A guide to buying property in Lisbon, Portugal

Lisbon has a most special light. The city claims to have over 300 days of sunshine every year and that brilliant sunlight bounces off the Tagus River and reflects in the colourful high-gloss ceramic azulejo tiles that cover walls, floors and entire l facades. This superb light adds to the unmistakably uplifting spirit of Lisbon and is a major reason why according to Statista, the number of foreign residents there increased from 44,000 in 2011 to close to 163,000 today.

“The appeal of Lisbon and the surrounding area for international property buyers comes down to its wonderful quality of life,” says Alex Koch de Gooreynd, Partner in Knight Frank’s International Residential team. “It offers a stable and secure environment, ever-improving quality of accommodation, an affordable cost of living and warm weather that ensures a healthy, outdoor lifestyle. The city serves up everything from Michelin-starred dining to authentic local cuisine and the Portuguese are genuinely friendly and welcoming to foreigners, something not always the case elsewhere.”

While there have been changes to some of the country’s more advantageous tax regimes, notably the end of the Non-habitual Resident Regime last year, there is still the opportunity to apply for a Golden Visa through an investment in cultural or artistic projects and businesses. Portugal abolished its inheritance tax in 2004, and this zero rate today makes the country especially appealing to non-doms. says de Koch de Gooreynd.

“The Portuguese government is actively looking for ways to entice the international community to consider moving there,” he says. “That includes the introduction of the digital nomad or D8 visa which can pave the way to permanent residency and citizenship.”

The Wealth Report 2025 touched on the effect this influx of international arrivals was having on property prices, revealing that the amount of prime residential floorspace US$1 million would buy there today was 51% less than ten years ago.  “The real challenge for cities as attractive as Lisbon is figuring out how to welcome a growing influx of potential residents while preserving the city’s character and ensuring it remains liveable for locals,” says Sergio Rebelo, Professor of International Finance at the Kellogg School of management, Northwestern University, highlighting a common problem across many global cities.

Locations to consider

5 bedroom house for sale in Lapa, Estrela. Guide price €5,000,000

Lapa and Estrela

Lapa, set on one of Lisbon’s seven hills, and neighbouring Estrela are calm, well-established residential areas of Lisbon, long favoured by Portuguese aristocracy, with tree-lined streets, elegant townhouses and many official embassies. These two districts, including the areas close to the green expanse of Jardim da Estrela, provide a welcome respite from the crowds and buzz of more touristy locations in the capital, making them a popular choice for a permanent home. Their location to the west of the city centre puts the beaches of Estoril and Cascais, and the many international schools there, within easy reach.

5 bedroom apartment for sale in Chiado. Guide price €4,000,000

Chiado and Baixa

For a lively weekend apartment in the heart of Lisbon’s vibrant life, head to Chiado and Baixa for the very best of Downtown life. Central, cultural and decidedly busy, what you sacrifice in peace you make up for with the convenience of theatres, shops, restaurants and cafes right on your doorstep. The main avenue in Baixa, and indeed in all of Lisbon, is Avenida da Liberdade, a grand boulevard overlooked by a statue of the Marques de Pombal who rebuilt this area of Lisbon after a devastating earthquake in 1755. Today, the beautiful 19th Century architecture houses several five-star hotels, designer boutiques and magnificent apartments.

4 bedroom penthouse for sale in Avenidas Novas, Lisbon. Guide price €2,850,000

Avenida Novas

Green parks, beautiful wide avenues, elegant squares and an attractive mix of residential and business life make up Avenida Novas, a smart and affluent location immediately north of Avenida da Liberdade. It is off the main tourist trail yet close to international schools, shopping centres and with easy access to the city centre and the airport. As a relatively new part of Lisbon, constructed as part of the city’s expansion away from the water in the late 19th and early 20th Centuries, the architecture is generally more modern than elsewhere in the city – and includes some handsome Art Deco buildings - and while it is mostly on the level, it’s elevated position can provide homes with good sea views.

4-5 bedroom apartment for sale in Campo de Ourique. Guide price €860,000

Campo de Ourique

West of the centre and immediately below Estrela, the grid of streets that make up Campo de Ourique includes historic architecture and newer homes. There’s a handsome park and a popular and authentic market, a local version of Lisbon’s hugely popular Time Out Market. This is another authentically Portuguese and family-friendly neighbourhood, hugely liveable within walking distance of the Lycée Français and close to Redbridge International School. The relatively proximity to Lisbon’s current airport might be an issue for some.

Prata Riverside Village, Lisbon. Guide price €420,000 - €2,400,000

Parque des Nações

Close to the airport and directly on the river with a wide view to the pleasing sweep of Lisbon’s Vasco de Gama Bridge, the longest in Europe, Parque des Nações – Park of Nations - was transformed after hosting Expo 98. Today it is alive with offices, apartment buildings, shops, restaurants and entertainment venues including Lisbon’s Oceanarium. As a newer area, 20 minutes from the city centre, it has been skilfully planned with cycle lanes, green spaces and an architecturally interesting transport hub designed by Calatrava. The relative affordability here compared with the city centre, makes the Park of Nations popular with young professionals and many digital nomads.

5 bedroom villa for sale in Cascais. Guide price €6,000,000

Outside of Lisbon: Cascais, Estoril and SIntra

“International clients looking for a more permanent home in this part of Portugal generally head either to Lapa and Estrela, or look to the suburbs within 30 minutes of the city,” says Alex Koch de Gooreynd. “We’re seeing increasing requests for property in areas such as Cascais, Estoril and the hills around Sintra, including from those who previously owned in the city centre. These areas still have easy access to Lisbon and the airport but offer more space, beautiful homes and interesting value.”

Cascais and Estoril are former fishing villages turned super-smart seafront towns offering a healthy waterfront lifestyle. Known as Portugal’s Riviera, the area has plenty to occupy surfers, golfers and cyclists and is close to several of Lisbon’s top-rated international schools. Cascais has strong royal connections, both to the Portuguese Court and as a one-time base for the Spanish and Italians royal families during WWII.

“The hills around Cascais and Sintra offer beautiful homes with sea views and within easy reach of small villages, ideal for lifestyle buyers,” says Koch de Gooreynd. “You can find an estate with substantial land for under €5 million there. Look too at Quinta da Marinha, a prestigious five-star golf and leisure estate with some exceptional properties that I believe are destined to eventually rival super-prime prices in Quinta do Lago in the Algarve.”