The Mais Liberdade Institute has published the "Municipal Competitiveness Ranking," an X-ray of the performance of 186 municipalities as a potential tool for policymakers.

The study has found that Lisbon is the most competitive municipality in Portugal, followed by Oeiras and Porto, among a total of 186 evaluated in the "Municipal Competitiveness Ranking 2025," by the Mais Liberdade Institute.

Ten days before the local elections, the Institute presents an X-ray of the country, relaunching the discussion around territorial inequalities and the need to "chart paths towards more cohesive and sustainable development in Portugal."

According to this study, which evaluated 186 municipalities with more than 10,000 inhabitants and measures municipal performance across ten dimensions, Lisbon leads with 70.1 points, followed by Oeiras (66.2) and Porto (61.6). Coimbra, Aveiro, Cascais, Maia, Alcochete, Funchal, and São João da Madeira also rank in the top 10, according to a report by ECO.

Lisbon comes first in terms of productive capital, followed by Oeiras and Porto, which combine business density with the presence of large companies and innovation. However, Oeiras has the highest gross value added (GVA) per company (€262,000) and the highest percentage of large companies (0.4%), while Lisbon stands out in business density (0.25 companies per inhabitant).

In contrast, Sabugal, Vila Pouca de Aguiar, and Murtosa have low GVA per company, low business density, and few large companies and innovation. This demonstrates the regional disparity within the country: "the top spots are concentrated mainly in large coastal municipalities, where there is a higher population, business, and infrastructure density," according to this analysis by Juliano Ventura and André Pinção Lucas.

Highest income

Oeiras also has the highest household income, followed by Lisbon, Alcochete, Sines, and Cascais in the top 5. This study highlights Sines for having the second-highest average monthly income (€2,181 per month in 2023) and "a low percentage of low-income tax households (25.1% below €10,000 per year). This reality is partly explained by the "presence of large industries and strategic infrastructure related to the port of Sines, particularly companies in the energy and petrochemical sectors," the document in question states.

Already at the bottom of this analysis are Valpaços, Cinfães, Alijó, and Castro Daire, as well as Odemira, in Alentejo. According to this analysis, Cinfães is the municipality with the lowest median gross revenue (€8,228 per year).

Oeiras once again takes first place in the protection and justice category, followed by several municipalities. Gauchos.

Lisbon also leads the human capital category, "with the highest percentage of the population with higher education," while Arruda dos Vinhos appears in the top 10 due to its low unemployment rate and strong population growth.

In contrast, municipalities in the interior of the country and the autonomous regions of the Azores and Madeira are at the bottom of the table, clearly demonstrating the regional disparity.

Housing

Regarding housing, Sátão, Bragança, and Monção are already leading, while Lisbon appears at the bottom of the table as the most expensive municipality, both for purchase (€4,340/m2) and rental (€1,593 per 100m2).

Conversely, "Sabugal stands out as the municipality with the lowest median sales value for family homes (€289/m2), and Sátão ranks second for the most affordable rents (€279 per 100m2)."

Cinfães, Sátão, and Valpaços have the lowest municipal taxes and lowest debt. At the bottom of the table is Vila Real de Santo António, which "charges the highest Municipal Property Tax (IMI) and municipal surcharge rates in the country (0.45% and 1.5%, respectively)," this analysis states.

When analyzing "surrounding competitiveness (proximity effects)," Amadora, Odivelas, and Almada lead the way "because they benefit from proximity to several highly competitive municipalities in the Lisbon Metropolitan Area (AML), especially Lisbon," according to the study released by Instituto Mais Liberdade. Horta (Azores) ranks last.

Health

Regarding the health dimension, Coimbra stands out with a prominent role, with its hospital and university campus.

However, it is in Angra do Heroísmo (Terceira Island, Azores), Rio Maior, and Faro that competitiveness is highest. In terms of education, it stands out most, although the largest number of teachers in non-higher education is in São João da Madeira.

When evaluating "essential services and railways," Albufeira ranks first, with a notable highlight being its "good ATM density and availability of services."

Lisbon and Porto concentrate the cultural offerings; but there are smaller-scale positive examples such as Alcanena, Estremoz, and Elvas.

With this regional overview, released in the midst of the election campaign, the authors aim to "offer clear and comparable information for families, businesses, and public decision-makers, highlighting patterns, good practices, and weaknesses at the local level."