Authored by the expert who managed and guided the team behind the Portugal Property Pack
Yes, the analysis of Lisbon's property market is included in our pack
Lisbon has become one of Europe's most popular cities for foreign property buyers, thanks to its warm climate, rich culture, and relatively affordable prices compared to other Western European capitals.
In this guide, we cover everything you need to know about buying property in Lisbon as a foreigner in January 2026, including current housing prices, taxes, legal requirements, and mortgages.
We constantly update this blog post to make sure you always get the freshest information available.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Lisbon.
Insights
- Property prices in Lisbon in 2026 average around 6,000 euros per square meter in central areas, with prime renovated apartments in Chiado or Avenida da Liberdade reaching 8,000 euros or more.
- Non-resident buyers in Lisbon may soon face a flat 7.5% transfer tax (IMT) instead of the progressive rates available to residents, which could add thousands of euros to your closing costs.
- Portugal's Golden Visa program no longer accepts real estate investment since October 2023, meaning buying property in Lisbon will not help you get residency or citizenship.
- Six Lisbon parishes now have short-term rental (Alojamento Local) ratios above 10%, which means new Airbnb-style licenses are completely blocked in areas like Alfama, Baixa, and Bairro Alto.
- Portuguese banks typically lend foreigners only 60% to 70% of the property value, so most non-resident buyers need to put down 30% to 40% as a deposit.
- Mortgage rates for foreign buyers in Portugal in 2026 range from about 3% to 5%, depending on your financial profile and whether you choose a fixed or variable rate.
- Lisbon's annual property tax (IMI) is set at just 0.3% of the taxable value for 2026, making it one of the lowest recurring costs among major European capitals.
- Total closing costs in Lisbon typically run between 8% and 10% of the purchase price, with IMT (transfer tax) being the single largest expense.
- Non-residents renting out property in Lisbon pay a flat tax rate of about 25% to 28% on rental income, with different rules for long-term leases versus short-term tourist rentals.
What can I legally buy and truly own as a foreigner in Lisbon?
What property types can foreigners legally buy in Lisbon right now?
In January 2026, foreigners can buy any type of residential property in Lisbon, including apartments, condos, townhouses, penthouses, and detached houses, with exactly the same ownership rights as Portuguese citizens.
The main practical requirements for foreign buyers in Lisbon are obtaining a Portuguese tax number (NIF) and having enough funds, since Portugal does not impose nationality-based restrictions or quotas on property purchases.
What changes for foreigners is mostly the extra paperwork: banks and notaries apply stricter anti-money-laundering checks, and if you need a mortgage, you will likely face lower loan-to-value limits than local residents.
Portugal's open property market has made Lisbon especially attractive to international buyers, and there are no minimum investment thresholds or government approvals required just because you are foreign.
Finally, please note that our pack about the property market in Lisbon is specifically tailored to foreigners.
Can I own land in my own name in Lisbon right now?
Yes, foreigners can own land in their own name in Lisbon and throughout Portugal, because the country does not restrict land ownership based on nationality.
This applies to all types of land, whether you are buying an apartment (where you own the unit plus a share of the building's land), a townhouse with its plot, or even an undeveloped parcel.
The main constraint in Lisbon is simply availability: pure undeveloped land is quite rare inside the city compared with apartments, though plots do exist in outer areas like Lumiar or Ajuda.
As of 2026, what other key foreign-ownership rules or limits should I know in Lisbon?
As of early 2026, the most important rule affecting foreign buyers in Lisbon is the proposed flat 7.5% IMT transfer tax for non-residents, which is higher than the progressive rates available to Portuguese residents and EU citizens who become tax residents.
Portugal does not impose any foreign-ownership quota on apartments or condos in Lisbon, so there is no limit on how many units in a building can be owned by foreigners.
Foreign buyers must register the purchase with the Land Registry and pay all applicable taxes before the deed is signed, but there is no special government approval needed just because of your nationality.
One notable recent change is the December 2025 update to Lisbon's short-term rental rules (RMAL), which lowered the thresholds for blocking new Alojamento Local licenses and expanded the restricted areas across the city.
What's the biggest ownership mistake foreigners make in Lisbon right now?
The biggest mistake foreigners make in Lisbon is assuming that buying a property automatically means they can rent it out on Airbnb, without checking whether the area allows new short-term rental licenses.
If you buy an apartment in a containment zone like Alfama, Baixa, or Bairro Alto expecting tourist rental income, you may discover that new Alojamento Local registrations are completely blocked, leaving you unable to legally earn the returns you planned.
Other classic pitfalls in Lisbon include paying a deposit before checking the land registry for liens and mortgages, and failing to confirm the property has the correct licensing for residential use, which is especially common with older renovated buildings.
We have made this infographic to give you a quick and clear snapshot of the property market in Portugal. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Which visa or residency status changes what I can do in Lisbon?
Do I need a specific visa to buy property in Lisbon right now?
You do not need any specific visa to buy property in Lisbon in January 2026, and you can legally purchase real estate even if you are in Portugal on a tourist visa or short-stay Schengen status.
The single most common requirement that can slow down foreign buyers without local residency is obtaining a Portuguese tax identification number (NIF), which is mandatory for all property transactions in Lisbon.
Yes, you need a NIF before buying property in Lisbon, and non-EU citizens may also need to appoint a fiscal representative in Portugal if they do not have a local address.
A typical document set for a foreign buyer in Lisbon includes your passport, NIF, proof of funds or mortgage pre-approval, and if you cannot attend in person, a notarized power of attorney allowing someone to sign on your behalf.
Does buying property help me get residency and citizenship in Lisbon in 2026?
As of early 2026, buying property in Lisbon does not help you get residency or citizenship, because Portugal's Golden Visa program removed real estate as a qualifying investment route in October 2023.
The Golden Visa still exists but now focuses on alternative investments like investment funds (minimum 500,000 euros), job creation, or scientific research, none of which involve buying residential property.
If you want to live in Portugal, you will need to apply through other visa pathways such as the D7 visa for passive income holders, the D8 digital nomad visa, or employment-based permits, where property ownership can support your application but will not qualify you on its own.
We give you all the details you need about the different pathways to get residency and citizenship in Lisbon here.
Can I legally rent out property on my visa in Lisbon right now?
Your visa status does not affect your ability to own and rent out property in Lisbon, because foreign owners can legally earn rental income regardless of whether they hold residency.
You do not need to live in Portugal to rent out your Lisbon property, and many foreign owners manage their rentals remotely through local property management agencies.
The key detail for foreign landlords in Lisbon is that long-term rentals are generally straightforward, while short-term tourist rentals (Alojamento Local) require a specific municipal license that is blocked or restricted in many central neighborhoods as of the first half of 2026.
We cover everything there is to know about buying and renting out in Lisbon here.
Get fresh and reliable information about the market in Lisbon
Don't base significant investment decisions on outdated data. Get updated and accurate information with our guide.
How does the buying process actually work step-by-step in Lisbon?
What are the exact steps to buy property in Lisbon right now?
The standard sequence to buy property in Lisbon involves getting your NIF and opening a bank account, making an offer, conducting due diligence, signing a promissory contract (CPCV) with a 10% to 20% deposit, paying taxes, signing the final deed at a notary, and registering ownership in the Land Registry.
You do not need to be physically present in Lisbon to complete the purchase, because most foreign buyers use a notarized power of attorney that allows a lawyer to sign documents on their behalf.
The step that typically makes the deal legally binding in Lisbon is signing the promissory contract (CPCV), at which point both buyer and seller commit to the transaction with financial penalties if either party backs out.
The typical timeline from accepted offer to final registration in Lisbon ranges from 4 to 12 weeks, depending on mortgage approval, due diligence complexity, and notary scheduling.
We have a document entirely dedicated to the whole buying process our pack about properties in Lisbon.
Is it mandatory to get a lawyer or a notary to buy a property in Lisbon right now?
A notary (or similar authorized official) is effectively mandatory in Lisbon because the final property transfer requires a formal deed (escritura), while hiring a lawyer is not legally required but is strongly recommended for foreign buyers.
The key difference is that the notary's role is to formalize the transaction and make sure legal requirements are met, while a lawyer's role is to protect your interests by checking for risks, reviewing contracts, and advising on negotiation.
One key item that should be explicitly included in your lawyer's scope is verification of the property's title through the land registry, confirmation that all licenses and permits are valid, and a check for any liens, mortgages, or legal disputes.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Portugal versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
What checks should I run so I don't buy a problem property in Lisbon?
How do I verify title and ownership history in Lisbon right now?
The official registry you should use to verify title and ownership history in Lisbon is the Conservatória do Registo Predial (Land Registry), which can be accessed online through the Predial Online portal.
The key document to request is the certidão permanente predial, which is an up-to-date extract showing the legal owner, any registered mortgages, seizures, and pending requests.
A realistic look-back period for ownership history checks in Lisbon is typically 15 to 20 years, which helps identify any chain-of-title issues or unresolved claims from previous transactions.
One clear red flag that should stop or pause your purchase is discovering an unresolved mortgage, seizure order, or pending legal dispute registered against the property.
You will find here the list of classic mistakes people make when buying a property in Lisbon.
How do I confirm there are no liens in Lisbon right now?
The standard way to confirm there are no liens on a property in Lisbon is to obtain the certidão permanente predial from the Land Registry, which lists all registered mortgages, seizures (penhoras), and other charges.
One common type of lien that buyers should specifically ask about in Lisbon is a mortgage from a previous owner that was never formally discharged, which can appear even on properties supposedly sold free of debt.
The single best written proof of lien status in Lisbon is the certidão permanente predial itself, as it is the official government document that confirms whether the property is clear or has any registered encumbrances.
How do I check zoning and permitted use in Lisbon right now?
The authority you should use to check zoning and permitted use in Lisbon is the Câmara Municipal de Lisboa (Lisbon City Council), specifically through its urbanism and licensing portal.
The document that typically confirms zoning in Lisbon is the PDM (Plano Diretor Municipal), which is the master plan defining what uses are allowed in each area, supplemented by more specific local plans.
One common pitfall that foreign buyers miss in Lisbon is purchasing a property in a historic zone or renovated building without confirming that the unit has a valid residential license (licença de utilização), which can affect your ability to insure, finance, or resell the property.
Buying real estate in Lisbon can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
Can I get a mortgage as a foreigner in Lisbon, and on what terms?
Do banks lend to foreigners for homes in Lisbon in 2026?
As of early 2026, yes, Portuguese banks lend to foreigners for home purchases in Lisbon, including both EU and non-EU citizens, with no legal ban on non-residents getting mortgages.
The realistic loan-to-value (LTV) range that foreign borrowers see in Lisbon is 60% to 70%, meaning you typically need to put down 30% to 40% of the purchase price as a deposit.
The single most common eligibility requirement that determines whether a foreigner qualifies for a mortgage in Lisbon is having stable, verifiable income, because banks closely check your employment history, tax returns, and debt-to-income ratio.
You can also read our latest update about mortgage and interest rates in Portugal.
Which banks are most foreigner-friendly in Lisbon in 2026?
As of early 2026, the most foreigner-friendly banks for mortgages in Lisbon are Millennium BCP, Santander Totta, and Novo Banco, all of which have dedicated international client desks experienced in processing applications from non-residents.
The key feature that makes these banks more foreigner-friendly is their willingness to accept foreign income documentation, provide English-speaking advisors, and offer mortgage products designed specifically for non-resident buyers.
Yes, these banks will lend to non-residents in Lisbon, though the terms are typically more conservative with lower LTV ratios and potentially higher spreads than what Portuguese residents receive.
We actually have a specific document about how to get a mortgage as a foreigner in our pack covering real estate in Lisbon.
What mortgage rates are foreigners offered in Lisbon in 2026?
As of early 2026, mortgage rates for foreigners in Lisbon typically range from 3% to 5%, with most non-residents receiving offers between 3.5% and 4.5% depending on their financial profile and chosen bank.
Variable-rate mortgages in Portugal are priced as Euribor plus a bank spread of about 1% to 2%, while fixed-rate mortgages are usually 0.5% to 1% higher but offer payment stability.
We made this infographic to show you how property prices in Portugal compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
What will taxes, fees, and ongoing costs look like in Lisbon?
What are the total closing costs as a percent in Lisbon in 2026?
The typical total closing costs for a property purchase in Lisbon in 2026 are about 9% of the purchase price for most foreign buyers.
The realistic range that covers most standard transactions in Lisbon is 7% to 11%, depending on whether you are buying as a resident or non-resident and whether the property is a primary or secondary home.
The main fee categories that make up closing costs in Lisbon are IMT (transfer tax), stamp duty at 0.8%, notary and registration fees of about 1,000 to 2,000 euros, and legal fees typically between 0.5% and 1.5%.
The single biggest contributor to closing costs in Lisbon is IMT (transfer tax), which can reach up to 7.5% for non-residents under the proposed new flat rate, or follows progressive bands up to about 6% to 8% for higher-value properties.
If you want to go into more details, we also have a blog article detailing all the property taxes and fees in Lisbon.
What annual property tax should I budget in Lisbon in 2026?
As of early 2026, you should budget about 0.3% of the property's taxable value per year for IMI (annual property tax) in Lisbon, which for a property valued at 300,000 euros means around 900 euros annually (roughly 950 USD or 870 EUR).
The annual property tax in Lisbon is calculated by multiplying the municipal IMI rate (0.3% for urban properties in 2026) by the property's official tax value (VPT), which is usually lower than the market price you paid.
How is rental income taxed for foreigners in Lisbon in 2026?
As of early 2026, the typical tax rate on rental income for non-resident foreigners in Lisbon is about 25% to 28%, depending on whether the income is from long-term rentals or short-term tourist accommodation.
The basic requirement for foreign owners is that rental income must be declared to Portuguese tax authorities, with non-residents typically paying at a flat rate rather than progressive rates, either through withholding or an annual tax return.
What insurance is common and how much in Lisbon in 2026?
As of early 2026, the typical annual insurance premium for a standard home policy in Lisbon ranges from 200 to 650 euros (about 210 to 690 USD), depending on the property's rebuild value and chosen coverage.
The most common type of property insurance in Lisbon is multi-risk home insurance (seguro multirriscos), which covers fire, storms, water damage, theft, and civil liability.
The biggest factor that makes insurance premiums higher or lower in Lisbon is the property's rebuild value and construction type, with older historic buildings in areas like Alfama often costing more to insure than modern apartments in Parque das Nações.
Get the full checklist for your due diligence in Lisbon
Don't repeat the same mistakes others have made before you. Make sure everything is in order before signing your sales contract.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Lisbon, we always rely on the strongest methodology we can, and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why We Trust It | How We Used It |
|---|---|---|
| Portal das Finanças | Portugal's official tax authority guidance for homebuyers. | We used it to explain what taxes are due at purchase and how IMT and stamp duty work. We treated it as the source of truth for tax calculations. |
| Justiça.gov.pt | Ministry of Justice portal for land registry services. | We used it to explain how to verify ownership and check for liens. We based our due diligence recommendations on this official process. |
| Câmara Municipal de Lisboa | Lisbon City Council's official page for local tax rates. | We used it to confirm Lisbon's IMI rate of 0.3% for 2026. We tailored our tax estimates specifically to Lisbon. |
| Predial Online | Portugal's official online land registry portal. | We used it to explain how to check property records online. We referenced it for title verification steps. |
| Banco de Portugal BPstat | Central bank's official statistics for mortgage rates. | We used it to produce accurate mortgage rate estimates for 2026. We anchored our figures to the latest published data. |
| PwC Portugal Tax Guide | Professional tax reference updated regularly. | We used it to explain IMI, AIMI, and IMT structures. We cross-checked our tax estimates against their guidance. |
| PLMJ Law Firm | Major law firm with official gazette references. | We used it to capture Lisbon short-term rental changes from December 2025. We treated it as expert interpretation of official rules. |
| AIMA Golden Visa FAQ | Official Portuguese immigration agency guidance. | We used it to confirm real estate no longer qualifies for Golden Visa. We cross-checked all program claims against this source. |
| PwC Tax Summaries | Professional tax reference for rental income rules. | We used it to estimate rental income tax rates for non-residents. We verified the baseline rates and filing requirements. |
| ASF Insurance Regulator | Portugal's official insurance regulator consumer guide. | We used it to explain multi-risk home insurance coverage types. We avoided marketing language and used regulatory definitions. |
| Global Citizen Solutions | Established advisory firm with Portugal expertise. | We used it to cross-check buying process steps. We verified their guidance against official sources. |
| Idealista Portugal | Leading Portuguese property portal with current news. | We used it to track the proposed 7.5% IMT for non-residents. We monitored their coverage of new legislation. |
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Portugal. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.