The Ultimate Guide to Settling in Lisbon

Lisbon is an increasingly popular vacation destination, but it’s also a fantastic place to live. Set right on the edge of Western Europe, the Portuguese capital promises year-round warm weather, fascinating local culture, and a diverse international community. 

Although it’s a major European capital, Lisbon feels more like a small town than a big city. With its welcoming locals, picturesque pastel buildings, and astounding natural beauty, it’s no wonder that so many people are choosing to relocate here.

Of course, moving abroad isn’t always easy—and at Remitly, we know that better than anyone. When I first moved to Lisbon four years ago, it was a total leap of faith. I didn’t know anyone and barely spoke the language, but over time, I managed to make it my home.

In this ultimate guide to settling in Lisbon, I’ll offer some advice to help you do the same.

Table of Contents

Understanding Lisbon

Lisbon is the third-oldest capital city in Europe. 

It became Portugal’s cultural, economic, and administrative center in 1256. From the 15th to the 18th century, it was at the core of the Age of Discovery. Much of the city was destroyed by the infamous earthquake of 1755 and had to be almost entirely rebuilt afterward.

Lisbon is the country’s most popular tourist destination, thanks in part to its scenic location on the Tagus River and dynamic modern culture. Top attractions include historical landmarks like the Jerónimos Monastery, São Jorge Castle, and Carmo Convent.

The port city is famous for its colorful buildings, tiled sidewalks, steep streets, and panoramic views. It’s the home of fado music, the unique concept of saudade, and delicacies like pastéis de nata (custard tarts) and bacalhau à Gomes de Sá. 

Today, Lisbon is a hub for digital nomads, entrepreneurs, and startups. The main languages spoken here are Portuguese, English, and Spanish.

Where to live in Lisbon

Lisbon consists of 24 freguesias (administrative districts) and several distinct neighborhoods. Each one has its own vibe and perks—it’s just a matter of choosing the right area for you.

Popular Lisbon neighborhoods

• Lively and central

The riverside areas of Baixa, Chiado, and Cais do Sodré are home to many of Lisbon’s most popular cafes, restaurants, nightclubs, and hotels. This is a good place to live if you want to be in the heart of all the action, but it can also be a bit chaotic.

• Quirky and trendy

Just north of Cais do Sodré is Bairro Alto, a neighborhood full of bars and traditional tascas (restaurants). 

The upmarket area of Príncipe Real is right above it, boasting lots of great shopping and dining spots.

• Charming and historic

On the other side of downtown, you’ll find the historic hilltop neighborhoods of Graça and Alfama. These are the most scenic areas to live in, but not quite as convenient in terms of access to public transport, supermarkets, and day-to-day services.

• Quiet and family-friendly

Many Lisbon locals choose to live in Arroios, a residential district that’s right in the middle of the city. It includes the up-and-coming area of Anjos. 

A bit farther from the city center is the even quieter neighborhood of Penha de França. 

• Vibrant and colorful

Estrela and Santos on the western side of Lisbon offer a nice mix of convenience and tranquility. Here, trendy restaurants and ornate old buildings sit side by side. Go farther down the coast, and you’ll find artsy Alcântara and historic Belém.

Finding accommodation in Lisbon

The most popular website for finding long-term accommodation in Lisbon is Idealista. Unfortunately, the city’s rental prices have increased dramatically in the last decade. This is partially due to a housing crisis fueled by short-term rentals, which the Portuguese government is currently trying to address.

The average monthly rent for a one-bedroom apartment in Lisbon was around €2,000 EUR in 2023. However, it’s certainly possible to find more affordable options. Areas like Benfica and Alvalade tend to be cheaper; they can be great alternatives if you don’t mind being slightly outside of the center.

Tip: Some landlords don’t offer an “official” contract. This could mean they’re not registering their rental income with the Portuguese tax authority. While it can lower your monthly rent bill, you won’t be able to claim those payments on your own taxes.

Navigating Lisbon

One of my favorite things about Lisbon is how walkable it is. From where I live in Arroios, I can reach most of the city on foot. There’s also a useful network of public transportation and ride-sharing services.

Public transportation

The Lisbon Metro system isn’t as extensive as those of some other European cities. There are only four lines—red, yellow, green, and blue—but they provide access to most major points of interest. The bus system is also helpful to reach destinations that the metro doesn’t cover.

There are six different tram routes in Lisbon. These are helpful when getting around areas inaccessible by either metro or bus, such as steep or narrow streets. The most famous one is the yellow Tram 28.

Meanwhile, the regional train system is a quick, convenient, and affordable way to reach nearby towns like Cascais or Sintra. The line from Cais do Sodré to Cascais is especially popular, with stops in shorefront towns like Estoril and Carcavelos, and various beaches along the coast.

It’s also pretty easy to travel around the country by train. The journey from Lisbon to Porto takes about three hours, as does the one from Lisbon to Faro in the Algarve. Check route details and buy tickets from the national carrier, Comboios de Portugal.

Cars & bikes

Lisbon’s notoriously hilly terrain isn’t ideal for cyclists. But it’s possible to bike in certain areas, though bike lanes and paths are uncommon. Some locals opt for electric bikes to assist with navigating steep hills.

Wondering whether it’s necessary to have a car in Lisbon? That depends. You don’t need one to get around the city itself, and many day trips are possible via public transportation.

That said, if you’re hoping to surf, hike, or explore nearby towns, a car can be very helpful. This is especially true if you want to spend time across the river in areas like Almada and Costa da Caparica, as they’re not easy to reach on public transport.

Your driver’s license is fully valid in Portugal if you’re from an EU country, the U.S., Canada, the U.K., or one of 13 other countries.

In addition, you must meet certain other requirements. 

Otherwise, exchanging a foreign driver’s license for a Portuguese one is a relatively simple process.

Fun fact: Did you know Spain is only a 2.5-hour drive from Lisbon? You can reach Spanish cities like Badajoz, Cáceres, Seville, or even Madrid by car.

Another great way to get around Lisbon is by using ride-sharing services. Both Uber and Bolt operate in the city, and prices are usually low. I often find that it’s actually cheaper than taking public transport, especially if I’m splitting the cost with other people.

Essential services & amenities

One reason Lisbon is such a great place to live is because everything you need is within easy reach—from doctor’s offices to dog parks, banks, boutiques, and more.

Health & education

Portugal boasts an excellent public healthcare system. To access it, first register at whichever centro de saúde (health center) corresponds to your address. Afterward, you’ll receive your número de utente (user number). Check the SNS (Serviço Nacional de Saúde) website for more details.

Many people opt for private health insurance too. Getting an appointment at private hospitals and clinics is usually easier and faster. Plenty of providers offer good-quality coverage at a relatively low cost.

Lisbon also has a great public education system, including:

• Pre-school (ages 3–6)
• Basic education (ages 6–15)
• Upper secondary school (ages 15–18)
• Post-secondary non-higher education
• Higher education
• Adult education and training

The city also has plenty of private schools and more than two dozen international schools.

There are several universities in Lisbon as well, including Universidade de Lisboa, Universidade Lusófona, and Universidade Nova de Lisboa.

Supermarkets & shops

No matter where you live in Lisbon, you’ll find at least a few supermarkets nearby.

• Continente, Pingo Doce, and Auchan are the most common chains.
• Lidl and Aldi usually have lower prices but less selection.
• El Corte Inglés stocks gourmet foods, but tends to be more expensive.
• Celeiro and Miosótis are good places to find healthy and organic products.

There are also plenty of international and specialty shops. And if you don’t want to leave the house, getting groceries delivered via Uber Eats or Bolt Food is easy and affordable.

Utilities

If you rent an apartment in Lisbon, your landlord might take care of utilities for you. Otherwise, you’ll need to register for electricity, gas, water, internet, and TV packages on your own. The most common electricity and gas provider is EDP, and the city’s water is supplied by EPAL.

The main internet providers are NOS, Vodafone, and MEO, all of which offer packages including internet, TV, and mobile phone service. 

Once you’ve set up your utilities, you can authorize direct debit payments to ensure your bills are deducted automatically from your Portuguese bank account.

Tip: Check if your electricity, gas, and water meters are set up for automatic readings. If not, you’ll need to record and submit readings online each month to avoid estimates.

Banking & taxes

Opening a Portuguese bank account is pretty straightforward. The key is to show up prepared with all the documents you need, namely your:

• Valid ID
• Portuguese tax number (NIF)
• Proof of address in Portugal
• Proof of employment or income

Many expats and immigrants also use online money transfer services like Remitly to send and receive money abroad. 

What is a NIF?

A NIF (Número de Identificação Fiscal) is an individual Portuguese tax number. To get one, go to the nearest branch of Finanças (the Portuguese tax authority) with your ID and proof of address. 

You’ll need an NIF to register for utilities and other local services, so this is one of the first things to do after arriving in Lisbon. When you buy something at a supermarket or pay the bill at a restaurant, you’ll also be asked to add your número de contribuinte (another name for your NIF).

Why? Once you start paying Portuguese taxes, you’ll be able to deduct a certain amount based on your daily expenses. Adding your NIF to purchases means they’ll automatically be registered to your tax ID so that you can get these deductions later. As a general rule, always add your NIF—and memorize how to say it in Portuguese.

Also, request a NISS (Número de Identificação de Segurança Social), or social security number, from Segurança Social (which is separate from Finanças).

If you’re a freelancer or business owner, there are some additional steps to set up your business activity. Consult a local accountant to understand your tax obligations.

Enjoying life in Lisbon

I was personally drawn to Lisbon’s relaxed lifestyle, seaside location, and sunny weather. However, it also offers plenty of exciting nightlife, local festivals, live music, and networking opportunities.

Luckily, the large number of expats and immigrants makes it easy to meet new people. When you first move to Lisbon, a great way to make friends is by attending meetups and social events based on your interests:

• Want to catch some waves? Join a group surf lesson in Carcavelos or Costa da Caparica, or try kitesurfing at Praia do Guincho.
• Working on a short story or novel? Attend writer’s hour at a local bookstore.
• Ready to party? There are DJ sets and parties all over the city every night, from beach clubs to basement bars.
• Queres aprender português? Do you want to learn Portuguese? Sign up for Portuguese classes at a local language school or through your favorite Portuguese language learning app.

Whether you’re interested in discovering local restaurants, spending hours in museums, dancing till dawn, or staying active outdoors, you’ll never run out of things to do in Lisbon. 

Working & studying

It’s possible to find local employment in Lisbon. Average annual salaries are on the lower side by European standards, at about 34% less than the EU average. As of 2024, the minimum wage is 820 euros per month. 

Portugal has a relatively affordable cost of living compared to other European countries. For reference, the cost of living in Lisbon is about 43% lower than that of London. However, living in Lisbon on minimum wage can be challenging. 

Part of the reason for this is the city’s growing popularity with remote workers, digital nomads, and the expat community in recent years. This influences rental prices, restaurant costs, and other services. That said, it’s possible to have a high quality of life with a salary or passive income that’s relatively low by American or British standards.

Tip: Lisbon is an especially great place for remote work, with lots of laptop-friendly cafes and coworking spaces across the city.

Visas & residence permits

For non-EU citizens, there are a few different ways to get a work visa and/or residence permit, including the D7 visa, Golden Visa, and Digital Nomad Visa. You might also qualify for NHR (non-habitual resident) status, which has significant tax benefits. If you’re moving to Lisbon to study, you’ll likely be eligible for a student visa.

Check out our guide to moving to Portugal for more details on how to get a residency visa.

Helpful tips

Here are a few extra tips to make your transition to life in Lisbon as seamless as possible.

Watch the weather

Lisbon’s Mediterranean climate ensures it has lovely weather—most of the time. Winter is relatively mild, but the lack of central heating in most apartments means that blankets, cozy clothes, and space heaters will be your best friends from December to February. June through August, on the other hand, can be extremely hot—so invest in a good fan if you don’t have A/C.

Speaking of temperatures, you might be surprised to find that the Atlantic waters off the coast of Lisbon are fairly chilly. Even in the middle of summer, the ocean is always cold. It’s a great way to cool off, but for surfing or swimming, you’ll definitely need a wetsuit.

Fun fact: I spent my first Christmas in Portugal at the beach, including a very brief cold plunge in the sea.

Spend time outside

Apart from a few weeks of intense temperatures each year, it’s almost always possible to enjoy the outdoors in Lisbon. Grab a table on an esplanada (restaurant terrace), have a picnic in the park, head to the beach, or simply go for a walk. In my opinion, this is the best way to experience Lisbon and get a feel for authentic local life.

Make friends with locals

Because there are so many foreigners in Lisbon, it might be tempting to surround yourself with people from your home country. The truth is that it often feels harder to meet locals who already have established social circles.

Even so, befriending locals is the best way to integrate with local culture. When I first arrived in Lisbon, I joined a local gym with a mix of international and Portuguese members. My advice is to seek out places like this, with diverse groups of people who are open to making new friends.

Useful resources

For more information on daily life and current events in Lisbon, check out English-language websites like Atlas Lisboa and The Portugal News. Idealista’s news section is a good place to find updates on real estate-related issues. For culinary and cultural recommendations, follow Lisbon Insiders on Instagram.

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