What’s it Like Living in Lisbon, Portugal?

Portugal's capital city of Lisbon is a unique location this article looks at what it's like living there

Lisbon is the capital city of Portugal and while many journalists, travel writers and observers claim that Portugal can be divided up into three distinctly different regions – north, central and south – those who live and work in Lisbon would like to suggest that the capital city also stands out alone as a unique location in which to live in Portugal.

So, what’s it like living in Lisbon, Portugal?  In this article we examine daily life, Lisbon culture, the climate, jobs, tax, property, education and healthcare in Lisbon so that anyone thinking about a move overseas can be forewarned, forearmed and can determine whether Lisbon is the right location for them.

Daily Life

The pace of life in rural Portugal and in the summer holiday resorts that many of us know and love can be considered relatively laid back – but Lisbon is quite different.  It is a vibrant city, the pace of life can be quite fast as the professional classes who call Lisbon home have busy and full lives, and as a result there is always plenty to do, see and experience in Portugal’s capital city.

One of the best ways to get a feel for every day life is to find a coffee shop (there are thousands with one seemingly on every street corner) and sit outside at a pavement table and watch the world go by.  While one might think of Italy as being synonymous with coffee and café culture, Lisbon has its own unique cafe style and it’s one of the best things about daily life, just sitting, whiling away half an hour and watching the world around you.

Lisbon Culture

Historically and culturally Lisbon is incredibly rich – it dates back to pre-Roman times and embodies Portugal’s unique culture and charm which has been moulded by generations of invaders and rulers from diverse cultures and backgrounds.  There are Moorish influences, Oriental influences, Arabic influences and the Catholic Church has made a lasting impression on Lisbon too.

Portuguese folk music or Fado can be heard throughout Lisbon, but for those who don’t relate to the mournful lyrics and music there are regular concerts of music across the city embracing all genres, there are an abundance of bars, of restaurants serving an array of foods from traditional Portuguese dishes to Italian, Thai or Indian for example and once a year in the evening of the 12th of June the whole city turns into one big street party when the locals or alfacinhas celebrate Saint’s Day.

The Climate in Lisbon

Lisbon is cooled in the summers by breezes from the Atlantic and yet it is protected by its geographic location from the harsher winter aspects of being Atlantic facing – this means that the average yearly temperature is 17 degrees centigrade.  In the summer temperatures average out in the high twenties and in the winter they drop to an average of 13 degrees centigrade meaning that it is a comfortable city to live in all year.  An added bonus of its location is that you can just leave the city a few minutes behind you and head to any one of the many blue flag beaches within easy access of life in Lisbon.

Jobs and Tax

Portugal’s economy has not been fairing too well of late as it is a nation overlooked for foreign direct investment because it is not cheap enough and it is a country that doesn’t export or manufacture significantly to be considered a major economic player and interesting partner for other countries to consider – across the country unemployment is running upwards of 7.5% but in Lisbon there are more job opportunities. 

As Lisbon is the capital city one might expect it to be the centre for all major business concerns to operate from and this is the case – there are opportunities in everything from teaching and healthcare to banking and the media.  It really helps if you speak Portuguese though!

There is a bilateral tax convention in place between Portugal and all other EU member states to avoid taxing citizens twice, but naturally where you pay tax will depend on where you are deemed resident - if you’re moving to live full time in Lisbon you will become tax resident there and liable to pay tax in Portugal on your worldwide income and gains.  Income tax, inheritance tax, property tax all differ between member states and so it’s important you do some research into what you’ll become liable to pay.  In Portugal at the time of writing personal income tax rates vary between 12 and 40%

Property in Portugal’s Capital Lisbon

Unlike elsewhere in Portugal where the property market is quite slow moving and some might even say stagnant at the moment, there is a different property economy in Lisbon.  Naturally the city is one of the most affluent parts of Portugal and it has high levels of inward migration both nationally and internationally.  These migrants are moving to and around Lisbon for employment and can quite easily afford to buy and rent houses which means there is a far more buoyant market for property in Lisbon.

If you’re moving to live in Lisbon consider using a relocation service to help you find your first abode – get a rental apartment or small house first from which you can explore all parts of the city.  You’ll need about 6 months to familiarise yourself with the whole of the greater city limits during which time you should find out where exactly you want to live in Lisbon.  You can then either buy or rent property – note - Barclays Bank offer local euro mortgages in Portugal if you want to find out about how much you can borrow and how the buying process works in Portugal speak to them.

Education and Healthcare

While there is a reciprocal agreement in place between Portugal and the UK relating to social security which include the provision of healthcare, it’s really sensible to take out health insurance to supplement you when you’re in Lisbon – there are many good hospitals but the private ones are superior, the level of care and speed of service is far better as well.  Just like with the NHS the state healthcare system in Portugal is suffering from the effects of under funding.

There are a number of British and American international schools in the Lisbon area such as St Dominic’s International School, the American International School of Lisbon and the Cascais International School – the British Embassy has a list of all schools and their details.  Naturally international schools are private, fee paying schools and the curriculum, fees and standards all vary.