Living in Lisbon: A Guide for Foreigners

Top reasons to consider living in Lisbon

Now, let us tell you more reasons why expats, investors, individuals, and families from all over the world are seriously considering Lisbon as a top destination to live in and move to. 

1- Outstanding business location

Lisbon Portugal is one of the leading business centers in Europe, attracting investors and startups and offering a lot of job opportunities every year for different nationalities. While considering living in Lisbon, this is a clear benefit for entrepreneurs or if you are searching for work here.
People who are planning to open a new venture in the high-tech sector are targeting Lisbon now as one of the top available options. You should know that the city makes it very easy to set up a new business by offering really good deals on the offices’ prices. People who are searching for a high-quality business with professionals in a very encouraging environment will definitely admire what Lisbon has to offer.

 

2- Safe and tolerant

According to the World Population Review in 2022, Portugal ranked 3rd among the safest countries in the world, and the 4th in the global ranking for the most peaceful countries in the whole world, according to the 2020 Global Peace Index.
The crime rate in Lisbon Portugal is very low compared to other European cities, and you will see this by yourself when living in Lisbon. Locals are very friendly and treat foreigners with warmth and kindness. Even if you need help and you cannot speak Portuguese, you will always find someone who will try to communicate with you in English and direct 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 great harmony, and you will also see many immigrants in governmental offices and street shops. 

 

3- Excellent climate and beautiful beaches

When thinking of moving overseas and living in Lisbon, one of the most important questions will be: How is the climate?
Rest assured that in Lisbon Portugal, you will enjoy a peaceful life with great access to some beautiful beaches While most of the western European capitals are far from the coast, Lisbon is the western exception. One of the great perks of living in Lisbon is going to the beach whenever you want and enjoying sea sports. The two most famous beaches close to the city of Lisbon are “Praia de Santo Amaro” and “Praia de Carcavelos”. Some of the city’s distant but striking beautiful beaches are “Estoril” and “Cascais”. “Caparica” is another great beach to visit if you want to try surfing.  

 

4- Tax benefits

Portugal’s tax policy makes the country a very desirable destination for expats, attracting investors, self-employed professionals, and many others. If you’re an expat living in Lisbon Portugal, after 183 days of your residency you can take advantage of the Non-Habitual Residency (NHR) tax system in Portugal.
The Portugal NHR tax regime (non-habitual resident) offers many tax benefits to its recipients such as:

•  Special personal income tax treatment over a 10-year period; 
• Tax exemption on almost all foreign source income; a 20% flat rate for certain Portuguese source incomes (from specific professions and from self-employment) 
• Residents in Portugal for tax purposes are taxed on their worldwide income at progressive rates varying from 14.5% to 48% for 2022.
• Tax exemption for gifts or inheritance to direct family members, no wealth tax, and free remittance of funds to Portugal.

 

Best neighborhoods in Lisbon

So, where is the best place to live in Lisbon? In the following section, we will provide you with everything you need to know about Best Neighborhoods in Lisbon. Note that this will largely depend on your needs. You can also read more about the available homes for sale in Lisbon Portugal: Top ten neighborhoods.

 

1- Alvadale

Alvalade is one of the most practical neighborhoods in the city and is often overlooked by expats. Off the beaten tourist track, you have all the services that you could want and incredible seafood restaurants. Alvalade is where everything seems to fall into place in perfect harmony.
Close to the airport, this neighborhood remains somewhat hidden, with large sidewalks and proud avenues. Here, most people have their own private gardens and the locals can be seen talking with their neighbors. Indeed, a community feels still permeated, something that is lost in some of the other areas. Also, as with Estrela, this could be a good neighborhood for families. After you leave the busy Avenida da Roma, you find yourself in a quieter part of the city.

 

2- Avenidas Novas

Avenidas Novas might be considered one of the best neighborhoods in Lisbon to live in, as its leafy spacious streets are lined with large beautiful properties. Avenidas Novas begins at the grand Avenida da Liberdade, the most sought-after address in Lisbon. Avenida da Liberdade has many luxury and designer stores lining the street.
While Avenida da Liberdade is for those that are looking to capture a touch of luxury in the city, Avenidas Novas also has the fantastic Gulbenkian Foundation and its peaceful gardens are one of the many highlights of the city. Avenidas Novas is Lisbon’s business center, with working professionals mainly living in this part of town. At lunch, you’ll see all the cafés and their terraces occupied by those who work in Lisbon.
There are also a couple of high-end rooftop bars with views of the whole city. To live in, Avenidas Novas has something for everyone but also has some of the most sought-after real estate in Lisbon. 

 

3- Bairro Alto

A short walking distance away from Baixa, you’ll find Bairro Alto. This part of town can get quite noisy at night, so it may prove to be a better investment opportunity than a home, but you should be able to find some quiet areas away from the heady nightlife.
Bairro Alto is a melting pot of different cultures, fashionable restaurants, and celebrated nightlife. Cais do Sodré, with the famous Pink Street (formerly the city’s red-light district), is one of the most lively places in Lisbon, with tiny bars spilling out onto the side streets in the evenings and during the weekend. If looking to eat here, be sure to avoid the tourist traps and souvenir shops, which can be a little overpriced, and venture instead into more affordable Portuguese-owned restaurants or one of the trendy and up-and-coming restaurants.

 

4- Baixa

Baixa was largely rebuilt following the tragic earthquake in the 18th century, in the style of the then contemporary European city planning trend. With what remained of the city, and what was rebuilt, the contemporary architecture in Baixa, in central Lisbon, provides a certain neoclassical ambiance. A unique, central part of the city, perfect if you like strolling around large squares and discovering the exciting culture and heritage of the city. Yes, Rua Augusta Arch and  Praça do Comércio are both impressive architectural achievements and stand out points in the city.
One of the best things about living in Baixa is that the neighborhood is very strategically placed. Baixa is within close proximity to the nightlife center Bairro Alto, the old town, Alfama and the Castelo, and Chiado, a key shopping area in the city.  You can quickly get to the beaches in Cascais and Carcavelos by taking a short train ride, and all the significant sightseeing locations are a short walk away. Public transport is pretty cheap in Lisbon, so it may be better than hiring a car to get to the surrounding areas. 

 

5- Campo de Ourique

Campo de Ourique is up high on a quiet corner of town and is a very nice, family-oriented place in Lisbon. Lovely artisanal shops and an indoor food market are some of the things that make this one of the nicest neighborhoods in Lisbon to live in. The Portuguese food scene in Lisbon has become one of the best in Europe, so make the most of discovering the Portuguese cuisine. Campo de Ourique is also a popular Lisbon expat neighborhood, largely because it provides quick access to the main parts of the city and there are plenty of nice cafés and lunch places to enjoy.

 

6- Chiado

Just up from Baixa, Rua do Ouro and Rua Augusta are parallel to one another, and halfway down them, you’ll find the Santa Justa Elevator, a must for spectacular views of the city.
Famous for its lovely cafes, many star attractions, and typical architecture, Chiado is a lovely place to invest in or live. While you’ll find pretty busy streets in the summer months, its central location makes it effortlessly easy to get around the city. Shoppers will also delight in the range of shops on offer, both chain stores and independent Portuguese shops selling their wares.

 

7- Principe Real

Principe Real is a favorite for both tourists and locals. The area is pristine and is filled with lovely independent and boutique shops, concept stores, a great many restaurants and bars, and stunning properties. It is certainly one of the more upmarket, and busier, parts of town. The people living in Principe Real are a mix between young internationals, digital nomads, and Portuguese families. Even Scarlet Johansson recently snapped up an apartment in Principe Real. With a typical square and pleasant garden, you can sit out in an outside café and take in the colorful 19th Century mansions and exotic trees.
Finding a house here, you are not far from the River Tejo, close to the bustling nightlife, and yet far enough away to also relax in the garden and enjoy some peace. Note that prices here are more expensive than in other areas, due to their appeal.