Can foreigners still buy property in Lisbon?

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

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INVESTROPA

A team specialized in real estate investing in European countries

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Lisbon. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At InvestRopa, we explore the Portuguese real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Lisbon, Porto, and Cascais. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

Can foreigners still legally buy property in Lisbon right now?

Yes, foreigners can legally buy property in Lisbon as of September 2025 with no restrictions whatsoever.

Portugal maintains an open property market that welcomes all nationalities without quotas, minimum investment thresholds, or special permits required for foreign buyers. This policy has remained unchanged despite recent modifications to immigration programs.

The buying process for foreigners follows the same legal framework as Portuguese citizens, requiring only standard documentation like a tax identification number (NIF) and a local bank account. There are no waiting periods, approval processes, or government permissions needed specifically because of foreign status.

It's something we develop in our Portugal property pack.

The main change that occurred in 2023 was the elimination of real estate from Portugal's Golden Visa program, but this did not affect the fundamental right of foreigners to purchase property for personal use or investment.

What types of properties are foreigners allowed to purchase in Lisbon, and are there any restrictions on apartments, houses, or land?

Foreigners can purchase any type of residential property in Lisbon including apartments, houses, townhouses, penthouses, and land for development.

There are no property-type restrictions based on foreign ownership status, meaning the same properties available to Portuguese citizens are available to international buyers. This includes new construction, resale properties, luxury developments, and historic buildings.

The only limitations that may apply are related to specific property classifications rather than foreign ownership, such as certain protected historic buildings requiring additional permits or agricultural land having special zoning restrictions. However, these regulations apply equally to all buyers regardless of nationality.

Commercial real estate is also available to foreign buyers, though this guide focuses specifically on residential property investment and ownership.

Is there a minimum or maximum property value requirement for foreigners buying in Lisbon?

There are no minimum or maximum property value requirements for foreigners buying in Lisbon.

Foreign buyers can purchase properties at any price point on the open market, from studio apartments under €200,000 to luxury properties exceeding €5 million. This differs significantly from investment visa programs that typically require minimum investment thresholds.

Some Portuguese banks may have internal minimum loan amounts for mortgage financing, typically around €50,000, but this affects financing options rather than the legal ability to purchase property. Cash buyers face no value restrictions whatsoever.

The absence of value restrictions makes Lisbon's property market accessible to a wide range of international buyers, from young professionals seeking their first European property to high-net-worth individuals looking for luxury investments.

Do foreigners need to live in Portugal to buy property in Lisbon, or can they buy while living abroad?

Foreigners do not need to live in Portugal to buy property in Lisbon and can complete the entire purchase process while living abroad.

Non-resident buyers have the same property rights as residents, including the ability to rent out their property, sell it, or use it as a vacation home. The purchase process can be handled remotely through power of attorney arrangements with local legal representatives.

The only requirements are obtaining a Portuguese tax identification number (NIF) and opening a local bank account, both of which can often be arranged through legal representatives without the buyer being physically present in Portugal.

Many international buyers purchase Lisbon properties as investment vehicles or future retirement homes while maintaining their primary residence and tax obligations in other countries.

What are the exact taxes and fees foreigners must pay when buying property in Lisbon, and how much should they budget for them?

Foreign buyers should budget approximately 7-10% of the purchase price for taxes and fees when buying property in Lisbon.

Tax/Fee Type	Rate/Amount	Notes
IMT (Property Transfer Tax)	5-8% of purchase price	Progressive rate based on property value
Stamp Duty	0.8% of purchase price	Fixed rate for all property purchases
Notary Fees	€500-€1,500	Varies by property complexity
Land Registry	€500-€1,000	Official property registration
Legal Fees	1-2% of purchase price	Highly recommended for due diligence
Bank Valuation	€300-€600	Required if using mortgage financing
Total Budget Range	7-10% of purchase price	Conservative estimate for planning

How much deposit is normally required to secure a property in Lisbon as a foreigner?

Foreign buyers typically need to provide a deposit of 10-20% of the agreed purchase price to secure a property in Lisbon.

This deposit is paid when signing the promissory contract (Contrato de Promessa de Compra e Venda), which legally binds both buyer and seller to complete the transaction. The exact percentage often depends on the seller's requirements and market conditions.

For competitive properties or in high-demand neighborhoods, sellers may prefer higher deposits of 15-20% to ensure buyer commitment. In slower market conditions, deposits of 10% are more commonly accepted.

The deposit is held in escrow and counts toward the final purchase price, with the balance due at the notary appointment when ownership officially transfers. If the buyer withdraws without valid cause, the deposit is typically forfeited to the seller.

It's something we develop in our Portugal property pack.

Are mortgages available to foreigners buying in Lisbon, and what percentage of the property value do banks usually finance?

Portuguese banks offer mortgages to foreigners buying in Lisbon, typically financing 60-70% of the property value for non-residents.

EU citizens and residents may qualify for slightly higher loan-to-value ratios of up to 80%, while non-EU citizens are generally limited to 60-70% financing. This means foreign buyers need to provide a cash down payment of 30-40% of the purchase price.

Major Portuguese banks including Banco Santander Totta, Millennium BCP, and Caixa Geral de Depósitos all offer mortgage products to foreign buyers. Interest rates for non-residents are typically 0.5-1% higher than rates offered to Portuguese residents.

Required documentation includes proof of income, credit history from the buyer's home country, Portuguese tax number, and local bank account. The approval process typically takes 4-8 weeks and requires a property valuation by the bank.

Some international banks with Portuguese operations may offer more competitive terms to their existing clients who are purchasing Portuguese property.

Do foreigners need a Portuguese bank account and tax number (NIF) before they can buy property in Lisbon?

Both a Portuguese bank account and a NIF (tax identification number) are mandatory requirements before foreigners can complete a property purchase in Lisbon.

The NIF is required for all legal and financial transactions in Portugal and must be obtained before signing any property contracts. This can be done at Portuguese tax offices, consulates abroad, or through legal representatives with power of attorney.

A Portuguese bank account is necessary to handle the property purchase transaction, pay taxes and fees, and set up ongoing payments like utilities and property management. Most banks require the NIF before opening an account.

Both requirements can often be arranged remotely through legal representatives, allowing buyers to complete these steps without traveling to Portugal. The NIF application is free and typically takes 1-2 weeks, while bank account setup involves standard opening fees of €50-200.

These are permanent requirements that will also be needed for property ownership responsibilities like paying annual property taxes and handling any future sale transactions.

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.

Has the Golden Visa program changed recently, and can buying property in Lisbon still qualify for it?

Portugal's Golden Visa program underwent major changes in October 2023, and buying property in Lisbon no longer qualifies for any residency benefits.

As of September 2025, real estate investment of any type or value in any Portuguese location, including Lisbon, does not provide eligibility for the Golden Visa program or any other residency-by-investment pathway.

The program still exists but now focuses on alternative investment options such as capital transfers, job creation, scientific research, or investment in artistic production. Minimum investment amounts for these non-real estate options start at €250,000.

This change significantly affects the investment rationale for many foreign buyers who previously purchased Portuguese property specifically to obtain EU residency. Property buyers must now pursue separate residency applications through traditional visa categories if they wish to live in Portugal.

However, property ownership still provides certain practical benefits like easier future visa applications and the ability to spend extended periods in Portugal as a property owner, even without formal residency status.

Are there limits on renting out a property in Lisbon as a foreign owner, for example through Airbnb or long-term leases?

Foreign property owners face no restrictions on long-term rental arrangements but encounter significant limitations on short-term rentals like Airbnb in Lisbon.

Long-term rentals (leases of 11 months or longer) can be arranged freely by foreign owners with standard landlord-tenant protections and tax obligations applying equally to all property owners regardless of nationality.

Short-term rental licensing (Alojamento Local or AL) has been suspended for new applications in central Lisbon neighborhoods since 2019, and existing licenses face increasing restrictions and potential non-renewal.

1. New AL licenses are not being issued in most central Lisbon parishes 2. Existing AL licenses may not be renewed upon expiry 3. Some neighborhoods have banned new AL operations entirely 4. Local authorities are actively reducing AL license numbers 5. Enforcement of unlicensed operations has increased significantly

Property buyers interested in short-term rental income should consult with local authorities about current AL availability in specific neighborhoods before purchasing, as regulations vary significantly by location within Lisbon.

It's something we develop in our Portugal property pack.

What are the ongoing annual costs of owning property in Lisbon as a foreigner, like property tax and maintenance fees?

Foreign property owners in Lisbon face several ongoing annual costs that typically total 1-2% of the property's cadastral value per year.

IMI (municipal property tax) represents the largest annual cost at 0.3-0.45% of the property's official cadastral value, which is usually lower than market value. For a property with a €300,000 cadastral value, annual IMI would be approximately €900-1,350.

Condominium fees for apartment buildings vary significantly based on amenities and building age, typically ranging from €50-200 per month (€600-2,400 annually) for standard buildings and €200-500 monthly for luxury developments with extensive facilities.

Additional annual costs include property insurance (€200-500), utilities when vacant (€300-600), and potential property management fees if using professional services (5-10% of rental income or €1,000-3,000 for non-rented properties).

Foreign owners may also face higher insurance premiums and should budget for periodic maintenance, repairs, and potential vacancy periods if renting the property.

If a foreigner decides to sell the property later, what capital gains taxes or exit rules apply in Lisbon?

Foreign property owners selling Lisbon properties face a 28% capital gains tax rate on net profits from the sale.

Capital gains are calculated as the difference between the sale price and the original purchase price, with allowable deductions for purchase costs (taxes, legal fees, improvements) and selling expenses (agent commissions, legal fees, marketing costs).

Non-resident sellers are subject to the flat 28% rate, while Portuguese tax residents may benefit from lower rates or exemptions depending on their circumstances and how long they owned the property.

No special exit restrictions apply to foreign sellers beyond standard tax compliance requirements. The sale process follows the same legal framework as domestic transactions, requiring notary completion and proper tax declarations.

Sellers should retain all documentation related to the original purchase, improvements, and selling expenses to minimize taxable gains. Professional tax advice is recommended to ensure compliance with both Portuguese tax obligations and any tax treaty benefits with the seller's home country.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.

Sources

1. Portugal Buyers Agent - Buying Property in Portugal
2. Portugal Homes - Buying Property in Portugal
3. Immigrant Invest - Portugal Real Estate Investment Guide
4. The Golden Portugal - Property Buying Guide
5. Move to Portugal Now - Buy Property in Lisbon as a Foreigner
6. Idealista - Real Cost of Buying Property in Portugal 2025
7. Belion Partners - Portugal Golden Visa 2025 Changes
8. Global Citizen Solutions - Portugal Golden Visa Changes