City guide

🇵🇹 Living in Lisbon

Sunlit Atlantic capital with a thriving international community and a gentler cost of living

At a glance

Population

550,000 (metro: 2.9M)

Currency

EUR

Avg. salary

€30,000–€55,000

Effective tax

32–40%

Climate

Mediterranean

Tax regime

Progressive to 48% (IFICI incentive for some)

Nomad visa

Yes

Net salary calculator

Calculate your take-home pay in Lisbon with our detailed tax calculator.

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Cost of living

Rent (1-bed, center)	€1,200/mo
Rent (1-bed, suburb)	€875/mo
Groceries (single)	€230/mo
Groceries (family)	€710/mo
Transport pass	€40/mo
Restaurant (2 people, mid-range)	€70
Coffee	€1.20
Gym membership	€30/mo
Healthcare	SNS (public healthcare) available; private insurance around €50/month for faster access

Frugal

€1,400

/month

Moderate

€2,000

/month

Comfortable

€2,900

/month

Budget calculator

Build a detailed monthly budget for Lisbon based on your lifestyle.

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Why choose Lisbon?

One of Western Europe's most affordable capitals, with a mild Atlantic climate year-round

A large, established international and remote-worker community

The D8 visa offers a dedicated route for remote workers and the self-employed

Widely spoken English alongside Portuguese, easing the early transition

Atlantic coast, beaches, and surf within easy reach of the city

Strong flight connections across Europe, the Americas, and Africa

Quality of life

Overall

8.5

Safety

8.5

Healthcare

7.5

Education

Air Quality

7.5

Culture

Expat Community

8.5

English Proficiency

7.5

Moving to Lisbon : checklist

1Search listings on Idealista and Imovirtual; furnished rentals suit new arrivals
2Obtain a NIF (tax number) early, as it is required for almost everything
3Prepare proof of income; landlords often ask for several months upfront
4Open a Portuguese bank account once you have a NIF and proof of address
5Register with the SNS for public healthcare after securing residency
6If applying for the D8 visa, prepare proof of remote income above the required threshold
7Get a Navegante card for Lisbon's metro, trams, and buses
8Understand that the former NHR regime is closed; the IFICI incentive applies only to qualifying professions

Frequently asked questions

What is the income tax rate in Lisbon?+

Portugal applies a progressive income tax up to around 48 percent at the top band. For a single person earning between 30,000 and 55,000 euros, the effective rate including social contributions sits at roughly 32 to 40 percent. The former NHR regime is closed to new residents; a narrower incentive called IFICI applies only to qualifying professions in science, technology, and innovation.

Is the NHR tax regime still available in Portugal?+

No. The Non-Habitual Resident regime closed to new entrants at the end of 2023, and the transitional period ended in March 2025. It was replaced by the IFICI incentive, which offers a 20 percent flat rate but only to qualifying professionals in scientific research, technology, and innovation. Most new residents are taxed under the standard progressive rates.

Is Lisbon affordable to live in?+

Lisbon is the most affordable city in this comparison, though prices have risen with its popularity. A one-bedroom in the centre averages around 1,200 euros per month, with a comfortable monthly budget near 2,900 euros for one person. Costs fall further outside the centre.

Does Portugal have a digital nomad visa?+

Yes. Portugal offers the D8 visa, a dedicated route for remote workers and the self-employed who earn income from outside Portugal above a set threshold. It allows residence and can lead to longer-term status, making Lisbon a popular base for remote professionals.

Is English widely spoken in Lisbon?+

Yes. English is widely spoken in Lisbon, particularly among younger people, in business, and across the large international community. Portuguese is the official language and learning it helps with daily life and integration, but many new arrivals manage comfortably in English at first.