Property rental options in Lisbon
With a population of nearly 3 million within the metropolitan area and an ever-rising tourism popularity, Lisbon attracts both Portuguese and international workers – who are looking for education and employment – digital nomads and tourists. As a result, there is currently a shortage of rental listings in the city, making it extremely difficult (and at times frustrating) to find a decent place to live in Lisbon.
How to find a place to rent in Lisbon
Online searching is the best way to find accommodation in Lisbon, with all major rental agencies listing properties online. Short-term rentals can be found on Airbnb, but the prices are usually higher as you are competing with tourists looking for holiday accommodation. In Lisbon, as in other popular European cities, many property owners are turning to holiday rentals to meet the needs of the tourism market, which often means there are fewer (and more expensive) options left for residents and expats. However, the government seems keen on ending this, having approved legislation that suspended licensing for all new Airbnbs in the city.
Major online rental websites in Lisbon include Sapo, OLX, Remax and Idealista. If you are already in Lisbon, contact multiple real estate agencies, as they can help you find a property within your budget, but be prepared to pay their hefty fees. A real estate agent will be especially helpful if you are not fluent in Portuguese. Another place to look for is the Marketplace on Facebook, which offers better prices and quicker response.
Accommodation is likely to come partially furnished, usually with an equipped kitchen and some pieces like a bed or even a couch, although fully furnished flats can be found as well. Newer, renovated, and more traditional apartments and homes are available. While older homes can have a rustic charm, they are more likely to have structural or plumbing problems, so some may prefer newer buildings for peace of mind. However, if renting, any repairs and building maintenance should be done by the landlord.
Rent prices in Lisbon
Renting in Lisbon definitely offers more flexibility. You will be able to switch apartments, move to a different city, and basically not have anything substantial holding you down in Lisbon. However, you also need to keep in mind that renting options may be quite limited in popular areas. Plus, rent prices are high. In fact, news outlets have recently highlighted Lisbon as the single most expensive city in Europe to rent a 1-bedroom apartment in the city center (2500€/month), surpassing the likes of Amsterdam, Paris, Berlin or Milan. Unfortunately, things aren't looking any better outside the downtown area, where prices for renting a studio have risen 70% in a year, and a modest bedroom in a shared apartment can currently set you back 525€/month (a 30% increase from 2022). Furthermore, and looking at the entire city, new leasing contracts signed in the first quarter of 2023 have shown that rent prices have gone up 23% since the same period of 2022, reaching an average of 1,480€/month.
In less central areas, that sum can drop to around 900-1,200€, while districts that require a long commute to the downtown area (think 50 km) may offer renting options for around 700€/month. It is also important to budget for your security deposit and to have enough to pay for one or two months of rent upfront (or more if you don't have the necessary documents, such as a contract with an employer). Also, keep in mind some renters may try to demand larger security deposits and the payment of a higher number of months upfront. However, according to Portuguese legislation, 2 months' worth of rent is the most they can ask for each portion (2 months for security deposit 2 months upfront).
Additional costs to budget for include electricity, gas, internet and cable/television, as these costs are usually covered by the tenant. However, some private landlords might include these in the rent, so don't forget to ask.
Signing a lease in Lisbon
To rent a property in Lisbon, you will need to sign a lease agreement (contrato de arrendamento). To sign the lease, you will need to have a Portuguese Tax ID (número de contribuinte). This is basically a fiscal identification number that you can get from your local tax office in Lisbon. You may also be asked for references and a credit check.
The lease agreement generally includes basic information about the tenant and landlord, rental conditions, the state of the property, rent amount, duration of the lease, etc. The lease will also include a list of items that come included with the property: furniture, appliances, etc. You will then be responsible for leaving the property in the condition that it was rented to you — with allowance for some regular wear and tear, of course.
If you want to move out of a rented property before the contract expires, you will need to give a notice to your landlord ahead of time. Generally, if you have less than a year left on your contract, you should try to give your notice 60 days in advance.
Your landlord also has the right to serve you with a notice — for instance, if they need the home for themselves or if renovation needs to take place that requires the home to be empty. In this case, you may be compensated, or the landlord may help you find a comparable property to relocate to.
At the end of your lease, the landlord will inspect the property — and if no major damage is found, your deposit will be returned. If you have a deposit-related dispute with your landlord, you will need to go through the Civil Court to resolve the issue. Overall, the laws in Portugal tend to favor the tenant over the landlord. In fact, landlords may actually have a hard time getting rid of long-term renters if they refuse to leave.
With that, it is still important to be vigilant and exercise due diligence when signing lease contracts:
If your tenancy agreement is drafted in Portuguese, consider having it officially translated before signing.
If you don't speak Portuguese and your landlord doesn't speak English (or another language that you may have in common), it's also best to have a translator present to make sure there are no misunderstandings as to the conditions of the lease.
Before committing to rent a property, check if your landlord has a legal rental license granted by the local council.
