City Comparison · Updated May 2026
Portugal
COL index 71.2
United Kingdom
COL index 87.6
Lisbon vs London — Cost of Living, Salary & Tax Compared (2026)
The verdict
Living in Lisbon is 18.7% cheaper than London for the same lifestyle.
Based on Q1 2026 COL index and median single-person expenditure.
Side-by-side stats
| Lisbon | Metric | London | Δ |
|---|---|---|---|
| 71.2 | Cost of living index | 87.6 | +23.0% |
| €50,000 | Median gross salary | €50,000 | 0.0% |
| €32,496 | Net at €50,000 gross | €37,714 | +16.1% |
| €1,450 | Rent — 1BR centre | €2,450 | +69.0% |
| €2,014 | Monthly COL (single) | €3,333 | +65.5% |
| €45,641 | PPP — net / COL | €43,053 | -5.7% |
| 35.0% | Effective tax @ €50,000 | 24.6% | -29.8% |
Monthly expenses — paired
Salary equivalence
€50,000 gross in Portugal = €2,321 net monthly.
To have the same purchasing power in London, you would need roughly €53,220 gross in United Kingdom (≈ €3,332 net monthly, adjusted for cost-of-living index).
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Pros & cons
- +Significantly cheaper rent (€1,450)
- −High rent-to-income ratio (62.5%)
- +14-month salary structure
- −High cost of living (index 88)
- +Favourable tax rate (24.6%)
- −High rent-to-income ratio (78.0%)
The verdict
Across the data, London delivers a higher take-home on a €50,000 gross salary; Lisbon carries a lower cost-of-living index; London has the lighter effective tax burden; Lisbon wins on purchasing power after costs are netted out. If purchasing power is your north star, Lisbon edges it.
Frequently asked
Is Lisbon cheaper than London?+
Lisbon is cheaper. Cost-of-living index: Lisbon 71.2, London 87.6 — a 18.7% difference (Q1 2026).
What is the cost of living difference between Lisbon and London?+
Lisbon sits at 71.2 on our COL index, London at 87.6. That works out to roughly 18.7% — Lisbon being the cheaper of the two.
Is Lisbon a good place to live compared to London?+
It depends on priorities. Lisbon delivers €32,496 net on a €50,000 gross salary at a 35.0% effective tax rate. London delivers €37,714 at 24.6%. Centre 1-bed rent: €1,450 vs €2,450.
How do salaries compare in Lisbon vs London?+
On a €50,000 gross salary, take-home is €32,496/year (€2,321/month) in Lisbon and €37,714/year (€3,143/month) in London.
Which city has lower taxes, Lisbon or London?+
United Kingdom has the lower effective rate at €50,000: Portugal 35.0%, United Kingdom 24.6%.