Is Lisbon still Europe’s digital nomad capital in 2025? What zones are worth it?

Lisbon’s reputation as Europe’s leading digital nomad hub surged in the early 2020s, propelled by sun-drenched neighborhoods, affordable rents (at the time), and remote work-friendly policies. But by mid-2025, a growing number of location-independent workers are asking whether the Portuguese capital still deserves its crown. With rental inflation, gentrification concerns, and rising competition from cities like Valencia, Athens, and Porto, many are reevaluating what Lisbon offers—and which neighborhoods, if any, remain viable for nomads seeking affordability, community, and a high quality of life.

How has Lisbon’s appeal to digital nomads evolved between 2020 and 2025?

Lisbon’s status as a digital nomad magnet began around 2018 and peaked during the post-pandemic remote work explosion. Portugal’s D7 visa program, which allowed remote earners to reside legally, became a springboard for thousands of tech workers, freelancers, and solopreneurs from North America, the UK, Germany, and Brazil. By 2021, coworking spaces like Second Home, Outsite, and IDEA Spaces were full, cafés in neighborhoods like Graça and Alfama buzzed with keyboards, and Nomad List ranked Lisbon consistently in the global top 5.

The trend accelerated further in 2022–2023 when Portugal introduced a dedicated digital nomad visa, allowing remote workers to reside in the country with income requirements starting at €2,800/month. The influx brought not just energy but also soaring rent prices and local resistance. Between 2021 and 2024, average rental prices in central Lisbon rose by over 65%, according to data from Idealista. Critics argued that remote workers contributed to gentrification, pricing out locals and reshaping the city’s social fabric. Meanwhile, municipal efforts to regulate Airbnbs and short-term rentals saw limited impact.

Despite these tensions, Lisbon remains a desirable base in 2025—though its appeal now skews toward mid-to-high-income nomads who value Western-European quality of life, infrastructure, and lifestyle access over bargain pricing.

Which Lisbon neighborhoods are still affordable and livable for remote workers in 2025?

By 2025, most digital nomads agree: affordability in Lisbon is relative. Central neighborhoods like Bairro Alto, Cais do Sodré, and Príncipe Real, once considered trendy-yet-affordable, are now among the most expensive in the city. Rent for a one-bedroom apartment in these zones can exceed €1,800/month without utilities. These areas have effectively priced out most budget-conscious nomads, unless they’re sharing accommodations or staying short-term.

However, several neighborhoods still offer value without compromising Lisbon’s charm. Marvila, once industrial, has reinvented itself as a cultural and creative hub with art spaces, modern co-living buildings, and riverside cafés. Alcântara, nestled between the city center and Belém, remains well-connected and offers proximity to coworking spaces like NOW_Beato, while staying marginally cheaper than downtown. Campo de Ourique is another sleeper hit—a more residential, authentic neighborhood with leafy streets, bakeries, and fewer tourists, yet decent internet and remote work infrastructure.

Graça and Penha de França continue to attract long-term nomads due to their balance of old-world character, walkability, and manageable rental prices. While Alfama still draws short-term renters for its aesthetic appeal, many nomads find it noisy and impractical for daily remote work. Suburban zones like Odivelas or even nearby Cascais are seeing rising interest from families or slowmads looking for better value and space.

What do digital nomads say about Lisbon’s infrastructure, co-working, and quality of life in 2025?

Lisbon’s digital infrastructure remains robust. Fast Wi-Fi is now the norm across homes, cafés, and coworking spaces. Public transport, including trams, metros, and buses, continues to be affordable and reliable. English proficiency has improved notably in service sectors, although navigating bureaucracy still often requires Portuguese or the help of a translator.

Co-working culture is thriving in 2025, though less centralized than in the past. Popular remote hubs include Avila Spaces, IDEA Spaces in Palácio Sotto Mayor, and Selina Secret Garden, which doubles as a coliving and event venue. Many nomads now prefer quieter or boutique coworking setups over larger chains, seeking better acoustics and networking quality.

Health infrastructure, public safety, and environmental quality continue to score high. With over 260 days of sunshine annually, easy access to beaches, and an active outdoor culture, Lisbon offers a high wellness quotient—often cited by digital workers as a key differentiator over other European hubs. That said, rising petty crime and scams targeting foreigners have become more common, prompting cautionary threads on Reddit and expat forums.

Institutional sentiment is mixed. While Portugal’s national tourism and investment agencies still market Lisbon aggressively as a tech and nomad-friendly capital, local municipalities have adopted a more tempered tone, balancing foreign influx with policies to retain livability for residents.

Are alternative cities in Portugal or Europe becoming more attractive than Lisbon for digital nomads?

Lisbon is no longer the only game in town. In Portugal alone, cities like Porto, Braga, and Madeira’s capital Funchal are gaining traction. Porto is often cited as “Lisbon minus the crowds,” with a slower pace, lower rents, and an equally dynamic expat scene. Braga appeals to tech workers due to its proximity to innovation clusters and university research hubs.

Madeira has aggressively positioned itself as a remote work haven. The Digital Nomads Madeira Islands initiative, launched in 2021, has matured into a full-fledged ecosystem with coworking villages, community events, and housing support, particularly in Ponta do Sol and Funchal. It caters to long-stay nomads who prioritize community, nature, and visa convenience over city amenities.

Outside Portugal, Valencia has emerged as a serious competitor, especially after Spain introduced its own digital nomad visa in 2023. Athens, with its low cost of living and growing startup scene, is seeing a quiet boom among budget-conscious nomads. Even cities like Split, Tallinn, and Budapest are experiencing a second wave of digital migration as housing in Western Europe becomes less attainable.

According to sentiment analyses from Nomad List and Expat Insider, the digital nomad conversation is moving from where’s cool? to where’s sustainable and affordable long-term? Lisbon still ranks high—but no longer dominates.

What should remote workers know before relocating to Lisbon in 2025?

Remote workers considering Lisbon in 2025 should enter with eyes wide open. A comfortable solo lifestyle in the city now requires a monthly income of at least €2,500–€3,500 to cover rent, food, coworking, and health insurance. Visa options are plentiful—Portugal still offers both the D7 (for passive income or freelancers) and the digital nomad visa (for remote workers with overseas income). However, processing times have slowed, and legal assistance is often necessary.

Cultural integration requires effort. While English is widely spoken in professional circles, basic Portuguese helps immensely with bureaucracy and daily life. The city remains welcoming but visibly fatigued from over-tourism and housing pressure. Nomads who engage with local communities, support small businesses, and avoid treating Lisbon like a playground are generally better received.

Coworking is easy to access, and health infrastructure is solid—but navigating housing remains the biggest challenge. Long-term rentals often require multi-month deposits and local guarantors. Many digital nomads now rely on Facebook housing groups, trusted rental platforms like Flatio, or co-living networks such as Outsite and SameSame.

Safety is stable, but remote workers are advised to stay alert in tourist-heavy zones. Nightlife is vibrant, public services are efficient, and Lisbon Airport offers excellent connectivity to Europe, the Americas, and Africa—making it ideal for nomads with frequent travel needs.

Why Lisbon remains desirable—but not unchallenged in 2025

Lisbon still offers much of what digital nomads crave: beautiful weather, fast internet, thriving cafés, and a global community. But the equation has changed. In 2025, it’s no longer a budget paradise or an undiscovered gem—it’s a mature remote work city with the advantages and drawbacks that status brings.

Nomads seeking lifestyle, access, and infrastructure will still find Lisbon compelling. But those looking for affordability, ease, and discovery may find better options elsewhere—or at least in Lisbon’s lesser-known neighborhoods.