Article updated March 2026 – Mercer and Monocle rankings updated with the latest available data.
In short: In 2019, Lisbon was already the 95th most expensive city in the world for expatriates according to Mercer. By 2024, it had climbed back to 100th place (+17 positions compared to 2023). On the quality of life front, Monocle ranked it 3rd in the world in 2022, then 6th in 2024. Lisbon is both more expensive and more attractive than it was five years ago.
Lisbon in the Top 100 most expensive capitals
The Portuguese capital ranked 95th most expensive city in the world in Mercer’s 2019 cost of living survey, dropping two positions compared to 2018. This does not mean Lisbon became cheaper — other cities simply rose faster. Among European cities, Lisbon was already on a par with Berlin (81st), Madrid (82nd) and Barcelona (92nd). Food, leisure, fuel and housing costs were the main drivers of the increase. As a reference, renting a three-bedroom apartment in Lisbon’s upmarket districts cost around €3,150/month — compared to €12,910 in Hong Kong and €5,728 in London.
Lisbon’s Mercer ranking over the years
| Year | Global Mercer rank | Note |
|---|---|---|
| 2019 | 95th | Rise driven by housing costs |
| 2021 | 83rd | +23 places, post-Covid acceleration |
| 2023 | 117th | Drop linked to exchange rate effects, not a real price decrease |
| 2024 | 100th | +17 places — cost of living rising sharply for expats |
According to the latest available Mercer ranking (2024 edition, 226 cities analysed), Lisbon is now the 100th most expensive city in the world for expatriates and the 39th most expensive city in Europe. This rise reflects genuine local increases in housing, food, transport and service costs, amplified by exchange rate fluctuations. Lisbon remains more affordable than London, Zurich or Paris — but the gap is narrowing every year.
Europe’s most expensive cities (2019 Mercer ranking)
In 2019, Zurich (5th) was the only European city in the global Top 10. Cities that dropped included Milan (45th, -12), Paris (47th, -13), Oslo (61st, -14) and Madrid (82nd, -18). The authors attributed this European decline to weakened currencies against the dollar, security concerns and economic uncertainty.
The global Top 10 most expensive cities was dominated by 8 Asian cities, led by Hong Kong:
- Tokyo (2nd)
- Singapore (3rd)
- Seoul (4th)
- Shanghai (6th)
- Ashgabat (7th)
- Beijing (8th)
- Shenzhen (10th)
Lisbon and quality of life: from Top 10 to the global podium
The Portuguese capital Lisbon was recognised as one of the 10 best cities in the world for quality of life as early as 2019 — and it has continued to rise.
In 2019, Lisbon entered Monocle’s Quality of Life ranking at 10th place, described as “a sunny city with new energy”. Its entrepreneurs were continuing to open new businesses in Portugal and the city was investing heavily in improving conditions for its residents.
The progression since then has been remarkable. In 2022, Lisbon reached 3rd place worldwide in the Monocle ranking, behind Copenhagen and Zurich — recognition of its progress on transport, green spaces and carbon emission targets (-60% by 2030). In 2024, it holds 6th place globally, behind Zurich, Copenhagen, Munich, Vienna and Tokyo. Monocle describes it as “a constantly evolving melting pot”, highlighting nearly 2,800 hours of sunshine per year and 132 international destinations served from its airport — while flagging rapid rent increases as the main concern.
Monocle’s ranking evaluates cities according to:
- Transport infrastructure
- Cultural life
- Number of green spaces
- Housing costs
- Economic environment
The latest editions confirm Lisbon remains at the top of the global charts, while identifying property speculation and rental pressure as the key issues for anyone considering settling in Portugal.
Lisbon’s Monocle quality of life ranking over the years
| Year | Monocle rank | Description |
|---|---|---|
| 2018 | 12th | First major international recognition |
| 2019 | 10th | “Sunny city with new energy” |
| 2022 | 3rd | Global podium — low pollution, transport, green spaces |
| 2024 | 6th | “Constantly evolving melting pot”, 2,800 hours of sunshine/year |
Cities with the best quality of life in 2019 (Monocle)
- Zurich (Switzerland) — 1st
- Tokyo (Japan)
- Munich (Germany)
- Copenhagen (Denmark)
- Vienna (Austria)
- Helsinki (Finland)
- Hamburg (Germany)
- Madrid (Spain)
- Berlin (Germany)
- Lisbon (Portugal) — 10th place
