Changing cities may seem like the perfect solution for a lighter, more balanced life. Between the sun, cafes with terraces and a slower pace, Lisbon has become a refuge for many foreigners looking for a more peaceful existence. But, as the number of newly arrived foreigners grows, the city begins to transform, and inevitable questions arise about belonging, cost and justice, as is the case in this case witnessed by a British woman, regarding the Portuguese city of Lisbon.
In recent years, this Portuguese city has welcomed thousands of foreign professionals who work remotely, receive income from abroad and benefit from advantageous tax regimes. In Lisbon neighborhoods like Lapa, Rato or Santos, the stories of those who came in search of quality of life, international schools and work spaces full of foreigners are repeated.
Daily life mixes Portuguese families with inherited wealth and new residents with salaries from other countries. The result is a parallel economy, spoken in several languages and increasingly disconnected from local reality.
The ease with which many became residents, especially before Brexit, coincided with the non-habitual resident regime, which exempts income obtained outside Portugal from tax, according to the British newspaper The Guardian. “These visas were created to attract desirable foreigners,” explains Fabiola Mancinelli, an anthropologist at the University of Barcelona. “Applicants must demonstrate that they are self-sufficient, have a certain level of income and have health insurance. They are expected to bring their own labor and, in return, are often exempt from paying tax on that income.”
For a while, Lisbon seemed like a “flawless dream”. But as the income gap grew and the city became more expensive, so did the discomfort. In 2025, Lisbon was considered the most inaccessible capital in Europe to buy a house, with a price-to-salary ratio of 21:1. “I had no idea about the tax benefit”, admits Chris Pitney, a British designer. “I only realized after a year of living here, when I discovered that I didn’t have to pay tax on foreign income.”
New cafes, old lace
In everyday life, the contrast is visible on the streets, according to the same source. Traditional cafes are transformed into brunch spaces with white marble, yoga studios replace old shops and clinics offering therapies in English multiply. “The idea behind visas is to create resident consumers, hoping that this money will benefit the city,” says Mancinelli.
However, what is observed is that many foreigners end up spending their money in businesses also managed by foreigners.
Even so, not everyone lives in this golden bubble. Some companies created by immigrants create well-paid jobs for young Portuguese people, but the perception that local work is “cheaper” continues. “It irritates me when a foreigner in Portugal offers me a low price just because I’m Portuguese”, confesses writer Alex Couto. “We live in the same place. Don’t we also have the right to a good quality of life?”
The weight of the local gaze
The tensions are not just economic. There is also a subtle change in everyday life. “There is a certain arrogance in the way some foreigners move around the city”, laments Inês, a 60-year-old Lisbon native. “In supermarkets they walk over me, they are always on the phone, without space or attention for others.”
Two worlds share the same streets, but rarely the same cafes. For many Portuguese, the city has become distant; For many foreigners, integration is just a word of convenience, according to the same source.
Necessity and not choice for many
There are also those who came out of necessity rather than choice. Producer Hiwote Getaneh, who left the United States in search of safety, now feels apprehensive about the political turn. “With the growth of the far right and neo-Nazi demonstrations, I am beginning to fear for my safety,” he admits.
In groups of foreigners, there is discussion of increasing the time needed to acquire Portuguese nationality, a proposal that could penalize immigrants from the global south, the same ones who support sectors such as agriculture and home deliveries.
When the dream starts to fade
As incomes rise, there are more and more foreigners and remote workers who also feel excluded. Some live without access to the healthcare system, without social security and with careers interrupted, according to the same source. “Work is becoming more precarious”, warns Mancinelli. “With artificial intelligence and new political frontiers, we don’t know what awaits remote workers.”
On the streets of Lisbon, protests against evictions and tourist projects have become frequent. “If someone moves to a place just to take advantage of the lower cost of living, they are exploiting inequalities, and there will always be political backlash,” notes anthropologist Dave Cook.
However, even events that seem to celebrate the simple life end up exposing the city’s new face. “Sustainable” festivals are after all promoted by foreign agencies and used to sell land or condominiums, according to the previously cited source. Everything seems too perfect, as if real life had been replaced by a scenario.
A feeling of disconnection
The lack of integration is visible. Without ties to the public system, without volunteering, daily transport or reading the local press, many foreigners live in a social and economic bubble. “Lisbon is incredible, who wouldn’t want to live here?” comments comedian Diogo Faro, recognizing the fascination that the city exerts, but also the growing frustration of those who were born there.
This city seems suspended between two unfulfilled dreams, according to: that of those who came in search of a better life and that of those who have always lived here and can no longer afford it. As a young Portuguese man said to a foreign bookseller, “the disappointment of a dream is universal”.
Lisbon, beautiful and sunny, continues to welcome, but also to question those who live there: who belongs, who contributes and who just passes by, leaving the question in the air about what, after all, it truly means to live here.
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