Portugal's most expensive market
As the capital, Lisbon sits clearly above Porto — roughly €4,000–8,000 per square metre in sought-after locations against €2,500–5,500 in Porto. That changes the loan amount, not the financing rules.
Region focus · Portugal · §34i
Buying an apartment in Lisbon — and how the financing works
The capital, the largest economic region and the highest demand in Portugal — together with the highest loan-to-value in southern Europe for non-residents. Bank-side, what applies in Porto or on the Algarve applies here too.
In short
How high is transfer tax (IMT)?
The nationwide mainland rate — for non-residents IMT 7.5% since 25 May 2026, plus imposto do selo 0.8% and notary and land registry costs.
How much will a Portuguese bank lend?
For non-residents up to 80% LTV — the highest in southern Europe — against the lower of purchase price and the bank's valuation. The same frame as Porto or the Algarve.
Why is Lisbon more expensive than Porto?
As the capital, prices sit well above Porto — roughly €4,000–8,000/m² against €2,500–5,500/m². That shifts the loan amount and equity, not the rules.
How do non-residents finance a property purchase in Lisbon?
Lisbon is part of mainland Portugal, so the same national framework applies as elsewhere: banks typically lend up to 80% of the lower of purchase price or their own valuation for non-residents — the highest loan-to-value ratio in southern Europe. Property transfer tax (IMT) for non-residents is 7.5% since 25 May 2026. Prices in Lisbon run well above Porto — roughly 4,000–8,000€/m² in sought-after districts against 2,500–5,500€/m² in Porto — which changes the loan amount and equity needed, not the financing rules themselves. Within the city there are significant price differences between central districts such as Chiado or Príncipe Real and the quieter, more affordable outer areas — which directly affects the realistic loan amount. We recommend clarifying financing capacity before signing the CPCV preliminary contract, not after.
Market analysisPrice level Locations Loan-to-value
Lisbon property for sale: market and financing
Lisbon sits well above Porto on price, which mainly shifts the loan amount rather than the rules. The same Portuguese rulebook applies to non-residents here as in Porto or on the Algarve — and it extends to the coastal towns in front of the city: Cascais and Estoril are treated bank-side like Lisbon, with the same loan-to-value frame and the same paperwork.
Chiado, Príncipe Real, Parque das Nações
Historic old-town locations such as Chiado and Alfama meet modern new-build districts such as Parque das Nações and upmarket residential quarters such as Príncipe Real and Lapa — so the price range within the city itself is wide.
Up to 80 % LTV
The nationwide frame, as in Porto and on the Algarve: up to 80 % for non-residents, measured against the lower of purchase price and the bank's valuation. What decides it is your profile — proof of income, existing commitments, age at the end of the term.
Tax and loan-to-value
What Lisbon buyers have to budget for
Lisbon is on the Portuguese mainland, so the nationwide rate applies. For non-residents the IMT has been 7.5 % since 25 May 2026, with no progressive banding and no main-residence exemption. On top comes imposto do selo of 0.8 % on the acquisition and, where a mortgage is taken, a further 0.6 % on the loan if its term is five years or more, plus notary and land registry costs. Lending for non-residents runs up to 80 % — the highest loan-to-value in southern Europe.
Notary, land registry, the valuation and — where a mortgage is taken — the cost of registering it come on top. Full overview: purchase costs in Spain. Tax rates change; these figures are as of July 2026 and are not tax advice.
Contract
CPCV and Casa Pronta — two different steps
The CPCV is the private preliminary contract with a deposit; it binds both sides before the deed itself follows. Casa Pronta is the accelerated notarial procedure through which the purchase is then completed. The order matters: the CPCV is binding, so the state of the financing belongs settled before it is signed, not after.
The mortgage readiness check sets out the realistic frame in a few minutes — before a deposit is committed.
If the Spanish bank says no
If the Portuguese bank stops short
Self-employed applicants with fluctuating earnings, buyers close to the age limit or income earned outside the euro area do not always get the full loan-to-value from a Portuguese lender. In that case an unencumbered property in Germany can be mortgaged instead and the capital used as equity here — often faster, and without a Portuguese bank having to value your property. Details under German property as security.
FAQ
Frequently asked about Lisbon
Can I buy a house in Lisbon rather than an apartment?
Rarely within the city itself — Lisbon is an apartment market and detached houses are the exception, priced accordingly. Buyers looking for a house usually search the surrounding area: Cascais, Sintra, Oeiras or along the Linha. That changes nothing about the financing frame, but it does change the valuation: there are more comparable properties outside the city than for a town house in Lisbon.
How high is transfer tax (IMT) in Lisbon?
Lisbon is on the Portuguese mainland, so the nationwide rate applies. For non-residents the IMT has been 7.5 % since 25 May 2026. On top come imposto do selo of 0.8 % and notary and land registry costs.
How much will a Portuguese bank lend in Lisbon?
For non-residents the same nationwide frame applies as in Porto or on the Algarve: up to 80 % loan-to-value — the highest in southern Europe — measured against the lower of purchase price and the bank's valuation.
Why is Lisbon more expensive than Porto?
As the capital and largest economic region in Portugal, prices per square metre in Lisbon sit well above Porto — roughly €4,000–8,000 per square metre in sought-after locations against €2,500–5,500 in Porto. The financing rules themselves do not change, only the loan amount and the equity required.
What is the difference between the CPCV and Casa Pronta?
The CPCV is the private preliminary contract with a deposit; it binds both sides before the deed itself follows. Casa Pronta is the accelerated notarial procedure through which the purchase is then completed.
What if the Portuguese bank stops short?
Self-employed applicants with fluctuating earnings, buyers close to the age limit or income from outside the euro area do not always get the full loan-to-value. Mortgaging an unencumbered German property then remains a route — often faster, and without a Portuguese bank having to value your property.
Settle what is financeable — before you reserve
It costs nothing and it prevents the most expensive mistake in a foreign purchase: a committed deposit without secured financing.
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