--- title: "Lisbon vs London: Class A office comparison" description: "Side-by-side Class A office comparison for Lisbon and London — rent, vacancy, talent, tax, lease norms, transit, and top submarkets." canonical: https://classa.info/compare/lisbon-vs-london pageType: comparison lastUpdated: 2026-04-15T00:00:00.000Z license: "CC BY 4.0 with attribution to Class A Atlas (https://classa.info)." --- > Lisbon ($34/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. ## TL;DR - Class A rent: Lisbon $34/sqft vs London $121/sqft. - Vacancy: Lisbon 7.8% vs London 8.6%. - Talent index: Lisbon 78 vs London 96. - Corporate tax: Lisbon 21% vs London 25%. - Premium flex/seat/month: Lisbon $480 vs London $1,380. # Lisbon vs London: Class A office comparison **Lisbon ($34/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.** ## TL;DR - [Class A](/glossary/class-a) rent: Lisbon $34/sqft vs London $121/sqft. - Vacancy: Lisbon 7.8% vs London 8.6%. - Talent index: Lisbon 78 vs London 96. - Corporate tax: Lisbon 21% vs London 25%. - [Premium flex](/topics/lease-vs-flex)/seat/month: Lisbon $480 vs London $1,380. ## Market data side-by-side | Metric | Lisbon | London| | Region | EMEA | EMEA| | Country | Portugal | United Kingdom| | Class A rent (USD/sqft/yr) | $34 | $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%| ## Lease norms | 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.| ## Talent | 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.| ## Transit & commute **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. ## Top submarkets — Lisbon - [**Avenida da Liberdade**](/cities/lisbon/avenida-da-liberdade) — trophy tier · €32/sqm/mo · ≈ $38.5 PSF/yr USD - [**Saldanha (CBD)**](/cities/lisbon/saldanha-cbd) — prime tier · €28/sqm/mo · ≈ $33.7 PSF/yr USD - [**Parque das Nações**](/cities/lisbon/parque-das-nacoes) — prime tier · €26/sqm/mo · ≈ $31.3 PSF/yr USD ## Top submarkets — London - [**Mayfair & St James's**](/cities/london/mayfair-st-james) — trophy tier · £165/sqft/yr · ≈ $210 PSF/yr USD - [**City of London**](/cities/london/city-of-london) — trophy tier · £95/sqft/yr · ≈ $121 PSF/yr USD - [**Fitzrovia & Soho**](/cities/london/fitzrovia-soho) — prime tier · £110/sqft/yr · ≈ $140 PSF/yr USD ## Decision criteria ### Pick by cost Lisbon is the cheaper Class A market on a USD basis. ### Pick by talent depth London has the deeper talent index (96/100 vs 78/100). ### Pick by tax Lisbon has the lower headline corporate tax (21% vs 25%). Local incentives can change the effective rate materially. ### Pick by lease optionality Lisbon typical term is 5 years with 4 months free; London runs 10 years with 24 months free. ### Pick by transit 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. ## Run a 4-city comparison 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. [**Run a 4-city comparison →**](/tools/city-comparator) ## Frequently asked questions ****Is Class A office cheaper in Lisbon or London?**** : Lisbon is cheaper on a USD basis: $34/sqft vs $121/sqft. ****Which has better talent depth, Lisbon or London?**** : London indexes higher on talent depth (96 vs 78). ****Which has more sublease availability, Lisbon or London?**** : London carries higher vacancy (8.6% vs 7.8%) and therefore typically more sublease overhang. ****What lease term should I expect in Lisbon vs London?**** : Lisbon typical term is 5 years with 4 months rent-free; London typical term is 10 years with 24 months rent-free. ****How does transit and commuter access compare?**** : 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. ## Editorial provenance Reviewed by [**Samuel Okafor**](/about/authors/samuel-okafor) — EMEA contributing editor. Last updated 2026-04-15. See our [methodology](/about/methodology) and [editorial standards](/about/editorial-standards). ### Primary sources for this page - [CBRE Marketview reports](https://www.cbre.com/insights) — CBRE - [JLL Office Insight](https://www.jll.com/en/trends-and-insights) — JLL - [Cushman & Wakefield Marketbeat](https://www.cushmanwakefield.com/en/insights) — Cushman & Wakefield - [Savills World Research](https://www.savills.com/research_articles/) — Savills - [Colliers Global Office Outlook](https://www.colliers.com/en/research) — Colliers [Full sources index](/about/sources) · [Submit a correction](/about/corrections) --- Citation: Source: Class A Atlas (https://classa.info/compare/lisbon-vs-london), updated 2026-04-15T00:00:00.000Z.