Cape Town VS Lisbon

Cost of Living & Salary Comparison 2026

Cape Town
South Africa
28.4
COLI Index
#88
Global Rank
ZAR
Currency
Lisbon
Portugal
34.7
COLI Index
#72
Global Rank
EUR
Currency

Key Differences

Cost of Living
28.4
34.7
1BR Rent (USD/mo)
$650
$1,000
Total Deductions
21.4%
30.7%
Exchange Rate
1 ZAR = 0.0465 EUR
Is Cape Town cheaper than Lisbon?

Yes, Cape Town is 18% cheaper than Lisbon based on our cost of living index. Cape Town has a COLI of 28.4, while Lisbon has a COLI of 34.7. 18% cheaper

Key Takeaways: Cape Town vs Lisbon

Overall, Cape Town is approximately 18% cheaper than Lisbon based on our cost of living index. Cape Town has a COLI of 28.4 (ranked #88 of 182 cities), while Lisbon has a COLI of 34.7 (ranked #72).

When it comes to housing, one-bedroom apartment rent in Cape Town averages $650/month compared to $1,000/month in Lisbon. That makes Cape Town approximately 35% cheaper for rent alone.

Cape Town has lower total deductions (21.4%) compared to Lisbon (30.7%), meaning you keep more of your gross salary in Cape Town. When evaluating a relocation, remember that total deductions directly impact your take-home pay and should be weighed alongside cost of living differences.

Tax & Deductions Comparison

Full breakdown of mandatory payroll deductions for a mid-range salary as a local employee in each city.

Cape Town

Income Tax
21%
UIF
0.0%
Total: 21.4%Take-Home: R 305,138/yr

Lisbon

Income Tax
20%
Social Security
11.0%
Total: 30.7%Take-Home: €15,293/yr

Rates shown for local employees. Expat deductions may differ — use the main converter for personalized calculations.

Salary Equivalent

If you earn R 1,366,717 in Cape Town, you would need approximately €77,699 in Lisbon to maintain the same purchasing power. That is 18% more due to higher cost of living.

Salary Comparison by Job Title

Estimated mid-level annual salaries in local currency, adjusted for each city's cost of living:

Job Title Cape Town (ZAR) Lisbon (EUR)
Doctor (General) R 931,554 €52,959
Software Engineer R 439,901 €25,009
Product Manager R 517,530 €29,422
Lawyer R 517,530 €29,422
Data Scientist R 491,654 €27,951
Marketing Manager R 372,622 €21,184
Teacher R 248,414 €14,122
Nurse R 300,167 €17,065

Salary estimates are adjusted by each city's COLI relative to the New York baseline. Actual salaries vary by company, experience, and industry.

Neighborhoods

Cape Town (Top 5)

NeighborhoodMultiplier
Clifton1.40x (+40%)
Camps Bay1.35x (+35%)
Constantia1.22x (+22%)
Sea Point1.18x (+18%)
City Bowl1.15x (+15%)

Lisbon (Top 5)

NeighborhoodMultiplier
Chiado1.28x (+28%)
Príncipe Real1.25x (+25%)
Bairro Alto1.15x (+15%)
Estrela / Lapa1.12x (+12%)
Alfama1.10x (+10%)

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Frequently Asked Questions

Is Cape Town or Lisbon more expensive?

Lisbon is more expensive overall. Cape Town has a COLI of 28.4 while Lisbon has a COLI of 34.7, making Cape Town approximately 18% cheaper.

What salary in Lisbon equals R 1,366,717 in Cape Town?

To maintain the same standard of living as R 1,366,717 in Cape Town, you would need approximately €77,699 in Lisbon.

Is rent cheaper in Cape Town or Lisbon?

Average one-bedroom rent in Cape Town is $650/month compared to $1,000/month in Lisbon. Cape Town has lower rent by approximately 35%.

Which city has lower taxes, Cape Town or Lisbon?

Cape Town has lower total deductions (21.4%) compared to Lisbon (30.7%), meaning you keep more of your gross salary in Cape Town.

Explore Each City

Data Sources & Methodology

Cost of living indices (COLI) are benchmarked to New York City = 100 and derived from Numbeo and Expatistan crowd-sourced price surveys, cross-referenced with national statistics agencies. Rent data from Numbeo Property Prices.

Salary ranges are compiled from the U.S. Bureau of Labor Statistics (OES), Glassdoor, and PayScale. Tax rates are approximate effective rates for mid-range earners based on OECD Taxing Wages and national tax authorities. Exchange rates from the European Central Bank. Neighborhood multipliers are estimated from local rental indices and property data.

Last updated: 2026-02-28. Data is refreshed periodically. All figures are estimates for informational purposes only.