With a mild Mediterranean climate and sunny weather, Lisbon combines historic charm (its UNESCO World Heritage monuments, Jerónimos Monastery and Belém Tower, date from the Age of Discovery) with a dynamic business and cultural scene. The Lisbon metropolitan area, predicted by Macrotrends to reach more than 3 million people in 2025, generates a large share of Portugal’s economy, about 36% of the national GDP according to Lisboa, The Economy in Figures (2024), well above the Portuguese average, making it the country’s economic heart. Road Genius reports that the city proper had roughly 548,000 inhabitants in 2024. Tourism is a major sector, with over 6.54 million visitors in 2024. Lisbon’s municipal government has made record investments in social infrastructure, investing in a €560-million (~$625-million) public-housing program to ensure that economic gains translate into better living standards.

A diversified innovation economy

Lisbon’s startup scene has surged in recent years. Portuguese tech has grown 8% in 2025, spurred by supportive policies such as the Tech Visa program and Startup Portugal initiatives, and high-profile events. The city hosts Europe’s largest tech festival, Web Summit, with over 70,000 attendees, which relocated to Lisbon in 2016 and will remain there at least through 2028. 

In 2023, Lisbon was awarded the European Capital of Innovation Award by the European Commission, recognizing its bold strategies for sustainability, inclusion and startup growth. One of the main pillars behind this achievement is Unicorn Factory Lisboa, which the Financial Times placed in the top ten of Europe's Leading Start-up Hubs 2024. This flagship initiative offers top-tier acceleration and incubation programs, mentoring and support, and since its inception in 2022 it has attracted more than 50 tech centers to the city. 

According to StartupBlink, Lisbon has around 13 startups per 100,000 residents, ranking as the country’s strongest ecosystem and 20th in Western Europe. Startup Genome’s Global Startup Ecosystem Report 2024 placed Lisbon 15th among emerging ecosystems in Europe and 33rd worldwide, highlighting its fast-rising international profile. Lisbon-based startups were collectively worth about €2.1 billion in 2022, three times their value just five years earlier, and in 2025, that number reached €25 billion (Startup Genome, 2025). More than 14 unicorns call Lisbon home,  such as software firm OutSystems (€4.3 billion valuation) and call-center platform Talkdesk (valued at more than €10 billion). More than 14 unicorns have decided to make the city their base of operations in the past three years, including Iterable, Pager duty, Klarna, Cloudflare and Quinto Andar. 

A connected academic and talent ecosystem

Lisbon benefits from a rich pool of educated talent. The city hosts dozens of higher-education institutions (over 30 universities and polytechnics in the metro area), including the University of Lisbon, (with Instituto Superior Técnico, the largest school of engineering in Portugal), NOVA University (with NOVA SBE, which was ranked fourth in Redstone University’s Startup Index 2025, for the most efficient startup-generating schools in Europe), the Catholic University of Portugal (with the Lisbon School of Business and Economics), and the ISCTE. According to Pordata statistics (2024), roughly 43% of Portugal's inhabitants aged between 25-34 hold either a bachelor's, master's or doctorate degree. With numerous research institutes and innovation centers – from the Gulbenkian Foundation’s science arm to labs connected with international networks – Lisbon is one of Southern Europe’s densest R&D landscapes. Portugal ranks high in English proficiency, and universities, research centers and the private sector collaborate through tech-transfer offices and accelerators (for example, Unicorn Factory Lisboa). The government’s €3 billion National Digital Transition plan further integrates academia with industry. 

International outlook and events

Lisbon has a strong global outlook, making it an attractive business center not only in Portugal but also in Europe. It regularly hosts major international conferences and delegations, which bring investors, partners and a high volume of new businesses to the region. The Lisbon Metropolitan Area had around 1250 startups as of 2024 (Lisboa, The Economy in Figures). In addition to Web Summit, its calendar includes the Lisbon Energy Summit & Exhibition, the VNTR Summit Lisbon and the Lisbon Investment Summit. It has also hosted Greenfest (Portugal’s largest sustainability event), the UN Ocean Conference in 2022, and the Tribeca Festival Lisboa (2024 and 2025). In 2027, it will host the International Social Housing Festival – the world’s largest housing-policy summit – highlighting the city’s innovative approach to urban development.

Lisbon also leverages Portugal’s ties to Brazil, Africa and Europe: it is a gateway for Lusophone markets and frequently welcomes South American and African business delegations. 

Living and working in Lisbon

Lisbon combines business opportunity with a high quality of life. The city is celebrated for its culture, cuisine and historic character – such as Fado music venues, world-class food and colorful neighborhoods like Alfama and Bairro Alto. Mercer’s Cost of Living City Ranking 2024 ranked it only 100th globally for cost of living, far below expensive cities like London or Geneva. Local rents and home prices have risen with demand, but day-to-day costs such as food and transportation remain moderate by European standards. The city also consistently rates as one of Europe’s safest capitals. In 2024, the Internal Security Report (Relatório Anual de Segurança Interna) noted a 7.6% drop in overall crime across Lisbon’s metro area, its biggest fall in over a decade, and a 1.8% decline in violent crime. 

The city’s English-friendly environment and sizable international community (Lisbon hosts the largest Brazilian diaspora in Europe) make it comfortable for newcomers. A proliferation of coworking spaces, startup meetups and cultural events also lends it a connected community feel, with extensive support networks for entrepreneurs, digital nomads and families. In addition, Lisbon’s climate (warm, dry summers and mild winters), its abundant parks, bike lanes and waterfront promenades, and its scenic setting along the Tagus, all make outdoor life easy.

Sustainability

Lisbon has positioned itself as a European leader in sustainability. The city was honored as the European Green Capital 2020, recognized for its sustainability progress in mobility, renewable energy and climate adaptation. In 2024, the Lisbon City Council won the Procura+ Award for Sustainable Procurement. The council is among the country’s ten largest public purchasers and was the first Portuguese organization to implement a sustainable procurement system certified under ISO 20400, setting a benchmark for both public and private institutions. These efforts underline Lisbon’s commitment to embedding climate and social responsibility across governance while fostering a strong business environment.