Lisbon Expats: Essential Insights for Immigrants

Cost of living in Lisbon for Expats

Let's get straight to one of the most critical factors: how much does it really cost to live in Lisbon? The oft-repeated claim that Lisbon is "incredibly cheap" is, frankly, outdated. While it remains more affordable than many other Western European capitals (London, Paris, Dublin, Amsterdam, etc.), the cost of living, particularly housing, has risen dramatically in recent years.

Here's a detailed breakdown, drawing on data from recent reports from varied sources as of in 2025:

A. Housing in Lisbon

This is the single biggest expense for most expats and the area where the "cheap Lisbon" narrative falls apart. The rental market is extremely competitive, with demand far outstripping supply.

• Rent (1-bedroom apartment, city center): Expect to pay anywhere from €1,200 to €2,000+ per month. The exact price will depend heavily on the specific neighborhood (Chiado and Príncipe Real are significantly more expensive than, say, Graça or Anjos), the size of the apartment, its condition (renovated vs. unrenovated), and whether it has amenities like a balcony or parking.
• Rent (1-bedroom apartment, outside the city center): You might find something in the €850 to €1,400+ range in areas like Benfica, Alvalade, Campo de Ourique (those three inside Lisbon, just not in Baixa area), or even further out along the train lines. However, even these areas are seeing significant price increases.
• Rent (3-bedroom apartment, city center): Prepare to pay €2,000 to €4,000+ per month. Family-sized apartments in prime locations are a luxury.
• Rent (3-bedroom apartment, outside the city center): You'll likely find more space for your money (€1,400 - €2,500+), but factor in commute times and access to amenities.

Important considerations

• Competition: Be prepared to act fast. Desirable apartments are often rented within hours of being listed. Have all your documents ready (passport, NIF, deposit, proof of income, references).
• Landlord Requirements: Many landlords require multiple months' rent in advance, a guarantor (fiador—a Portuguese resident who co-signs the lease-that can be dismissed upon the payment of more rents in advance), and proof of income that's often three times the monthly rent.
• "Hidden" Costs: Factor in condominium fees (condomínio), which can range from a few euros to hundreds of euros per month, depending on the building's amenities (not that common, though).

B. Utilities in Lisbon

• Electricity, heating, cooling, water, and garbage (for an 85-m² apartment): Expect to pay between €120 and €180 per month, depending on usage and the time of year. Costs can be higher in winter if you're using electric heaters (many older apartments lack central heating).
• Internet/Phone/TV: Packages range from €30 to €60 per month, depending on the provider and the services included.

C. Food in Lisbon

• Groceries (single person): A realistic monthly grocery budget for a single person is €200 to €400, depending on your eating habits. Shopping at local markets (mercados) can often be cheaper than supermarkets for fresh produce.
• Groceries (family of four): Budget for €600 to €1,000+ per month.
• Dining Out:
  • Lunch (basic menu with drink) in a tasca (local restaurant): €10 - €15
  • Dinner (mid-range restaurant, for two): €40-€70.
  • Coffee (in a café): €0.70 to €1.50
  • Pastel de Nata: €1.20 - €2.00

D. Transportation in Lisbon

• Monthly Public Transport Pass (Lisboa Viva card): €40. This covers the metro, buses, trams, and some ferries within the city. It's an excellent value if you use public transport regularly.
• Single Metro/Bus Ticket: €1.80
• Taxi: Relatively affordable compared to other European cities. A short ride within the city center might cost €5-€10.
• Ride-Sharing Services (Uber, Bolt): Widely available and often cheaper than taxis.
• Owning a Car: While not essential in the city center, owning a car can be convenient for exploring outside Lisbon. However, factor in the costs of purchase/lease, insurance, fuel, parking (which can be expensive and difficult to find), and tolls.

E. Healthcare in Lisbon

• Public Healthcare (SNS): As a legal resident, you'll have access to Portugal's National Health Service (SNS), which is generally affordable (low co-pays for most services). However, wait times for specialist appointments and elective procedures can be long.
• Private Health Insurance: Many expats opt for private health insurance for faster access to care and a wider choice of doctors. Monthly premiums vary widely depending on age, coverage, and provider, but expect to pay anywhere from €50 to €200+ per person.

F. Education in Lisbon

• International Schools: If you have children, international schools are a significant expense. Tuition fees can range from €8,000 to over €20,000 per year, depending on the school and the grade level.
• Public Schools: Portuguese public schools are free, but the instruction is in Portuguese.

G. Leisure and Entertainment

• Gym Membership: €30 - €60+ per month.
• Cinema Ticket: €7 - €10
• Museum Entrance: €5 - €15 (many museums offer free admission on certain days or for residents).
• Concert/Event Ticket: Varies widely depending on the event.

H. Other Expenses

• Clothing: Prices are generally comparable to other Western European countries, though some iberian sotres may be slightly cheaper.
• Personal Care: Haircuts, toiletries, etc., are also comparable.

What about the Lisbon housing crisis?

Forget the glossy brochures and the Instagram posts showcasing charming tiled facades. While those aspects of Lisbon certainly exist, the reality of finding a place to live in the city in 2025 is far more complex and challenging.

This isn't just about finding a "nice apartment"; it's about navigating a housing market in crisis, characterized by soaring prices, intense competition, and a significant gap between expectations and reality.

Why is Lisbon's housing market in crisis?

Several factors have converged to create the current housing crisis:

1. The "Golden Visa" Program (and similar schemes): While intended to attract foreign investment, the Golden Visa program, which offered residency in exchange for property investment, has been heavily criticized for driving up prices and making housing unaffordable for locals and "regular" expats. Although the program has undergone changes (real estate investment no longer qualifies), the damage has been done, and the ripple effects are still being felt.
2. The Rise of Short-Term Rentals (Airbnb, etc.): The profitability of short-term rentals for tourists has incentivized landlords to remove properties from the long-term rental market. This drastically reduces the supply of available housing for residents. While Lisbon has implemented some regulations to curb this (e.g., limiting licenses in certain areas), the impact is still significant.
3. Increased Demand from Expats and Digital Nomads: Lisbon's popularity as a desirable destination has led to a massive influx of people seeking to live there, further increasing demand and putting pressure on the limited housing supply.
4. Limited New Construction: While there is some new construction happening, it's not keeping pace with the demand, and much of it is focused on luxury developments, not affordable housing. Bureaucratic hurdles and zoning regulations also slow down the construction process.
5. Inflation and Rising Interest Rates: General inflation and rising interest rates on mortgages have made buying property more expensive, further increasing demand for rentals.
6. Speculation and Investment: Real estate in Lisbon is seen as a safe and profitable investment, attracting both domestic and international investors, which further drives up prices.

What should an Expat expect from Lisbon's housing market?

• Intense Competition: Be prepared to compete with dozens of other applicants for a single property. Desirable apartments are often rented within hours of being listed.
• Fast-Paced Market: You need to be ready to act immediately. Have all your documents prepared (see below), be available for viewings at short notice, and be prepared to make a decision quickly.
• High Rents: Rents have skyrocketed in recent years. Expect to pay significantly more than you might have anticipated based on older data or anecdotal evidence.
• Demanding Landlords: Landlords can afford to be picky. They often require multiple months' rent in advance, guarantors, proof of income (often 3x the monthly rent), and extensive documentation.
• "Hidden" Costs: Be aware of additional costs, such as condominium fees (condomínio), which can add significantly to your monthly expenses.
• Scams: Unfortunately, the competitive market has also created opportunities for scammers. Be cautious of listings that appear excessively favorable, and refrain from transferring funds prior to inspecting the property and finalizing a contract.

What are the essential documents to rent a property in Lisbon as an Expat?

To even be considered for a rental property in Lisbon, you'll typically need:

• Passport (and copies): Proof of identity.
• NIF (Número de Identificação Fiscal): Your Portuguese tax identification number. You must have this.
• Proof of Income: Payslips (recent, typically last 3 months), employment contract, tax returns, bank statements. Landlords want to see that you can afford the rent.
• Portuguese Bank Account (occasional): Many landlords prefer to receive rent payments from a Portuguese bank account.
• References (occasional): Letters of recommendation from previous landlords.
• Guarantor (Fiador): Some landlords require a guarantor, a Portuguese resident who agrees to be responsible for the rent if you default. This can be difficult to arrange for newcomers.
• IRS declaration (for the previous year)

⚠️ Feel free to try and present IRS, guarantors and references from other countries. Some landlords may be flexible enough to accept it. Remember Lisbon is fastly becoming an international hub and several people are adapting to it.

How can an Expat find housing in Lisbon?

• Start Early: Begin your search well before you plan to move. The more time you have, the better.
• Use Multiple Platforms: Don't rely on just one website or agency. Use a combination of online portals, real estate agencies, and word-of-mouth.
  • Online Portals:
    • Idealista: https://www.idealista.pt/ (The most popular real estate portal in Portugal)
    • Imovirtual: https://www.imovirtual.com/
    • Casa Sapo: https://casa.sapo.pt/
    • OLX: https://www.olx.pt/ (While classified websites can be riskier, they also offer some excellent deals).
    • CustoJusto: https://www.custojusto.pt/
    • Uniplaces: https://www.uniplaces.com/ (Primarily for students, but also has some longer-term rentals.)
    • Spot-a-home: https://www.spotahome.com/ ⚠️ We have a discount code with Spot-a-home! Get in touch with us to retrieve yours.
  • Real Estate Agencies:
    • ERA
    • Remax
    • Century 21
    • Engel & Völkers (for higher-end properties)
    • Local agencies (search for "imobiliária" + neighborhood name)
  • Facebook Groups:
    • "Aluguer Lisboa" (and similar groups) - Be cautious of scams, but these groups can be a good source of leads.
• Network: Let everyone you know—friends, colleagues, and contacts in Lisbon—know that you're looking for housing. Word-of-mouth can be very effective.
• Be Flexible: Consider neighborhoods outside the city center (Baixa area). Areas like Benfica, Alvalade, Campo de Ourique (all of them still inside Lisbon), and even further out along the train lines (e.g., Almada, Queluz) can be more affordable and offer a good quality of life.
• Consider a Short-Term Rental Initially: If possible, secure a short-term rental (e.g., Airbnb, Booking.com) for your first few weeks or months. This gives you time to explore different neighborhoods and find a long-term rental without the pressure of having to decide immediately upon arrival.
• Learn Some Portuguese: While many landlords and agents speak English, knowing some basic Portuguese can be a significant advantage, as well as a tool to identify key terms, such as rent (aluguer), or short-term (temporada).
• Be Persistent: If you don't find something right away, don't give up. The Lisbon housing market is tough, but persistence pays off.
• Negotiate: While the market is competitive, there may still be some room for negotiation, especially on longer-term leases.
• Understand your rights: Tenancy laws in Portugal are quite favorable to the tenant.

Extras fees for renting in Lisbon as an Expat

Beyond the monthly rent, be aware of these potential costs:

• Condominium Fees (Condomínio): These are monthly fees for the maintenance of common areas in apartment buildings (e.g., cleaning, elevator maintenance, security). They can range from a few euros to several hundred euros per month, depending on the building and its amenities. Not all buildings will have it. Always check with the owner or property manager.
• Utilities: Typically, the rent does not include electricity, gas, or water.
• Internet/Phone/TV: These are also usually separate expenses.
• Agent Fees: If you use a real estate agent, they may charge a fee (typically up to one month's rent).
• Deposit: Typically one to three months' rent, refundable at the end of the lease (assuming no damage to the property).
• Advance Rent: Some landlords nay require several months' rent in advance, in addition to the deposit (specially withou a guarantor).

⚠️ It's illegal for landlords to rent out properties on long-term contracts without registering them with the tax authorities. Landlords often do this to avoid paying taxes, but it exposes the tenant to risk. Always insist on a registered contract.

Job market in Lisbon for Expats

Lisbon's job market presents a mix of opportunities and challenges for expats.

While the city is experiencing a boom in certain sectors, it's also important to be aware of the realities of the Portuguese employment landscape.

A. High-demand sectors

• Technology: Lisbon has emerged as a significant European tech hub, attracting both startups and established multinational companies. This has created strong demand for skilled professionals in areas such as:

  • Software Development (various languages and frameworks: Python, Java, JavaScript, React, Angular, etc.)
  • Data Science and Analytics
  • Cybersecurity
  • Cloud Computing (AWS, Azure, Google Cloud)
  • Project Management (Agile, Scrum)
  • UX/UI Design
  • Fintech

  ⚠️ Companies like Google, Microsoft, Amazon, Cisco, and Siemens have a significant presence in Lisbon, along with a growing number of Portuguese tech companies and startups.

• Tourism and Hospitality: As a major tourist destination, Lisbon offers numerous opportunities in the tourism and hospitality sector. However, it's important to note that many of these jobs are seasonal and may offer lower salaries compared to other sectors.

  • Hotel Management
  • Restaurant staff (chefs, servers, and bartenders).
  • Tour Guides
  • Event Planning
  • Customer Service (in hotels, resorts, etc.)

• Customer Service/Shared Service Centers: Many multinational corporations have established customer service or shared service centers in Lisbon, often requiring multilingual skills.

  • Customer Support Representatives (various languages)
  • Technical Support Specialists
  • Human Resources
  • Finance and accounting

• Teaching English: There's a consistent demand for English teachers in Lisbon, particularly for those with TEFL (Teaching English as a Foreign Language) or CELTA (Certificate in English Language Teaching to Adults) certifications. Opportunities exist in private language schools, international schools, and universities.

• Real Estate: With the property market (despite its challenges) still active, there are opportunities for real estate agents, property managers, and related professionals. However, fluency in Portuguese is usually essential for these roles.

B. The Startup scene in Lisbon

Lisbon has a thriving startup ecosystem, supported by incubators, accelerators, co-working spaces, and venture capital investment. This creates opportunities for entrepreneurs and those seeking to work in a fast-paced, innovative environment.

• Key Startup Hubs:
  • LX Factory: A former industrial complex transformed into a creative hub with co-working spaces, shops, restaurants, and event spaces.
  • Second Home Lisboa: A co-working space known for its design and community.
  • Startup Lisboa: A business incubator that provides support and resources to startups.
  • Beato Creative Hub: A large-scale project to transform a former military complex into a hub for innovation and entrepreneurship.
• Web Summit: The annual Web Summit technology conference, held in Lisbon, has significantly boosted the city's profile as a tech hub and attracted international attention.

C. Salaries and working conditions in Portugal as an Expat

It's crucial to have realistic expectations about salaries in Lisbon. While the cost of living can be lower than in some other Western European capitals, salaries are also generally lower.

• Average Salaries: The average net monthly salary in Lisbon is significantly lower than in cities like London, Paris, or Berlin.
• Minimum Wage: Portugal has a national minimum wage (870 euros, gross), which is relatively low compared to other EU countries.
• Working Hours: The standard workweek in Portugal is 40 hours.
• Paid Vacation: Typically, employees receive 22 working days of paid vacation per year, in addition to public holidays.
• 13th and 14th Month Salary: It's common in Portugal to receive a 13th-month salary (Christmas bonus) and a 14th-month salary (holiday bonus), usually equivalent to one month's salary each.

D. The language barrier (Portuguese vs. English)

While English is widely spoken in the tech and tourism sectors and among younger generations, knowing Portuguese is a significant advantage in the job market and often a requirement, especially for roles outside of those specific industries.

• English Proficiency: While many companies operate in English, day-to-day communication in the workplace may still be in Portuguese.
• Competitive Advantage: Being able to communicate in Portuguese will significantly increase your chances of finding a job and integrating into the workplace.
• Client-Facing Roles: For any role that involves interacting with Portuguese clients or customers, fluency in Portuguese is usually essential.

E. Finding a job in Lisbon: Resources and strategies

• Online Job Boards:
  • LinkedIn: A crucial platform for networking and finding job opportunities, particularly in the tech and international sectors.
  • Indeed: A popular job search engine with many listings for Lisbon.
  • Net-Empregos: A Portuguese job search website (primarily in Portuguese).
  • Glassdoor: Provides company reviews, salary information, and job listings.
  • Landing.jobs: Focused on tech jobs.
• Networking:
  • Attend industry events and meetups.
  • Join online communities (Facebook groups, LinkedIn groups).
  • Connect with people in your field.
  • Informational interviews: Reach out to people working in your desired industry or company for informational interviews.
• Recruitment Agencies: Several recruitment agencies in Lisbon specialize in placing expats in jobs.
• Direct Applications: Many companies, especially in the tech sector, encourage direct applications through their websites.

F. Networking and professional organizations in Lisbon as an Expat

• Lisbon Digital Nomads: A large and active community of digital nomads and remote workers.
• Expat groups on Facebook and Meetup.com: Offer opportunities to connect with other expats and learn about job opportunities.
• Industry-specific organizations: Many professional organizations in Portugal have chapters or events in Lisbon (especially with tech fields).