Ladies are encouraged to wear sundresses or skirts, and gentlemen to wear khaki shorts/pants and a nicer shirt.
Some factors to consider are that Lisbon is hot in June and that the wedding will be in a garden (aka the paths are dirt/gravel). Men are welcome to wear a suit and tie but given the weather, should also feel comfortable to forgo the tie and/or jacket. For women, a midi or maxi cocktail dress is a great option. Below are some examples for inspiration.
Note: Bridesmaids will be wearing "bermuda blue" (per Azazie's website), for those concerned about matching the bridal party.