MelbournevsLisbon
Overall
💰-31.8%
Melbourne is 31.8%cheaper
Rent
🏠-23.1%
Housing is 23.1% lower
Dining
🍽️-41.2%
Restaurants 41.2% cheaper
Groceries
🛒-37.5%
Food shopping 37.5% less
Comparing the cost of living between Melbourne, Australia and Lisbon, Portugal reveals significant insights for anyone considering relocation or travel in 2025. Our comprehensive analysis shows that Melbourne is more affordable than Lisbon by approximately 31.8%. 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 Melbourne are higher than in Lisbon by 30%. A one-bedroom apartment in Melbourne's city center costs around A$2,200, while the same in Lisbon is approximately €1,300.
Dining out in Melbourne is notably more expensive compared to Lisbon. An inexpensive restaurant meal costs A$20 in Melbourne versus €10 in Lisbon.
Public transportation in Melbourne is more expensive, with monthly passes at A$170 compared to €40 in Lisbon.
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 Melbourne is more expensive by approximately 60%. Basic items like milk, bread, and eggs show higher prices across the board.
Monthly Budget Breakdown
When breaking down monthly expenses, a single person in Melbourne can expect to spend approximately A$786 per month (excluding rent), while in Lisbon, the same lifestyle would cost around €352. For families, these figures increase significantly, with a family of four requiring about A$2,750 monthly in Melbourne versus €1,233 in Lisbon. 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
🏠 Housing Costs (Monthly Rent)
🍽️ Food & Dining
🛒 Groceries
🚌 Transportation
💡 Utilities & Internet
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
Melbourne
Lisbon
Frequently Asked Questions
Is Melbourne more expensive than Lisbon?
No, Melbourne is approximately 31.8% cheaper than Lisbon. You'll find significant savings in housing, food, and transportation costs.
How much salary do I need in Melbourne compared to Lisbon?
To maintain the same standard of living, you would need approximately 76% of your Lisbon salary when living in Melbourne. For example, if you earn $50,000 in Lisbon, you'd need about $37,946 in Melbourne for a comparable lifestyle.
What are the biggest cost differences between Melbourne and Lisbon?
The most significant cost difference is in dining out. Restaurant prices vary by about 70%, 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 Melbourne if you prioritize earning potential, or Lisbon for affordability.
What's a reasonable monthly budget for Melbourne vs Lisbon?
In Melbourne, a single person needs approximately A$2,486 per month (including rent), while a family of four requires about A$5,550. In Lisbon, these figures are €1,252 for singles and €2,933 for families. These estimates include housing, food, transportation, and basic entertainment.
The cost of living comparison between Melbourne and Lisbon 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 Lisbon to maintain your lifestyle from Melbourne
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