Cost Comparison 2025

LisbonvsLondon

Portugal
United Kingdom

Overall

💰

+63.8%

Lisbon is 63.8%more expensive

Rent

🏠

+70.0%

Housing is 70.0% higher

Dining

🍽️

+90.0%

Restaurants 90.0% pricier

Groceries

🛒

+60.0%

Food shopping 60.0% more

Comparing the cost of living between Lisbon, Portugal and London, United Kingdom reveals significant insights for anyone considering relocation or travel in 2025. Our comprehensive analysis shows that Lisbon is more expensive than London by approximately 63.8%. This comparison covers essential living expenses including housing, food, transportation, and utilities, providing you with a complete picture of what to expect financially in each city.

Key Cost Differences

Housing costs in Lisbon are lower than in London by 41%. A one-bedroom apartment in Lisbon's city center costs around €1,300, while the same in London is approximately £2,500.

Dining out in Lisbon offers significant savings compared to London. An inexpensive restaurant meal costs €10 in Lisbon versus £18 in London.

Public transportation in Lisbon is more affordable, with monthly passes at €40 compared to £180 in London.

Purchasing power in London is notably stronger, meaning residents can afford more goods and services with their local salaries compared to Lisbon.

Grocery shopping in Lisbon is more affordable by approximately 38%. Basic items like milk, bread, and eggs show lower prices across the board.

Monthly Budget Breakdown

When breaking down monthly expenses, a single person in Lisbon can expect to spend approximately €352 per month (excluding rent), while in London, the same lifestyle would cost around £716. For families, these figures increase significantly, with a family of four requiring about €1,233 monthly in Lisbon versus £2,505 in London. These estimates include groceries, dining out, transportation, utilities, and entertainment, providing a realistic picture of day-to-day living costs in each city.

Detailed Cost Comparison

Item
Lisbon, Portugal
London, United Kingdom

🏠 Housing Costs (Monthly Rent)

1BR City Center
€1,300
£2,500
1BR Outside Center
€900
£1,800
3BR City Center
€2,500
£5,500

🍽️ Food & Dining

Meal, Inexpensive Restaurant
€10
£18
Meal for 2, Mid-range Restaurant
€50
£80
Cappuccino
€2
£4
Domestic Beer (0.5L)
€3
£6

🛒 Groceries

Milk (1L)
€1
£1
Bread (500g)
€1
£2
Eggs (12)
€2
£3
Cheese (1kg)
€9
£10

🚌 Transportation

One-way Ticket
€2
£3
Monthly Pass
€40
£180
Taxi Start
€4
£4
Gasoline (1L)
€2
£2

💡 Utilities & Internet

Basic Utilities (85m²)
€100
£200
Internet (60 Mbps)
€35
£35
Mobile Minute
€0
£0

Tips for Moving Between Cities

For those considering a move from Lisbon to London, the cost savings can be substantial, particularly in housing and daily expenses. However, it's important to factor in salary differences and job opportunities. Conversely, moving from London to Lisbon requires careful financial planning. Consider negotiating salary adjustments that reflect the higher cost of living, and research neighborhoods outside the city center for more affordable housing options while maintaining reasonable commute times.

Quality of Life Indices

Lisbon

Cost of Living Index58
Rent Index50
Purchasing Power Index65

London

Cost of Living Index95
Rent Index85
Purchasing Power Index90

Frequently Asked Questions

Is Lisbon more expensive than London?

Yes, Lisbon is approximately 63.8% more expensive than London overall. The biggest differences are in housing and restaurant prices.

How much salary do I need in Lisbon compared to London?

To maintain the same standard of living, you would need approximately 1.6x of your London salary when living in Lisbon. For example, if you earn $50,000 in London, you'd need about $81,897 in Lisbon for a comparable lifestyle.

What are the biggest cost differences between Lisbon and London?

The most significant cost difference is in dining out. Restaurant prices vary by about 47%, which can significantly impact your entertainment budget. Transportation and utilities show notable variations between the two cities.

Which city is better for expats and digital nomads?

London offers better purchasing power, making it more attractive for those earning in strong currencies. However, London provides lower living costs, which benefits budget-conscious travelers. Consider Lisbon if you prioritize cultural experiences, or London for better value.

What's a reasonable monthly budget for Lisbon vs London?

In Lisbon, a single person needs approximately €1,252 per month (including rent), while a family of four requires about €2,933. In London, these figures are £2,516 for singles and £6,005 for families. These estimates include housing, food, transportation, and basic entertainment.

The cost of living comparison between Lisbon and London in 2025 shows significant differences across various expense categories. Whether you're planning a relocation for work, considering retirement options, or simply curious about living costs, understanding these differences is crucial for making informed financial decisions.

Need to calculate salary equivalence?

Find out how much you need to earn in London to maintain your lifestyle from Lisbon

Calculate Salary Equivalence

Last updated: 2025-01-15 • Data sourced from multiple providers