Living in Lisbon: neighbourhoods, cost of living and expatriation

Lisbon is understood first through its hills. The city is not flat, and the gradient shapes daily life far more than the distance shown on a map: a fifteen-minute walk can mean a steep climb, something a street plan does not tell you.

The historic centre — Alfama, Mouraria, Baixa, Chiado — is the most sought-after and the tightest market. The buildings are old, often without a lift, and the share of housing given over to short-term rentals is considerable. It is a district for a stay rather than for family life.

The plateau neighbourhoods — Príncipe Real, Campo de Ourique, Estefânia — offer a compromise between centrality and calm, with local shops and schools. They account for most of the demand from French families settled for the long term.

The north of the city — Avenidas Novas, Alvalade, Areeiro — is less picturesque and much more practical: buildings from the fifties and sixties with lifts, a dense metro network, parking that is less impossible. It is the choice for long-term settlement.

Finally, the south bank and the Cascais line form two very different outskirts. Almada and Seixal offer markedly lower prices in exchange for a daily bridge crossing or ferry; Oeiras, Carcavelos and Cascais combine international schools and the seaside, at prices close to those of the centre.

Portugal's national statistics institute publishes the median rent of new leases every quarter. In the first quarter of 2025, the national median stood at €8.22⁵ per square metre per month.

Lisbon then had the highest value in the country, at €16⁶ per square metre per month — nearly double the national median. It is this ratio, more than the figure itself, that describes the situation in the capital.

This is a median of new contracts: it reflects neither older leases, which are much cheaper, nor asking prices in the tightest neighbourhoods, which are higher. A budget should therefore be built above this benchmark, not at its level.

Two practical difficulties await newcomers. Landlords frequently ask for several months' deposit and a Portuguese personal guarantor, which a newcomer does not have; and competition for good-quality furnished properties is fierce, with viewings decided within a few hours.

Short-term rentals have also removed a significant share of housing from the residential market in the centre, and the municipal regulations governing them have been reversed several times. This is a factor of instability in supply more than in prices.

We do not publish average rents by property type or by neighbourhood: the statistics institute publishes medians by municipality, not by neighbourhood, and we do not reproduce estimates from listings portals, which are not official sources.

Excluding housing, Lisbon remains noticeably cheaper than a large French city for eating out, services, labour and public transport. The gap has, however, narrowed for food and energy.

We do not publish a typical monthly budget: we have not found an official Portuguese series measuring a basket of spending comparable to that of an expatriate.

Housing is therefore the item that decides everything. A household comparing Lisbon with Paris will find a clear advantage; compared with a medium-sized French city, the Portuguese capital is no longer cheap, and that is the relevant comparison for most candidates.

Local salaries are the other side of the equation. Portuguese incomes are markedly lower than French incomes, which makes the city affordable for those who keep a foreign income and difficult for those living on a local salary.

Two items are worth anticipating: heating, because much of the older housing stock is poorly insulated and Lisbon's winter is damp, and parking, which is scarce and expensive in central neighbourhoods.

Lisbon's French community is long-established, large and well organised. It relies on a dense network of associations, French schools and a professional fabric that eases entry into local life.

This ease has a downside: it is possible to live in Lisbon for years without speaking Portuguese. Doing so, however, limits access to administrative procedures, the local job market and neighbourly relations — and the city makes learning needlessly difficult by widely using English with foreigners.

The influx of foreign arrivals, fuelled by successive tax regimes and by remote working, has also fuelled a local public debate on housing. It rarely translates into hostility, but it exists, and it has a real influence on political and regulatory decisions.

For a newcomer with tax considerations, the city is also the centre of Portugal's attractiveness scheme, whose duration is limited: the current regime applies for a consecutive period of 10 years⁷, subject to from 5 years⁸ of prior non-residence for tax purposes.

The metro serves the centre and the north well, the outskirts less so; the bus network and suburban trains complete the system. The funiculars and the Santa Justa lift belong more to tourist folklore than to daily transport.

The airport is located within the city, a few stops from the centre. It is a real convenience for frequent travellers, and a source of noise for several northern neighbourhoods — a criterion to check before signing a lease.

The Portuguese public health system is accessible to registered residents, with waiting times for specialists that push some expatriates towards private insurance. The capital's private clinics are numerous and of a good standard.

• Obtaining a Portuguese tax identification number is the prerequisite for almost everything: lease, bank account, subscriptions.
• Registration with the town hall and the health centre follows once the residence permit or the registration certificate has been obtained.
• A presence of more than more than 183 days⁹ entails Portuguese tax residency: the threshold should be monitored from the first year.
• The means of subsistence required for certain permits are indexed to the guaranteed minimum monthly wage, i.e. €870¹⁰.