What Expats Need to Know About Buying New Builds in Lisbon

Introduction

Lisbon continues to rank among the top destinations in Europe for international property buyers. With its sunny climate, historic charm and high quality of life, the city offers an appealing blend of tradition and modernity. According to recent data, Lisbon has seen a surge in demand for new build properties, with prices for modern apartments rising steadily by over 7 percent annually. This trend is especially pronounced among expats, who are drawn to turnkey homes in well-connected and secure neighbourhoods.

If you are considering relocating to Portugal or investing in a second home, understanding the nuances of buying new builds in Lisbon is crucial. From legal considerations to taxes and financing options, this guide will walk you through everything you need to know. Whether you are relocating permanently, investing in a rental property, or purchasing a holiday home, Destinations by LeadingRE offers trusted local expertise to help you make a confident decision.

Why New Builds Are a Smart Choice for Expats

New build properties in Lisbon are an increasingly attractive option for foreign buyers. One of the biggest advantages is that they offer modern features, energy-efficient systems and stylish, contemporary designs. You will often find amenities such as underground parking, elevators, secure entry, swimming pools and even gyms or co-working spaces.

Another significant benefit is that new developments typically require little to no renovation. This is especially helpful for expats unfamiliar with local contractors or the permitting process. Buyers also receive a builder’s warranty, usually lasting between five to ten years, which provides additional peace of mind when it comes to structural defects or major systems.

In terms of investment, new builds tend to retain value well and appeal to the growing market of digital nomads and short-term renters, especially in central Lisbon, Parque das Nações and waterfront districts.

Understanding the Buying Process for New Builds

Buying a new build in Lisbon follows a structured process. After choosing your property, the next step is to sign a reservation agreement, which typically involves a small deposit to secure the unit. This is followed by the promissory contract, which outlines all terms and is legally binding. A larger deposit is paid at this stage, usually around 20 to 30 percent of the purchase price.

The final deed of sale is signed once construction is complete and all legal checks have been finalised. A notary will oversee this transaction, and you will receive the property title and keys.

It is advisable to work with a bilingual lawyer who can review contracts and ensure compliance with Portuguese property laws. Destinations by LeadingRE can connect buyers with trusted legal experts who specialise in representing foreign clients.

Legal Considerations and Required Documentation

Non-EU citizens are allowed to purchase property in Portugal with no restrictions, which makes the process smoother than in many other European countries. However, buyers must obtain a Portuguese tax number (NIF) and open a local bank account before proceeding.

If you plan to apply for residency through the Portugal Golden Visa programme, the property must meet the minimum investment threshold and be located in an eligible area. Note that many central Lisbon properties are no longer eligible under current Golden Visa rules, but surrounding regions may still qualify.

When buying off-plan or during early construction phases, it is critical to ensure that the developer has all required permits and licenses. A good estate agent or legal adviser will verify this for you.

Financing a New Build in Lisbon as a Foreigner

Many Portuguese banks offer mortgages to non-residents, typically up to 70 percent of the property value. Loan approval will depend on your income, credit history and ability to make a down payment.

Interest rates in Portugal remain competitive, and fixed or variable rates are available. Most lenders require documents such as tax returns, bank statements and proof of employment or pension. It is recommended to obtain a mortgage pre-approval before beginning your property search.

At Destinations by LeadingRE, our team can connect you with trusted mortgage advisers who understand the needs of expat clients and can help streamline the process.

Understanding Taxes and Fees When Buying New Builds

When buying a new build in Lisbon, you are required to pay Value Added Tax (VAT) instead of the usual Property Transfer Tax (IMT). VAT is currently set at 23 percent and is included in the purchase price of most new developments.

Other fees include notary and registration fees, which typically range between 1 to 2 percent of the property value. Legal fees may also apply, depending on the complexity of the transaction.

Buyers should also consider ongoing costs such as property taxes, condominium fees and, if applicable, capital gains tax if the property is sold later. An experienced estate agent or solicitor can help you estimate these costs accurately.

Why Choose Destinations by LeadingRE?

Destinations by LeadingRE offers an unparalleled level of service tailored specifically for foreign buyers. We combine local market knowledge with a global network of trusted agents to deliver a seamless property buying experience.

Our team in Lisbon understands the needs and concerns of expat clients. Whether you are navigating visa requirements, legal paperwork or simply want help finding the right neighbourhood, we are here to support you at every step.

We pride ourselves on transparency, professionalism and personalised service. With access to premium listings, off-plan developments and exclusive properties not available on public portals, we help our clients find their ideal homes quickly and confidently.

By leveraging innovative technology, we offer virtual tours, digital document signing and remote consultation services, making it easy to purchase property from abroad. Choosing Destinations by LeadingRE means choosing a partner who truly understands the international buying process.

FAQs

Can foreigners buy new builds in Lisbon?
Yes, foreigners can legally purchase new build properties in Lisbon without restrictions. Portugal welcomes foreign investment, and the process is straightforward with the right professional guidance. It is important to obtain a Portuguese tax number (NIF), open a local bank account, and work with a bilingual solicitor to ensure all legal aspects are handled properly.

Are new builds in Lisbon a good investment?
New build properties are considered a strong investment due to Lisbon’s increasing demand for modern, energy-efficient housing. These properties tend to have higher rental appeal and require less maintenance, making them ideal for investors seeking long-term value or rental income. Additionally, they often come with warranties that reduce the risk of unexpected repair costs.

What taxes do I pay when buying a new build?
When purchasing a new build, you typically pay VAT instead of the Property Transfer Tax. VAT is currently set at 23 percent and is usually included in the advertised price. You will also need to account for notary and registration fees, which together amount to about 1 to 2 percent of the property value, plus legal fees if using a solicitor.

How long does it take to complete the purchase of a new build?
The timeline depends on the construction phase. If the property is completed, you can usually finalise the purchase within one to two months. For off-plan purchases, you may need to wait 12 to 24 months for completion. During that time, staged payments are often required. A real estate agent can guide you through each milestone and ensure timely progress.

Can I get a mortgage in Portugal as a non-resident?
Yes, many Portuguese banks offer mortgages to non-residents. You can usually borrow up to 70 percent of the property value, depending on your financial profile. Documentation such as proof of income, tax returns and bank statements is required. It is advisable to get pre-approved early to understand your budget and buying power.

Conclusion

Buying a new build in Lisbon offers expats an exciting opportunity to own a modern, hassle-free property in one of Europe’s most desirable cities. With attractive investment potential, a growing international community and favourable laws for foreign buyers, Lisbon ticks all the right boxes.

By partnering with Destinations by LeadingRE, you gain access to local insight, global expertise and end-to-end support. From property selection and legal advice to financing and final handover, we are committed to helping you buy with confidence.

Ready to explore your options? Contact Destinations by LeadingRE today to begin your journey toward owning a new build in Lisbon.