Explore our guide for insights on buying property in Lisbon, including key requirements, and tips to make an informed decision.
Lisbon has been on many people's radars lately, and rightfully so.
It has great weather, is walkable, and has a healthy mix of expats and locals that makes for a vibrant atmosphere. Despite getting more pricey, it still has a lower cost of living compared to other European capitals.
Ready to learn more? This guide covers what you need to know when buying a property in Lisbon as a foreigner.
The property market in Lisbon is very hot, with demand continually outstripping the supply.
According to a survey of 1,089 property professionals, Lisbon ranks as the eighth-top city for overall prospects in the European real estate market in 2024.
The average asking price for real estate reflects that fact: €6,002/m² in Lisbon city and €4,061/m² in the Lisbon Metropolitan Area.
Lisbon is a very compact city with many unique neighborhoods. It has long and wide avenues but also windy, narrow, and cobbled streets with charm.
Average price per m2: €5,018 - €6,700
Graça and Alfama are two conjoined neighborhoods that are a top choice for digital nomads and entrepreneurs, offering breathtaking views of the city and the Tagus River.
The area has a mix of traditional shops, cozy cafes, and local markets, providing an authentic Lisbon experience.
Average price per m2: €7,126
Avenidas Novas is a modern, upscale neighborhood in Lisbon known for its wide, tree-lined avenues and contemporary architecture. It offers a mix of residential, commercial, and office spaces.
The neighborhood is well-connected with excellent public transport links, including metro stations and bus lines.
Average price per m2: €6,548
Belém is a historic and picturesque neighborhood in Lisbon known for its cultural and architectural landmarks with beautiful gardens, such as the Jardim Botânico Tropical, and riverside views along the Tagus River.
When buying property in Lisbon, remember to factor in these taxes and costs:
Non-residents can get a mortgage to buy property in Lisbon almost as easily as locals, with some caveats.
They usually need a bigger down payment and have to provide extra documents, like proof of income from abroad and international credit reports.
Leading banks like CGD, Novobanco, Bankinter, and others deal with foreigners on a daily basis.
They offer fixed-rate, variable-rate, and mixed-rate mortgages ranging from 1 to 30 years.
Showing you're financially stable and reliable makes getting a mortgage in Portugal easier.
Usually, your monthly debt payments shouldn’t be more than 35% of your income.
Banks will lend you 75% to 80% of the property's value, so you’ll need a deposit of 20% to 50%.
You'll need to provide payslips, bank statements, tax returns, and your Portuguese tax number (NIF).
Additionally, you'll need proof of income from your home country and documents that verify your legal status in Portugal.
From my experience, there might be additional documents they ask for, so be prepared for that.
Typically, the communication is clear and transparent, although you will need to nag them sometimes to move things along faster if you need to make things happen sooner rather than later. That's why a mortgage broker can simplify things for you.
Buying a property in Lisbon with foreign income can be complex and sometimes discouraging. Luckily there are ways to navigate these challenges. Homevest is a solution that offers a digital platform to simplify the mortgage application process for non-residents.
Partnering with Reorganiza, a leading digital mortgage broker in Portugal, Homevest helps applicants get offers from top banks for non-resident buyers within a week of choosing their preferred option.
After explaining the mortgage process and setting expectations, Homevest helped Suranga build his mortgage file, which was then sent to 8 banks in Portugal. His experience with the mortgage process was straightforward.
Discover his outcome and learn about the property process in Portugal for a UK citizen.
Buying a property in Lisbon as a foreigner can have its downsides.
For instance, prices are on the up and up, so finding a good deal is more challenging. The legal paperwork and processes can also be slow and complicated.
Buying an older home often isn't any cheaper, and it might need a lot of fixing up.
All the reasons that make it a great city to live in also make it wonderful to visit, meaning that living in touristy spots is noisy and crowded all year round.
Weighing pros and cons is always a good idea if you're on the fence.
Lisbon is still an amazing opportunity for any investor.
“Lisbon offers excellent investment potential with rising property values, a booming tourism industry, and a vibrant lifestyle, making it a lucrative choice for buyers seeking both short-term gains and long-term appreciation”, summarized the Goldcrest Agency.
EU citizens have no restrictions on their stay in Lisbon or the rest of Portugal, whether they own a property or not.
Non-EU citizens, however, can only stay for a maximum period of 90 days without a visa.
Lisbon is more affordable compared to many other Western European capitals. Of course, some areas can be more expensive than others, and the overall costs vary depending on one's lifestyle.
Still, the city generally offers lower prices for housing, dining, and entertainment.
Lisbon is and will be an attractive alternative to many European capital cities.
Although it's getting harder and harder to find affordable property to buy or rent, its lifestyle, amazing weather, and community will still make it a dream place to live for many.
If you want to make your dream a reality and find the perfect mortgage to make this dream come true, look no further than Homevest — a free-to-use platform that compares all the best mortgages in Portugal.
Sources used and checked in July 2024:
We recommend obtaining professional or specialist advice before taking or refraining from any action based on the content in this article. The information in this article does not constitute legal, tax, or other professional advice from Homevest Limited. Prior results do not guarantee a similar outcome. We make no representations, warranties, or guarantees, whether express or implied, that the content in this article is accurate, complete, or up to date.
Finding a good mortgage broker in Portugal doesn't have to be daunting or challenging. To simplify your search, we've listed the top mortgage brokers in the country. Discover which ones can help you secure a mortgage for purchasing property in Portugal, and learn how you can compare them.
Learn everything you need to know about mortgages in Portugal for non-residents in 2024, including requirements, mortgage rates, and tips.
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