Updated: May 6, 2024
Over the past few years, Lisbon has emerged as one of Europe’s most sought-after cities. It offers a unique blend of cultural allure, rich historical resonance, and an unparalleled quality of life.
Portugal’s warm and inviting climate, sun-kissed beaches, and cost-effective living attract expats and international investors from around the world. Situated in Western Europe along the picturesque shores of the Atlantic Sea, Portugal’s capital city is the epitome of Portuguese culture and the art of refined living.
In this Luxury Real Estate Lisbon guide, we will explore the most desirable neighborhoods in the Lisbon Metropolitan Area to find a luxury property and offer tips for a smooth Lisbon luxury real estate buying process.
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, who own properties in Lisbon.
In 2023, property in central Lisbon was priced at an average of €6,009 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 draw factors also make Lisbon the perfect environment for property investors in Portugal. Digital nomads and expat families’ interest in residence in this peaceful country, and more specifically, the capital of Portugal, presents a unique and lucrative investment opportunity.
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 2023, the average price for properties in this scenic area on the edge of the Portuguese coast stood at €5,835 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.
In 2023, significant increases in gross rental yield percentages were reported in Lisbon. The table below shows some key neighborhoods and areas where you can find some of the most upmarket properties in Portugal.
Lisbon Neighborhood | 2023 Rental Yield (%/percent) |
Alcântara | 5.4 |
Avenidas Novas | 3.9 |
Campo de Ourique | 5 |
Campolide | 4.8 |
Cascais and Estoril | 4.8 |
Estrela | 5.4 |
Misericórdia | 5.2 |
Parque das Nações | 4.7 |
Santo António | 4.7 |
Santa Maria Maior | 5.6 |
Sintra | 6.3 |
The Most Desirable Neighborhoods for Lisbon Luxury Real Estate
In the section below, we will guide you through a brief exploration of Lisbon’s upscale neighborhoods where you can find many types of luxury properties in Portugal. These are the top areas providing various luxury property options, from contemporary ground-floor apartments close to the city’s vibrant heart and villas with a private garden and sea views to palaces built in years past that still offer the elegance of luxury living in Portugal.
Alcântara
Nestled beneath the iconic 25 de Abril Bridge, Alcântara is one of Lisbon’s prime locations for luxury property investment in Portugal. The neighborhood’s offerings include apartments with panoramic terrace views, homes with access to the vibrant nightlife the Alcântara Docks offer, and properties for buyers searching for sophistication and urban charm.
In 2023, the average property price in the neighborhood stood at €6,324 per square meter. You are sure to find something to fit your lifestyle, whether you are looking for a modern one-bedroom apartment with an en-suite private bathroom or a spacious house with three bedrooms, two bathrooms, and a fully equipped kitchen to serve your whole family.
Avenidas Novas
Avenidas Novas is a premier destination for luxury property investment in Lisbon. In 2023, the average property price stood at €7,126 per square meter. Graced with expansive, tree-lined avenues, this affluent neighborhood features grand architecture and residences in contemporary design that epitomize elegance and sophistication.
From the prestigious Avenida da Liberdade, adorned with upscale boutiques, Avenidas Novas offers a blend of wealthy, large areas to explore and convenience at every turn. As Lisbon’s bustling business hub, it caters to the discerning tastes of working professionals while offering vibrant cafes and high-end rooftop bars with panoramic city views. A villa or apartment, Avenidas Novas, presents an opportunity to live at and own a coveted address.
Belém
Located along the picturesque banks of the River Tagus, Belém is an iconic district just to the west of the Portuguese capital that boasts cultural treasures like the Jerónimos Monastery and the Belém Tower. In 2023, properties were priced at €6,548 per square meter
With its blend of historic charm and modern amenities, including the renowned MAAT museum, Belém offers an unmatched lifestyle, attracting discerning buyers seeking sophistication and convenience in Lisbon.
Campo de Ourique
Campo de Ourique’s allure blends amenities, historical significance, and overall comfort, making it one of Lisbon’s premier neighborhoods for luxury property investment.
The average asking price for properties is €6,367 per square meter.
Predominantly offering apartments and houses, the neighborhood caters to investors seeking long-term rentals or foreigners seeking tranquility without compromising accessibility.
While primarily Portuguese, it magnetizes families and expats with its diverse array of shops, services, and picturesque architecture.
Estrela
Situated just a few minutes from Lisbon’s bustling city center, the lush Monsanto Forest Park envelops the sought-after neighborhood of Estrela and is near notable international schools like PaRK International School and The British School of Lisbon.
These features make Estrela a haven for discerning buyers and expat families. Its strategic location further heightens its allure, drawing young professionals who work in the city and want a tranquil space to call home. The average asking price for properties in Estrela is €7,231 per square meter.
Parque das Nações
Parque das Nações is unlike anywhere else in Lisbon and is reminiscent of Canary Wharf in London with its modern-looking buildings and futuristic appearance. Real estate here is a coveted investment, thanks to its prime location close to the airport, robust infrastructure, and soaring demand. Parque das Nações promises property investors both capital appreciation and lucrative rental yields, with properties at an average asking price of €7,728 per square meter.
Santo António
Santo António offers property buyers the pinnacle of luxury property in Portugal. The neighborhood is famous for iconic landmarks such as the Marquis of Pombal Square and Avenida da Liberdade. With an average asking price of €8,117 per square meter, this popular Lisbon location epitomizes opulence, with luxury properties commanding even higher figures. Its prestigious status and prime location make it an unparalleled choice for discerning buyers seeking the epitome of sophistication and refinement in Lisbon.
Santa Maria Maior
Santa Maria Maior is a prime destination for luxury property investment in Lisbon, Portugal, offering picturesque views overlooking Baixa. Its elevated position between two hills provides a captivating vantage point, accentuated by iconic squares like Praça dos Restauradores, steeped in Portugal’s rich history of independence restoration. Properties here, averaging €6,700 per square meter, promise elegance and historical significance, making Santa Maria Maior an unparalleled choice for discerning buyers seeking luxury infused with cultural resonance.
Discover the top areas to invest in luxury real estate in Portugal
Navigating the Purchase of Luxury Real Estate in Lisbon, Portugal
In addition to finding the right property to purchase in the perfect location, there are other considerations to consider when buying Lisbon, Portugal, luxury real estate. These include financial and tax considerations, partnering with the right real estate professionals, and the, at times, lengthy property-buying process in Portugal, which we explore in detail below.
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 professionals 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 you will need to make any significant financial transactions in the country. You can only open a Portuguese bank account with a NIF number.
Below, we will examine the property taxes and fees you must pay before, during, and after buying property 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 to 10 percent and depends on the property’s price, the type of the property (rural or urban), and the location.
Considering your budget early aids property selection and facilitates the mortgage process, which can be time-consuming. Working with a real estate professional ensures 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 additional transaction cost property buyers are charged on deeds, contracts, bank mortgages and loans, paperwork, and property titles. The fee rate depends on the type of property you purchase and 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 owner of the property, and their fee usually amounts to €1,200.
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, working out nicely for the buyer as the VPT is usually much less.
Wealth Tax (AIMI)
Real estate owners who have purchased property in Portugal valued at more than €600 000 will be subject to Portuguese wealth tax (AIMI). Wealth tax 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 in Lisbon, you must partner with reputable professionals like a real estate or buyer’s agent like Goldcrest, who can guide you through the intricate financial and legal facets of real estate transactions.
Before investing, evaluate potential returns against macroeconomic factors like inflation rates. Thorough research, collaboration with seasoned real estate experts, and diligent due diligence are paramount. Here are five essential tips:
- Partner with reputable property professionals for financial and legal guidance
- Conduct thorough due diligence to verify property legality and seller credibility
- Prioritize legal considerations with the assistance of a knowledgeable real estate lawyer
- Ensure comprehensive property assessments with the aid of a qualified property surveyor
- Evaluate potential returns against macroeconomic factors for informed investment decisions
Learn more about the main types of luxury properties in Portugal
Goldcrest: How We Can Help You
Goldcrest is a buyer’s agent based in Lisbon, Porto, and the Algarve. Equipped with local knowledge, exclusive networks, and international experience, we provide expert, impartial advice on real estate investments and how to buy property in Portugal. From scouting out the perfect property to property acquisition and beyond, we have you covered throughout the process.
Frequently Asked Questions About Investing in Lisbon's Luxury Real Estate Market
What types of luxury properties are available in Lisbon?
Lisbon offers apartments, luxury villas in Portugal, houses, mansions, and palaces for sale located in various parishes around Portugal’s capital city, and they feature multiple amenities that will match each type of buyer’s needs.
In which neighborhoods can I find luxury homes in Lisbon?
There are lots of neighborhoods that offer luxury properties for sale in the city center of Lisbon and the Greater Lisbon Area. These neighborhoods include Alcântara, Avenidas Novas, Belém, the towns of Cascais and Estoril, Estrela, Campo de Ourique, Parque das Nações, Santo António and the famous Santa Maria Maior.
What are some of the most luxurious amenities offered in Lisbon properties?
Luxury properties in Lisbon, Portugal, offer incredible amenities. Remember that these amenities depend on the type of properties you are after. A modern luxury apartment in the city center can offer a terrace with stunning views, easy access to the surrounding city, and private parking. In contrast, luxury houses for sale in Lisbon will provide more bedrooms and bathrooms, a private garden, and could even include a heated swimming pool.
What is the average price range for luxury properties in Lisbon?
The average price for luxury properties in Lisbon, Portugal, ranges from €6,324 per square meter in quaint neighborhoods like Alcântara to €8,117 per square meter in more sought-after upmarket areas like Santo António.
What are the legal requirements for purchasing luxury real estate in Lisbon?
Foreign buyers must acquire a Número de Identificação Fiscal (NIF) from the local tax office. It is a Portuguese tax identification number you will need to make any significant financial transactions in the country, including opening a Portuguese bank account.
