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Lisbon
#106 of 124
Europe

Lisbon

Portugal

Salary & Cost of Living

View purchasing power ranking

How do salaries and expenses in Lisbon compare to Sao Paulo?

Purchasing Power Comparison

An engineer in Lisbon is 19% worse off vs in Sao Paulo

This shows how far a software engineer's salary goes in Lisbon compared to Sao Paulo, taking into account both salary differences and cost of living.

Median Salary
$51,422
+$18K (+55%) vs Sao Paulo
Based on 362 data points from levels.fyi
Net Salary
$30,339
+$8K (+36%) vs Sao Paulo
Tax Rate: 41%

Community Insights

New

Lisbon offers a starkly divided experience depending on your income source. For software engineers working remotely for foreign companies, it remains a sun-soaked paradise with a high quality of life. However, for those on local contracts, the low salary-to-rent ratio makes it one of the most financially difficult cities in Europe. The city boasts incredible safety, weather, and culture, but is currently grappling with severe bureaucratic paralysis (AIMA) and a housing market that has detached from local economic reality. The end of the easy-access NHR tax regime has significantly cooled the financial incentive for many standard engineers.

Resident Sentiment

Sentiment is heavily polarized. Recent transplants (past 2 years) often express frustration with the "bait and switch" of rising costs and bureaucratic gridlock, with many considering leaving after the "honeymoon phase" wears off. Conversely, established remote workers still adore the work-life balance and social vibe. Local sentiment has shifted towards resentment regarding gentrification, with frequent Reddit discussions about how digital nomads are displacing long-term residents.

The Good

Living Environment

Weather•Safety•Pollution•Events

A quick look at climate, safety, pollution, and tech community compared to Sao Paulo.

Rankings

Comfortable Weather

Top 7%

#9

of 124 cities

87/100 weather score

Current value

Safety Index

Top 27%

#34

of 124 cities

67.4/100

Current value

Pollution Score

Top 29%

#36

of 124 cities

37.4/100

Current value (lower is better)

Housing Affordability

View affordability ranking

How affordable is housing for a software engineer in Lisbon compared to Sao Paulo?

Avg. Property Price
$5,946 / m²
148% more expensive than Sao Paulo
View detailed property prices on Numbeo

Salary Converter

Enter your annual gross salary (before taxes) to see what you would need to earn in Lisbon to maintain the same standard of living.

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Do you have kids?

Cost of Living
68% more expensive than Sao Paulo
View detailed cost breakdown on Numbeo

Top Paying Companies in Lisbon

Joom logo
Joom
Volkswagen Digital Solutions logo
Volkswagen Digital Solutions
Critical TechWorks logo
Critical TechWorks
  • Exceptional weather: 300+ days of sunshine, mild winters, and hot summers make it perfect for outdoor lifestyles.
  • High safety: Consistently ranked as one of the safest capital cities in Europe with low violent crime rates.
  • English proficiency: Very high level of English spoken by locals, making day-to-day life and bureaucracy easier for non-Portuguese speakers compared to other EU countries.
  • Vibrant tech scene: Host of Web Summit and a growing hub for startups and digital nomads, offering good networking opportunities.
  • Geo-arbitrage potential: For those with remote US/Northern European salaries, the purchasing power is significantly higher than in their home countries.
  • Cultural richness & pace: deeply relaxed lifestyle, cafe culture, and access to beaches/nature within 20-30 minutes of the city center.

The Bad

  • Severe housing crisis: Rents have skyrocketed, often exceeding 100% of the average local net salary, making finding affordable, quality apartments extremely difficult.
  • Bureaucratic nightmare: The immigration agency (AIMA) is currently in chaos, with reports of canceled appointments, lost residency cards, and massive delays for permits.
  • Low local salaries: Local tech salaries are among the lowest in Western Europe, creating a two-tier society between locals and remote workers.
  • High tax burden: With the end of the classic NHR regime in 2024, new arrivals face progressive tax rates up to ~48% unless they qualify for the strict "NHR 2.0" (scientific/R&D roles).
  • Poor housing insulation: Most apartments lack central heating and proper insulation, leading to the ironic complaint that houses are "colder inside than outside" during winter.
  • Growing resentment: Increasing friction between locals and "expats"/digital nomads who are perceived as pricing locals out of their own city.

The Verdict

You'll love it if...

Remote Senior Engineers with established US/UK/Swiss contracts who can afford premium housing and navigate complex visa processes. Startup Founders or specific R&D specialists who might still qualify for the new, stricter IFICI (NHR 2.0) tax incentives. People who prioritize lifestyle, sun, and safety over maximum savings or career efficiency.

Skip it if...

Junior to Mid-level Engineers relying on local companies, as the salaries will likely not cover a comfortable lifestyle given current rents. Those who need immediate bureaucratic certainty (e.g., for non-EU partners/families) as immigration delays are severe. People who expect high-efficiency public services or modern housing standards (insulation/heating) by default.

Updated 11/29/2025

Weather8.7/10+10% vs Sao Paulo
Safety67+125%
Pollution37-53%
Events4-20%
8.7/10TechCities weather score vs 7.9/10 in Sao Paulo

0–10 composite (higher is better) combining temperature comfort, sunshine hours, rainy-day count, and humid days. See methodology for weighting and data sources.

Weather snapshot

Average High
21°C(vs 25°C in Sao Paulo)
Average Low
13°C(vs 17°C in Sao Paulo)
Sunshine Hours
2,806h/yr+913h/yr(+48%)
Hottest Month High
28°C(same as Sao Paulo)
Coldest Month Low
8°C(vs 13°C in Sao Paulo)
Rainy Days
61/yr-86/yr(-59%)

Community & Quality

Lisbon community pulse

Lisbon has 4 Luma events listed.

20% fewer events than Sao Paulo.

Cost of Living

Middle of the pack

#52

of 124 cities

48/100

Current value (lower is better)

Community Events

Middle of the pack

#58

of 124 cities

4 events on luma

Current value

Net Income

Bottom 28%

#91

of 124 cities

$30,339/yr

Current value

Home Affordability

Bottom 17%

#104

of 124 cities

≈15.7 yrs to buy 80m²

Current value

Purchasing Power

Bottom 16%

#106

of 124 cities

Tax Rate

Bottom 7%

#117

of 124 cities

41%

Current value (lower is better)

SWE Affordability
15.7 years
7.1 years longer than Sao Paulo
Muggy Days
17/yr-64/yr(-79%)
Cloud Cover
35%(vs 50% in Sao Paulo)