Buying Property in Lisbon: The Ultimate Guide for Foreigners

Why buy property in Lisbon?

Lisbon is a hotspot for expats, tourists, digital nomads, and retirees, and for many reasons. Here is a list of the advantages that make Lisbon a good investment:

• Choose a wide range of properties, including modern apartments, historic properties, coastal luxury villas, and spacious houses with views of the Tagus River.
• Enjoy a high quality of life with a warm climate, beautiful beaches, rich history, excellent infrastructure, and transport links.
• Since the Web Summit relocated in 2016, the Portuguese capital has become a booming tech hub, attracting international companies and startups. 
• While property prices are increasing, the Lisbon real estate market offers better property value with lower prices compared to other European cities, like Paris and London.
• With average rental yields of 6.8 in the Greater Lisbon area, the capital is a profitable area for rental income, according to real estate databank Confidencial Imobiliário.
• Lisbon is a safe place to live with good political stability. Based on reports from the 2025 Global Peace Index (GPI), Portugal is the 7^th safest country in the world, which is why many property investors choose to buy residential and commercial properties here.

Where to buy property in Lisbon?

Lisbon is a stunning city and an excellent investment point in Western Europe. With a wide variety of Portugal homes on the market, your choice of neighborhood should fit your goals, budget, and type of lifestyle you are after.

Here are some of the best areas for buying property in Lisbon as a foreigner.

Best for lifestyle and luxury properties

The top Lisbon neighborhoods for lifestyle buyers are often Chiado, Príncipe Real, and Avenida da Liberdade. They offer prestige, architectural charm, and a high quality of life, though rental yields are typically lower than in emerging areas.

Their main advantage is the long-term price growth that often outperforms prime districts in other Western European countries. You get access to historic neighborhoods and the prestigious riverfront areas of the Lisbon coast. These areas are prime locations for a holiday home and dominate the high-end short-term rental market.

Real estate investment in Cascais is also desirable and is just a 30-minute drive from Lisbon city center. This coastal town combines beaches, high-end living, and a strong appeal for property investment.

Best for families and long-term rentals

For families and long-term rental strategies, Estrela, Lapa, and Avenidas Novas offer the ideal balance of comfort, stability, and steady returns.

There are many schools in the area, as well as large green spaces, making it perfect for raising a family. Yields here tend to be moderate but consistent. They have low vacancy rates and strong tenant profiles. The main advantages in these neighborhoods are the dependable property value growth and family-friendly living.

You may also want to consider a more affordable area in Lisbon, such as Lisbon South Bay, where there is strong potential to unlock lucrative returns on rental income in the coming years if you enter the rental market.

Best for property value and growth

Up-and-coming areas like Marvila, Beato, Benfica, Lumiar, and Ajuda have high property values. Due to significant regeneration, the areas draw new businesses and modern residential projects. Properties here are more affordable compared to those in the central core. They are ideal for pure rental investment due to regeneration and faster appreciation.

A Marvila real estate investment right now could be an excellent financial investment and strategic move. The one disadvantage is obviously the distance from central Lisbon, but with improved transport links, it’s very manageable. Plus, you’ll find a quieter lifestyle, filled with local restaurants and cafés where you can get to know the owners and build closer relationships.

Wondering what are the average property prices in different Lisbon neighborhoods? The table below provides a general estimate.

Source: Confidencial Imobiliário

How much does it cost to buy property in Lisbon?

The total asking price of a property for sale in Lisbon varies from €4,935 to €6,934. In 2024, the average rental yield in the Greater Lisbon Area was 6.8 percent, creating valuable opportunities to earn a rental income.

However, the purchase price is not the only expense when it comes to buying property in Portugal. Instead, buyers should set aside 7 to 10 percent for additional costs, including taxes and professional fees.

Average prices

The average property prices are different based on the location and the type of property. For example, with a budget of around €150,000, buyers can find small studio apartments or renovation projects in outer districts and the suburbs.

You can expect to spend €300,000, on a one-bedroom apartments or small two-bedroom units in need of renovation in areas like Penha de França, Benfica, and Lumiar. With €500,000, buyers typically access two-bedroom apartments or small, centrally located flats in neighborhoods such as Campo de Ourique, Arroios, and Alvalade.

A budget of €1,000,000 can secure spacious apartments or small houses in premium areas like Estrela, Lapa, Chiado, or Avenida da Liberdade.

Taxes & fees

Both expats and locals pay taxes and additional fees when purchasing property in Portugal. They fall into two main categories: one-time taxes (paid at the time of the purchase) and annual taxes (paid every year of ownership).

Our comprehensive guide to property taxes in Portugal provides a detailed overview of the expenses. But here is a quick overview to get you started.

The one-time costs are:

• IMT (Property Transfer Tax): Also known as Imposto Municipal sobre a Transmissão, it is based on the purchase price or the property’s tax value (VPT). The rates usually vary from 1 to 8 percent and depend on whether the property is a primary residence, a secondary residence, or an investment property.
• Stamp Duty (Imposto de Selo): There is a fixed rate of 0.8 percent of the property’s purchase price.
• Notary fees: €500 to €1,000
• Legal fees: €2,000 to €5,000
• Land use registration: €200 to €250

The annual taxes are:

• IMI (Annual Municipal Property Tax): Also known as Imposto Municipal Sobre Imóveis, this ongoing tax is set by the Tax Authority (Finanças) and is based on the taxable property value (VPT). Rates often vary from 0.3 percent to 0.45 percent for urban properties, depending on the specific parish.
• AIMI (Additional Municipal Tax): This is an extra tax only applied to owners whose total share of Portuguese property (VPT) exceeds €600,000. In Portuguese, it is called Adicional ao Imposto Municipal Sobre Imóveis.

Note: If you earn a rental income from Lisbon apartments, then you are subject to rental income tax. But if you decide to sell the property, then you must pay capital gains tax in Portugal on the profit you earn.

How to find property in Lisbon, Portugal?

Searching for your dream home is much easier when you know where to look. Start by browsing property listing platforms focused on Lisbon real estate. A property finder in Portugal can help you find luxury apartments for sale in Lisbon online. You can use them to compare prices across neighborhoods.

You can also work with top real estate agencies specializing in Lisbon properties, especially if you are selling or advertising your investment property, modern apartment, or luxury villa. A real estate agency specializes in market valuation, targeted marketing, and administrative support. They tailor their services to the seller, locating properties nationwide.

But many buyers choose to work with a buyer’s agent because they act solely in the buyer’s interest. They help negotiate the best price and can pinpoint off-market properties. A buyer’s agent, such as Goldcrest, can help you find properties for sale in Lisbon that match your budget and preferences. They also offer expert guidance on market trends and the purchasing process, so you can decide which area suits you.

Required Documents to Buy Property in Lisbon

Before you can purchase property in the capital city of Portugal, you must obtain a Portuguese tax identification number (NIF). The tax ID is mandatory for all financial transactions, such as buying property, opening a Portuguese bank account, signing contracts, or paying taxes.

Non-residents are required to have a fiscal representative to obtain a NIF. Here is a list of the documents foreigners need:

• Personal identification: Such as a valid passport or national ID card.
• Proof of address: You can use recent bank statements, salary slips, tax returns, and credit liabilities from your country of residence.
• Land Registry certificate (Certidão do Registo Predial): The seller provides this document to confirm ownership, mortgages, or other legal factors.
• Tax registration certificate (Caderneta Predial): This is a tax registry document from the Tax Office that the seller can use to show fiscal registration, taxable value, and property description.
• Energy Performance certificate (Certificado Energético): It shows how energy-efficient the property is based on specific ratings.
• Usage or habitation license (Licença de Utilização): This is a property-related document from the seller that proves the property can be legally used.
• The Promissory Contract or CPCV (Contrato Promessa de Compra e Venda): This is a preliminary contract that outlines the terms of sale.
• Final deed (Escritura): This is a formal deed for officially transferring property ownership.
• Receipt of payment for IMT (Municipal Property Transfer Tax): This is a one-time tax paid at varying rates.
• Receipt of payment of Stamp Duty: This is a one-time tax paid usually at a fixed 0.8 percent rate.

If you’re buying property from abroad, it’s important to understand how to hire a real estate lawyer for purchasing property in Lisbon remotely. They can assist you in collecting all the necessary documents and completing due diligence checks to ensure the property is free from hidden debts and that the seller can legally transfer ownership.

A Step-by-Step Guide to Buying Property in Lisbon, Portugal

So, what are the legal steps to buy a property in Lisbon as a foreigner? You can expect a straightforward and accessible purchasing process. Here is how it works:

• Step 1: Apply for a Portuguese Tax Identification Number (NIF). You can go to a Tax Office or appoint a lawyer or representative to do it for you.
• Step 2: Open a Portuguese bank account and figure out which financing option you would choose.
• Step 3: Work with a buyer’s agent or a real estate agent in Lisbon to search for homes in the neighborhood you prefer. A buyer’s agent can negotiate prices and make an offer on your behalf.
• Step 4: Sign the CPCV (Promissory Contract). This binds both sides to the sale price, terms, and deadline. At this stage, you pay a deposit of about 10 percent of the purchase price.
• Step 5: Sign the Escritura (deed). Both parties meet at a notary’s office (Escritura Pública de Compra e Venda), where the buyer pays the remaining balance, and the seller transfers full ownership.
• Step 6: Register your property with the Land Registry. At this stage, you should also notify the Tax Authority so they can officially establish your legal title in Portugal.

How to finance a Lisbon property purchase?

If you have the funds, you can buy the property outright with a single payment. But, for those who can’t afford it, Portuguese banks can provide a mortgage. The maximum amount a buyer can borrow depends on the loan-to-value ratio.

There are three primary types of mortgages: fixed-rate, variable-rate, and mixed-rate. Residents with a fiscal number can borrow up to 80 to 90 percent of the property cost. For non-residents, the maximum loan-to-value ratio for mortgages is typically 60 to 80 percent.

So, which banks offer mortgage services for buying property in Lisbon? There is a great selection of mortgage options from providers, including BBVA, Santander, Banco Best, Bankinter, and Banco CTT.

Wondering how to get a mortgage for buying property in Lisbon from the US? American buyers need a Tax Identification Number (NIF), proof of income, credit history, and property valuation. To learn more, explore our comprehensive guide to mortgages in Portugal for foreigners.

Visa and Residency Options

Owning property in Portugal does not automatically grant you residency. If you are purchasing a property for long vacations or to live in permanently, you will need to secure one of the valid visa options Portugal offers.

The visa options for non-EU citizens looking to become property owners include the Portugal D7 Visa (Retirement or Passive Income Visa), the Digital Nomad Visa (for remote workers), and the Portugal Golden Visa program (for investors).

There is a wide range of residency options available for those buying Lisbon real estate. If you want to discuss your options, feel free to get in touch with our citizenship and residency division, Global Citizen Solutions, who will be more than happy to help you with relocating to Portugal.

Goldcrest: How We Can Help You 

Goldcrest is a buyer’s agent that is based in Lisbon. We provide expert, impartial advice on real estate investments and how to buy property in Portugal. From scouting out the perfect property through to property acquisition, we have you covered throughout the process.

If you are looking to purchase property in Portugal, don’t hesitate to get in touch. Our team of skilled experts is available to solve all your real estate doubts, helping you with the property search and offering insightful expertise and strategic advice.

Why choose Goldcrest?

• Local knowledge: With offices located across Portugal, our presence nationwide allows us to assist you personally across the country.
• Independent service: As an independent buying agent, we do not represent any development or project. Our service is entirely tailored toward each individual client, providing you with everything you need to secure the perfect property at the best possible price. As an impartial advisor on the market, we work solely on behalf of our client and provide a service tailored to your needs and requirements.
• Streamlined process: Our real estate agents speak English and Portuguese, and our service is completely focused on providing you with a hassle-free buying experience, saving you time.
• Experienced team: Our expert real estate team has a vast local knowledge of the Portuguese property market. We have cutting-edge technology and metasearch tools at your disposal to provide full market coverage, ensuring the best investment choices and negotiated prices.
• Network of partners: We have a close network of partners, including lawyers, property management services, builders, architects, designers, and landscape gardeners, again saving you time and hassle by providing you with trusted experts in their field of work.