Cost Comparison 2025

LisbonvsMelbourne

Portugal
Australia

Overall

πŸ’°

+46.6%

Lisbon is 46.6%more expensive

Rent

🏠

+30.0%

Housing is 30.0% higher

Dining

🍽️

+70.0%

Restaurants 70.0% pricier

Groceries

πŸ›’

+60.0%

Food shopping 60.0% more

Comparing the cost of living between Lisbon, Portugal and Melbourne, Australia reveals significant insights for anyone considering relocation or travel in 2025. Our comprehensive analysis shows that Lisbon is more expensive than Melbourne by approximately 46.6%. 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 Melbourne by 23%. A one-bedroom apartment in Lisbon's city center costs around €1,300, while the same in Melbourne is approximately A$2,200.

Dining out in Lisbon offers significant savings compared to Melbourne. An inexpensive restaurant meal costs €10 in Lisbon versus A$20 in Melbourne.

Public transportation in Lisbon is more affordable, with monthly passes at €40 compared to A$170 in Melbourne.

Purchasing power in Melbourne 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 Melbourne, the same lifestyle would cost around A$786. For families, these figures increase significantly, with a family of four requiring about €1,233 monthly in Lisbon versus A$2,750 in Melbourne. 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
Melbourne, Australia

🏠 Housing Costs (Monthly Rent)

1BR City Center
€1,300
A$2,200
1BR Outside Center
€900
A$1,700
3BR City Center
€2,500
A$4,000

🍽️ Food & Dining

Meal, Inexpensive Restaurant
€10
A$20
Meal for 2, Mid-range Restaurant
€50
A$110
Cappuccino
€2
A$5
Domestic Beer (0.5L)
€3
A$10

πŸ›’ Groceries

Milk (1L)
€1
A$2
Bread (500g)
€1
A$3
Eggs (12)
€2
A$5
Cheese (1kg)
€9
A$11

🚌 Transportation

One-way Ticket
€2
A$5
Monthly Pass
€40
A$170
Taxi Start
€4
A$5
Gasoline (1L)
€2
A$2

πŸ’‘ Utilities & Internet

Basic Utilities (85mΒ²)
€100
A$180
Internet (60 Mbps)
€35
A$75
Mobile Minute
€0
A$0

Tips for Moving Between Cities

For those considering a move from Lisbon to Melbourne, 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 Melbourne 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

Melbourne

Cost of Living Index85
Rent Index65
Purchasing Power Index100

Frequently Asked Questions

Is Lisbon more expensive than Melbourne?

Yes, Lisbon is approximately 46.6% more expensive than Melbourne overall. The biggest differences are in housing and restaurant prices.

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

To maintain the same standard of living, you would need approximately 1.5x of your Melbourne salary when living in Lisbon. For example, if you earn $50,000 in Melbourne, you'd need about $73,276 in Lisbon for a comparable lifestyle.

What are the biggest cost differences between Lisbon and Melbourne?

The most significant cost difference is in dining out. Restaurant prices vary by about 41%, 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?

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

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

In Lisbon, a single person needs approximately €1,252 per month (including rent), while a family of four requires about €2,933. In Melbourne, these figures are A$2,486 for singles and A$5,550 for families. These estimates include housing, food, transportation, and basic entertainment.

The cost of living comparison between Lisbon and Melbourne 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 Melbourne to maintain your lifestyle from Lisbon

Calculate Salary Equivalence

Last updated: 2025-01-15 β€’ Data sourced from multiple providers