Lisbon Expat Guide: Cost of Living, Tax and Neighbourhoods
Cost of living, neighbourhoods, schools, healthcare, and tax for English-speaking expats moving to Lisbon. Updated for 2026.
Last reviewed:
Cost of living
Lisbon runs roughly 35% below London on a like-for-like basket. A one-bed flat in Príncipe Real or Estrela rents for €1,200 to €1,500 a month, the same flat in Marvila or Beato sits at €900 to €1,100, a monthly transport pass is €40, and dinner for two at a neighbourhood restaurant is €50 to €70 without wine.
Neighbourhoods
The expat shortlist is Príncipe Real, Lapa and Estrela (period buildings, walkable, family-friendly), Marvila and Beato (riverside, cheaper, rising fast), Parque das Nações (modern, near the airport, popular with families) and Cascais down the coast (beach access, international schools, 30 minutes by train).
Property
Buying as a non-resident is straightforward but slow. NIF first, then a Portuguese bank account, then the deed signed in Portuguese before a notary. Total purchase costs run 6% to 8% on top of the price (IMT, stamp duty, notary, registry). Mortgages for non-residents are typically capped at 60% to 70% loan-to-value with rates roughly 0.5% to 1% higher than the resident rate.
Schools
British and international shortlist by neighbourhood: St Julian’s (Carcavelos), International School of Lisbon (Telheiras), Park International (Cascais), Carlucci American International School (Sintra), Oeiras International School. Annual fees for older year groups run €15,000 to €25,000; popular schools tend to have a year-long waiting list for September starts.
Healthcare
UK movers get free public-system access via S1; US movers via residency and treaty rules. The main private hospitals are CUF Tejo, CUF Descobertas and Hospital da Luz. Private cover for a healthy 40-year-old expat is roughly €60 to €100 a month. English-speaking GPs cluster around the same private networks.
Banking and currency
You need a NIF before opening a Portuguese account. Millennium BCP, Novobanco and ActivoBank are the usual expat-friendly options. Most movers also keep a multi-currency account (Wise or Revolut) for transfers from GBP or USD. Property purchases settle through your Portuguese bank, not Wise.
Tax and residency at a glance
Portugal’s new-resident regime IFICI taxes qualifying foreign-source income at 0% and Portuguese-source employment income at a flat 20% for ten years. Whether you qualify depends on your profession and your tax residency over the past five years. The shortest answer comes from our Portugal IFICI eligibility quiz; the longer picture is in the Portugal Golden Visa and Expat Guide.