Hints and tips for living in Lisbon

Chiado is ideal for those seeking luxury and proximity to Lisbon’s cultural hub. Alfama offers a charming, historic atmosphere with its narrow streets and traditional homes, perfect for lovers of old-world charm. Parque das Nações is more modern, featuring waterfront properties and great amenities. For quieter living, Estrela and Campo de Ourique are residential gems with parks and schools nearby. Each neighborhood offers a unique experience of Lisbon life.

Prices can vary significantly across Lisbon. In central and sought-after neighborhoods like Baixa and Chiado, prices range from €5,000 to €7,500 per square meter. However, in more emerging areas like Marvila, Ajuda, Penha de França, Beato, prices can be much lower, around €3,000 to €4,000 per square meter. Lisbon's property market has seen steady growth over recent years, making it important for buyers to budget carefully based on location and take advantage on up and coming areas.

To find property in Lisbon, start by exploring online real estate platforms like Idealista, Imovirtual or CasaYes, which offer extensive listings. It’s also highly recommended to work with a local real estate agent who knows the market and can help navigate negotiations, legal requirements, and off-market opportunities. Additionally, visiting Lisbon in person allows you to get a feel for neighborhoods and see properties firsthand, providing a more informed buying experience.

While Lisbon is known for its increasing property prices, there are still affordable areas worth exploring. Neighborhoods like Marvila, Ajuda, Beato and Penha de França, are undergoing development and offer lower prices compared to the central areas like Chiado or Baixa. These emerging neighborhoods provide great value, especially for first-time buyers or investors seeking properties that have strong potential for appreciation as the areas continue to develop.

Yes, foreigners are allowed to buy real estate in Lisbon without any restrictions. Portugal has made it relatively easy for foreign buyers to invest and get a mortgage in Portugal. In fact, this is one of the requirements to apply for visas like the Portugal D7 visa and Portugal D8 visa. The property buying process is fairly straightforward but often requires the help of a Buyer’s Agent, mortgage broker and lawyer to ensure a smooth process and to avoid mistakes.

Investing in Lisbon real estate offers several advantages. The city has experienced strong growth, particularly in areas like Avenidas Novas, oldtown, and Parque das Nações, where tourism and business drive demand. Lisbon offers excellent long-term and short-term investment potential, with increasing property values and medium rental yields (~6-7%).

The first element you’ll need is a NIF (Tax Identification Number), which you can obtain with our partner Bordr. You’ll also need a Portuguese bank account to facilitate financial transactions. Once you find a property, the key element do consider is the Promissory Contract (CPCV), which outlines the terms of the sale. The final element is the Property Deed (Escritura Pública), signed at a notary’s office to complete the transaction. Our lawyer will handle much of the paperwork to ensure a smooth process.

When purchasing real estate in Lisbon, you'll need to account for several taxes. The IMT (Property Transfer Tax) is calculated based on the property’s value and ranges from 1% to 8%. Additionally, Stamp Duty, which is typically 0.8% of the purchase price, applies. After the purchase, you’ll also need to pay IMI (Municipal Property Tax) annually, based on the property's taxable value. These taxes are standard across Portugal, but values may vary slightly depending on the property type and location within Lisbon.

Finding luxury real estate in Lisbon often requires partnering with a specialized agent who has access to exclusive high-end properties. Focus areas for luxury properties include Avenida da Liberdade, Príncipe Real, Chiado, and Avenidas Novas, where you’ll find elegant penthouses, historic townhouses, and modern luxury apartments. Some of these properties are not listed publicly, so working with a reputable agent ensures you gain access to the best options. You can also attend private viewings or property expos to explore Lisbon’s luxury market.

Lisbon’s property market has been booming, attracting both local and international buyers. The steady growth of external demand make it an ideal place for investment, especially for expats looking to generate rental income or secure long-term value. Lisbon’s solid infrastructure and growing tech scene further enhance its potential for long-term returns.

To buy a house in Lisbon for rental income, focus on areas with high tourist footfall or expat communities, such as Alfama, Baixa, and Santos. Once you’ve purchased a property, you’ll need to register it with the local authorities. Lisbon’s tourist market is thriving, making short-term rentals lucrative, but long-term rentals are also popular among the city’s growing expat population. Make sure to familiarize yourself with rental laws to ensure compliance, especially in short-term rentals (Alojamento Local - AL).

If you're searching for family-friendly neighborhoods, Campo de Ourique, Estrela, and Restelo, are excellent choices. These areas offer good schools, parks, and a quieter, more residential atmosphere, making them ideal for families with children. Campo de Ourique and Estrela are known for its village-like charm and green parks, while Restelo offers larger homes and proximity to the river and international schools.

Lisbon’s real estate market has become highly competitive in recent years. Prices have risen steadily due to increased demand from both international buyers and investors. However, opportunities still exist in up-and-coming neighborhoods like Marvila and Beato, where property prices are lower, and development is ongoing. Overall, Lisbon’s market offers a mix of high-end and affordable options, but buyers should act quickly in popular areas due to competition.