Living in Lisbon: A Guide for Foreigners

With its stunning landscapes, attractive climate, sightseeing opportunities, and charming Atlantic views, Portugal is a true gem in Southern Europe. The capital, Lisbon, has been attracting expats from every corner of the world, including digital nomads, investors, and families looking for a better quality of life or a change of scenery.

Here, we’ll delve into the heart of the city, providing you with everything you’ll need to know about relocating to Lisbon, from the cost of living and visa options, to key neighborhoods to consider.

Where is Lisbon?

Living in Portugal as an expat is the reality for many. Lisbon, situated on the western coast of the Iberian Peninsula in Southern Europe, serves as the capital and largest city of Portugal. Positioned at the mouth of the Tagus River as it meets the Atlantic Ocean, it is mainland Europe’s westernmost capital. Renowned for its stunning coastal backdrop, rich historical architecture, and lively cultural scene, Lisbon exudes charm and allure. 

Lisbon is the oldest European capital after Athens, as it predates Rome by four centuries. Located two-thirds of the way down the country from north to south, Lisbon sits on top of seven hills, where you can never tire of the stunning views. On the Lisbon coastline, you’ll find beautiful beaches, which makes the cosmopolitan center a perfect holiday destination, and, for locals, a quick visit to one of the fabulous beaches is a permanent possibility. 

Why is everyone moving to Lisbon?

So, why are so many expats moving to Lisbon, Portugal? Is Lisbon a nice place to live? Well, the abundance of expats moving to Lisbon- whether they are retirees, investors, or families – speaks for itself. In this section, we delve into some of the key reasons to consider life in Lisbon, Portugal.

Top reasons to consider living in Lisbon

Whether it is the fact that Lisbon has fast become a top location for startups or the abundance of top international schools, here are some key reasons to consider moving to Lisbon, Portugal, and calling the Portuguese capital home. 

1. Outstanding business and start-up hub 

Lisbon, Portugal, has become a highly sought-after business location in Europe in recent years, attracting investors, startups, and digital nomads. Web Summit relocating to Lisbon in 2016 has, in many ways, put the capital firmly on the map for expats looking to set up a business in Europe. 

The strategic location and convenient time zone make it easy to conduct business, as does the fact that the Portuguese generally have an excellent command of English. The Digital Nomad Visa launched in 2022 is another major draw for remote workers to secure residency in the country easily. 

2. Safe and tolerant

The safety aspect is one of the key drawcards of living in Lisbon as an expat. Portugal is the seventh most peaceful country in the world, according to the 2024 Global Peace Index. When it comes to the capital itself, the crime rate in Lisbon, Portugal, is very low compared to other European cities, and you will see this for yourself when living in Lisbon. 

Locals are very friendly and treat foreigners with warmth and kindness. Even if you need help and cannot speak Portuguese, you will always find someone who will try to communicate with you in English and point you in the right direction. 

Despite your gender, religion, ethnicity, sexual orientation, or social status, you should find the city very welcoming. Walking by Lisbon’s streets, you will notice immigrants and locals living in harmony, creating a vibrant mix of cultures. 

3. Excellent weather, stunning scenery, and beautiful beaches

The sublime climate and stunning natural surroundings of beaches and parks are some of the biggest selling points of life in Lisbon. While many other European capital cities are far from the coast, Lisbon is an exception.

One of the great perks of living in Lisbon is going to the beach whenever you want and being able to enjoy watersports, whether it’s kayaking, paddleboarding, or surfing. Two of the most famous beaches close to the city of Lisbon are Praia de Santo Amaro and Praia de Carcavelos. Some of the city’s most strikingly beautiful beaches are the ones found in Cascais, Estoril, and, on the other side of the Tagus River, Costa da Caparica.

4. Flexible immigration policies

Portugal makes it quite easy for foreigners to move to move to the country, with ample visa options to help more Lisbon expats qualify. With visa options like the D7 Visa for passive income earners, the Digital Nomad Visa, and the Golden Visa, there’s a path for almost everyone.

The process can involve some paperwork, but compared to other European countries, it’s relatively straightforward. We dive deeper into the different visa types further down below.

5. Affordable cost of living with high quality of life

Lisbon hits that sweet spot—great quality of life without the painful price tag of other European capitals. Property prices, rent, groceries, transport, and dining out are still more affordable than in cities like London or Paris, and you get sunshine, stunning views, and a laid-back lifestyle in return.

Buying or Renting a House in Lisbon as a Foreigner

Real estate in Lisbon is booming and, although property prices have increased rapidly over the past years, there are many parts of the city where you can still get a good deal.

In particular, house prices in the downtown area and in Lisbon city center have shot up, but if you buy outside the center, prices tend to fall. If you are considering buying property in Lisbon, it can be a smart move, whereby your property will likely increase in value over time given the continued buzz around the Portuguese capital.

Buying a house in Lisbon

It’s easy to buy a house in Lisbon, and you will find plenty of options open to you, with many property types on the market, from modern apartments to spacious waterfront houses. In our cost of living section later in the article, we’ll delve into more detail on the property prices you can expect to find in Portugal’s capital.

As there is no one ultimate property listing site, it can be a good idea to work with a buyer’s agent, such as Goldcrest, if you are seriously considering moving to Lisbon and buying a home. A buyer’s agent will have access to properties for sale that cannot be found elsewhere on the market, and will work solely on behalf of the buyer, ensuring they get the best possible deal on the property.

This is in contrast to real estate agents, who work on behalf of the seller and will, therefore, get a higher commission for a higher sale.

Renting a house in Lisbon

Renting a property in Lisbon can be quite difficult. This is because of the high demand for living in Lisbon in recent years, which has made it difficult to find an available apartment that suits every need. However, with patience, research, and good advice, you should be able to find the perfect place to rent in the city. 

How to Live in Lisbon as an Expat: Residence Permits and Visas

In this section, we’ll delve into how you can relocate to Lisbon, providing you with insights into how to secure residency in Portugal. If you are moving to Portugal, we will need to get a Portuguese NIF number (tax identification number) as soon as possible, as you will need this number for any major financial transactions. We also recommend that you set up a Portuguese bank account.

Living in Lisbon as an EU citizen

If you’re a non-EU citizen and are considering living in Lisbon, the good news is there are various visa options for you to apply for to be able to enter and live in Portugal. Portugal has been facilitating the visa processes to attract expats and investors to the country.  

Below are some popular pathways for non-EU nationals to secure residency in Portugal. Note that this list is not exhaustive, and there are several other visa types open to non-EU citizens, such as the Work Visa, and Student Visa. If you are considering relocating to Portugal, our residency and citizenship division, Global Citizen Solutions, would be delighted to assist you in discussing which option is best for your needs. 

Living in Lisbon as a non-EU citizen

If you‘re a non-EU citizen and are considering living in Lisbon, the good news is there are various visa options for you to apply for to be able to enter and live in Portugal. Portugal has been facilitating the visa processes to attract expats and investors to the country. Once you obtain a visa to travel to Portugal, after arrival, you will need to apply for a residence permit to settle in Lisbon, Portugal, and enjoy your benefits as a resident.

Below are some popular pathways for non-EU nationals to secure residency in Portugal. Note that this list is not exhaustive, and there are several other visa types open to non-EU citizens, such as the D3 Visa, D2 Visa, Work Visa, and Student Visa. If you are considering relocating to Portugal, our residency and citizenship division, Global Citizen Solutions, would be delighted to assist you in discussing which option is best for your needs.

Portugal Golden Visa

The Portugal Golden Visa is one of the most common visa programs for non-EU citizens who invest in Portugal through fund investments, donations, or company formation.  The Portugal Golden Visa scheme speeds up the process for non-EU investors to get a Portuguese residence permit if they make a qualifying investment in the country.

Note that due to the changes in the Portugal Golden Visa program, it is no longer possible to invest in properties in Portugal and qualify for the program.

D2 Visa Portugal

The D2 Visa in Portugal is perfect for entrepreneurs and small business owners who want to set up shop in Portugal. Whether you’re starting a café, launching a startup, expanding your business to a new branch in Lisbon, or investing in a local business, this visa gives you residency while you grow your venture.

D3 Visa Portugal

The Portugal D3 Visa is designed for highly skilled professionals, especially in fields like tech, science and engineering, education and healthcare. If you’ve got a job offer in Portugal that meets the qualifications, this visa fast-tracks you to residency and even opens doors to an EU Blue Card, which allows holders to reside and work in 25 different EU countries. It’s ideal for professionals who want to build a career in Portugal while enjoying everything Lisbon has to offer.

D7 Visa

Pensioners, entrepreneurs who want to live in Portugal, retired foreign citizens, or other expats living off of a recognized stable passive income, such as movable property, real estate, intellectual property, or financial investments, may be eligible to apply for the D7 Portuguese Visa, and subsequently, apply for a residence permit. To qualify, you’ll need to earn a minimum wage as determined by the Portuguese Government (currently €870 per month). 

You can find out more about this visa option in our article: D7 Visa Portugal: The Ultimate Guide. 

Digital Nomad Visa

In October 2022, Portugal unveiled the Digital Nomad Visa (D8 Visa), aimed at individuals from abroad who reside and are working remotely in Portugal. It caters to remote workers who do not work for a Portuguese company and who have a monthly income equivalent to four times the Portuguese minimum wage. In Lisbon, you will find several co working spaces across the city, perfectly designed for remote workers.

Cost of Living in Lisbon

The cost of living in Portugal is lower than in many other countries, such as the USA, UK, Ireland, Scotland, France, Germany, and neighboring Spain. If you are considering living in Lisbon as an American, you will likely be pleasantly surprised by the affordability of the city, from private healthcare to eating out. Comparing Lisbon to Washington, DC, for example, the cost of living in Lisbon is over 45 percent lower. 

Portugal is one of the most affordable countries in Western Europe, especially for expats and remote workers. It is important to note that the cost of living in Lisbon, from property to restaurants, is more expensive when compared to other areas in the country. In the interior areas, particularly in the parts of the country that do not have high numbers of expats in Lisbon, prices can be very low indeed. 

Our partner, Global Citizen Solutions, a boutique residency and citizenship by investment consultancy focused on finding the perfect investment, citizenship, or residency program for individuals across the world, has recently developed a new passport ranking. They take into account not only visa-free access to other countries but also investment opportunities and quality of life.  

In their Quality of Life Index, Portugal ranks in sixth position. This takes into account the cost of living alongside levels of freedom, happiness, environmental performance, sustainable development, and migrant acceptance. Portugal’s high ranking shows that the country is one of the best places to live in for those looking for a high quality of life coupled with affordability.  

In the following section, we will give more estimated figures to help you imagine the cost of living in Lisbon. Note that the cost of living will vary considerably depending on your lifestyle. 

How much do I need to live in Lisbon?

Portugal is an amazing country where the low cost of living does not compromise the high quality of life. In Lisbon, the estimated cost for a family of four is about €2,645 per month, excluding rent, while, for a single person, you could get by with €745 per month in Lisbon, also not including rent. This is according to the latest figures from Numbeo. Do take into account that rent in Lisbon is quite expensive. 

Property prices in Lisbon

The average asking price for property in Lisbon was €6,934 per square meter in 2024, while if you look at the Lisbon Metropolitan Area, this falls to €4,935, indicating that it is much more affordable to buy outside the city. Lisbon real estate prices will also vary considerably depending on the neighborhood you choose. 

Accommodation in Lisbon

If you’re going to rent in Lisbon, see below for estimated monthly rents, according to Numbeo. Note that Lisbon rents can vary depending on the neighborhood and proximity to the city center. To find rental apartments, utilizing expat groups and Facebook groups, alongside rental listing websites, can be a good option. 

• Apartment (one bedroom) in the city center: €1,412 
• Apartment (one bedroom) outside of center: €1,102 
• Apartment (three bedrooms) in the city center: €2,560 
• Apartment (three bedrooms) outside of center: €1,720 

Food in Lisbon

While living in Lisbon, you will find out that everyday essentials are quite affordable. You will also find several local markets across the city to buy your fresh produce. While prices have been increasing recently, they remain affordable compared to prices in other Western European cities.  

We listed some items for you to see an estimated example of the prices in Lisbon: 

Eating out in Lisbon

If you’re living in the city that was crowned Europe’s Best Culinary Destination in 2024, there’s no question that you’re going to have incredible options for eating out. Portugal is well-known for its incredible food and wine, with a focus on delicious seafood fresh off the boat.  

High-quality food comes as a standard, without the premium price tag that usually accompanies it in some other countries. You can enjoy a solid meal in Portugal for around €20 and can easily eat out a couple of times per week. 

You can see more information below: 

• A meal in an inexpensive restaurant: €13 
• A meal in a mid-level restaurant (Two people, three courses): €55 
• Water: €1.35 
• Cappuccino: €2.51 

Transportation in Lisbon

In Lisbon, you can buy a monthly transportation pass that will cost you €40. This is a really good deal because you will be able to use all the means of transportation in the city. A one-way bus ticket costs €2. 

Lisbon International Airport also has flights across the world. If you are looking for a weekend getaway, you will find many cheap flights available, particularly if you book well in advance. 

Expat Life in Lisbon

Lisbon is one of the most expat-friendly cities in Europe, with a growing international community and a laid-back lifestyle. Because of how diverse the capital is, you can truly make your new life in Lisbon your own.  

Whether you’re here for work, retirement, or adventure, it’s easy to make friends through coworking spaces, language exchanges, retirement communities, and expat groups. The mix of sunny weather, exciting activities like watersports and golf, great food, and a welcoming vibe makes it a fantastic place to call home. 

Finding a Job in Lisbon 

Wondering if you can find a job as an expat in Lisbon? Or whether Lisbon is a good place to live for remote workers? Well, you’ll be pleased to know that the job market in Lisbon is growing, especially in tech, tourism, and customer service.  

While salaries tend to be lower than in Northern Europe, the lower cost of living helps balance things out. If you speak multiple languages, there are plenty of opportunities in international companies, especially in Lisbon’s booming startup scene. 

As for remote workers, Lisbon has everything you could need—affordable living, a strong expat network, and plenty of coworking spaces and cafés with great Wi-Fi. Not to mention the accessible Digital Nomad Visa to help you get residency easily. Plus, with beaches just a short train ride away, it’s easy to balance work with an incredible lifestyle. 

Taxes in Lisbon 

Portugal’s tax system can seem a bit complicated, but the good news is there are benefits for expats, and with the help of a tax expert, you should have no troubles. 

The most important part to know is that the amount of tax you pay depends on whether you’re a tax resident or non-resident: 

• Tax residents (people who spend 183 days or more per year in Portugal or have their primary residence in the country) are taxed on worldwide income. Under the new Tax Incentive for Scientific Reasearch and Innovation program (which is replacing the NHR Portugal tax regime), those who qualify can enjoy the benefits of being taxed at a lower flat rate and will also benefit from exemptions on much of their internationally earned income. 
• Non-residents only pay taxes on Portuguese-sourced income, like rental earnings or local employment. 

If you’re planning to live in Lisbon long-term, it’s worth checking your tax status and possibly speaking to a local tax advisor to make the most of the available incentives. 

Opening a bank account in Lisbon 

Opening a bank account in Lisbon is quite straightforward, especially if you have a NIF number (Portuguese tax number), which is essential for banking and other financial transactions in the country.  

Most major banks, like Millennium BCP, Caixa Geral de Depósitos, and Novo Banco, offer accounts for foreigners, and it won’t be too difficult to find English-speaking staff at these banks. You’ll typically need your passport, proof of address, and proof of income to open an account. While in-person visits are common, some banks now allow online applications, too. 

Schools in Lisbon 

As an expat parent, there is no need to worry about your child’s education while considering moving to Portugal. There are 20 different international schools in the Greater Lisbon Area that are of very high quality.  Here are some of the most popular ones: 

• British School of Lisbon 
• Oeiras International School 
• Astoria International School 
• Redbridge School 
• Lycée Français Charles Lepierre 

As a legal resident of Lisbon, you can also enroll your children in a public school, which is free, but you should know that Portuguese is the main language used in public schools. 

Also, if you are moving to the capital and are looking for schools, you can consult our article: Lisbon Neighborhoods Close to International Schools. 

Getting Around in Lisbon 

In Lisbon, you can easily explore the city by walking, and the majority of the city’s attractions are located in the city center. Note that Lisbon’s streets can be tricky to navigate, as you’ll come across the narrow-cobbled streets in the city, and you will need comfortable shoes to get around  

If you’re considering getting around the city, there are many public transportation options. 

• Tram: You will find both historic trams and modern trams in Lisbon. Being a favorite mode of transportation for tourists and Portuguese people, trams in Lisbon are often crowded but can be the easiest way to get up and down the many hills in the city.  
• Train: All the major villages and towns in Lisbon can be reached by train. The trains are on time with comfortable coaches and affordable tickets. 
• Buses: One of the most flexible modes of transport to get around the city of Lisbon is by bus. They are also very affordable and reliable.  
• Metro: Boarding the metro is one of the fastest ways to move from one corner of the Portuguese capital to another. 
• Taxi: You will find that taxi rides in Lisbon are particularly cheap. You can also book an Uber or Bolt to move from one part of the city to another, which are even more affordable.  

Shopping in Lisbon

If you’re a shopping lover, you will fall more in love with shopping in Lisbon where you will find the latest fashion trends. Lisbon offers many glamorous shopping malls and international designer stores. Avenida da Liberdade, studded with high-end shops and designer boutiques, is Lisbon’s most popular shopping strip for luxury, while, in Principe Real, you’ll come across plenty of one-of-a-kind boutique stores for unique luxury shopping in Portugal experiences.

Healthcare in Lisbon

Living in Lisbon as a foreigner, you’ll be pleased to know that the healthcare system is generally very good. One of the main perks of living in Lisbon, Portugal, is the fact that, as a resident, you will be eligible to get access to public healthcare through Portugal’s National Health Service (SNS – Serviço Nacional de Sade).

In Lisbon, there are also a number of private hospitals and medical facilities to which you can go if you have health insurance. Private medical insurance in Portugal is quite affordable when compared with equivalent insurance in America or other European countries.

Language in Lisbon

Although the official language in Portugal is Portuguese, you will usually find someone who speaks English in Lisbon, especially in tourist places and hospitals. According to the new EF English Proficiency Index (EF EPI), which takes into account 100 countries and regions around the world, Portugal has the sixth-highest English proficiency among non-native speakers in the world. You should know that English is extensively spoken in Lisbon compared to other Portuguese cities.

However, learning the Portuguese language will be useful for integrating into your new neighborhood and immersing yourself in the Portuguese way of life. In government offices, you may find English is not so widely spoken, making it a good idea to learn Portuguese.

Weather in Lisbon

If you’re a nature lover and are constantly dreaming of living in a place full of sunlight and warm weather, well, Portugal is the destination for you. For example, Lisbon averages ten hours of sunlight during wintertime, which is an absolute luxury compared to the Northern European nations.

The hottest month is August, with an average temperature of 24 Degrees C (75 Degrees F), and the coldest month is January, with an average temperature of 12 Degrees C (54 Degrees F). November is the wettest month, with a lot of rain.

Things To Do in Lisbon

Lisbon is a city that never gets boring, with something for every mood—whether you’re up for a beach day, a night out, a relaxed afternoon at the park, or just exploring its rich history. From sipping coffee in a historic square to catching live music in a tucked-away bar, there’s always something happening. Here are some of the best ways to experience Lisbon’s magic. 

Visit the beautiful beaches 

One of the best things about Lisbon is the nearby beaches. Just a short train or car ride away, you can find yourself in Carcavelos for surfing, Guincho for dramatic coastal views, or Costa da Caparica for a laid-back beach day with fresh seafood restaurants nearby.  

Enjoy the vibrant nightlife 

Lisbon comes alive at night, and there’s a scene for everyone. Start with sunset drinks at one of Lisbon’s gorgeous rooftop spots, then hit Bairro Alto for lively streets packed with bars, clubs, and live music.  

Explore the arts and culture 

Lisbon is a creative city filled with history and modern artistic energy. Wander through the MAAT for cutting-edge exhibitions, visit the Berardo Collection Museum for contemporary art, or explore the historic Calouste Gulbenkian Museum.  

Street art lovers should check out LX Factory and the graffiti-covered walls of Marvila, where Lisbon’s urban artists have turned the city into an open-air gallery. 

Try the local cuisine 

Portuguese food is all about bold flavors and fresh ingredients. Trying a pastel de nata (custard tart) is a non-negotiable while in the city. Then, once you’re feeling up for other traditional dishes, you could try bacalhau à brás (salt cod dish) or polvo à lagareiro (roasted octopus).  

Don’t forget to try a glass of ginjinha, Lisbon’s famous cherry liqueur, best enjoyed in a tiny hole-in-the-wall bar. You’ll find many of these bars around Rossio Square. 

Experience festivals and attractions in Lisbon 

While living in Lisbon, you will never get bored. In Lisbon, you will experience various live events around the year. The events include art exhibitions, film and food festivals, concerts, and others. Some popular Lisbon live events are as follows: 

• New Year’s Concert: Like every big city in the world, Lisbon also welcomes the new year with grandeur. A grand concert is held on the evening of 1 January every year. 
• Lisbon Carnival: The month of February sees excited party-goers crowding the streets of Lisbon. 
• Festival of São João: This festival lights up the city, with locals and visitors flocking to the streets to celebrate by eating grilled sardines and partying until dawn. 
• Lisbon Pride: This is a must-experience event for the LGBTQIA+ community and supporters in Lisbon. Picture the streets filled with music, colorful floats, and an electric atmosphere, ending with parties across the city. 
• You will also find countless festivals taking place throughout the year, from summer Jazz festivals to the latest stars frequenting festivals such as SuperBock SuperRock and MEO Kalorama Lisboa. 

Living in Lisbon: Pros and Cons Summarized

Like every city in the world, Lisbon has its pros and cons. We’ve narrowed down some of Lisbon’s advantages and drawbacks so you will be able to see the whole picture clearly before deciding whether moving to Lisbon is the city for you. 

Advantages of living in Lisbon

• Affordable cost of living compared to other European capitals
• Pleasant climate
• Historic neighborhoods boasting incredible architecture
• Booming business center
• Beautiful beaches and lovely sightseeing with a large variety of things to do in Lisbon
• Various schools and education options
• Great social life
• For a big city, Lisbon retains a community feel in many neighborhoods

Drawbacks of living in Lisbon

• The steep hills and cobbled streets can be quite a workout 
• Portuguese bureaucracy can be slow
• Overtourism in summer
• Challenge to find rental apartments
• Limited central heating in winter 

Is Lisbon safe?

As the capital of Portugal, Lisbon has a possibility of a slightly higher crime rate than the rest of the country, but it is still a very safe city and a calm location to live in. As we mentioned previously, Portugal is the seventh safest country in the world, according to the Global Peace Index 2024. 

The Bottom Line on Living in Lisbon, Portugal

Living in Lisbon is a good idea for retirees, families, or digital nomads who are searching for a fresh start. The city offers an abundance of entertainment and cultural opportunities, as well as vibrant nightlife, great weather, and exquisite dining at affordable costs. As an expat, you will find in Lisbon the perfect amount of everything you may need, and moving to live in Lisbon could be the best decision you can make.

If you are searching for your dream property in Portugal, you can also contact us at Goldcrest, and we will be more than happy to help you decide where to live in Lisbon with your family and what options are available to you. We have a team of experts who will love to guide you through the process of buying your ideal home in Lisbon.