Lisbon, Portugal

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Sunny and Sophisticated: Lisbon, Portugal

Reviewed by Lief Simon

Lief Simon is the managing editor of Global Property Advisor, Simon Letter, and Offshore Living Letter. He has purchased more than 45 properties, investing in 23 different countries around the world.

Yellow 28 tram in Alfama at night, Lisbon, Portugal.
Alamy/kavalenkava volha

Lisbon is blessed with warm, sunny weather year-round. There are few places in the world with its diverse qualities, from traditional sophistication to lively beaches, elegant apartments to new luxury condos. Lisbon has lifestyle options for all tastes and budgets.

The city is home to one of Europe’s lowest crime rates and renowned for offering a high quality of life in a safe environment.

Lisbon is still quite cheap and quiet when compared to most European capitals.

Living in Lisbon, Portugal, you benefit from being within two to three hours flight distance from all the major cities in Europe.

Lisbon airport receives about 15 million passengers per year and provides daily flights from low-cost airlines like Ryanair and Easyjet. Plus at least 11 flights per week to the United States; TAP Portugal has daily direct flights to Newark (about eight-and-a-half hours) and direct flights about four times a week to Miami (about nine-and-a-half).

Depending on the time of the year, the lowest prices you will find for direct flights to and from the United States usually run between 700 and 750 euros (airport taxes included).

The city is equipped with a fantastic tube network that consists of four color-coded lines (blue, yellow, green, and red) that are served by 55 stations.

This is undoubtedly the fastest and most tension-free way to get across the city. It’s also much cheaper than a taxi—3.50 euros is the starting rate in a cab—and takes a lot less time.

Lisbon’s cultural life is rich and busy.

As a European capital, the city offers a diverse selection of concerts, theatre, art museums (with collections spanning several centuries), music festivals, and just about any other cultural activity you could think of.

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Where To Live In Lisbon, Portugal

Alfama And Graça

The capital’s oldest and most typical neighborhoods. Famous for their narrow streets, and filled with restaurants, these neighborhoods are the stylistic heart and the soul of the city.

Lapa And Campo De Ourique

These are the most vibrant residential districts. With a range of shops, grocery stores, and small markets, these two neighborhoods are great if you want a real community feeling.

Entrecampos And Cidade Universitária

Perfect for students, this area is highly accessible with lots of affordable housing options. There are numerous public transportation outlets available nearby, as well as several small, modern buildings offering loads of cheap apartment opportunities

Parque Das Nações

This is the most sophisticated neighborhood in Lisbon and a wonderful place for walking and biking. Overlooking the Tagus River, this neighborhood is full of bars, restaurants, recreational areas, and a large shopping center.

Chiado And Príncipe Real

The most emblematic neighborhoods in town, Chiado and Príncipe Real are the liveliest districts and unquestionably the most highly sought neighborhoods to live in Lisbon.

The Cost Of Living In Lisbon, Portugal

You might be surprised to find out that you can live well in Portugal for less than your currently budgeting.

The cost of living in Portugalis among the lowest in Western Europe, on average 30% lower than in any other country of the region. A retired couple could live here comfortably but modestly on a budget of as little as €1,100 or €1,200 per month. Right now, that’s only slightly more in dollar terms.

With a budget of €1,800 per month or more, you could enjoy a fully appointed lifestyle in the heart of Old Europe.

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Apartment Or House Ownership Budget (For A Couple)

ExpenseMonthly CostsNotes
Mortgage3% to 4%It’s difficult to get a mortgage unless you deposit comparable funds in a Portuguese bank account.
HOA Fees€34This can range from €0 to €100 depending on the unit size and value as well as property amenities.
Property Taxes€37.5About €450 annually. If you purchase a small unit, the value of that unit may qualify for a special program that waives property taxes for the first three years of ownership. Ask your real estate lawyer if you qualify.
Transportation€63New cars range from €14,000 and up. Extensive coverage car insurance ranges from €350 per year and up.
Gas€15Using a water heater.
Electricity€110With heating and air conditioning in each room, plus costs for appliance-use and cooking. These figures are based on a 125-square-meter, ground-floor, condo apartment built in 2007 with a B+ energy rating. Heating and air conditioning costs will be affected by your energy rating.
Water€32Including water, sewage, garbage collection, and community landscaping provided by Tavira Verde.
Cell PhoneIncluded with cable package.
InternetIncluded with cable package.
Cable TV€100
Household Help€60For bi-monthly, four-hour visits. The standard rate is €7 per hour.
Entertainment€300Eating out twice a week at a mid-range, local restaurant: €60 to €70.

Local drinks twice a week at a nearby watering hole: €20 (€8 to €10 for a bottle of wine; €3 for a beer).

Movie theater trip twice a month: €36 (€6.50 each for seniors, plus snacks).

Groceries€200
Gym Membership€35Rolling membership at Hitio Gym or pilates classes twice a week.
Medical Appointment€50 to €80Cost for private GP and medical specialist visit at Taviclinica. Dental check-up/cleaning at Ecodenta is €60.

National Health System charges tax only on visits (€4) and basic tests (upwards from €10). However, no dental or specialist services are available at the local health center.

TOTAL€1,036.50 to €1,066.50

Apartment Or House Rental Budget (For A Couple)

ExpenseMonthly CostsNotes
Rent€550One-bedroom, unfurnished apartment in the city center: €470.

Two-bedroom, unfurnished apartment in city center: €650.

Three-bedroom apartment in a modern urbanization (with a parking garage) in walking distance to downtown: €800.

Transportation€63New cars range from €14,000 and up. Extensive coverage car insurance ranges from €350 per year and up.
Gas€15Using a water heater.
Electricity€110With heating and air conditioning in each room, plus costs for appliance-use and cooking. These figures are based on a 125-square-meter, ground-floor, condo apartment built in 2007 with a B+ energy rating. Heating and air conditioning costs will be affected by your energy rating. With heating and air conditioning in each room, plus costs for appliance-use and cooking. These figures are based on a 125-square-meter, ground-floor, condo apartment built in 2007 with a B+ energy rating. Heating and air conditioning costs will be affected by your energy rating.
Water€32Including water, sewage, garbage collection, and community landscaping provided by Tavira Verde.
Cell PhoneIncluded with cable package.
InternetIncluded with cable package.
Cable TV€100
Household Help€60For bi-monthly, four-hour visits. The standard rate is €7 per hour.
Entertainment€300Eating out twice a week at a mid-range, local restaurant: €60 to €70.

Local drinks twice a week at a nearby watering hole: €20 (€8 to €10 for a bottle of wine; €3 for a beer).

Movie theater trip twice a month: €36 (€6.50 each for seniors, plus snacks).

Groceries€200
Gym Membership€35Rolling membership at Hitio Gym or pilates classes twice a week.
Medical Appointment€50 to €80Cost for private GP and medical specialist visit at Taviclinica. Dental check-up/cleaning at Ecodenta is €60.

National Health System charges tax only on visits (€4) and basic tests (upwards from €10). However, no dental or specialist services are available at the local health center.

TOTAL€1,515 to €1,545

Penny-Pincher’s Budget (Bare Minimum Costs, For A Couple)

ExpenseMonthly CostsNotes
Rent€450Cheapest part of town; basic one-bedroom rental.
Transportation€11Monthly rate for a senior’s bus pass.
Gas€15Only using a water heater.
Electricity€110Including electric heating but not air conditioning, clothes dryer, or dishwasher use.
Water€32Including washing machine use.
Cell Phone€7.99Cell phone service for one phone with a pre-existing number with MEO.
Internet€26.99Stand-alone internet fee (only available where fiber optic service is in place with MEO). Where no fiber optic service exists, a landline must be added for an additional €12.49 per month.
Cable TV€34.99Most basic TV package with MEO.
Entertainment€240Including eating out for lunch twice a week (€20) and for dinner twice a week (€40).
Groceries€60All local-brand items only, shopping at markets and grocery stores.
TOTAL€987.97

Click here for currency conversions at today’s exchange rates.

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Lisbon: The Ideal Base For Exploring Portugal And Europe

Lisbon, Portugal cityscape in the Alfama District.
Alamy/Sean Pavone

Lisbon is tough to pin down…

Four centuries older than Rome and the second-oldest European capital after Athens, it’s drenched in historical ambiance and holds its own against any other Continental haven in terms of Old World charm.

Then again, it’s a coastal city, found at the point where the River Tagus empties into the Atlantic Ocean, with a swimmable beach only 10 minutes away… Why not describe it as a beach destination?

Where Lisbon stands out most, though, is in its uniquely cosmopolitan attributes…

This is a global city with an important role in finance, commerce, media, entertainment, arts, international trade, tourism, and education.

For example, it boasts incomparable museums, galleries, concerts, and theatre and serves up world-class cuisine.

It draws on thousands of years of history to provide gorgeous architecture that will have you tripping over yourself as you look ever skyward…

Great weather (perhaps the best of all the Western European capitals with 220 sunny days per year) and a solid track record for safety are a just a few other things Lisbon’s got going for it.

It’s an ideal base for exploring Europe. Living in Lisbon, you benefit from being within two to three hours flying distance from all the major cities in Europe. Plus, its health care system is world-class… as is its education system.

Lisbon feels easy-going, which isn’t a word I’d use to describe other European capitals, like Paris or London. It offers all the same amenities, but it’s far cheaper than those other two options.

With an authentic view to the past, unique and interesting cultural amenities, and low crime rates, Lisbon offers a high quality of life to its residents, making it one of the most desirable cities in the world to live in.

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With a good pair of walking shoes, Lisbon is a fantastic city to explore on foot. It’s an incredibly scenic place, with varied elevation, the river, and architectural styles spanning many decades to gawk at.

Alfama District at Lisbon
iStock/Balate Dorin

What Life In Lisbon Is Like

Living here, you can say goodbye to car insurance, maintenance fees, and concerns about gas prices. You definitely don’t need a car in a city like this.

Public transportation options in Lisbon include the metro, trams, trains, buses, and ferries.

The metro consists of four color-coded lines (blue, yellow, green, and red) that are served by 55 stations between 6:30 a.m. and 1 a.m. This is the fastest and most stress-free way to get across the city.

It’s also much cheaper than a taxi—3.50 euros is the starting rate in a cab—and takes a lot less time. A one-way metro ticket is 1.50 euros; a monthly public transport pass is 20 euros for retirees.

Lisbon is well-connected to the rest of Portugal via train. Four train lines depart the city from five major stations (Santa Apolónia, Rossio, Gare do Oriente, Entrecampos, and Cais do Sodré).

Portugal’s trains are an efficient, inexpensive, and comfortable way to get around. You get better discounts by booking in advance. For anyone over 65, you can get a 50% discount on full-price domestic train tickets.

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Most importantly, Portugal has a huge expat community, with about 660,00 foreigners living in the country. About half of this number live in Lisbon Metropolitan Area.

English is the second most spoken language in the country. A big reason for this is Portugal’s long relationship with the U.K. and the fact that about 50,000 of the country’s total expats are British… and a growing number of Americans are joining them…

Those who’d like the Californian lifestyle without the political issues, insane housing prices, crime, non-stop natural disasters, and so on can come to the California of Europe (sometimes even called “Eurifornia”).

As an expat to Lisbon, you won’t have any trouble meeting other expats. There are near endless opportunities to socialize, and you’ll hear English spoken in every bar, cafés, or restaurant.

All sorts of interest-based groups are available if you want to get involved and socialize in a more structured setting. Resources and media specifically for English-speakers are available, too.

The Cost Of Living In Lisbon For Expats

Lisbon is one of Western Europe’s most affordable capitals, not only for the expenses of day-to-day living but also for the cost of property. It’s not as cheap as it was 10 or 15 years ago, but it still offers incredible value.

CIA Landlord Insurance puts Lisbon second on its list of cheapest Western European capitals to buy property in. (Brussels is first on the list, though its monthly cost of living estimate is higher than Lisbon’s.)

It estimates about 230,000 euros is needed to buy a home in Lisbon and that a person can live here on about 1,048 euros a month.

Price per square meter of real estate in Lisbon’s city center is about 4,500 euros. On the outskirts of the city, this drops down to about 2,600 euros per square meter. Renting an apartment costs an average of 860 euros a month.

It’s not just the big-ticket items like real estate and rent that are cheaper in Lisbon, though…

Eating out is super affordable, about 10 to 12 euros for a main course at a Portuguese restaurant. Because of the proximity to the ocean, seafood is a specialty in Lisbon.

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Local wine is high-quality and inexpensive. At a restaurant, a glass will cost you about 3 euros. You can get a decent bottle of wine for about the same price or up to 5 euros at a grocery store. Expect to pay about 200 euros per month on groceries as a couple.

Transportation and health care—the second and third biggest expenses for Americans in the United States over 65—are two areas where you’ll save a fortune in Lisbon…

In the national health system, you’ll pay a small surcharge on doctor’s visits (about 4 euros) and tests (about 10 euros). A medical appointment in the private system is still affordable—between 50 and 80 euros.

For transportation, combining walking, a monthly public transportation pass (40 euros), and occasional taxis, you’ll pay about 150 euros a month.

Lisbon offers the opportunity to live in a village atmosphere despite being in a major city, because the neighborhood is that ancient and well-established…

Here you can take a moment and enjoy a coffee on the terrace of your favorite kiosk… or sit in the sun and watch the meandering River Tagus from a secret viewpoint.

Around every corner is the possibility of discovering something new, even surprising, every time you walk out your front door…

If those simple charms sound appealing to you, Lisbon should be at the top of your list…

Sincerely,
Sophia Titley signature
Sophia Titley
Editor, Overseas Living Letter

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