Lisbon

Lisbon, the capital and largest city of Portugal, is a dynamic metropolis located on the western edge of the Iberian Peninsula. Lisbon is a major European urban center with an expected population of 567,131 inside its administrative bounds as of 2023 and a larger metropolitan region home to 2,961,177 people. Situated on the northern side of the River Tagus, this coastal city is the westernmost capital of mainland Europe and provides a special fusion of Atlantic appeal and European elegance.

The city’s extensive history spans thousands of years, establishing it as one of the oldest urban settlements globally. With roots in pre-Celtic tribes, Lisbon’s beginnings can be seen predating many of its European counterparts by centuries; later layers of civilization were added by Phoenicians, Romans, and many Germanic peoples. Especially noteworthy is the Roman influence; Julius Caesar names Felicitas Julia and bestows upon the settlement the title of a municipium. Each leaving lasting effects on the city’s cultural fabric, Visigoth domination in the 5th century and later Moorish conquest in the 8th century followed this Roman legacy.

The first King of Portugal, Afonso Henriques, took back Lisbon from Moorish rule in 1147, so marking a turning point in the city’s history. Lisbon’s ascent to capital status in 1255, substituting Lisbon for Coimbra as the seat of Portuguese power, was set up by this invasion. Lisbon has stayed at the core of Portugal’s political, economic, and cultural life since then, guiding the country’s path during millennia of discovery, empire, and modernism.

Portuguese governance and diplomacy now concentrate Lisbon today. Along with the palace of the president of state, it houses the national government institutions—including the National Assembly and Supreme Court of Justice. With ambassadors from 86 nations plus representations from Taiwan and Palestine, the city’s diplomatic importance is highlighted and it is a major hub in international affairs.

Lisbon’s impact goes much beyond its administrative lines. Comprising almost three million people, the Lisbon metropolitan region stands at a significant 27.83% of Portugal’s total population. Lisbon’s third-largest metropolitan area on the Iberian Peninsula, behind only Madrid and Barcelona, this concentration of people and resources has positioned Lisbon among the ten most populated cities in the European Union.

Lisbon’s global reputation is shown in its classification as an alpha-level global metropolis, a title that honors its significance in several spheres including finance, business, fashion, media, entertainment, arts, international trade, education, and travel. Only Porto has this distinction, underscoring Lisbon’s leading influence in Portugal’s participation with the world economy.

Lisbon’s hosting of three firms ranked in the Global 2000—EDP Group, Galp Energia, and Jerónimo Martins—showcases its economic might. With a particularly strong and expanding financial industry, these multinational behemoths help Lisbon be among one of the main economic hubs in Europe. Further underlining Lisbon’s financial significance on the global scene is the city’s stock exchange, PSI-20, which is a part of Euronext, the biggest center for debt and funds listings worldwide.

The Lisbon region’s outstanding GDP numbers help to measure its economic might. With a GDP PPP of US$179 billion—that is, $61,713 per capita—the area claims the greatest GDP PPP per capita in Portugal. Lisbon’s economic vibrancy has positioned it as the 40th highest earning city in the world, drawing riches and building a society of about 21,000 millionaires. Lisbon’s concentration of wealth highlights its position as a center of opportunity and prosperity; it ranks as the 11th European metropolis by number of millionaires and the 14th by number of billionaires.

The city’s economic scene is enhanced even further by its favored site for business headquarters. Driven by its strategic position, trained workforce, and quality of living, many international companies have decided to set their Portuguese operations in the Lisbon area. This flood of global corporate activity has helped the city to maintain its cosmopolitan character and support its role as a link between Europe and the rest of the globe.

The distinctive topography of Lisbon lends still another degree of attraction. From Cabo da Roca, the westernmost point of Continental Europe, the western section of its metropolitan area—known as the Portuguese Riviera—starts. Apart from its amazing scenery, this coastline area represents Portugal’s past as a country of explorers confronting the great Atlantic and the promise of fresh vistas.