Lisbon Cost of Living for Expats

1. Housing costs in Lisbon

Housing in Lisbon is the most significant expense, with prices varying by neighborhood, property type, and rental length. Central areas like Chiado and Alfama are typically more expensive, while areas outside the city center offer more budget-friendly options.

Popular Neighborhoods:

• Central Areas: Popular areas like Chiado, Baixa, and Bairro Alto attract higher rents due to proximity to Lisbon’s main attractions and amenities.
• Outer Areas: Neighborhoods like Alcântara, Benfica, and Amadora are more affordable, with one-bedroom apartments ranging from €900 to €1,100.

2. Purchasing property in Lisbon

Lisbon’s property market is thriving, with options ranging from modern apartments in newly developed areas to historic buildings in central neighborhoods.

While prices are among the highest in Portugal, they remain competitive compared to major European capitals.

Key Points for Buyers:

• Closing Costs: Buyers should budget for IMT (Property Transfer Tax) up to 6%, Stamp Duty at 0.8%, and notary fees of around €1,000 to €2,000.
• Property Management: When renting out the property, management fees typically range between 5-10% of the rental income.

3. Utilities and Internet

Utility costs in Lisbon vary depending on apartment size, season, and usage, especially heating in the winter and air conditioning or fan in the summer.

Many rentals may include basic utilities, but it’s essential to check with the landlord. Internet services, provided by companies like NOS, Vodafone, and MEO, start at €30 per month.

4. Grocery and food costs

Lisbon’s grocery costs are reasonable, and local markets often offer fresh produce at lower prices than supermarkets. Expect to spend about €200 to €250 per month on groceries for one person.

Shopping at popular chains like Pingo Doce, Continente, or Lidl can help control grocery costs.

5. Dining out in Lisbon

Dining out is more costly in Lisbon than in other Portuguese cities, but it is still affordable compared to cities like London or Paris.

Lisbon offers a range of dining experiences, from traditional Portuguese tascas (family-run eateries) to high-end restaurants in Chiado and Alfama.

6. Transportation costs

Lisbon’s extensive public transport network includes metros, buses, trams, and trains. The monthly transportation pass (Navegante Card) provides unlimited access across all zones.

Residents widely use the Navegante Card, which offers cost-effective access to all forms of public transportation. Lisbon is also relatively walkable (if you can tackle the hills), which can help cut transportation costs.

7. Healthcare and insurance

Portugal’s public healthcare system offers affordable care, but private health insurance is popular among expats seeking faster access and additional services.

Portugal’s public healthcare system is available to residents, but private health insurance, starting at around €15 per month, provides easier access to specialist care and reduced waiting times.

8. Entertainment and leisure

Lisbon offers diverse entertainment, from museums and theaters to beach outings and nightlife, catering to a wide range of budgets.

The city’s vibrant nightlife and cultural offerings make it a popular place for leisure activities, with everything from beach trips to fado shows and art exhibits.