Luxury Real Estate Lisbon: A Guide to Refined Living – Goldcrest

Why invest in luxury real estate in Lisbon, Portugal?

Lisbon’s real estate market has experienced significant growth over the past few years, attracting international investors with its stability and its present and predicted growth. Many celebrities have also bought homes in Portugal, including Madonna and Scarlet Johansson.

In 2024, property in central Lisbon was priced at an average of €6,934 per square meter. The city center’s privileged location offers residents easy access to the most authentic Portuguese architecture, art, culture, and lifestyle experiences.

These benefits also make Lisbon the perfect environment for property investors in Portugal. Digital nomads and expat families are also interested in gaining a residence in this peaceful country, and more specifically, the capital of Portugal, which creates a unique and lucrative investment opportunity.

Lisbon's Luxury Property Market on the Global Stage

Lisbon’s luxury property market is thriving. According to the Prime Global Cities Index by Knight Frank, Lisbon ranks 11th in terms of the highest growth in luxury property prices. The capital is also one of the top three cities for luxury properties in the world, alongside Dubai and Bangkok.

The Lisbon luxury market price rise is expected to increase by 4.5 percent in 2025, surpassing cities such as Monaco, Paris, Geneva, and Milan.

However, luxurious and spacious property investment opportunities extend beyond the capital’s central location. The coveted Linha de Cascais, stretching from Cascais to Estoril, exemplifies luxury living. In 2024, the average price for properties in Cascais, on the edge of the Portuguese coast, stood at €7,260 per square meter.

Lisbon’s charm lies in the blend of traditional comfort and modern luxury of each central and coastal parish. Its diverse landscapes and welcoming atmosphere have captivated affluent buyers seeking a lifestyle that transcends mere investment. Investing in Portugal isn’t just about embracing a city offering a sophisticated, culturally rich lifestyle; it can also be an opportunity for financial gain.

Significant increases in gross rental yield percentages have been reported in Lisbon, with the Lisbon Metropolitan Area having rental yields of 6.6 percent. The table below shows the property prices in Lisbon neighborhoods. You can find stunning properties across the city, but some of the best neighborhoods to find the most upmarket properties in Portugal include Santa António and Santa Maria Maior.

Types of Luxury Properties in Lisbon

Lisbon offers apartments, luxury houses, mansions, villas, and palaces for sale in various parishes around Portugal’s capital. These properties feature multiple amenities that will match each buyer’s needs.

Luxury apartments

The demand is high for upscale apartments, especially in Chiado or Avenida da Liberdade. Their value steadily appreciates due to its modern amenities and cosmopolitan lifestyle. These luxury properties in Lisbon offer stunning city views and a stable return on investment.

Luxury houses

Luxury houses in Lisbon offer superior privacy for raising a family. This stable, high-value real estate often comes with gardens, pools, and on elevated plots. They are spacious residences for a sophisticated lifestyle.

Mansions

Mansions can offer prestige and flexibility for hosting parties, traveling, and equity building. Despite the higher upfront costs, this type of luxurious real estate in Lisbon is a top favorite for the super-rich with high resale value.

Luxury villas

Investing in luxury villas in Portugal can be a smart long-term investment, with strong capital appreciation and rental yields. The most common locations for luxury villas for sale in Lisbon are Cascais and Sintra, or specific areas within the capital, such as the historic waterfront district of Belém.

Palaces

Palaces are an extraordinary type of luxury property. They are a symbol of prestige, with superior space and the ability to be converted into a corporate headquarters, hotel, or epic private residence. They are a once-in-a-lifetime investment for high-net-worth individuals.

If you are interested in the Golden Triangle, check out our ultimate guide to Algarve luxury real estate.

Navigating the Purchase of Luxury Real Estate in Lisbon, Portugal

After finding the right property, here are other factors to consider when buying luxury real estate in Lisbon, Portugal. These include financial and tax considerations and partnering with the right real estate professionals.

Financial and tax considerations

When purchasing a luxury property in Lisbon, Portugal, you must consider financial and tax implications. This is why it is advised to work with accountants, lawyers, and real estate agents in Lisbon who can help you understand the legalities, compare property prices, and even assist with acquiring a Portuguese mortgage.

Foreign buyers must acquire a Número de Identificação Fiscal (NIF) from the local tax office. It is a Portuguese tax identification number that you will need to make any significant financial transactions in the country. You will need a NIF number to open a Portuguese bank account, as there are also some other documents you will need.

Below, we will examine the property taxes and fees you must pay during and after buying a house in Lisbon.

Taxes during the purchase process

Property purchase tax (IMT)

Property purchase tax (IMT) must be accounted for during acquisition. The Imposto Municipal sobre as Transmissões Onerosas de Imóveis (IMT) (Municipal Tax on Onerous Transmissions of Real Estate) is a transfer tax levied according to the property’s purchase price. It must be paid when buying the property. The tax rate ranges between 0 and 10 percent and depends on the property’s price, the type of property (rural or urban), and the location.

Working with a real estate professional ensures a comprehensive understanding and compliance with financial and tax considerations, optimizing investment decisions in the Lisbon luxury real estate market.

Additional fees during the purchase process

Fees such as agency fees, VAT on the property purchase price, and additional expenses like Stamp Duty and notary fees should also be considered during budget planning.

Stamp Duty

The Imposto do Selo, or Stamp Duty, is an additional transaction cost for property buyers on deeds, contracts, bank mortgages and loans, paperwork, and property titles. The fee rate depends on the type of property you purchase and the property value and is set at 0.8 percent.

Notary fees

You will also need to budget for Notary fees. The Notary is the private entity responsible for providing you with the official documents that prove you are the property owner, and their fee usually amounts to €500-€1,000.

Taxes after the purchase

Immovable Property Tax (IMI)

After successfully purchasing your new property, you must pay the annual Imposto Municipal sobre Imóveis(IMI), also called the Municipal Property Tax. Each of Portugal’s municipalities has its tax rate, and IMI is levied on the property tax value (VPT), not on the price you paid for the property. For urban properties, these rates typically range between 0.3 percent and 0.45 percent, though they can be up to 0.8 percent for rural properties.

AIMI

Real estate owners who have purchased property in Portugal valued at more than €600 000 will be subject to AIMI. AIMI can be calculated as follows:

• 0.7 percent tax on owning property valued between €600,000 and €1 million
• 1 percent tax on property valued between €1mil and €2 million
• 1.5 percent tax on property if its total value is above €2 million

Tips for a smooth property buying experience in Lisbon

To ensure a seamless property buying experience, you should partner with reputable professionals like a real estate agent in Lisbon or a buyer’s agent like Goldcrest. Instead of focusing on the seller, a buyer’s agent can personalize the entire experience for the buyer. They can guide you through the financial transactions and negotiate prices.

Here are the five tips that can help you make a smart investment:

• Before investing, evaluate potential returns against macroeconomic factors like inflation rates.
• Have a real estate professional research the property market.
• Conduct thorough due dilligence to verify property legality and seller credibility.
• Prioritize legal considerations with the assistance of a real estate lawyer in Lisbon.
• Ensure comprehensive property assessments with the aid of a qualified property surveyor.

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.