London vs Lisbon: cost of living & salary context
A classic remote-work pairing: high London costs vs Lisbon’s lower index and growing tech scene.
Who this comparison is for
London vs Lisbon is the archetypal remote-work trade-off: keep a UK or international salary tied to London, move to Portugal for lifestyle and lower everyday costs — or reverse the move and understand why Lisbon pay feels tight in the capital.
Use this page if you are weighing an EU base, comparing job offers in both cities, or explaining to family why the same number on paper buys different lifestyles.
Housing (not in the Numbeo basket)
London rent in zones 1–3 often dwarfs Lisbon’s central prices in absolute terms, but Lisbon’s market tightened sharply after 2020. A one-bedroom in Lisbon might still save £400–£800/month vs comparable London areas — yet that gap is narrower than the goods-only COL factor suggests.
Always check current listings: our calculator’s purchasing-power factor uses Numbeo’s basket excluding rent. Add housing research before signing a lease in either city.
Tax, visa, and payroll caveats
UK income tax and National Insurance reduce London take-home pay. Portugal has its own progressive rates and historically offered special regimes for new residents — rules change; consult a tax adviser for your residency timeline.
Brexit ended automatic UK EU freedom of movement. British citizens in Portugal and Portuguese workers in the UK need valid visas. None of that appears in our indices.
Lifestyle beyond the index
Lisbon offers milder winters and shorter commutes for many; London offers deeper job markets and global flight connections. Healthcare access differs (NHS vs SNS). Childcare and international schools can invert a spreadsheet advantage if you need English-language education in Lisbon.
The Numbeo basket reflects average consumption — your wine habit, ski trips, or minimalist street-food diet will not match the median.
Cost-of-living indices (excluding rent)
| City | Numbeo index | Typical gross salary |
|---|---|---|
| London | 87.2 | 3,200 £/mo (approx.) |
| Lisbon | 54.1 | 1,400 €/mo (approx.) |
Lisbon has the lower cost-of-living index on Numbeo (excluding rent), so the same monthly pay typically stretches further there on everyday goods and services. Indices use New York ≈ 100 as reference in our dataset.
Purchasing power factors
Using the same formula as the app (home index ÷ destination index):
- Salary based in London → spending power in Lisbon: 1.61×
- Salary based in Lisbon → spending power in London: 0.62×
Values above 1 mean money stretches further in the destination. Enter your own monthly pay in the calculator for equivalents in your currency and vs local averages.
Salary scenarios
Illustrative equivalents using our COL formula — not take-home pay after tax:
- Mid-level professional: 4,500 £/mo in London ≈ 7,254 £/mo equivalent in Lisbon (1.61× on everyday goods, rent excluded).
- Senior remote worker: 7,000 £/mo in London ≈ 11,284 £/mo equivalent in Lisbon (1.61× on everyday goods, rent excluded).
- Local Lisbon earner: 1,800 €/mo in Lisbon ≈ 1,116 €/mo equivalent in London (0.62× on everyday goods, rent excluded).