Rent vs. Buy Calculator in Lisbon (2026)
Is it better to rent or buy a home in Lisbon? See the break-even point and total cost comparison over your chosen time horizon.
Property Price
422 500 €
65m² · 6500 €/m²
Down Payment
42 250 €
10% of purchase price
Monthly Mortgage
2007 €
4.0% rate · 25yr term
Monthly Rent
1400 €
City centre
📅 Break-even point: Year 2
Buying becomes cheaper than renting after 2 years in Lisbon, once property appreciation and equity are factored in.
After 10 years: Buying saves approximately 397 708 € vs renting.
Cumulative Cost Comparison — Lisbon
Net costs after accounting for property appreciation and investment returns on down payment.
| Year | Net Buy Cost | Net Rent Cost | Property Value | Verdict |
|---|---|---|---|---|
| 1 | 14 478 € | 11 920 € | 456 300 € | 🔴 Rent |
| 2 | -1579 € | 24 003 € | 492 804 € | 🟢 Buy |
| 3 | -20 939 € | 36 239 € | 532 228 € | 🟢 Buy |
| 4 | -43 853 € | 48 619 € | 574 807 € | 🟢 Buy |
| 5 | -70 587 € | 61 131 € | 620 791 € | 🟢 Buy |
| 6 | -101 433 € | 73 762 € | 670 454 € | 🟢 Buy |
| 7 | -136 701 € | 86 499 € | 724 091 € | 🟢 Buy |
| 8 | -176 728 € | 99 325 € | 782 018 € | 🟢 Buy |
| 9 | -221 877 € | 112 222 € | 844 579 € | 🟢 Buy |
| 10 | -272 537 € | 125 171 € | 912 146 € | 🟢 Buy |
Monthly Cost Breakdown
Buying
Mortgage: 2007 €
Maintenance: 423 €
Property Tax: 58 €
Total Monthly: 2488 €
Does not include down payment of 42 250 €
Renting
Monthly Rent: 1400 €
Annual Increase: +3% assumed
Opportunity Gain: Down payment invested at 7%/yr
Total Monthly: 1400 €
Rent increases 3%/yr in projection
Can you afford to buy in Lisbon?
Monthly net income: 4123 €
Monthly mortgage: 2007 €
Mortgage-to-income ratio: 48.7%
🔴 Stretched — consider a higher deposit or longer term
Down payment savings needed: 69 713 €
At 20% savings rate, years to save: 7.0 years
Notes & Assumptions
This calculator uses the following assumptions for Lisbon in 2026: property price 6500 €/m² × 65m², mortgage rate 4.0% over 25 years, 10% down payment, transaction costs 6.5%, annual maintenance 1.2%, property appreciation 8.0%/yr, rent inflation 3%/yr, opportunity cost of capital 7%/yr. IMT up to 8%. City centre €6,500-7,000/sqm (INE Q3 2025). Portugal #1 EU price growth +17.7% YoY. Numbeo price-to-rent 21.56 (Feb 2026).
Same calculator, other cities
Frequently Asked Questions
Is it better to rent or buy in Lisbon in 2026?
Based on 2026 data, buying a home in Lisbon typically becomes financially advantageous after 2 years, once property appreciation and equity are factored in. With a mortgage rate of 4.0% and estimated annual appreciation of 8.0%, buying makes sense for long-term residents.
How much do you need to earn to buy in Lisbon?
A typical 65m² apartment in Lisbon costs approximately 422 500 € in 2026. With a 10% down payment of 42 250 €, the monthly mortgage is 2007 €. Financial advisors recommend keeping mortgage payments below 28–35% of net monthly income, which implies a gross salary of at least 80 284 € per year to comfortably afford this purchase in Lisbon.
What is the price-to-rent ratio in Lisbon?
The price-to-rent ratio in Lisbon is approximately 22x in 2026 — meaning it takes 22 years of rent to equal the purchase price. A ratio above 20 generally favours renting; below 15 generally favours buying. Lisbon's ratio of 22 suggests the decision depends heavily on your time horizon and expected appreciation.
How this calculator works
This calculator compares the total cost of renting versus buying over a configurable time horizon. It includes mortgage payments, transaction costs, maintenance, property appreciation, rent inflation, and the opportunity cost of tying up capital in a down payment.
What's included
- Mortgage principal and interest payments
- Transaction costs (stamp duty, notary, etc.)
- Annual maintenance and property tax
- Property appreciation and rent inflation
- Opportunity cost of capital (7% default)
What's not included
- Renovation or major repair costs
- Home insurance premiums
- Tax relief on mortgage interest (varies by country)
- Emotional or lifestyle value of ownership
Data sources: Central bank mortgage rate data, local property price indices, Numbeo rental averages, and official transaction cost schedules. Updated for 2026.