a real challenge for those looking to live in the city and for locals on a lower salary.
• Traffic and crowded public transport - Lisbon also faces challenges related to traffic and crowded public transport, especially during rush hours. Congestion on the roads and overcrowding on transport can be very frustrating.
• Tourism pressure - Lisbon's growing tourism has been both a blessing and a curse. While it brings economic opportunities, it can also create additional pressure on residents.

Cost of living in Lisbon

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Understanding the cost of living in Lisbon is crucial when planning a move to the Portuguese capital, especially as prices continue to rise in the current economic climate. A single person living in Lisbon should budget around €1,700 per month, however, this can vary depending on your living situation and lifestyle choices.

Housing

As of April 2025, property prices in Lisbon averaged €5,615 per m2, however, the cost of housing in Lisbon can vary widely, depending on the location and type of accommodation. 

Renting in Lisbon is now on average €22.3 per m2, meaning you can expect to pay around €1,900 per month for an 85m2 apartment. Renting a studio apartment starts from around €700 per month and is more in the city centre. Living outside the city centre or renting a room in a shared flat can help you save money.

Food

An average lunch is around €13, and a meal for two in a mid-range restaurant can cost between €40 and €80. A beer or coffee can cost around €3, and expect to pay around €350 on groceries a month.

Public transport

Public transport in Lisbon is affordable and accessible, with a one-way ticket costing around €2. You can get a monthly travel pass covering the entire metropolitan area for €40.

Other costs

Utility bills (electricity, water and internet) for an 85m2 flat tend to be around €150 per month. As for health, Portugal has an excellent public health system, although you can also opt for private health insurance.

Living in Lisbon as an expat

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Lisbon has become an attractive destination for expats from all over the world, attracted by its welcoming atmosphere, great weather and film-like qualities. The city now has a strong expat community, with various social events and networking opportunities that make it easier for newcomers to adapt. However, it's worth noting that the influx of internationals in recent years, along with the increase in tourism, has impacted the cost of living, with housing prices going up.

For those planning to settle in Lisbon, integrating into the local community can enhance the living experience significantly. While English is widely spoken, particularly in tourist areas, learning Portuguese can provide a deeper connection to the local culture and facilitate day-to-day interactions. Embracing the local customs and building relationships with both locals and fellow expats enriches the experience of living in this vibrant capital city.

Living in Lisbon with kids

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