Those who decide leave their home country and move abroad are looking for better quality of life, security, good salaries and affordable housing. But how do expats live around the world? InterNations questioned foreigners living in 50 countries and revealed that Lisbon is considered by expats the fourth best city in the world to live in, according to the Expat City Ranking 2022. The Portuguese capital stands out for its excellent quality of life, good climate, local friendliness and affordable cost of living. But, according to the study, not everything is wonderful in Lisbon: career prospects are low, as are salaries.
According to the Expat City Ranking 2022, Lisbon is the fourth best city for expats, only beaten by Valencia (Spain), Dubai (United Arab Emirates) and Mexico City (Mexico). For workers displaced from their home country, the worst foreign cities to live and work are Johannesburg (South Africa), Frankfurt (Germany) and Paris (France). "I love the hospitable, patient and relaxed Portuguese people. They are helpful, kind and polite," says a US expat
The study published by InterNations in November 2022 also says that the Portuguese capital "is one of the cities where expats are happiest with life abroad" (86% say they are happy in Lisbon, compared to 71% globally). "Only expats living in Valencia are even happier," reveals the study. In addition, Lisbon "ranks among the best cities in terms of quality of life, ease of settling and managing personal finances, although expats see their career prospects in a negative light," the study further states.
In order to understand why Lisbon is one of the best cities for foreigners to live and work in, idealista/news has combed through all the indicators that make up the Expat City Ranking 2022, by InterNations. The capital was the only Portuguese city analysed in this ranking, which brought together almost 12,000 responses from expats representing 177 nationalities.
The best cities in the world for expats
| City | Quality of life | Adaptation to the city | Work | Personal finances | Housing | |
| 1 | Valencia | 1 | 3 | 41 | 3 | 3 |
| 2 | Dubai | 6 | 8 | 6 | 28 | 7 |
| 3 | Mexico City | 44 | 1 | 24 | 1 | 6 |
| 4 | Lisbon | 5 | 5 | 36 | 5 | 19 |
| 5 | Madrid | 4 | 7 | 38 | 10 | 17 |
| 6 | Bangkok | 39 | 4 | 39 | 2 | 1 |
| 7 | Basel | 12 | 42 | 14 | 8 | 21 |
| 8 | Melbourne | 19 | 17 | 4 | 27 | 27 |
| 9 | Abu Dhabi | 8 | 12 | 27 | 34 | 11 |
| 10 | Singapore | 20 | 23 | 28 | 16 | 24 |
Quality of life in Lisbon
The Portuguese capital was one of the best rated cities in the Quality of Life Index, ranking fifth in this ranking. Living with quality is so important that up to 17% of respondents moved to Lisbon for that purpose (vs. 7% globally). And, according to the study, expats are not disappointed: "Everything is great here: the climate, the people, the food and the nature," says an Indian expat.
Nevertheless, the first place in the Quality of Life Index 2022 was Valencia, in Spain, followed by Dubai and Mexico City. Johannesburg, Cairo and Kuala Lumpur came in the last places in the ranking.
To analyse the quality of life of expats in the 50 cities of the world, the study took into account several categories, in which the Portuguese capital stood out:
- Leisure activities: Lisbon ranked 9th in a category led by Barcelona. At the bottom of the table was Muscat, the capital of Oman. In Portugal's capital, foreigners say they appreciate the culture and nightlife (87% say they are happy vs. 67% globally), as well as the opportunities to do recreational sports (94% vs. 81% globally);
- Travel and transport: for the ease of travel and the quality of public transport, Lisbon ranked 15th. Expats consider it 'easy' to walk or cycle in the Portuguese capital (93% vs. 77% globally). Vienna (Austria) came first in this indicator, and Johannesburg came last;
- Health and well-being: this was the category in which the Portuguese capital performed worst, falling to 28th position. The best quality of healthcare is in Abu Dhabi, in the United Arab Emirates, and the worst in Dublin, Ireland;
- Safety and social protection: Portugal is considered to be one of the safest countries in the world, and also ranked 6th in the Economy and Peace Institute's Global Peace Index 2022. In this study, Lisbon ranks 8th, not least because more than nine out of ten expatriates say they feel safe in the capital (94% vs. 81% globally). Still, Copenhagen, in Denmark, is considered the safest destination of all. In contrast, the least safe city, out of the 50 analysed, is Johannesburg;
- Environment and climate: this was the category in which Lisbon obtained the best classification of the five categories analysed, coming in third place. According to the study, "almost all expats (98%) are satisfied with the climate of the capital (vs. 62% globally)". Lausanne (Switzerland) was bettered by Lisbon, which took first place. Last place went to Cairo, the capital of Egypt.
What is essential for an expat when moving abroad?
Access to housing, visas, internet and communication are top the list of requirements of expats moving abroad. In order for foreigners to live and work in other countries, they need to obtain a residence visa, find a house, learn the language of the country and also have access to digital media. It was in this context that InterNations decided to evaluate the ease with which expatriates can obtain the essential elements to live in each city in the world, through the "Expat Essentials Index 2022".
In this ranking, Lisbon is the 19th city where expatriates manage to obtain these essential elements for living. In first place is Dubai, followed by the capital of the United Arab Emirates, Abu Dhabi. The city where it is most difficult to gather the essential conditions to live is Frankfurt, in Germany, according to the study.
In order to evaluate the ease with which foreigners manage to meet the essential factors for living, the study considered four categories:
- Housing: the city where it is easiest to find affordable housing is Bangkok, Thailand. The most difficult city is Munich, Germany. Lisbon is the 19th city where expatriates find it easiest to find a house they can afford. Find property for sale in Lisbon with idealista.
- Administrative topics: Lisbon is the 25th city of the 50 analysed where it is easiest to open a bank account, obtain a residence visa and deal with local bureaucracy. Dubai is where it is easiest to deal with these issues and Rome is where it is most difficult, points out the study;
- Digital life: when a citizen moves to another country, they also look for easy access to the Internet, to online public services, as well as to digital payments. And on this point Lisbon ranked 27th on the list. Tallinn, the capital of Estonia, was considered the city with the best access to the digital world and Shanghai, in China, the worst;
- Local language: this category covers the ease of living in a particular destination without speaking the local language, as well as the simplicity in learning it. In this topic, Singapore appears in first place and Tokyo, in Japan, in last. Lisbon was in the first half of the table, in the 20th position.
Working in Lisbon: the biggest challenge for expats
As far as expats' experience of working abroad is concerned, Lisbon is not so highly ranked - it came 36th our of 50. In first place in the Working Abroad Index 2022 was Copenhagen, followed by Dublin and New York. Istanbul, in Turkey, came last.
In Portugal, there are incentives to attract foreigners to live and work, such as visas for digital nomads and the new law for foreigners, which facilitate their entry into the country. But for those who come from abroad and get a job in Portugal, not everything goes well, with low career prospects, low wages and a work culture where flexibility and creativity are often lacking.
To evaluate foreigners' experience of working in the different cities of the world, the study evaluated four categories and Lisbon was badly positioned in almost all of them:
- Career prospects: the city which gives the greatest incentives for the evolution of professional careers is indeed New York, in the USA. And Lisbon is one of the cities where expats have the least career development opportunities, as it was ranked 42nd on the list. In last place was Valencia, in Spain (although it was considered the city with the best quality of life in 2022, according to the same study);
- Work-life balance: of the four categories, this is the one in which Lisbon is best positioned, as it occupies the ninth position, in a list in which Copenhagen takes the top spot. Cairo came last. According to the study, more than seven in ten expatriates (72%) positively rate the balance between professional and personal life in Lisbon (vs. 62% globally).
- Salary and job security: Basel, in Switzerland, is where there are the best salaries and highest job security, according to the respondents. The opposite is true in Istanbul, while Lisbon is among the last places, in 44th position. Some 27% of foreign workers living in Lisbon feel they are not paid fairly. "Salaries in general are very low in Portugal," said an Irish expat quoted by the study.
- Work culture and satisfaction: it is in New York that expatriates are most satisfied with the work culture, measured by the incentives for creativity, independent work combined with flexibility. Lisbon ranks 30th on a list in which the last place (50th) is occupied by Tokyo, the Japanese capital.
Although the Lisbon job market is not attractive, expats living in the Portuguese capital say they are satisfied with their personal finances, placing Lisbon fifth in the Personal Finance Index 2022.
Expats' "high satisfaction" with the cost of living [although it is more expensive with inflation] may help explain this ranking: some 69% of foreigners living in the capital say they are happy with the management of their personal finances, compared to 45% globally. And, despite low salaries, "71% say their available household income is sufficient or more than enough to lead a comfortable life, a percentage almost equal to the global average (72%)."
