Buying a Property in Lisbon with Alice Autran Garcia, Athena Advisers.

What’s going on in Lisbon you may ask? What’s all the buzz about? Well, I just moved to a stylish apartment in Lisbon, so let me tell you. Its mix of tradition and modernity reflects on its architecture, its food, culture and people. I find it lively, solar, energetic. It has got the best quality of life, with the lowest property prices in all of Europe…and that’s where I want to be.

Portugal has a deep routed pride in its rich history, but the future has arrived with a bang and it’s here to stay. You can see and feel everything changing – people, places, faces, businesses and ideas. The tech scene is booming with new start-ups popping up every day. The creative energy is contagious. People call it the ‘new San Francisco’. It also feels like Berlin a few years ago – a haven for artists, creatives and young people from around the globe. Lisbon is a lively, inspiring and multicultural place to be. Go out dancing, have some locally made wine, listen to great music and eat fantastic food.

Lisbon is a permanent invitation to a life outdoors. Everything is vibrant and feels fresh – a never-ending coastline to surf before work, a variety of green parks to stroll with the kids, amazing views from the city’s seven hills and breath-taking landscapes…priceless! And, you get to enjoy it all with a real feeling of safety and when you feel like spending a weekend somewhere else, it’s easy. You are close to Europe’s main capitals.

The property market in Lisbon is on the rise with amazing investment opportunities and great returns. Real estate prices are still low compared to the US and to most European capitals, but prices are already rising.

Along with the young, retired people are also moving here to take advantage of the tax incentive programmes, such as Golden Visa and the Non-Habitual Resident scheme. Elderly people can count on an efficient and modern healthcare system. Families have great education for the kids.

Traditional, yet modern, Lisbon is it…the city that seems to have it all. Past and future coming together to make change right here, right now…this is the place to be. Feeling inspired to buy a Lisbon apartment? Please read our Complete Guide to Buying a Property in Lisbon.

Prices have grown in the central districts over the last few years, so international buyers need to carefully consider their objectives before investing in Lisbon. Today, the property market in Lisbon is much more like a modern European city, akin to that of Paris or Barcelona. The big differences though are the ease of investing, the incentives like the Golden Visa and NHR programme and the competitive property prices. 

Whilst prices in the prime centre in districts like Chiado, Baixa and Liberdade have matured, they are still not on par with their Parisian or London counterparts. Then outside the prime centre, there is incredible value, especially within certain districts like Graca and Avenidas Novas, which due to Lisbon’s relatively small size as a European capital, are still walking distance from the main centres.

Lisbon is incredibly varied and each of its bairros has its own appeal, ambience and soul. The best place to live in Lisbon largely depends on what is important to you: proximity to the best international schools? Miradouro-worthy views? Potential for capital gains? Head to our ‘Complete Guide to Relocating to Lisbon’ for a general overview of each of the key neighbourhoods.

Wherever you choose to call home, you can expect a warm welcome as not only is Lisbon bathed 290 days of sunshine, it was also voted the third best city for expats by Internations, the largest community of expats.

Since 2012, Lisbon has continued to redefine itself as a European heavyweight through billions of euros of public and private investment and regeneration. 

Once forgotten neighbourhoods like Santos have turned into cultural design beacons, empty warehouse districts like Marvila into effervescent start-up and business hubs, and others attracting blue-chip companies to set up new offices, global events and all walks of international property investors.

Over the past few years both Amazon and Google have opened up offices in Lisbon, creating hundreds of jobs and further increasing the city’s profile as a destination for new businesses, in addition to its low costs and tax-friendliness. 

Web Summit, the world’s largest technology conference, is now in its fifth year and each year brings hundreds of millions of euros to Lisbon’s economy. Then in Marvila, Hub Criativo do Beato is to become the world’s largest startup hub, dwarfing the previous largest, Station F in Paris, and forms part of the €3.6 billion in public and private investment which is changing this increasingly popular area for international property investors.

One of the biggest advantages for international investors buying property in Lisbon over the last 10 years has been the incentives. The two most popular types are Portugal’s Golden Visa and NHR programmes, which together have attracted billions of euros of property investment in Lisbon.

Through the Golden Visa programme, with a minimum investment of either €350,000 or €500,000 in Lisbon property, an investor is able to obtain a temporary permit that enables free travel across the Schengen zones and puts them on the path to a Portuguese passport and with it, EU residency within five years. The investor is also able to add their close family onto the investment. The NHR programme is a tax-efficient programme that lasts for 10 years and vastly reduces income tax and taxes on things like dividends.

When buying a property in Lisbon, don’t just think about owning a home away from home in a sun-drenched city, see it as an opportunity to diversify your revenue streams by generating rental yields. Whilst long-term rentals are permitted throughout the capital, short-term rentals are restricted and require an AL Licence. Rules vary according to the bairro but, generally speaking, short-term rentals are not possible in the most touristic neighbourhoods like Baixa and Alfama. Nevertheless, mid-term rentals, between 30 days and a year, bridge the gap and are permitted throughout the capital. 

Whether you are interested in long-term or short-term rentals in Lisbon, our team are here to help. From our offices on Avenida da Liberdade, we offer a complete rental management service, from advertising your property to setting up utilities and helping with the interior design. Take a look at our guide to renting out your property in Lisbon to learn more.