Barcelona vs Lisbon 2025: Which City Is Better for Living and Real Estate Investment?
Veronika Mamontova
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Frequently Asked Questions
Is it cheaper to live in Lisbon or Barcelona in 2025?
Lisbon generally has lower everyday expenses, including groceries, transportation, and dining out. However, rental prices in central areas are approaching Barcelona levels.
Which city offers better rental yield in 2025 - Barcelona or Lisbon?
Barcelona currently offers higher average rental yields, especially in outer districts and student areas, making it more attractive for buy-to-let investors.
Can foreigners buy property in Lisbon or Barcelona without residency?
Yes, non-residents can buy property in both cities without special permits. However, tax obligations and purchase procedures differ - especially for long-term stays or rental use.
What are the property taxes for foreign investors in Portugal and Spain?
Spain has a 10% transfer tax and annual municipal taxes (IBI). Portugal’s IMT tax ranges from 1% to 8%. Capital gains taxes apply in both countries.
What happens if I become a tax resident in Spain or Portugal?
Tax residency means your global income becomes taxable. Spain applies income tax up to 47%, plus social contributions. Portugal has progressive income tax rates ranging from 13% to 48%. The former NHR regime has ended, and a new version (NHR 2) is still unclear as of 2025.
