1. Cost of Living
One of the most significant indicators of affordability is the cost of housing. In comparison to other major European cities, Lisbon offers relatively cheaper rents. According to Statista, in 2024, Amsterdam had the highest rental costs for a furnished one-bedroom apartment. Moreover, about 94% of the available properties in Lisbon come fully furnished, often including utilities like electricity and gas, further contributing to its overall affordability.
Groceries in Lisbon also reflect this trend. As per Eurostat data, grocery prices in Portugal are lower than in several other European countries, including Denmark, the Netherlands, Germany, Belgium and France. This makes everyday living in Lisbon easier on the wallet compared to northern and even some southern European nations.
Additionally, when it comes to household utilities like electricity and gas, Lisbon provides lower costs compared to cities in countries such as the Netherlands and Germany. Portugal’s energy prices are among the more affordable in the European region, which helps keep the overall cost of living lower for Lisbon residents.
2. Healthcare
Portugal’s public healthcare system, the SNS, plays a huge role in keeping Lisbon affordable. This system is publicly funded through taxation and provides nearly free healthcare to all residents, as well as tourists and visitors. Whether it’s general practitioners, surgeries, or hospital care, the public system ensures wide access to necessary medical services.
In comparison to other European healthcare systems like those in the Netherlands , or France, Portugal’s system is more straightforward and accessible, especially since it doesn’t rely heavily on private insurance networks. The subsidized cost of prescription medication is another factor that helps keep healthcare costs manageable in Lisbon.
Compared to countries like Belgium or Spain, where private insurance is more frequently used to avoid monthly waiting times, Portugal’s public healthcare system delivers affordable and direct care for its residents.
3. Transportation
Public transport in Lisbon is not only efficient but also one of the most affordable among European capitals. A monthly pass costs just €30 for travel within the city or €40 for the metropolitan area, which covers the suburbs.
This is significantly cheaper when compared to cities like Amsterdam, where a monthly pass costs €100, Paris at €89 or Berlin at €106.5. Even southern European cities such as Rome (€35) and Madrid (€30-132) have higher transport costs, making Lisbon a budget-friendly option for public transport.
These lower transportation costs make getting around Lisbon easy and economical, contributing to the city’s overall affordability.
4. Dining and Nightlife
Dining out in Lisbon offers great value for money. According to data from Numbeo, Lisbon ranks 79th out of 145 European cities in terms of dining costs, with an index of 13.64. This makes eating out in Lisbon significantly cheaper compared to other major European capitals. Whether you’re enjoying local cuisine at a small tasca or heading out for a night out in town, Lisbon’s vibrant food and nightlife scene can be experienced on a budget, making it a favorite among both locals and expats.
Conclusion
Why is Lisbon one of the cheapest capitals in the EU? The answer lies in its balanced cost of living, affordable healthcare, reasonably priced public transportation, and budget-friendly dining options. For anyone looking to live in a dynamic European city without breaking the bank, Lisbon offers a rare blend of life quality and affordability.
