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 continues to attract foreign investors looking for solid rental returns in one of Europe's most sought-after property markets.
This guide breaks down everything you need to know about rental yields, neighborhood performance, and operating costs for apartments in Lisbon in early 2026.
We constantly update this blog post with the latest data and market insights to keep it relevant for your investment decisions.
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.
What rental yields can I realistically get from an apartment in Lisbon?
What's the average gross rental yield for apartments in Lisbon as of 2026?
As of early 2026, the average gross rental yield for apartments in Lisbon sits around 4%, which is a solid baseline for long-term rental investments in Portugal's capital.
The realistic range most apartment investors in Lisbon can expect falls between 3.5% and 4.5%, with some well-located properties in emerging neighborhoods pushing slightly higher.
The main factor causing yields to vary significantly in Lisbon is the gap between purchase prices and rent levels across different freguesias (parishes), where prime central areas like Santo Antonio and Misericordia have sky-high prices that compress yields, while outer areas like Arroios and Graca offer more balanced rent-to-price ratios.
Compared to Porto (where yields often reach 4.5% to 5%) and other European capitals like Paris or London (where yields frequently drop below 3%), Lisbon sits in a middle ground, offering better returns than most Western European cities while maintaining strong tenant demand and property appreciation potential.
What's the average net rental yield for apartments in Lisbon as of 2026?
As of early 2026, the average net rental yield for apartments in Lisbon (after operating costs but before mortgage payments) lands around 3%, which is the number most investors should use for realistic planning.
The realistic range for net yields in Lisbon falls between 2.3% and 3.5%, depending on your building's service charges, management approach, and how efficiently you handle maintenance.
The single biggest expense category eating into gross yields in Lisbon is condominium fees combined with building maintenance, which together can consume 1 to 1.5 percentage points of your gross return, especially in older Portuguese buildings where elevator repairs, facade work, and humidity issues are common.
By the way, you will find much more detailed data in our property pack covering the real estate market in Lisbon.
What's the typical rent-to-price ratio for apartments in Lisbon in 2026?
As of early 2026, the typical rent-to-price ratio for apartments in Lisbon hovers around 0.33% per month, which translates directly into about 4% gross yield annually when multiplied by 12.
The realistic range covering most apartment transactions in Lisbon spans from 0.29% to 0.38% per month, with the lower end found in premium neighborhoods like Principe Real and Avenida da Liberdade, and the higher end in more affordable parishes.
Apartments in neighborhoods like Arroios, Graca, and Penha de Franca tend to have the highest rent-to-price ratios in Lisbon because purchase prices there remain more accessible while rents stay strong due to excellent Metro connections and demand from young professionals.
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How much rent can I charge for an apartment in Lisbon?
What's the typical tenant budget range for apartments in Lisbon right now?
The typical monthly tenant budget for renting an apartment in Lisbon in early 2026 ranges from 900 euros to 2,500 euros (around 940 to 2,600 USD), covering everything from studios in outer neighborhoods to spacious three-bedroom units in central areas.
Tenants targeting mid-range apartments in Lisbon, which includes most one and two-bedroom units in well-connected parishes, typically budget between 1,200 and 1,800 euros per month (1,250 to 1,875 USD).
Those seeking high-end or luxury apartments in premium Lisbon neighborhoods like Santo Antonio, Estrela, or Parque das Nacoes can expect to pay 2,200 to 3,500 euros monthly (2,300 to 3,650 USD) for renovated units with features like river views, concierge services, or rooftop terraces.
We have a blog article where we update the latest data about rents in Lisbon here.
What's the average monthly rent for a 1-bed apartment in Lisbon as of 2026?
As of early 2026, the average monthly rent for a 1-bed apartment (T1) in Lisbon sits around 1,200 euros (approximately 1,250 USD), which serves as a reliable planning number for most investors.
The realistic entry-level monthly rent for a decent 1-bed in Lisbon ranges from 950 to 1,100 euros (990 to 1,145 USD), and these apartments are typically found in outer parishes like Santa Clara or Olivais, often in buildings without elevators but with good bus connections.
A mid-range 1-bed in Lisbon rents for 1,100 to 1,350 euros (1,145 to 1,405 USD), which usually means a renovated unit in neighborhoods like Arroios, Alvalade, or Campo de Ourique with elevator access, decent natural light, and proximity to Metro stations.
High-end 1-bed apartments in Lisbon command 1,400 to 1,800 euros monthly (1,460 to 1,875 USD), typically featuring modern finishes, building amenities, and prime locations in areas like Santo Antonio, Misericordia, or riverfront Parque das Nacoes.
What's the average monthly rent for a 2-bed apartment in Lisbon as of 2026?
As of early 2026, the average monthly rent for a 2-bed apartment (T2) in Lisbon is around 1,800 euros (approximately 1,875 USD), which reflects the strong demand from couples, small families, and roommate setups.
Entry-level 2-bed apartments in Lisbon rent for 1,450 to 1,650 euros monthly (1,510 to 1,720 USD), typically found in residential parishes like Benfica, Lumiar, or Carnide, often in 1980s-era buildings with basic finishes but functional layouts.
A mid-range 2-bed in Lisbon costs 1,650 to 2,000 euros per month (1,720 to 2,080 USD), which usually gets you a well-maintained apartment in popular areas like Avenidas Novas, Alcantara, or Estrela with elevator, updated kitchen, and good public transport access.
Luxury 2-bed apartments in Lisbon reach 2,100 to 2,800 euros monthly (2,190 to 2,920 USD), offering premium features like balconies with views, modern appliances, parking, and locations in the most sought-after neighborhoods like Santo Antonio or the waterfront.
What's the average monthly rent for a 3-bed apartment in Lisbon as of 2026?
As of early 2026, the average monthly rent for a 3-bed apartment (T3) in Lisbon is around 2,450 euros (approximately 2,550 USD), which reflects the premium families pay for extra space in a supply-constrained market.
Entry-level 3-bed apartments in Lisbon rent for 2,000 to 2,300 euros monthly (2,080 to 2,395 USD), typically located in outer neighborhoods like Lumiar, Marvila, or Olivais, often in older buildings but with enough space for families with children.
A mid-range 3-bed in Lisbon costs 2,300 to 2,700 euros per month (2,395 to 2,810 USD), which typically means a renovated unit in family-friendly areas like Alvalade, Campo de Ourique, or Benfica with good schools nearby, elevator access, and storage space.
High-end 3-bed apartments in Lisbon reach 2,800 to 3,500 euros monthly (2,920 to 3,650 USD), featuring spacious layouts, modern design, premium locations in Estrela, Santo Antonio, or Parque das Nacoes, and often include parking and building amenities.
How fast do well-priced apartments get rented in Lisbon?
In early 2026 Lisbon, a well-priced apartment in good condition typically rents within 1 to 3 weeks, and in high-demand central areas like Arroios or Avenidas Novas, properties often receive serious inquiries within days of listing.
The typical vacancy rate for apartments in Lisbon remains very low, estimated at around 2% to 4% for well-located properties, which means landlords rarely experience extended periods without tenants if their pricing is realistic.
The main factors that cause some apartments to rent faster than others in Lisbon are Metro station proximity (especially along the Green and Yellow lines), elevator access in buildings older than 1960, correct pricing within the first 5% of market rate, and the presence of natural light and double-glazed windows that tenants increasingly prioritize due to Lisbon's older building stock.
And if you want to know what should be the right price, check our latest update on how much an apartment should cost in Lisbon.
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.
Which apartment type gives the best yield in Lisbon?
Which is better for yield between studios, 1-bed, 2-bed and 3-bed apartments in Lisbon as of 2026?
As of early 2026, studios (T0) and 1-bed apartments (T1) typically offer the best rental yields in Lisbon, outperforming larger units because they attract the widest pool of tenants while maintaining strong rent-per-square-meter pricing.
The typical gross rental yield range by apartment type in Lisbon looks roughly like this: studios and 1-beds deliver around 4% to 4.5%, 2-beds come in at 3.5% to 4%, and 3-beds usually land between 3% and 3.5%.
The main reason smaller apartments outperform in Lisbon is that the city's renter base is heavily weighted toward young professionals, international workers, digital nomads, and students who prioritize location and affordability over space, and they're willing to pay premium rent per square meter for well-located smaller units near Metro stations and employment centers.
Which features are best if you want a good yield for your apartment in Lisbon?
The features that most positively impact rental yield for apartments in Lisbon are elevator access (essential in the many pre-1960s buildings), good thermal and acoustic insulation (double-glazed windows are a major selling point), natural light, and proximity to Metro stations on the Green, Yellow, or Blue lines.
In Lisbon's older building stock, middle floors (2nd to 4th) in buildings with elevators are the easiest to rent because they avoid street noise from ground floors and heat buildup in top floors, while buildings without elevators see a dramatic drop in tenant interest above the 2nd floor.
Apartments with balconies or small outdoor spaces in Lisbon do command rent premiums of around 5% to 10%, as tenants increasingly value outdoor access after the pandemic, though this premium is more pronounced in central neighborhoods than in outer residential areas.
Building features like elevators, modern entry systems, and secure parking justify their higher service charges in Lisbon because they significantly expand your tenant pool and reduce vacancy, though traditional doorman services (porteiro) add costs without proportionally boosting rents for most standard apartments.
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Which neighborhoods give the best rental demand for apartments in Lisbon?
Which neighborhoods have the highest rental demand for apartments in Lisbon as of 2026?
As of early 2026, the Lisbon neighborhoods with the highest rental demand for apartments are Arroios, Avenidas Novas, Alvalade, Santo Antonio, and Campo de Ourique, where strong employment access, Metro connectivity, and quality of life create persistent competition for available units.
The main demand driver making these neighborhoods attractive is their combination of excellent public transport (multiple Metro lines converge in these areas), proximity to Lisbon's main business districts, and walkable access to restaurants, shops, and services that international tenants and young Portuguese professionals prioritize over raw square meters.
In these high-demand Lisbon neighborhoods, well-priced apartments typically rent within 1 to 2 weeks, and vacancy rates stay below 3% for properly maintained properties, reflecting the structural shortage of quality rental stock in central locations.
One emerging neighborhood gaining rental demand momentum in Lisbon is Marvila, which is benefiting from creative industry development, riverside regeneration projects, and significantly lower purchase prices that attract younger tenants priced out of more central parishes.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Lisbon.
Which neighborhoods have the highest yields for apartments in Lisbon as of 2026?
As of early 2026, the Lisbon neighborhoods delivering the highest rental yields are Arroios (around 5.1% gross), Sao Vicente including Graca (around 5.0%), Santa Clara (around 4.9%), and Ajuda (around 4.8%), where relatively affordable purchase prices combine with solid rental demand.
The typical gross rental yield range in these top-yielding Lisbon neighborhoods spans from 4.5% to 5.5%, which notably outperforms the ultra-prime areas like Santo Antonio and Misericordia where yields often compress to 3% to 3.5%.
The main reason these neighborhoods offer higher yields is that they sit just outside the premium price zone, meaning purchase prices haven't inflated as dramatically as rents, and strong tenant demand persists thanks to Metro access, authentic Lisbon character in Graca, and riverside proximity in Ajuda near Belem's tourist attractions.
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.
Should I do long-term rental or short-term rental in Lisbon?
Is short-term rental legal for apartments in Lisbon as of 2026?
As of early 2026, short-term rental (Alojamento Local or "AL") is legal in Portugal and Lisbon, and the city recently eased its previous restrictions in December 2025, now allowing short-term rentals to represent up to 10% of local housing supply in each parish.
The main legal requirements for operating a short-term rental apartment in Lisbon include obtaining a valid RNAL registration number from Turismo de Portugal, displaying this number on all booking platform listings, meeting safety and hygiene standards, and paying the municipal tourist tax of around 4 euros per guest per night.
To legally list your Lisbon apartment on Airbnb or Booking.com, you must register the property through the Balcao do Empreendedor portal, obtain a CAE business code (55201 or 55204), include your RNAL number in all listings, and notify authorities within ten days of any changes to your registration details.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Lisbon.
What's the gross yield difference short-term vs long-term in Lisbon in 2026?
As of early 2026, the gross yield difference between short-term and long-term rentals in Lisbon typically amounts to 2 to 3.5 percentage points in favor of short-term, though this premium comes with significantly higher operating complexity and costs.
Long-term rentals in Lisbon typically generate gross yields of 3.5% to 4.5%, while professionally managed short-term rentals can reach 6% to 8% gross in well-located central apartments with strong tourist demand.
The main additional costs that reduce the net yield advantage of short-term rentals in Lisbon include platform commissions (12% to 15% on Airbnb), professional cleaning between guests (50 to 80 euros per turnover), higher utility bills paid by the owner, furnishing and replacement costs, and management fees that often reach 20% to 25% of revenue for full-service operation.
To outperform a long-term rental financially in Lisbon, a short-term rental typically needs to achieve occupancy rates above 65% to 70% annually, which is achievable in central tourist areas but challenging in residential neighborhoods without strong year-round demand.
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What costs will eat into my net yield for an apartment in Lisbon?
What are building service charges as a % of rent in Lisbon as of 2026?
As of early 2026, typical building service charges (condominium fees) in Lisbon represent around 8% to 12% of monthly rent, which translates to approximately 80 to 150 euros per month (85 to 155 USD) for a standard apartment.
The realistic range of service charges covers 5% to 15% of rent depending on building age and amenities, with older buildings in historic parishes often having lower absolute fees but higher maintenance needs, while newer developments in Parque das Nacoes can reach 150 to 200 euros monthly.
Services and building features that justify higher-than-average charges in Lisbon include elevator maintenance (a major cost in 6+ story buildings common in Avenidas Novas), 24-hour security or concierge, swimming pools, underground parking, and substantial reserve funds for facade rehabilitation work that Portuguese buildings periodically require.
What annual maintenance budget should I assume for an apartment in Lisbon right now?
A realistic annual maintenance budget for a Lisbon rental apartment is around 1,500 to 2,000 euros (1,560 to 2,080 USD), which covers routine repairs, minor renovations between tenants, and unexpected fixes.
The realistic range of annual maintenance costs in Lisbon spans from 1,000 euros for newer or recently renovated properties up to 3,000 euros (1,040 to 3,120 USD) for older buildings in historic neighborhoods where plumbing issues, humidity problems, and aging electrical systems are more common.
The most common maintenance expenses Lisbon apartment owners face are bathroom and kitchen plumbing repairs (Portuguese buildings often have aging pipes), humidity and infiltration treatment (a chronic issue in many pre-1980 constructions), appliance replacement (water heaters, stoves), and repainting between tenants every 2 to 3 years.
What property taxes should I expect for an apartment in Lisbon as of 2026?
As of early 2026, Lisbon landlords should expect annual IMI property tax of around 600 euros (625 USD) for an apartment with a tax assessment value (VPT) of 200,000 euros, based on the city's 0.3% municipal rate which is the minimum allowed by Portuguese law.
The realistic range of property taxes in Lisbon runs from approximately 300 euros for lower-value apartments up to 1,500 euros or more (310 to 1,560 USD) for high-value properties in prime areas, depending on the official tax assessment value assigned by the Portuguese Tax Authority.
Property taxes in Lisbon are calculated by applying the municipal IMI rate (0.3% in Lisbon for urban properties) to the Valor Patrimonial Tributario (VPT), which is the tax assessment value determined using factors like location, size, building age, and quality, and this VPT is typically lower than market value in older prime neighborhoods.
Property tax exemptions available to apartment owners in Lisbon include a 3-year IMI exemption for properties used as permanent residence with VPT under 125,000 euros (if household income is below thresholds), reductions for properties undergoing rehabilitation, and family-based deductions of 30 to 140 euros depending on the number of dependents.
If you want to go into more details, we also have a blog article detailing all the property taxes and fees in Lisbon.
How much does landlord insurance cost for an apartment in Lisbon in 2026?
As of early 2026, typical annual landlord insurance for an apartment in Lisbon costs around 250 to 400 euros (260 to 415 USD), covering building structure, contents liability, and basic rental risks.
The realistic range of annual landlord insurance costs in Lisbon spans from 180 euros for basic coverage on smaller apartments up to 600 euros (190 to 625 USD) for comprehensive policies on higher-value properties that include extended liability, legal protection, and loss of rent coverage.
What's the typical property management fee for apartments in Lisbon as of 2026?
As of early 2026, typical property management fees for long-term rental apartments in Lisbon run around 8% of monthly collected rent (approximately 95 to 145 euros or 100 to 150 USD for a 1,200 to 1,800 euro apartment), plus a tenant placement fee usually equivalent to one month's rent.
The realistic range of property management fees in Lisbon spans from 6% for basic rent collection services up to 12% (or 70 to 215 euros monthly, 75 to 225 USD) for full-service management including tenant sourcing, maintenance coordination, and emergency response.
Services typically included in standard Lisbon property management fees are tenant screening and contract preparation, monthly rent collection and landlord payment processing, coordination of routine maintenance requests, annual property inspections, and basic communication with the condominium administration.
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 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 it's authoritative | How we used it |
|---|---|---|
| Statistics Portugal (INE) | Portugal's official statistics office providing government-verified housing data. | We used INE's Lisbon rent metrics to reality-check achieved rents versus portal asking prices. We kept our rent assumptions conservative using their official median figures. |
| idealista (Rent Reports) | Major Iberian property portal with consistent, published methodology. | We used idealista's asking rent data by parish to estimate current market rents across Lisbon. We applied their neighborhood breakdown to give specific area examples. |
| idealista (Sale Reports) | Widely referenced listing-based price tracker updated regularly. | We used sale price per square meter as the purchase-price input for yield calculations. We combined this with rent data to compute parish-level yields. |
| Lisbon City Council | The municipality itself publishing legally relevant tax decisions. | We confirmed Lisbon's IMI rate of 0.3% for 2026 using their official documentation. We used their AL regulations to explain short-term rental rules. |
| Diario da Republica | Portugal's official journal of record for all legislation. | We referenced Decreto-Lei 76/2024 to ground the national AL framework. We verified legal requirements for short-term rental registration. |
| Turismo de Portugal | National tourism authority explaining official AL registration rules. | We confirmed RNAL registration requirements and operational compliance checklist. We used it to explain what landlords need for legal short-term rentals. |
| Caixa Geral de Depositos (CGD) | Major Portuguese bank with tax-authority-aligned consumer guidance. | We used CGD's guidance to list typical landlord cost categories including condominium fees, repairs, and insurance. We translated these into practical expense estimates. |
| DECO Proteste | Portugal's leading consumer association explaining taxes in plain language. | We cross-checked IMI 2026 context and how municipal rates affect bills. We used their insurance guidance to estimate landlord coverage costs. |
| Global Property Guide | International property research platform with standardized yield methodology. | We validated our gross yield estimates against their Portugal and Lisbon data. We used their European comparisons to contextualize Lisbon returns. |
| Government of Portugal | Official government site explaining rental taxation policies. | We referenced their rental income tax incentive explanations. We flagged that personal tax status can materially impact net yield. |
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