Many of the buyers we work with end up renovating. A well-priced period apartment with the right layout and a bad kitchen is often a better purchase than a fully renovated but compromised alternative — if you know what renovation actually costs and how the process works.
This is what experience on Lisbon renovations has taught us.
Realistic costs per m²
For an apartment renovation in central Lisbon as of early 2025, rough ranges are:
- Cosmetic refresh (paint, sand floors, replace kitchen cabinetry, tidy bathrooms): €400–€700 per m²
- Standard full renovation (new kitchen and bathrooms, replaster, rewire, re-plumb, new finishes, keep existing layout): €1,000–€1,500 per m²
- Full gut with layout changes (move walls, new electrics, new plumbing, new HVAC, period features restored): €1,500–€2,500 per m²
- Heritage-quality restoration (original tile restoration, specialist plasterwork, high-end finishes): €2,500–€4,000+ per m²
So a 90m² apartment with a standard full renovation is a €90,000–€135,000 project. A 120m² period apartment with a proper gut renovation is more like €180,000–€300,000 and runs 6–10 months.
These figures are indicative. Final costs depend heavily on building-permission complexity, the structural state of the property, and the quality of finishes.
What drives cost most
The big cost drivers are usually not what people expect:
- Structural and services work hidden in old buildings — old electrics, lead plumbing, failed floor timbers, damp. Not visible until walls and floors come up.
- Building permissions and condominium approval — delays during approvals can add 2–4 months, which is time you are still paying for rented storage or parallel accommodation.
- Layout changes that touch load-bearing walls — require an engineer’s report, municipal approval, and often a significant structural intervention. Avoid if the existing layout works.
- Kitchen, bathrooms and joinery — the most visible finishes are also where costs escalate fast with specification.
- Staircase access — in narrow historic buildings, hauling materials up four flights of stairs adds labour cost relative to buildings with a lift.
Permits and licensing
The licensing regime depends on the scope of the work:
- Minor interior works (cosmetic, non-structural) often need only a notification to the condominium and the municipality — no full licence.
- Standard renovations that touch plumbing, electrics or layout usually require a Comunicação Prévia (prior communication with the municipality).
- Structural changes, façade changes, or changes to the building’s use require a full Licenciamento — architect’s drawings, engineer’s calculations, municipal approval. This can take 3–9 months.
- Listed buildings or buildings in a protected zone require additional approval from the heritage authority (DGPC or IGESPAR).
Most buyers we work with work with an architect who handles both design and licensing.
Finding contractors — realistically
The single most common story we hear from overseas buyers is a renovation that started well and then drifted — schedule slipped, costs crept, communication broke down. A few patterns help:
- Get three quotes. Price variation of 30–50% between contractors on the same job is normal. The cheapest is rarely the right answer; the most expensive isn’t automatically the best.
- Work with contractors who have done similar buildings. Pombaline buildings, Art Nouveau blocks, and concrete 1960s buildings need different skills. Ask for photos of finished work in similar stock.
- Written contracts, fixed-scope, milestone payments. Not “we’ll sort it out as we go”. A proper contrato de empreitada with a fixed scope, a schedule and milestone-linked payments protects both sides.
- Hire an architect as project manager. For any renovation over €50k, the architect fee (typically 6–10%) saves its cost in avoided mistakes, contractor coordination, and licensing navigation.
VAT — the 6% opportunity
Portugal has a reduced VAT rate of 6% (rather than the standard 23%) for renovation work on residential properties that meet certain conditions — primarily that the property is in an Área de Reabilitação Urbana (Urban Rehabilitation Area) or that the building is more than 30 years old and classified as needing rehabilitation.
On a €150,000 renovation, that’s a €25,500 VAT saving versus the standard rate. Almost all central Lisbon buildings qualify on the age criterion. Your architect and contractor need to structure the invoicing correctly.
Timeline — what to actually expect
For a standard 90–120m² full renovation:
- Design and specification: 1–2 months
- Licensing / municipal approval: 1–4 months (shorter for Comunicação Prévia, longer for full Licenciamento)
- Construction: 4–8 months
- Snagging and completion: 1 month
Total: 7–15 months from signing the contract to moving in. Build this into your property purchase plan. Most renovating buyers either stay in rented accommodation during the works or in another city entirely.
Five common pitfalls for foreign buyers
- Underestimating the services works in old buildings. Budget a 15–20% contingency.
- Skipping a proper pre-purchase structural survey. A €500–€1,500 survey can save €50,000 of surprises.
- Not getting condominium approval in writing for any works that touch shared infrastructure (risers, façade, roof).
- Using translators or intermediaries instead of working directly with a Portuguese-speaking project team. The more layers between you and the contractor, the more that gets lost.
- Picking specifications in a hurry. Once work starts, late specification changes add cost and time.
If you are thinking about a renovation property and want to talk through whether a specific apartment is a reasonable candidate — or which neighbourhoods have the best renovation stock — book a free call.