The 5-Step Lisbon Property Roadmap

Complete guide to buying property in Portugal

1 2 3 4 5

Step 1 of 5

Define Your Goals

What type of property are you looking for? Investment, family home, or relocation?

Macro-Market Snapshot 2024-2025

National average €2,735/m² with 5-8% growth projection. Lisbon leads at €5,560-€6,934/m², Porto at €4,296-€4,883/m².

Market Snapshot 2024-2025

Robust in 2025, characterized by strong demand, international interest, and a limited housing supply.

National Average 2025

€2,735/m²

Median Q3 2024

€1,819/m²

Growth Since 2015

Over 105%

Growth Projection 2025

5-8%

Price per m² by Region

Lisbon

As the capital, Lisbon leads the market in terms of price.

City Center

€5,560 to €6,934/m²

Metropolitan Area

€3,644 to €4,935/m²

Premium Area - Parque das Nações: €8,517/m²

Porto

Portugal's second-largest city.

City Center

€4,296-€4,883/m²

Metropolitan Area

€2,764-€3,937/m²

Algarve

Popular southern region with strong tourism demand.

Coastal Properties

€3,334 to €4,385/m²

City Averages:

Lagos

€5,066/m²

Albufeira

€4,176/m²

Faro

€3,701/m²

Rental Yields

Average Gross Yield Q2 2025

4.57%

National Gross Yield Q1 2025

7.2%

Comparison Q4 2024

4.96%

Note: Net yields are typically 1.5% to 2% lower than gross yields after taxes, repairs, and fees.

Explore Lisbon neighborhoods and their investment potential

Yields by Region

Lisbon

Average: 3.86%

City Center: 5.2%

Metropolitan Area: up to 6.8%

Porto

Average: 4.52%

City Center: 6.6%

Metropolitan Area: 6.7%

Algarve

Average: 5.6%

Faro: 4.73%

Vacancy Rates & Market Supply

Office Q1 2025

Greater Lisbon: 7.6%

Greater Porto: 9.0%

Industrial Q1 2025

Greater Lisbon: 4.1%

Housing Supply: Increased by 49% in Q1 2025 compared to Q1 2024, but high demand persists in key migrant-attractive regions, indicating localized vacancy risk.

Non-Resident Mortgage Rules

60-75% LTV for non-residents, 25-40% deposit required. Interest rates around 4% with 30-year terms available.

Portuguese banks offer mortgages to non-residents, but with stricter lending criteria.

LTV & Deposit Requirements

Non-Resident LTV

60% to 75%

of the property value

Deposit Required

25% to 40%

of the purchase price

Construction LTV

50% to 60%

of the combined costs of land and construction

Interest Rates & Assessment

Generally hover around 4%, but can vary between 1% and 3% depending on the package.

Assessment Factors:

Financial purchasing power

Property's collateral value

Other personal factors

Rate Influences:

Euribor

European Central Bank (ECB) rates

Bank's internal margins

Fixed

Variable

Mixed-rate

Typically extend up to 30 years.

Required Documentation

Valid passport or ID

Portuguese Tax Identification Number (NIF)

Proof of income (payslips, tax returns, employment contracts)

Recent bank statements

Bank references

Credit reports

Proof of address

Foreigner-Friendly Banks

Millennium BCPNovo BancoBanco CTTSantanderBankinter

Millennium BCP and Novo Banco are popular for remote account opening. Banco CTT is noted for opening accounts for non-EU clients before they get a residence card.

Recommendation: Engaging a mortgage broker with expat lending experience is highly advisable.

Find English-speaking real estate agents in Lisbon

Up-Front Cost Matrix

Additional costs typically 7-10% of purchase price. IMT tax 0-8%, stamp duty 0.8%, notary fees 1.5-2%.

Total Additional Costs

Typically add 7% to 10% to the total investment. Budget an additional 8% to 12% of the purchase price.

Example: A €400,000 property could have supplementary expenses from €28,000 to €40,000, for a total of €428,000-€440,000.

See detailed breakdown of all costs and fees →

Property Transfer Tax (IMT)

0% to 8%

Often the most substantial upfront cost

Progressive tax. Primary residences have lower scaling rates (up to ~6%), while secondary homes are higher (up to 7.5% or 8%).

Stamp Duty (Imposto do Selo)

0.8%

Property Purchase

0.6% on the mortgage amount.

Notary and Registration Fees

1.5% to 2%

Combined fees of property value

Or €800 to €1500. Includes notary fees for promissory contract (€150-€600) and final deed (€500-€1,200).

Legal Fees & Survey Costs

1% to 1.5%

Legal fees (+VAT) of purchase price

Minimum fee around €3,000. Survey costs: €500 to €2,000 depending on report type and location.

Mortgage-Related Costs

Bank Valuation Fees: €280-€500

Mortgage Arrangement/Administration Fees: Fixed fee (e.g., €290) or percentage (1% to 1.5%)

Mortgage Deed Registration Fees: Separate registration fee at the Land Registry

Insurance: Banks often mandate life insurance and multi-risk home insurance

Structuring Ownership and Tax & Inheritance Consequences

Direct ownership, Portuguese company (LDA/SA), or foreign holding company. Portugal abolished inheritance tax in 2004.

Direct Ownership (Individual Name)

Most straightforward approach

Rental income and capital gains are directly subject to Portuguese taxation. Portugal abolished inheritance tax in 2004, but a stamp duty of 0.8% is levied on property transfers, including inheritance.

Portuguese Company (LDA or SA)

Limited liability protection

The company is subject to corporate tax on rental income and capital gains. Real estate purchases are not subject to the 0.8% stamp duty on the purchase transaction.

Foreign Holding Company (U.S. LLC)

Greater complexity

Treatment depends on the specific foreign entity and its classification under Portuguese law. Can lead to intricate reporting requirements and potential double taxation.

Currency-Exchange Strategy

Forward contracts, currency options, multi-currency accounts. Strategic timing crucial for cost optimization.

Managing currency exchange is vital as fluctuations can impact total cost.

Timing of Exchange

Strategic timing

Currency fluctuations can influence interest rates and LTV ratios. Monitoring economic indicators allows for strategic timing of conversions.

Multi-Currency Accounts

Wise

Enable holding, sending, and receiving funds

Flexibility, simplifies cross-border payments. Involve platform fees and spreads; not as robust as forward contracts for hedging.

Forward Contracts

Protection against fluctuations

An agreement to exchange a specific amount of currency at a predetermined rate on a future date. Protects against adverse fluctuations; no upfront payment.

Currency Options

Right to exchange

Provide the right, but not the obligation, to exchange currency at a predetermined 'strike price'. Protection against unfavorable movements while retaining potential for profit.

The 5-Step Lisbon Property Roadmap

Complete guide to buying property in Portugal

1 2 3 4 5

Step 1 of 5

Define Your Goals

What type of property are you looking for? Investment, family home, or relocation?

Macro-Market Snapshot 2024-2025

National average €2,735/m² with 5-8% growth projection. Lisbon leads at €5,560-€6,934/m², Porto at €4,296-€4,883/m².

Market Snapshot 2024-2025

Robust in 2025, characterized by strong demand, international interest, and a limited housing supply.

National Average 2025

€2,735/m²

Median Q3 2024

€1,819/m²

Growth Since 2015

Over 105%

Growth Projection 2025

5-8%

Price per m² by Region

Lisbon

As the capital, Lisbon leads the market in terms of price.

City Center

€5,560 to €6,934/m²

Metropolitan Area

€3,644 to €4,935/m²

Premium Area - Parque das Nações: €8,517/m²

Porto

Portugal's second-largest city.

City Center

€4,296-€4,883/m²

Metropolitan Area

€2,764-€3,937/m²

Algarve

Popular southern region with strong tourism demand.

Coastal Properties

€3,334 to €4,385/m²

City Averages:

Lagos

€5,066/m²

Albufeira

€4,176/m²

Faro

€3,701/m²

Rental Yields

Average Gross Yield Q2 2025

4.57%

National Gross Yield Q1 2025

7.2%

Comparison Q4 2024

4.96%

Note: Net yields are typically 1.5% to 2% lower than gross yields after taxes, repairs, and fees.

Explore Lisbon neighborhoods and their investment potential

Yields by Region

Lisbon

Average: 3.86%

City Center: 5.2%

Metropolitan Area: up to 6.8%

Porto

Average: 4.52%

City Center: 6.6%

Metropolitan Area: 6.7%

Algarve

Average: 5.6%

Faro: 4.73%

Vacancy Rates & Market Supply

Office Q1 2025

Greater Lisbon: 7.6%

Greater Porto: 9.0%

Industrial Q1 2025

Greater Lisbon: 4.1%

Housing Supply: Increased by 49% in Q1 2025 compared to Q1 2024, but high demand persists in key migrant-attractive regions, indicating localized vacancy risk.

Non-Resident Mortgage Rules

60-75% LTV for non-residents, 25-40% deposit required. Interest rates around 4% with 30-year terms available.

Portuguese banks offer mortgages to non-residents, but with stricter lending criteria.

LTV & Deposit Requirements

Non-Resident LTV

60% to 75%

of the property value

Deposit Required

25% to 40%

of the purchase price

Construction LTV

50% to 60%

of the combined costs of land and construction

Interest Rates & Assessment

Generally hover around 4%, but can vary between 1% and 3% depending on the package.

Assessment Factors:

Financial purchasing power

Property's collateral value

Other personal factors

Rate Influences:

Euribor

European Central Bank (ECB) rates

Bank's internal margins

Fixed

Variable

Mixed-rate

Typically extend up to 30 years.

Required Documentation

Valid passport or ID

Portuguese Tax Identification Number (NIF)

Proof of income (payslips, tax returns, employment contracts)

Recent bank statements

Bank references

Credit reports

Proof of address

Foreigner-Friendly Banks

Millennium BCPNovo BancoBanco CTTSantanderBankinter

Millennium BCP and Novo Banco are popular for remote account opening. Banco CTT is noted for opening accounts for non-EU clients before they get a residence card.

Recommendation: Engaging a mortgage broker with expat lending experience is highly advisable.

Find English-speaking real estate agents in Lisbon

Up-Front Cost Matrix

Additional costs typically 7-10% of purchase price. IMT tax 0-8%, stamp duty 0.8%, notary fees 1.5-2%.

Total Additional Costs

Typically add 7% to 10% to the total investment. Budget an additional 8% to 12% of the purchase price.

Example: A €400,000 property could have supplementary expenses from €28,000 to €40,000, for a total of €428,000-€440,000.

See detailed breakdown of all costs and fees →

Property Transfer Tax (IMT)

0% to 8%

Often the most substantial upfront cost

Progressive tax. Primary residences have lower scaling rates (up to ~6%), while secondary homes are higher (up to 7.5% or 8%).

Stamp Duty (Imposto do Selo)

0.8%

Property Purchase

0.6% on the mortgage amount.

Notary and Registration Fees

1.5% to 2%

Combined fees of property value

Or €800 to €1500. Includes notary fees for promissory contract (€150-€600) and final deed (€500-€1,200).

Legal Fees & Survey Costs

1% to 1.5%

Legal fees (+VAT) of purchase price

Minimum fee around €3,000. Survey costs: €500 to €2,000 depending on report type and location.

Mortgage-Related Costs

Bank Valuation Fees: €280-€500

Mortgage Arrangement/Administration Fees: Fixed fee (e.g., €290) or percentage (1% to 1.5%)

Mortgage Deed Registration Fees: Separate registration fee at the Land Registry

Insurance: Banks often mandate life insurance and multi-risk home insurance

Structuring Ownership and Tax & Inheritance Consequences

Direct ownership, Portuguese company (LDA/SA), or foreign holding company. Portugal abolished inheritance tax in 2004.

Direct Ownership (Individual Name)

Most straightforward approach

Portuguese Company (LDA or SA)

Limited liability protection

The company is subject to corporate tax on rental income and capital gains. Real estate purchases are not subject to the 0.8% stamp duty on the purchase transaction.

Foreign Holding Company (U.S. LLC)

Greater complexity

Treatment depends on the specific foreign entity and its classification under Portuguese law. Can lead to intricate reporting requirements and potential double taxation.

Currency-Exchange Strategy

Forward contracts, currency options, multi-currency accounts. Strategic timing crucial for cost optimization.

Managing currency exchange is vital as fluctuations can impact total cost.

Timing of Exchange

Strategic timing

Currency fluctuations can influence interest rates and LTV ratios. Monitoring economic indicators allows for strategic timing of conversions.

Multi-Currency Accounts

Wise

Enable holding, sending, and receiving funds

Flexibility, simplifies cross-border payments. Involve platform fees and spreads; not as robust as forward contracts for hedging.

Forward Contracts

Protection against fluctuations

An agreement to exchange a specific amount of currency at a predetermined rate on a future date. Protects against adverse fluctuations; no upfront payment.

Currency Options

Right to exchange

Provide the right, but not the obligation, to exchange currency at a predetermined 'strike price'. Protection against unfavorable movements while retaining potential for profit.