What does a holiday rental in Lisbon earn?
On stock Terrivio tracks, gross yield in Lisbon is typically 5–8% and net yield 2.5–4.5% after operating costs and purchase costs. The gap is the whole story: platform fees, cleaning, management, energy, insurance, community charges and local tourist tax often absorb 35–50% of gross revenue.
Worked example: a property at €310,000 let at €135 per night with 64% occupancy books about 234 nights and €31,590 of annual revenue (10.2% gross yield). After 26% variable costs and €4,200 of fixed costs, NOI is about €19,177 — 5.7% net on a total investment of €334,800.
Seasonality — do not annualise a peak week
City tourism is year-round with a summer peak and a quieter November–January. 60–70% occupancy is plausible for a well-located, already-licensed AL; new ALs in central parishes are largely blocked.
Buildings with a high share of ALs face neighbour pushback and inspection risk. A 64% occupancy model with no licence is a 0% STR model. Have a long-term rental fallback (lower ADR, higher occupancy, different tax) before you bid.
Purchase costs and tax in Lisbon
Budget about 8% above the asking price for acquisition costs in Portugal. Main item: IMT 0–7.5% (progressive) + 0.8% stamp duty. These costs are gone on day one — that is why Terrivio divides NOI by total investment, not by asking price.
Under the simplified regime, AL income is taxed on 35% of gross revenue (50% in containment zones); non-residents pay a flat 25%. Annual IMI property tax is 0.3–0.45% of the tax value.
Tourist tax: Lisbon €4 · Porto €3 per night. Usually collected from guests, but it still sits inside your competitive nightly rate.
Short-term rental rules in Lisbon
AL registration is mandatory. Lisbon restricts new ALs in many central parishes; containment-zone tax treatment uses 50% of gross as the taxable base instead of 35%. Tourist tax is €4/night. Always verify the exact parish, not 'Lisbon' as a whole.
Country overlay (Portugal): An Alojamento Local (AL) registration is mandatory. The 2023 national freeze was reversed in 2024–2025; municipalities now set their own containment zones — Lisbon and Porto restrict new ALs in central parishes.
Popular towns include Alfama, Baixa, Cascais, Sintra and Parque das Nações. Each has a different seasonality and licence map — Terrivio scores regulation for the exact city on a listing analysis.
How to calculate yield in Lisbon
- Estimate annual revenue. Use a blended ADR and annual occupancy, not a peak-week rate. Booked nights = 365 × occupancy. Then revenue = ADR × booked nights.
- Subtract operating costs. Variable costs (platform, cleaning, management) plus fixed costs (insurance, utilities, community fees, maintenance). A starting point in Lisbon is 26% variable plus the fixed costs in the calculator.
- Add purchase costs to the price. Include transfer tax, notary, registry and agency — about 8% in Lisbon.
- Divide NOI by total investment. That is net yield. Compare it with your mortgage rate and with a long-term rental fallback before you bid.
Frequently asked questions
Is a holiday home in Lisbon a good investment in 2026?
It depends on licence, micro-location and whether you need the weeks yourself. Typical net yields are 2.5–4.5%. Always underwrite net, never gross, and never assume a peak-week rate runs 365 days.
How do I calculate rental yield in Lisbon?
Net yield = (annual revenue − variable costs − fixed costs) ÷ (purchase price + acquisition costs). Annual revenue is ADR × 365 × occupancy. The calculator on this page does that with Lisbon defaults.
What are purchase costs in Lisbon?
Plan about 8% of the price: IMT 0–7.5% (progressive) + 0.8% stamp duty, plus notary, registry and any agency fee.
Do I need a licence to let in Lisbon?
AL registration is mandatory. Lisbon restricts new ALs in many central parishes; containment-zone tax treatment uses 50% of gross as the taxable base instead of 35%. Tourist tax is €4/night. Always verify the exact parish, not 'Lisbon' as a whole.