The population of the city proper was 564,477 and the metropolitan area (Lisbon Metropolitan Area) was 2,800,000 according to the Instituto Nacional de Estatística (National Institute of Statistics). The Lisbon Metropolitan Area coincides with two NUTS II units, Grande Lisboa (Greater Lisbon), in the northern bank of the Tagus, and Península de Setúbal (Setúbal Peninsula), to the south, which are the two subregions of Região Lisboa (Lisbon Region). The population density of the city itself is 6,658 inhabitants per square kilometre (17,240 /sq mi).

Like most big cities, Lisbon is surrounded by many satellite cities. It is estimated that more than one million people enter Lisbon every day from the outskirts. Cascais and Estoril are among the most interesting neighbouring towns for night life. Beautiful palaces, landscapes and historical sites can be found in Sintra and Mafra. Other major municipalities around Lisbon include Amadora, Oeiras, Odivelas, Loures, Vila Franca de Xira and, in the south bank of the Tagus river estuary, Almada, Barreiro and Seixal.

Lisbon is ranked number 1 in the Portuguese most livable cities survey of living conditions published yearly by Expresso.