6 Reasons Why People are Moving to Lisbon, Portugal!

Let's Take a Look at the Top Reasons Why People are Moving to Lisbon!

In recent years, Lisbon has transformed from a hidden European gem into one of the most sought-after destinations for expats, digital nomads and retirees in 2025. With its sunny climate, vibrant atmosphere and a cost of living that is notably low for Western Europe, the Portuguese capital continues to capture the hearts of those looking for a new way of life.

But what makes Lisbon such a sought-after destination for expats in 2025? With the city's rich history with a balance of modern amenities, favourable residency options and a thriving international community, Lisbon offers its residents a unique blend of old-world charm and contemporary living.

Photo taken of homes and buildings in Lisbon on a cloudy day. All of the buildings are mostly white and pastel in colour with terracotta roofs. The photo is taken quite high looking down on the buildings.

Table of Contents

An Introduction to Lisbon, Portugal

Located in central-southern Portugal, Lisbon has long been a destination loved by those who have had the opportunity to visit. However, in 2025 Lisbon has become more than just a picturesque travel destination, it’s now a place where people from around the world are choosing to settle.

But why are people moving to Lisbon now? The answer lies in the city’s perfect combination of economic, cultural and lifestyle factors that make it one of the most attractive cities in Europe for relocation. From its warm climate, relatively affordable cost of living and favourable tax incentives, to its growing international community, Lisbon offers a unique balance between modern living and historic settings.

Whether you’re considering a fresh start, a career shift, or simply a better quality of life, this city might just be the perfect destination for you!

Below are the top reasons why People are looking to move to Lisbon in 2025 and beyond!

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1) The Climate in Lisbon, Portugal

Nestled along the Iberian Peninsula, Lisbon enjoys a climate that effortlessly blends Mediterranean warmth with Atlantic breezes, which creates an idyllic atmosphere year-round. Here are the warmest temperatures Lisbon experiences in each month of the year:

Average Maximum Temperatures in Lisbon, Portugal

Month	Max Temperature (℃)
January	15
February	16
March	19
April	20
May	23
June	26
July	28
August	28
September	26
October	23
November	18
December	15

With over 300 days of sunshine a year, gentle sea breezes and a distinct seasonal rhythm, Lisbon’s weather shapes the city’s lifestyle. From alfresco dining in spring to sun-drenched beaches in summer, Portugal’s capital will feel like a European dream all year round.

2) Lisbon's Affordable Cost of Living

As many European countries become more expensive to live in, Lisbon’s affordability is another major draw factor. The cost of living in Lisbon in 2025 remains relatively affordable compared to other Western European capitals, but it has been steadily rising due to increased demand for housing, inflation, and the city's growing popularity among expats and digital nomads.

Housing Costs in Lisbon

Housing costs have experienced one of the most noticeable surges in price, with rent for a one-bedroom apartment in the city centre averaging around €1,200 per month, while larger apartments or properties in prime locations can exceed €2,500 per month.

If you’re looking to purchase a property in Lisbon, modern two-bedroom apartments near the city centre start at around €475,946 (£394,550).

Although these prices are relatively affordable in comparison to other European capital cities, property prices have started rising, making homeownership increasingly difficult for locals and newcomers alike.

Nonetheless, for foreign professionals earning in stronger currencies, or for those who could benefit from Portugal’s tax incentives, Lisbon continues to offer a desirable balance of quality of life, affordability, and modern conveniences.

Monthly Expenses in Lisbon

Basic living expenses, including groceries, dining, and utilities, are still reasonable and allow for a comfortable way of living. The estimated monthly costs for an individual are €745 (£617) without rent, and €2,646 (£2,190) for a family of four, without rent. The living costs in Lisbon are 59.6% cheaper than in New York City, and 42.5% cheaper than in London excluding rent.

Eating out remains an attractive option, as a meal at a mid-range restaurant typically costs between €12 (£9.93) and €20 (£16.56) per person. Public transportation is efficient and affordable, with a monthly pass costing approximately €40 (£33.11), while ride-hailing services and taxis remain relatively inexpensive compared to other major European cities.

Photo taken of small white boats that are docked at a port in Lisbon, Portugal on a warm sunny day with blue skies.

3) Lisbon's Property Portfolio in 2025

In 2025, Lisbon’s property market will offer a diverse portfolio, catering to a wide range of buyers. Whether you’re a first-time homeowner or are looking to make changes to your living environment, Lisbon has something for everyone!

Pombaline-style Apartments in Lisbon

The city’s historic neighbourhoods, such as Alfama, Bairro Alto, and Chiado, feature beautifully restored Pombaline-style apartments, which are characterised by high ceilings, intricate tilework, and wrought-iron balconies. Many of these century-old properties have been adapted to allow them to have contemporary amenities without sacrificing their old-world charm.

New Builds - Luxury Condominiums

For those looking for more spacious and modern living, newly built luxury condominiums in areas like Parque das Nações and Amoreiras offer state-of-the-art facilities, including rooftop pools, smart home technology, and panoramic views of the Tagus River.

Detached Villas and Townhouses

For families and buyers seeking a quieter lifestyle, Lisbon’s suburban areas, such as Cascais, Estoril, and Oeiras, provide detached villas and townhouses with larger plots, private gardens, and access to international schools. These homes, often featuring contemporary architecture and energy-efficient designs, appeal to expatriates and remote workers looking for a balance between city convenience and coastal tranquillity.

Studio Flats and Short-Term Rental Units

Lisbon's growing co-living and serviced apartment sector has introduced investment-friendly studio flats and short-term rental units in areas like Avenidas Novas and Marvila, which are ideal for digital nomads and young professionals.

4) Lisbon's Natural Beauty

Lisbon’s natural beauty is another major reason people are choosing to move to Lisbon. The blend of urban and natural elements in Portugal’s capital creates a dynamic yet serene atmosphere, where the sea, sky, and cityscape harmonise in a way that only those who live here can truly explain.

Lisbon is known for its scenic hills that offer breathtaking views of the city and viewpoints like Miradouro de Santa Catarina and Miradouro da Senhora do Monte, allowing you to watch golden sunsets over terracotta rooftops. The combination of natural light and the city’s iconic pastel-coloured buildings creates a postcard-worthy setting, with the breeze from the ocean adding to the overall atmosphere.

Just beyond the city’s cobbled streets, the Tagus River offers scenic waterfront promenades, where both locals and visitors enjoy strolls, sailing excursions and quiet moments by the river’s edge. Even further beyond the city, Lisbon’s natural beauty extends to lush parks, dramatic coastlines and unspoiled beaches.

Even within the city, green spaces like Eduardo VII Park and Monsanto Forest Park provide lush, tranquil escapes from Lisbon’s bustling streets. Whether it’s the rolling waves of the Atlantic or the golden light bathing the city at dusk, Lisbon’s natural beauty is both diverse and enchanting all year round.

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5) The History and Culture of Lisbon

As one of the oldest cities in Western Europe, Lisbon boasts a history that dates back over 3,000 years. The Moorish rule of the 8th century left a lasting influence on Lisbon’s architecture, with their intricate azulejo tilework and alleyways still visible in neighbourhoods like Alfama.

Lisbon later flourished during the Age of Exploration in the 15th and 16th centuries, becoming a powerful maritime hub that connected Europe with Africa, Asia and the Americas. This golden era saw the rise of grand monuments like the Belém Tower and Jerónimos Monastery, both of which remain iconic symbols of Portugal’s naval importance. However, an earthquake in the 18th century devastated the city, leading to a massive reconstruction effort led by the Marquis of Pombal.

Lisbon's Cultural Highlights

Lisbon’s culture is a dynamic fusion of its historic past and contemporary living. Traditional Fado music, recognised by UNESCO as an Intangible Cultural Heritage, echoes through the city's old taverns whilst Lisbon’s artistic heritage is reflected in its azulejo-covered buildings, lively street art, and renowned museums, such as the Museu Nacional de Arte Antiga and the Calouste Gulbenkian Museum.

Lisbon’s culinary scene is heavily influenced by the city’s seafaring history. Some of Lisbon’s most infamous dishes, like ‘bacalhau’ (salted cod) and ‘pastéis de nata’ (custard tarts), have been favourites in the city for centuries.

In 2025, Lisbon’s cultural scene continues to evolve, blending historical charm with modern demands, as seen in the LX Factory’s repurposed industrial spaces and the vibrant neighbourhoods of Barrio Alto and Príncipe Real.

Photo taken at night time of the city of Lisbon in Portugal. The famous river can be seen in the background and many of the streets are lit up.

6) Lisbon's International Community

In light of the factors outlined in this blog, it is unsurprising that Lisbon’s international community has flourished over the past decade, transforming the city into a cosmopolitan hub where diverse cultures, languages and lifestyles blend seamlessly.

The influx of expats, digital nomads and international students has created a vibrant social scene, with people from all over the world drawn to Lisbon’s warm climate, affordability and high quality of life.

Neighbourhoods like Príncipe Real, Santos, and Alcântara have become hotspots for international residents. They offer co-working spaces, artisanal cafés, and cultural events that cater to everyone.

Due to the number of international residents, English is widely spoken in many professional and social settings, which will make integrating into the city much easier as a newcomer. The city’s international schools, networking groups and language exchange events encourage a welcoming atmosphere. As Lisbon continues to grow as an international destination, its multicultural community remains at the heart of its transformation, enriching the city with new ideas, flavours and perspectives.

The Golden Visa Program

The Portuguese government has embraced foreign investment and talent through initiatives like the D7 visa for remote workers and the Portuguese Golden Visa Program. As a result, there has been an influx of entrepreneurs and other professionals choosing to live in Lisbon which has consequently spurred innovation, with an increasing number of startups choosing Lisbon as their base.

The impact of the Golden Visa Program is reflected in the city’s expanding culinary scene, international festivals and artistic collaborations. Events like Web Summit, the world’s leading tech conference, further solidify Lisbon’s status as a global city that brings together forward-thinking individuals from all kinds of industries.

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6 Reasons Why People are Moving to Lisbon: A Summary

As Lisbon continues to captivate newcomers from around the world, its appeal remains rooted in a unique balance of affordability, culture, climate and opportunity.

The city’s cost of living, though rising, still offers better value than many other European capitals. Its year-round sunshine and breathtaking landscapes make everyday life feel like a holiday. Furthermore, Lisbon’s rich history and cultural scene create an inspiring backdrop for both residents and visitors, adding to the sense of belonging.

Beyond the obvious lifestyle perks, Lisbon’s welcoming international community, affordable residency options and thriving digital nomad scene solidify the city’s reputation as a top destination for those seeking a fresh start. Whether you’re drawn by the promise of professional growth, a slower and more fulfilling way of life, or simply the benefits of living somewhere with more sun, moving to Lisbon is definitely a consideration.

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