Portugal offers a competitive tax regime – the standard corporate tax rate is 21% (with plans to gradually reduce it to 15% by 2027), and there are generous investment incentives such as tax credits up to 25% for eligible capital projects (plus partial exemptions on property and other taxes). For foreign individuals, the renowned Non-Habitual Resident (NHR) program provides a flat 20% income tax on qualifying local earnings and tax exemptions on most foreign-sourced income for 10 years, making Portugal very attractive to expat professionals and investors.

Lisbon boasts a relatively affordable cost of living by Western Europe standards. For example, a single person’s monthly expenses are estimated at around €750 (excluding rent), while a family of four spends roughly €2,665 per month (excluding rent)

Lisbon ranks as a safe city: it scored around 70 out of 100 on a 2023 city safety index, reflecting low crime rates and a secure environment compared to global urban centers.

Lisbon has emerged as one of Europe’s leading tech hubs. According to recent startup ecosystem rankings, Lisbon is placed among the top 5 startup cities in Europe – one index even ranks it 4th in attractiveness for startups and tech talent. This underscores the city’s vibrant tech scene, bolstered by events like Web Summit and a growing number of unicorn startups.

The fastest-growing sectors in Lisbon’s economy include technology/startups, tourism, and real estate. Portugal is now among the top 5 European countries for new tech startups, and Lisbon’s tech ecosystem (especially fintech and IT services) is booming. Tourism is another powerhouse – it accounts for roughly 20% of Lisbon’s output and about one in four jobs, thanks to surging visitor numbers. Additionally, a robust property and construction sector (buoyed by both domestic demand and foreign investment) has been a key driver of recent economic growth.

Portugal attracted approximately €6.8 billion in FDI inflows in 2023. The Lisbon region is the principal magnet for foreign investment – in 2022, Lisbon alone hosted 128 FDI projects (over half of the country’s total that year), underscoring that a large share of Portugal’s inbound investment is concentrated in the capital.

The Lisbon Metropolitan Area has seen strong economic growth. In 2022, Lisbon’s regional GDP grew by 8.2% in real terms, outpacing the national growth rate of 6.8% for that year. (This robust post-pandemic rebound, driven by tourism and services, highlights Lisbon’s role as an engine of Portugal’s overall economic expansion.)