In just a few years Lisbon has become one of Europe's most coveted cities to move to: mild climate, the ocean half an hour away, safety, a large international community and, until recently, a low cost of living. But tourism growth and the arrival of well-off foreigners have pushed rents up far faster than salaries, creating one of Europe's most severe housing crises. Here are the numbers. It is part of the Lisbon guide; see also working in Portugal and the cost of living in Portugal.
Salaries
Portuguese salaries are among the lowest in western Europe. In 2026 the minimum wage is 920 euros gross a month, paid over 14 instalments; in 2025 average gross pay was about 1,700 euros a month, according to Statistics Portugal. Salaries in Lisbon are above the national average, especially in finance, technology, consulting and business services, but many jobs in tourism, hospitality and call centres stay close to the minimum. For many qualified young Portuguese, emigration remains a real option.
The housing crisis
In September 2025 the average asking rent in the city of Lisbon was 22.5 euros per square metre, the highest in Portugal and above Barcelona. A 60-square-metre flat therefore costs on average over 1,300 euros a month: more than the minimum wage and just below average gross pay.
The causes are many: the spread of tourist lets (alojamento local) in the historic districts, foreign investment encouraged for years by the golden visa programme and the tax regime for non-habitual residents, the arrival of digital nomads with foreign salaries, and insufficient new housing. Many Lisboetas have moved to surrounding municipalities such as Almada, Seixal, Amadora, Odivelas or Loures. Governments and the city have introduced limits on new tourist licences in the most saturated districts and affordable-rent schemes, but the situation remains difficult. A room in a shared flat often costs 450-700 euros a month.
Cost of living
Housing aside, Lisbon remains cheaper than many European capitals:
| Item | Indicative price |
|---|---|
| Coffee (bica) at the counter | 0.80-1.20 euros |
| Pastel de nata | 1.20-1.60 euros |
| Prato do dia in a tasca | 10-14 euros |
| Small beer (imperial) | 1.50-2.50 euros |
| Navegante Municipal pass | 30 euros a month |
| Navegante Metropolitano pass | 40 euros a month |
| Utilities for a one-bedroom flat | 80-130 euros a month |
Quality of life
Lisbon offers a lot: one of Europe's best climates, over 2,800 hours of sunshine a year, beaches half an hour by train, safety, a rich cultural life and a slower pace than other capitals. The Portuguese are welcoming and many speak good English. The weak points are rents, slow bureaucracy, low salaries, crowded public transport at rush hour and a national health service under pressure, with long waits for some appointments.
Paperwork
- EU citizens can live and work freely in Portugal. For stays over three months they request the certificado de registo de cidadão da UE from the municipality; non-EU citizens need a visa or residence permit.
- The NIF, the tax number, is essential for everything: renting, opening an account, signing a phone contract.
- The NISS is the social security number, needed to work.
- Registering at a health centre gives access to the National Health Service.
- The non-habitual resident tax regime has been closed and replaced by a narrower scheme for researchers and qualified professions: consult an accountant.
Studying and remote work
Lisbon has major universities such as the University of Lisbon, NOVA and ISCTE, and is a favourite with Erasmus students. It is also a capital for digital nomads, with dozens of coworking spaces and a dedicated visa for non-EU remote workers. See studying in Portugal and Italians in Portugal.