Cost of Living in Lisbon

Overview

Lisbon is often ranked among the most affordable capitals in Western Europe. While prices have risen in recent years due to tourism and digital nomads, the city still provides excellent value for its quality of life, safety, and sunshine. Understanding the cost of living in Lisbon helps travelers, expats, and students plan realistic budgets for housing, food, transportation, and leisure.

This guide breaks down typical monthly expenses, compares Lisbon to other European cities, and offers smart tips to manage spending sustainably while enjoying everything the Portuguese capital has to offer.

Average Monthly Expenses (2025)

Below is an overview of typical costs for one person living comfortably in Lisbon:

Couples sharing accommodation can reduce overall costs by 20–30%. Students or digital nomads renting rooms or co-living spaces may spend around €1,200 per month, depending on lifestyle.

Housing & Rent

Housing is Lisbon’s biggest expense. Central neighborhoods like Chiado, Baixa, or Alfama attract premium prices, while areas such as Arroios, Benfica, or Alcântara offer better value.

• City center apartment (1-bedroom): €1,400–€1,800
• Suburban apartment (1-bedroom): €900–€1,200
• Room in shared flat: €400–€700

Utilities (electricity, water, waste, and internet) add roughly €150 monthly. Older buildings may lack insulation, so energy usage can rise during winter or summer.

Food & Groceries

Lisbon’s food culture remains affordable, especially if you shop at local markets like Mercado da Ribeira or Mercado de Campo de Ourique. Portuguese staples such as bread, olive oil, and seafood are inexpensive.

• Loaf of bread: €1.50
• 1L milk: €1.20
• Dozen eggs: €3.50
• 1kg apples: €2.00
• 1kg chicken breast: €7.50
• Bottle of local wine: €5–€8

Dining out is also cost-effective. Lunch menus (“prato do dia”) typically cost €10–€12 and include soup, main dish, dessert, and coffee. For authentic restaurant recommendations and food experiences, visit Lisbon Food & Drink.

Transportation Costs

Lisbon’s public transportation is both efficient and budget-friendly. The integrated Viva Viagem card allows access to trams, buses, and metro for €1.80 per ride or €6.80 for a 24-hour pass. A monthly pass for residents and long-term visitors costs about €42.

Taxi and rideshare fares start at €3.50, averaging €10–€15 for city center trips. For maximum savings, use public transport or walk — most attractions are within a 3-km radius.

Entertainment & Lifestyle

• Cinema ticket: €8–€10
• Gym membership: €30–€50 monthly
• Cocktail in Bairro Alto: €8–€12
• Fado night dinner: €40–€60
• Day trip train ticket to Sintra: €4.50 each way

Lisbon offers a dynamic cultural calendar, including art fairs, open-air concerts, and festivals. Many outdoor activities like walks along the Tagus River or visits to public viewpoints (miradouros) are free.

Healthcare & Insurance

Medical costs in Lisbon are lower than in most EU capitals. A private GP consultation averages €60–€80, while dental cleanings start around €50. Travelers should hold valid health or travel insurance; for emergency info and hospitals, check Lisbon Health & Safety.

Education & Digital Nomads

Public schools and universities offer competitive tuition for EU residents, while international schools charge €8,000–€15,000 annually. Lisbon is a digital-nomad hotspot thanks to affordable coworking spaces (€150–€250/month) and strong Wi-Fi coverage city-wide.

Utilities & Connectivity

Electricity is billed monthly based on kWh usage. Expect €60–€90 for a small flat. High-speed fiber internet costs about €30/month, and prepaid SIM cards with 10 GB data plans start at €15. Providers like MEO, Vodafone, and NOS have strong city coverage.

Cost Comparison (2025)

Lisbon’s balance between affordability and quality makes it ideal for long-term stays, freelancers, and retirees seeking mild weather and community life.

Utilities & Sustainability

Lisbon’s city council encourages energy efficiency and recycling to reduce costs. Using LED bulbs, turning off heating during mild winters, and reusing water where possible can lower monthly bills by up to 20%. These small steps align with Lisbon Sustainable Tourism goals and support eco-friendly living.

Safety & Consumer Protection

Every purchase in Lisbon includes VAT (23%) by default, with prices shown final. Most businesses accept cards and issue printed or digital receipts. Keep them for returns or tax refunds. For traveler confidence and emergency contacts, visit Health & Safety.

Money-Saving Tips

• Shop at local markets instead of supermarkets for produce and fish.
• Use refillable bottles — Lisbon’s tap water is safe and free.
• Opt for public transport or walk; fuel and parking costs are high.
• Choose lunch menus for better restaurant deals.
• Buy museum combo passes for multi-entry discounts.
• Share accommodation or rent outside the center for long stays.

For Short-Term Visitors

Tourists can comfortably enjoy Lisbon with a daily budget of:

• Budget: €60–€80 (hostels, street food, public transport)
• Mid-range: €120–€180 (3-star hotels, restaurants, some activities)
• Luxury: €250+ (4–5-star hotels, private tours, fine dining)

For more traveler-specific insights, see Lisbon Money and Lisbon Transportation.

Long-Term Living Perspective

Expats moving to Lisbon for work or retirement enjoy relatively low taxes on foreign income under certain programs (e.g., Non-Habitual Resident scheme). Rental demand is strong, so plan housing early. Public healthcare and international schools maintain good quality-to-cost balance, while safety levels and community friendliness make integration easier.