Buying property in Lisbon as a foreigner (2026): neighbourhoods, prices and total costs

Where to buy in Lisbon: neighbourhoods compared

Lisbon municipality has 24 parishes (freguesias). Most well-known neighbourhood names sit inside one of them: Chiado and Bairro Alto are in Misericórdia, Alfama and the Baixa in Santa Maria Maior, Príncipe Real in Santo António, Lapa in Estrela, Graça in São Vicente, Restelo in Belém. Prices below are INE medians actually paid over the 12 months to March 2026 (INE parish data as republished by a third party) and idealista asking prices for August 2026. Character notes are our description, not statistics.

Neighbourhood (parish)	Character and typical property	INE median paid	idealista asking	Tends to suit
Príncipe Real, Avenida da Liberdade (Santo António)	19th-century buildings, boulevard, gardens, boutiques; renovated period flats and new luxury schemes	€6,986/m²	€8,070/m²	Prime buyers, relocators, pied-à-terre
Chiado, Bairro Alto, Santa Catarina (Misericórdia)	Historic centre, nightlife, river views; small flats in old buildings, often without lifts	€5,913/m²	€6,807/m²	Pied-à-terre buyers; no new short lets
Lapa, Madragoa, Estrela (Estrela)	Embassies, large period flats, quiet streets, river views	€5,833/m²	€6,826/m²	Families, diplomats, prime buyers
Alfama, Castelo, Baixa, Mouraria (Santa Maria Maior)	Medieval lanes, steep streets, heavy tourism; small flats, many former short lets	€5,000/m²	€6,551/m²	Character buyers; not short-let investors
Graça (São Vicente)	Hilltop, viewpoints, tram 28; older buildings, some conversions	€4,954/m²	€6,067/m²	Historic Lisbon at a lower price
Campo de Ourique	Grid of residential streets, market, local shops; 20th-century flats	€5,979/m²	€6,629/m²	Families, long-stay residents
Avenidas Novas (Saldanha, Campo Pequeno)	Business district, wide avenues, good metro; 1930s–70s flats and new builds	€6,000/m²	€7,048/m²	Professionals, families
Alvalade and Areeiro	Planned mid-century neighbourhoods, parks, near the airport	€5,041 / €4,963/m²	€6,056 / €5,666/m²	Families
Parque das Nações	Former Expo 98 site on the river; modern flats with parking, Oriente station	€6,407/m²	€6,809/m²	Families, corporate relocators wanting new build
Belém and Restelo (Belém)	Monuments, riverside, Restelo villas and large flats	€5,498/m²	€6,830/m²	Families wanting space, retirees
Alcântara	Former industrial riverside, LX Factory, new developments	€4,938/m²	€6,508/m²	Buyers betting on regeneration
Arroios and Penha de França	Dense, multicultural, central; older flats, many renovations	€4,776 / €4,465/m²	€5,819 / €5,616/m²	First-time buyers, younger relocators
Marvila and Beato	Eastern riverside regeneration, creative hubs	€5,008 / €4,600/m²	€4,837 / €5,000/m²	Early movers
Lumiar (Telheiras)	Suburban feel, green space, metro	€4,670/m²	€5,202/m²	Families on a budget

The full list of 24 parishes, with each one’s change in asking price over the year, is on selling in Lisbon.

What does a typical home cost?

INE figures are what buyers paid; idealista figures are what sellers ask. In Lisbon the asking price runs roughly 20–25% above the price paid.

Measure	Lisbon	80 m² flat at that rate
INE median paid, 12 months to March 2026	€5,082/m²	€406,560
INE median paid, Q1 2026 (quarter)	€5,292/m²	€423,360
INE median paid, existing homes (12 months to March 2026)	€4,896/m²	€391,680
INE median paid, new homes (12 months to March 2026)	€6,226/m²	€498,080
INE median paid, new homes in Santo António	€9,577/m²	€766,160
Confidencial Imobiliário average sale price, 2025	€5,207/m²	€416,560
idealista asking, August 2026	€6,227/m²	€498,160

Buyers domiciled abroad paid a median €6,325/m², about 26% more than the €5,000/m² paid by buyers domiciled in Portugal (INE, 12 months to March 2026). Part of that gap is where and what they buy; it is also a reason to check sold prices before you offer.

Timing. idealista’s Lisbon asking prices have edged down each month since April 2026, and annual growth slowed to +3.2% in August. In the wider Lisbon area, sales in Q1 2026 closed an average 4.4% below the asking price (Confidencial Imobiliário, via KW Alfa). At the top of the market, Savills forecasts prime Lisbon values to rise 4% to 5.9% in 2026. idealista changed its methodology in July 2026, so do not compare these asking prices with older idealista figures.

The total cost of buying in Lisbon

Since 25 May 2026, buyers who are not tax resident in Portugal pay a flat 7.5% IMT (property transfer tax) on the whole price of a home (Decree-Law 97/2026). Residents pay the normal sliding scale, which at €500,000 is 8% less a fixed deduction. Everyone pays 0.8% stamp duty on the price, plus 0.6% on any mortgage. The government’s Casa Pronta service charges €375 for the deed and registration without a mortgage and €700 with one.

Worked example: a €500,000 flat, cash purchase.

	Non-resident	Resident, main home	Resident, second home
IMT	7.5% × €500,000 = €37,500	8% × €500,000 − €13,763.35 = €26,236.65	8% × €500,000 − €12,699.89 = €27,300.11
Stamp duty 0.8%	€4,000	€4,000	€4,000
Casa Pronta (no mortgage)	€375	€375	€375
Total	€41,875 (8.4%)	€30,611.65 (6.1%)	€31,675.11 (6.3%)
Extra paid by a non-resident	–	€11,263.35	€10,199.89

With a €250,000 mortgage, a non-resident adds €1,500 of stamp duty on the loan and pays €700 at Casa Pronta instead of €375: €37,500 + €4,000 + €1,500 + €700 = €43,700. Add your lawyer’s fee, a survey and any bank fees.

Three rules change the answer:

• Becoming resident. A buyer who becomes Portuguese tax resident within two years, or lets the home at a moderate rent, can reclaim the difference by applying within 6 months of qualifying.
• Former residents. The 7.5% rate does not apply to buyers who were Portuguese tax resident at any time before; they pay the normal scale.
• Above €1,150,853, residents also pay 7.5% flat, so the gap disappears. That matters in Santo António, Estrela and Belém, where large flats can exceed that price.

Run your own figures in the buying cost calculator. IMT and stamp duty are paid before the deed.

Schools and getting around

International schools inside Lisbon city. Details checked on each school’s own website on 24 September 2026, except where marked.

School	Location	Curriculum	Ages
Lycée Français Charles Lepierre	Av. Duarte Pacheco, Campolide	French national curriculum (AEFE network); 2,000+ pupils	3 to the final year (terminale)
Redbridge International School	Campo de Ourique (early years, primary); Tapada da Ajuda (secondary, opened 2024)	French international, Portuguese, Cambridge International, IB Diploma	3–18
PaRK International School	Praça de Espanha and Restelo campuses (ages 1–10); Alfragide campus in Amadora (1–18)	Bilingual English-Portuguese, then Cambridge (IGCSE, AS/A level) and IB Diploma	1–18
United Lisbon International School (from secondary sources)	Marvila	IEYC, IPC, IMYC, then IB Diploma	3–18
Deutsche Schule Lissabon (from secondary sources)	Lumiar, near Telheiras	German International Abitur	3–18

Many Lisbon families also use schools on the Cascais line and in Sintra and Oeiras municipalities: St. Julian’s (Carcavelos), St. Dominic’s (São Domingos de Rana), CAISL (Linhó, Sintra) and Oeiras International School (Barcarena).

Transport.

• Airport. Humberto Delgado airport is inside the city, next to Olivais, Alvalade and Lumiar.
• Metro, Circular Line. The Rato–Cais do Sodré extension, with new Estrela and Santos stations, is planned to open in the first quarter of 2027 (as reported by Metro de Lisboa and the press).
• Metro, Red Line to Alcântara. Four new stations, including Campo de Ourique and Alcântara, are targeted for early 2030; the works were awaiting new financing in March 2026. Treat both dates as plans.
• Trains to Cascais and Estoril leave from Cais do Sodré.

Short lets (AL): what buyers who want to let must check

Lisbon’s amended short-let regulation has been in force since 6 December 2025.

• No new registrations in the six absolute-containment parishes: Santa Maria Maior, Misericórdia, Santo António, São Vicente, Arroios and Estrela, nor in the neighbourhoods of Bom Sucesso, Belém, Ajuda, Alcântara, São Bento, São Sebastião da Pedreira, Picoas, Sapadores and Parque das Nações.
• Exceptional council authorisation only, for 5 years and not renewable while containment lasts, in Avenidas Novas parish and relative-containment neighbourhoods including Santa Isabel (Campo de Ourique), Junqueira, Beato, Marvila and Cabo Ruivo.
• Buying a flat that already has a licence does not solve this. In a containment area, a transfer of an AL registration for a flat or house makes it expire. Exceptions under the national AL law (Decree-Law 128/2014, article 15-B) cover inheritance, gifts to close family and divorce, not a purchase.
• Outside containment, check the flat’s history: a new AL registration is not allowed where a residential lease existed in the previous 5 years. If Lisbon’s city-wide ratio (7.2%) reaches 10%, the whole city becomes an absolute containment area.

Long-term letting is the realistic alternative. idealista asking rents averaged €24.5/m² a month in August 2026, up 7.0% in a year. An 80 m² flat at that rate advertises at about €1,960 a month. Non-resident landlords pay a flat 25% on Portuguese rental income, or 10% on leases at up to €2,300 a month under the moderate-rent regime from 2026 to 2029. Letting at a moderate rent also lets a non-resident buyer reclaim the extra IMT.

Other rules to check before you sign

• Habitation licence. From 1 October 2026 (Decree-Law 108/2026), the deed must state whether the habitation licence was shown, declared to exist or does not exist; if the statement is missing, either party can seek to annul the sale. Buildings constructed before 7 August 1951 do not need one.
• Pre-emption rights. Lisbon council has a right of first refusal on some sales (urban rehabilitation areas, heritage, detailed plans), and a tenant with a lease of more than two years can buy on the same terms. The seller’s lawyer should clear both before the deed; allow 10 working days for public bodies to reply.

Finding an agent in Lisbon

In Portugal the listing agent is paid by the seller and acts for the seller. If you want someone on your side, use a buyer’s agent and agree in writing who pays them: an agency cannot be paid by both buyer and seller in the same deal (Lei 15/2013). See our page of buyer’s agents in Lisbon, and the English-speaking estate agents in Lisbon, each with an IMPIC-verified licence. For market conditions from the seller’s side, see selling in Lisbon; for the city overview, the Lisbon hub. If you later sell, see costs of selling and estate agent commission.

Key points

• Lisbon homes sold for a median €5,082/m² over the 12 months to March 2026 (INE), from €3,733/m² in Santa Clara to €6,986/m² in Santo António; idealista asking prices averaged €6,227/m² in August 2026.
• Non-residents pay 7.5% IMT since 25 May 2026. On a €500,000 flat, taxes and deed cost €41,875, against €30,611.65 for a resident buying a main home.
• The difference can be reclaimed if you become resident within two years or let at a moderate rent; former residents pay the normal scale.
• New short lets are banned in six central parishes and several neighbourhoods, and an existing licence normally lapses when the flat is sold.
• The Lycée Français, Redbridge, PaRK, United Lisbon and the German School teach inside the city; St. Julian’s, St. Dominic’s, CAISL and OIS are outside it.
• From 1 October 2026 the deed must state the habitation licence position.