Lisbon ($30/sqft, 7.8% vacancy) and London ($121/sqft, 8.6% vacancy) compete on different axes: Lisbon on rent and tax and London on talent depth.
Lisbon ($30/sqft, 7.8% vacancy) and London ($121/sqft, 8.6% vacancy) compete on different axes: Lisbon on rent and tax and London on talent depth.
| Metric | Lisbon | London |
|---|---|---|
| Region | EMEA | EMEA |
| Country | Portugal | United Kingdom |
| Class A rent (USD/sqft/yr) | $30 | $121 |
| Class A rent (local) | 28 EUR | 95 GBP |
| Vacancy | 7.8% | 8.6% |
| Trend | rising | rising |
| Prime yield | 5.4% | 4.5% |
| Premium flex / seat / month (USD) | $480 | $1,380 |
| Submarkets covered | 5 | 7 |
| Corporate tax | 21% | 25% |
| Metric | Lisbon | London |
|---|---|---|
| Typical term | 5 yrs | 10 yrs |
| Typical rent-free | 4 mos | 24 mos |
| Lease norms | Net leases. 5-year terms with optional renewal standard. Free rent of 3-5 months and TI of €50-€90/sqm typical. | London leases are predominantly Full Repairing and Insuring (FRI). Tenant pays service charge and is responsible for dilapidations on lease end. Rent reviews to open-market rent every 5 years are standard. Rent-free periods of 18-30 months on a 10-year term are typical, with 'capped' rent-free for break-clause certainty. Personal guarantees are uncommon for institutional tenants; rent deposits are common for younger covenants. |
| Tax note | 21% Portuguese corporate income tax (IRC) plus municipal surcharge of up to 1.5% plus state surcharge for large profits. IFICI regime for inbound qualifying talent provides reduced personal income tax. | UK corporation tax is 25% (19% small profits rate). Business rates are a major occupancy cost — ~50% of rateable value annually, levied separately from rent and service charge. |
| Metric | Lisbon | London |
|---|---|---|
| Talent index (0–100) | 78 | 96 |
| Talent note | Deep tech, BPO, and creative talent. Strong feed from Universidade de Lisboa, Universidade Nova, and ISCTE. English-fluent professional base supports international corporate HQs. | Largest financial-services and technology talent pool in EMEA. Average all-in compensation indexes 96 vs. New York's 100. |
Lisbon: Metropolitano de Lisboa (4 lines), CP suburban rail, and bus. Lisbon Airport (LIS) is on Metro Red Line (~20 minutes to Saldanha). New airport (Alcochete) under planning.
London: The Elizabeth Line transformed cross-London commute times. Heathrow to Liverpool Street is 35 minutes; Paddington to Canary Wharf is 17 minutes. Crossrail-adjacent assets command a measurable rent premium.
Lisbon is the cheaper Class A market on a USD basis.
London has the deeper talent index (96/100 vs 78/100).
Lisbon has the lower headline corporate tax (21% vs 25%). Local incentives can change the effective rate materially.
Lisbon typical term is 5 years with 4 months free; London runs 10 years with 24 months free.
Lisbon: Metropolitano de Lisboa (4 lines), CP suburban rail, and bus. Lisbon Airport (LIS) is on Metro Red Line (~20 minutes to Saldanha). New airport (Alcochete) under planning. London: The Elizabeth Line transformed cross-London commute times. Heathrow to Liverpool Street is 35 minutes; Paddington to Canary Wharf is 17 minutes. Crossrail-adjacent assets command a measurable rent premium.
Score Lisbon, London and up to two more markets side-by-side on Class A rent, vacancy, talent, corporate tax, and premium flex pricing — all in USD.
Reviewed by Samuel Okafor — EMEA contributing editor. Last updated 2026-04-15. See our methodology and editorial standards.