As real estate investors and future expats explore the Mediterranean lifestyle, two cities constantly rise to the top of the list: Barcelona and Lisbon. Both offer coastal charm, vibrant cultures, growing tech scenes, and real estate opportunities that are still relatively affordable compared to Western Europe’s larger capitals. But when it comes to property investment in Europe, which of these two cities offers better value, returns, and lifestyle quality in 2025?
In this in-depth comparison, we explore property prices in Barcelona and Lisbon, the cost of living, real estate ROI, buy-to-let potential, taxation for foreigners, and long-term potential for investors and homeowners alike.
Cost of Living in Barcelona vs Lisbon 2025
Compare daily expenses for expats and residents
When comparing cost of living in Barcelona vs Lisbon, the Portuguese capital generally comes out slightly cheaper. Based on current data from Numbeo:
Restaurant meals: €13 in Lisbon vs €15 in Barcelona (mid-range lunch)
Public transport pass: €42 in Lisbon vs €54 in Barcelona
Groceries: Milk, bread, and eggs are ~10% cheaper in Lisbon
According to market data from MonoEstate, monthly rent (1-bedroom outside center): €1,100 in Lisbon vs €1,400 in Barcelona
Lisbon vs Barcelona for expats often comes down to lifestyle vs salary potential. Lisbon offers lower costs in almost every category, making it ideal for those on a modest income. However, higher salaries and more job opportunities in Barcelona may compensate for the extra expense, particularly for tech workers and remote professionals.
Property Prices in Barcelona and Lisbon in 2025
Average apartment prices, trends, and affordability
According to market data from MonoEstate:
<table> <tbody> <tr class="blue-row" > <td><strong>Metric</strong></td> <td><strong>Barcelona</strong></td> <td><strong>Lisbon</strong></td> </tr> <tr> <td>Average price per m²</td> <td>€4,700</td> <td>€4,820</td> </tr> <tr> <td>Average price one-bedroom apartment</td> <td>€299,400</td> <td>€322,500</td> </tr> <tr> <td>Monthly rent (1-bedroom outside center)</td> <td>€1,400</td> <td>€1,300</td> </tr> </tbody> </table>These numbers are essential for those searching for property prices in Barcelona 2025 or average apartment price in Lisbon. Lisbon’s emerging neighborhoods such as Arroios, Beato, and Alcântara offer attractive pricing under €3,000/m², while popular tourist districts like Bairro Alto demand more. In Barcelona, outer districts like Nou Barris remain relatively affordable, while Eixample and Gràcia push prices much higher.
For a deeper look at the Barcelona market specifically, see our full article: How Much Does an Apartment in Barcelona Cost in 2025?
Property Tax for Foreigners in Spain and Portugal
What non-resident buyers need to know
Buying Property in Barcelona as a Foreigner:
Property transfer tax: 10% (varies slightly by region)
Annual property tax (IBI): 0.4–1.1%
Capital gains tax: Up to 23% depending on the gain
Portugal Property Tax for Foreigners (Lisbon):
IMT (property transfer tax): 1–8%, depending on price and use
Annual IMI (municipal tax): 0.3–0.45%
Capital gains tax: 28% for non-residents
Living in Portugal vs Spain 2025 also means understanding how the tax regimes compare. Lisbon’s exemption on IMT for properties below €92,407 offers a key advantage. The simplified buying process in Portugal also appeals to international investors.
Taxation for Residents: What If You Relocate?
If you decide to become a tax resident in either Spain or Portugal, your global income will likely be subject to taxation.
Spain:
Worldwide income is taxed once you reside more than 183 days/year.
Income tax rates are progressive, ranging from 19% to 47%.
There are social security contributions if you work locally.
Portugal:
Portugal offered the Non-Habitual Resident (NHR) regime until recently, allowing reduced rates or exemptions on foreign income. As of 2024 this scheme is being phased out. A new regime, NHR 2, has been announced to replace it, but as of 2025, it remains in early stages and is not yet fully operational or clearly defined.
Tax residents pay progressive income tax ranging from 13% to 48%.
In both countries, relocating with remote income or foreign dividends requires careful planning to avoid double taxation. It's advisable to consult with a local tax advisor before changing tax residency.
Looking to gain residency through real estate? Check out: Top Countries in Europe to Get Residency by Buying Property in 2025.
Infrastructure, Safety, and Lifestyle
Quality of life, healthcare, and neighborhoods
Both cities offer excellent quality of life but cater to different lifestyles:
Barcelona has world-class healthcare, international schools, an extensive metro, and is a favorite for digital nomads.
Lisbon is more relaxed, with a safer environment, scenic neighborhoods, and a rapidly growing startup scene.
For those seeking cheaper cities to live in Europe 2025, Lisbon often comes out ahead - especially when factoring in long-term rent or relocation.
Lisbon and Barcelona are also among the Top European Cities for Digital Nomads in 2025.
Real Estate ROI Lisbon vs Barcelona
Where to earn more from rentals in 2025
While Lisbon was once seen as the more budget-friendly option for investors, prices in many districts have now surpassed comparable neighborhoods in Barcelona. Today, property in Lisbon is often more expensive per square meter, especially in renovated or newly built developments within the city’s central areas.
On the other hand, Barcelona offers higher average rental yields, particularly in outer and student-friendly districts such as L’Hospitalet or Sant Andreu. The city benefits from consistent rental demand driven by international students, remote workers, and long-term residents.
Although Portugal maintains a landlord-friendly regulatory environment, the overall real estate ROI in Barcelona tends to outperform Lisbon for buy-to-let investors focused on steady occupancy and medium-term returns.
Explore which cities lead in returns: 5 European Cities with Rental Yields Over 6% in 2025.
Summary: Where to Invest in Property in Europe?
Final tips for choosing between Lisbon and Barcelona
Choose Barcelona if you:
Want prestige and international appeal
Focus on long-term capital appreciation
Are looking for a stable, liquid market
Can manage a higher initial budget
Choose Lisbon if you:
Prefer a calmer pace of life in a sunny, coastal capital
Are focused on lifestyle rather than high rental returns
Can manage slightly higher property prices in sought-after districts
Appreciate Portugal's relatively simple property acquisition process
Ultimately, both cities rank among the best cities to buy property in Europe 2025, each appealing to a different investor profile.
If you're considering Airbnb or short-term rentals, read our guide: Airbnb Investments in 2025: Should You Earn from Short-Term Rentals?
Visit our Countries section to explore average property prices, rental returns, legal insights, taxes, and cost breakdowns in cities across Europe.