Lisbon, or Lisboa, is the capital and the largest city of Portugal. It is also the westernmost capital in mainland Europe. With an area of only 85 sq km, it is proof that the size of a country doesn’t matter…it’s what you do with it. High economic output, standard of living, and market size makes the city one of the major financial and economic centers of the Iberian Peninsula. It is also the political center of the country.