Buying property in Lisbon is an exciting journey with its challenges. Portugal’s capital city offers many types of property, from holiday apartments in Lisbon to a villa in Lisbon with a pool; you will always find something that meets all your wishes and needs. This guide helps you to understand the local real estate rules and regulations and explains how to buy property in Lisbon.
Finding a house for sale in Lisbon, Portugal
Finding the right property for sale in Lisbon can be an exciting journey. The Lisbon coast offers a fantastic view of the Atlantic, while the city blends modernity with traditional charm. It’s no wonder that buying property in Lisbon has become so popular among expats and locals alike. Be it an apartment in the vibrant Lisbon city center, a holiday villa in Lisbon, or a more traditional property for sale in Alfama, Lisbon, you’re sure to find something that matches your style and budget.
Buying property in Lisbon: 7-Step guide
Are you interested in buying property in Lisbon? Here are seven steps to guide you.
Step 1: Get the Número de Identificação Fiscal (NIF) in Lisbon
When you consider buying property in Lisbon, the first step is to obtain your Número de Identificação Fiscal or NIF, which is a local tax number. It’s a crucial first part of the process, even if you’re eyeing cheap property in Lisbon or looking for a long-term property to rent in Lisbon.
Step 2: Open a bank account in Lisbon
You’ll need a Portuguese bank account for any property transactions. This is also a requirement for buying real estate in Lisbon. Lisbon banks, such as Millennium BCP, Novo Banco, Banco Santander Totta, Banco BPI, or Caixa Geral de Depósitos, are quite foreigner-friendly, making this process relatively simple.
Step 3: Work with a real estate agent and notary in Lisbon
Working with a reputable real estate agent in Lisbon can simplify your property search and assist with legal requirements. They can help you find the perfect Lisbon real estate for sale, whether it’s a commercial property in Lisbon, an apartment, or a villa in Lisbon with a pool.
Step 4: Perform due diligence on Lisbon real estate
Make sure to thoroughly check any property for sale in Lisbon before buying property in Lisbon. This includes understanding the house prices in Lisbon, the property’s history, and its current condition.
Step 5: Sign the initial purchase agreement and pay a deposit
Once you’ve found your dream property for sale in Lisbon, the next step is to sign the initial purchase agreement, called Escritura de Compra e Venda. After this, you must pay a deposit to secure the property. This deposit is typically 10% or more of the total cost.
Step 6: Pay the property taxes and legal fees in Lisbon
You must account for property taxes and legal fees when buying property in Lisbon. These costs are usually a small percentage of the property price. There are several taxes to pay, such as IMT tax, wealth tax, stamp duty tax, annual property tax (IMI), and rent tax.
Step 7: Apply for a Lisbon residency visa
If you’re a non-EU citizen who’s invested in Lisbon property, you can apply for a Lisbon residency visa. It’s a great way to enjoy your new property developments in Lisbon while also being able to live in Portugal.
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How can non-EU citizens live in Lisbon, Portugal?
There are two ways to live in Lisbon for non-EU citizens who are buying property in Lisbon.
1. Golden Visa
One popular way non-EU citizens can live in Lisbon is through the Golden Visa Program, essentially an investment in Lisbon real estate. It requires an investment in Portuguese real estate (like property for sale in Lisbon) of at least €250,000 ($265,000). This is an excellent choice for those who want to live in Lisbon and travel freely within the Schengen Area, as this permit grants them the right to live, work, and study in Portugal for up to five years, alongside the benefit of free travel within the Schengen Area.
2. D7 Visa
The D7 Visa, or passive income visa, allows foreign nationals to reside in Lisbon, given their steady income source of at least €9,120 ($9,667). It allows you to live in Portugal and enjoy the benefits of this beautiful country, including buying a villa in Lisbon.
Property prices in Lisbon, Portugal
The average price of an apartment in Lisbon is €6,094 ($6,460)/m², with a +1% increase noted over the last year. The average house price for sale in Lisbon is €5,947 ($6,304)/m², witnessing a +16% increase over the last year. The following table provides an overview of property prices in Lisbon, Portugal.
|Property type||Average price|
|Apartment studio||€483,300 ($512,298)|
|2-Room apartment||€448,967 ($475,905)|
|3-Room apartment||€498,333 ($528,233)|
|4-Room apartment||€711,633 ($754,331)|
|5-Room apartment||€805,500 ($853,830)|
|House with 4 rooms||€907,500 ($961,950)|
|House with 5 rooms||€1.54 million ($1.63 million)|
|House with 6 rooms||€1.18 million ($1.26 million)|
|House with 7 rooms||€1.81 million ($1.92 million)|
|House with 8 rooms||€1.82 million ($1.92 million)|
Lisbon property prices can vary greatly. It depends on the location, size, and features of the property. However, you can find a cheap property in Lisbon if you’re on a budget.
Best neighborhoods in Lisbon to buy property
If you’re considering buying property in Lisbon, you’re in luck. The city has fantastic neighborhoods, each with its unique charm. There’s a place for everyone, from the buzzing city center to the tranquil Lisbon beach. But with so many choices, it can be challenging to know where to start. So, we’ve compiled a list of the best neighborhoods to consider for your investment.
Graça, once a working-class neighborhood, is now a popular spot for buying property in Lisbon. With its spectacular views, charming old-town ambiance, and captivating history, Graça has become a magnet for locals and tourists. Property prices in Lisbon’s Graça neighborhood may vary, but the area’s appeal makes it an excellent investment.
Though the neighborhood lacks green spaces and parking can be challenging, its pros outweigh the cons. From delightful restaurants to breathtaking belvederes and historic ‘Vilas Operárias’, Graça offers an authentic Lisbon experience.
If you prefer the hustle and bustle of the city, consider Chiado. Notably, it’s one of the best places for property for sale in Lisbon coast. Besides its gastronomic diversity and a picturesque bronze statue of Fernando Pessoa, Chiado boasts a bustling city life that keeps the area vibrant and energetic.
The neighborhood is quite touristy, which can be a turnoff for some. However, the constant influx of visitors can be a plus if you’re considering a property to rent in Lisbon for an Airbnb holiday apartment in Lisbon.
3. Avenidas Novas
For a quieter residential experience, Avenidas Novas is the neighborhood for you. Known for its vast area, it offers an excellent network of public services and transportation. Its significant features and variety of attractions make it a prime spot for property for sale in Lisbon. However, remember that the neighborhood’s social life isn’t as vibrant as others.
The Alcantara neighborhood, famed for its delightful riverside setting, offers excellent opportunities for property investment. It houses the LX Factory, a hub for artists’ studios, shops, restaurants, and performance spaces, significantly increasing property value in the area.
However, it’s worth noting that Alcantara is slightly far from the city center, which might be a downside for some investors. But if you’re looking for a blend of city life and coastal living, Alcantara offers a beautiful balance.
Baixa Lisbon, known for its neoclassical ambiance, is a prime location for buying property in Lisbon. This area is ideal for commercial property in Lisbon due to its strategic placement and bustling city life.
The neighborhood gets quite crowded, but its accessibility to sightseeing locations and attractive features, including its ginjinha bars and unique architecture, make it a great investment choice.
6. Bairro Alto
Bairro Alto is an exciting neighborhood known for its nightlife, restaurants, and cultural attractions. Bairro Alto is an excellent choice if you’re interested in Lisbon real estate for sale that offers the potential for high returns.
However, the neighborhood can be noisy due to its bustling nightlife, so it might not suit everyone. If you’re an investor interested in long-term property to rent in Lisbon, it might not be the best choice for families.
Alfama is another great neighborhood to consider when buying property in Lisbon. Known for its historical significance, romantic landscape, and picturesque cobblestone streets, property for sale in Alfama Lisbon is always in high demand.
The area’s public transportation can be challenging, but if you’re a history lover looking for a rich cultural experience, Alfama is your best bet.
8. Principe Real
Principe Real is one of Lisbon’s most sought-after neighborhoods known for its trendy restaurants, coffee shops, and shopping complexes. Although properties can be expensive, its proximity to Lisbon’s city center and chic ambiance make it worth every penny.
Santos, one of the city’s oldest and most expensive districts, might be the right choice for those looking to invest in Lisbon’s property market. The neighborhood is known for its pubs, clubs, and home décor shops. Despite the expensive property prices, Santos’ attraction makes it an excellent investment.
10. Parque das Nações
Parque das Nações is a fantastic option for families looking for property to buy in Lisbon. This neighborhood promises a wholesome family atmosphere with various family-friendly attractions like the Urban Park, Pavilhão do Conhecimento, and Oceanário.
However, remember that this area lacks a strong community vibe, which might not appeal to everyone buying property in Lisbon.
Property management in Lisbon, Portugal
Buying property in Lisbon might seem daunting when considering the subsequent management aspects. This could be helpful when renting out your Lisbon property, tending to its upkeep, or setting it up for your stay. Whether you’ve acquired a Lisbon villa or a house along the Portuguese coast, a property manager can assist in maintaining and managing your property.
Real estate agents in Lisbon
Collaborating with experienced real estate agents in Lisbon is critical when making property investments in the city. These experts comprehend the property market dynamics, possess skills in negotiating favorable property rates in Lisbon, and can navigate you through legal procedures. If you aspire to own your dream property, be it a beach house in Lisbon, a countryside farm, or a commercial property in the city, ensure to opt for a trustworthy real estate agent in Lisbon to facilitate your search.
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Frequently Asked Questions (FAQs)
Is buying property in Lisbon a good investment?
Buying property in Lisbon is generally considered a good investment. The real estate market in Lisbon has shown robust growth, thanks to factors such as strong demand for housing, an attractive location on the Portuguese coast, and favorable property rates.
Where to buy property in Lisbon?
There are various locations in Lisbon where one can consider buying property. These can range from beach houses to commercial properties in the city center or countryside farms. Always consult a reputable real estate agent in Lisbon to assist you in finding the best location according to your preferences and investment goals.
How to buy property in Lisbon?
To buy property in Lisbon, the first step is typically to identify a property that suits your needs. After this, you may need to secure a financial agreement, such as a mortgage. Then, you can make a preliminary contract with the seller, pay the deposit, and finally close the sale in front of a notary. Always remember to seek assistance from a seasoned real estate agent in Lisbon to facilitate this process.
Can foreigners buy property in Lisbon?
Yes, foreigners can buy property in Lisbon. Portugal offers no restrictions on foreigners purchasing property, making Lisbon an accessible and attractive location for foreign investors. The Portuguese Golden Visa Program also provides residency permits to non-EU citizens who invest in Portuguese property.
How much is an apartment in Lisbon?
The average price of an apartment in Lisbon is €6,094 ($6,460)/m², but could range significantly based on location, size, and amenities. Prices in the city center could be much higher compared to the outskirts.
How to find an apartment in Lisbon?
To find an apartment in Lisbon, one could consider various channels, such as online real estate platforms, local newspapers, or property agents. Trustworthy real estate agents in Lisbon can offer you the most comprehensive range of options tailored to your needs.
Why invest in Lisbon?
There are multiple reasons to invest in Lisbon. The city offers a strong and stable economy, high quality of life, and a vibrant culture. Additionally, its real estate market thrives, offering attractive opportunities for local and foreign investors.
Is Lisbon a good place to buy a property?
Lisbon is indeed a good place to buy a property. The city combines a dynamic real estate market, favorable property prices, and an attractive lifestyle, making it a top choice for many investors looking to buy a property in Portugal.