Last Updated on September 29, 2025 by Emily Hopkins
Buying a property in Portugal can be extremely rewarding.
Being able to live in a country with so many positive aspects is undoubtedly a reason to be happy.
In addition to residing in Portugal, the country’s rental market can also be highly rewarding, thanks to its strong reputation across Europe and beyond. In this article, we’ll address some of the most common questions about real estate in Portugal.
This article’ll answer some popular questions about real estate in Portugal.
If you’re planning to acquire a property in Portugal, reading this information is almost mandatory.
Finally, keep in mind that Viv Europe can help you acquire your small space in Portugal without stress legally.
How is the real estate market in Portugal today?
Between 2015 and 2020, the real estate market in Portugal registered a market increase never seen before.
With Portugal’s growing prestige as a hub for investment, tourism, and relocation, the real estate market has naturally followed suit and become increasingly competitive.
Big companies and investors decided to give this country a chance, so they bought real estate like never before, along with ordinary people just wanting to take advantage of the low real estate prices compared to their already famous neighbors.
This boom in this sector was also a reflection of Portugal’s economic growth, which made Portugal the European star during 2018 and 2019.
Unfortunately, the Covid crisis came.
As what’s happening with almost all European countries, the real estate market has slowed down, as people are spending less money overall, and lockdown measures also made it more difficult to visit properties in person.
Some real estate agents are saying that the price range of real estate has not changed much with the crisis of 2020, but the wave that came in 2021 may change this scenario.
Now, late 2025, Portugal’s housing market is still buzzing, mostly thanks to strong interest from international buyers. Prices are still climbing, but not as fast as they did a few years back. Recent policy changes, like phasing out the Golden Visa for property investors and tightening the Non-Habitual Resident (NHR) program, have slowed things down a little, but foreigners are still very interested in buying here.
Read also: Portugal NHR Regime 2.0: IFICI – Tax Benefits In 2025
What is a relocation procedure?
Relocation services are offered by companies that provide clients with a full package of real estate support, from property searches, visits, and video tours to handling rental or purchase paperwork and registering certificates with public agencies, all before the client even arrives in Portugal.
Even Real Estate bank financing can be managed by the company.
The main goal is to conclude the property-related tasks so that the expat won’t have to worry about anything related to their accommodation when arriving in Portugal and just enjoy his place in that country.
Is it possible to rent a property in Portugal remotely?
Yes. Basically, you will have to prove the financial means to pay for the rent by presenting, for example, your income tax receipt, monthly income proof, bank statements, and criminal records.
The landlord can also request some additional documents to make sure the tenant will comply with the agreement.
Typically, landlords require two to four rent installments upfront, with the guarantee provided either through a deposit or a guarantor. However, terms can vary depending on the agreement.
What should I consider before renting a property?
Despite the growth of the real estate market lately, Portugal has many old construction buildings, so here are some important aspects to consider:
- Analyze the need for a heating or air conditioning system and double glazing (the most recent buildings already have a heating/cooling system).
- The proximity to schools, hospitals, commerce, and public transport system.
- Furniture is also an important item when renting a property. It is common to find fully furnished properties; however, most of them include only the kitchen, which is equipped with basic appliances.
By taking these small precautions, you will be able to find the perfect property for you.
How much does it cost to buy a property in Portugal?
Depending on the District, the city, and the neighborhood in which your choice is concentrated, the property price may vary.
Although Portugal is a small country, it also presents considerable variation in terms of property prices, with the most popular areas, such as Lisbon and Porto, being the most expensive.
Of course, we cannot go through all areas and all types of apartments to give you a sample of the price. On average, the cost of buying property in Portugal per square meter currently is 2,951 €/m2.
That said, here is a breakdown of the cost of property in a few of the popular cities in Portugal.
| City | Price per 100m2 |
| Lisbon | €450200 |
| Porto | €295,200 |
| Braga | €182,000 |
| Faro | €379,200 |
Price estimates are from Idealista (as of September 2025).
In addition to the property’s value, there are other types of costs that the buyer will have to bear, as will be described later.
Read Also: Quality of life in Portugal: Experience what peace feels like
What is the procedure for buying a property in Portugal?
Anyone can say that buying a property in Portugal is easy, and you will not be mistaken.
If you have the money to buy the property and bear related costs (such as bank fees, taxes, etc.), sooner or later, you will be the owner.
This is because tasks like drafting the purchase contract, registering the deed, and obtaining the necessary certificates can be handled either by the real estate agency or even by the bank.
What will not be done for them? The due diligence (legal analysis) of the property and the seller. This is the most important step in buying the property, no matter where.
The consequences of buying a property that is not “buyable” or buying it from someone who is not the real owner can be a real problem in the future.
In addition, buying a property full of debts can be a headache for the new owner. Are you willing to face the chance of being charged of an amount that has nothing to do with you?
Keep in mind that a realtor’s main goal is to sell the property, just as a bank’s goal is to lend money for the purchase. In both cases, their profit comes directly from the transaction.
On the other hand, the lawyer’s main objective is to instruct his / her client to make a good deal by analyzing all the documents to make sure that nothing bad will happen with that transaction in the future.
What is the risk of buying a property alone?
As mentioned in the previous answer, the main risk will be being misled.
You will be able to complete the purchase procedure, but you will not be sure that you will face a problem related to the property or seller in the future.
What are the bank’s requirements for real estate financing?
Bank’s requirements to concede a real estate finance can vary according to many conditions. Personally, I’ve heard many compliments to Millennium Bank for granting credit.
Below, we will mention some popular requirements when it comes to real estate financing.
- Tax Number (NIF): This is a mandatory requirement, no matter which bank you choose. Obtaining your NIF must be your first task if you plan to acquire a property.
- Residence Permit: This document proves that you legally reside in Portugal. Most banks require this document to open a credit account for the buyer. In some cases, the passport can also be used along with other documents.
- Income in Portugal: While it may sound obvious, banks need assurance that you can cover the monthly loan installments. For this reason, proof of income, whether from an employment contract, self-employment, company dividends, or similar sources, is required.
- Income outside Portugal: It may be that the buyer lives outside Portugal and wants to buy a property when they decide to move to this country, or perhaps the acquisition is an investment, as the owner will lease the place. That is why income outside Portugal will be analyzed as the most important document to prove the ability to pay the installments.
- Available funds: Along with the monthly income, the buyer must prove that they have sufficient resources to pay the installments if, for example, he/she loses their job. The more funds available, the better.
- Guarantees: Banks need to ensure repayment even in a worst-case scenario, which is why they often require safeguards such as an escrow account, a guarantor, or a mortgage on another property. For foreigners, this can be challenging since most guarantees must be based in Portugal.
- Property certificates: These are the documents that must be analyzed by lawyers. The bank will require all documents that prove that the property is ready to be sold by the seller. Obviously, the bank will not risk putting money into a transaction that may not be carried out (which would likely cause money to be lost).
- Property inspection: Finally, there is the inspection of the property. Not all banks do a property inspection to make sure it is physically according to the documents. This is a practice that should always be performed. After all, the bank is putting a lot of money into the business.
These are just some requirements that Portuguese banks usually require to finance a property.
What are bank fees for real estate financing?
I know you’ve been waiting for that question. Okay, let’s try to be as clear as possible.
Banks usually charge a fee for opening a client’s account, and these costs are also subject to tax. In addition, clients are often required to take out life insurance, which covers the loan in the event of their death during the repayment period.
It is very difficult to measure how much money you are going to spend on these types of costs, but make sure that it will probably be over 2,000€, and some costs will be within the monthly installments.
Along with these costs, we have the most important value to consider: the financing rate.
If we had to specify all the possibilities related to the financing rate, we would be here forever, so let’s get straight to the basics.
Factors such as the loan term, size of the down payment, fixed or variable interest rates, and the strength of the guarantees can all affect the financing rate.
Portugal’s financing rate is not high when compared with other European countries.
The most important rate to be aware of is the TAEG (Taxa Anual de Encargos Efetiva Global) or the Annual Effective Global Charge Rate. It represents the total cost of the loan to the client and is expressed as a percentage of the amount that is lent by the bank.
The TAEG calculation covers all costs tied to the loan, including bank fees, insurance, interest, taxes, registration fees (where applicable), and any other related charges.
Other important financial costs, such as the bank spread and the TAN, are already incorporated in the TAEG, that’s why this is the most important rate to be analyzed.
To get an idea of the TAEG costs, we did a simulation on the Compara Já Portal as follows:
We chose the acquisition of a property worth 200,000€ in which we requested a loan of 90% of its value (i.e., 180,000€) to be paid over a period of 30 years, without presenting guarantees.
Considering that we have a steady job, a monthly income of 2,500€, and monthly expenses of 1,200€, here are the most affordable results:
| Bank | TAEG | Total Cost | Installment |
|---|---|---|---|
| Santander | 1.91% | 236,948 € | 652 € |
| Bankinter | 1.91% | 236,926 € | 653 € |
| BPI | 1.96% | 238,439 € | 657 € |
| Banco CTT | 2% | 239,882 € | 661 € |
| BGD | 2% | 239,870 € | 662 € |
| Millennium | 2.05% | 241,259 € | 665 € |
| Novo Banco | 2.24% | 247,271 € | 682 € |
Of course, this is just a simulation. The more information we share with the banks, the more specific the values.
What is the tax burden for buying a property?
If you want to buy a property in Portugal, be aware that you will have to pay taxes.
Below are the taxes that are related to real estate in Portugal:
Municipal Tax related to Property Transactions (IMT): This tax is applied to any financial transaction involving the purchase or sale of real estate.
It must be addressed to the Portuguese government prior to the execution of the Deed of Purchase and Sale, and its value varies according to the type of property, location, and purpose.
The amount is calculated using this formula: the property’s value (either the market value or deed value, whichever is higher) multiplied by the state-published rate, minus the deductible portion.
Check out the simulated table for calculating the IMT, as published by the APEMIP portal:
| Property Value | IMT |
|---|---|
| 100,000 € | 152 € |
| 200,000 € | 4,913 € |
| 300,000 € | 12,040 € |
| 400,000 € | 23,240 € |
| 500,000 € | 28,040 € |
| 1,000,000 € | 60,000 € |
Stamp Tax: This Tax must also be paid to the State if the property is acquired through bank financing and corresponds to a rate of 0.8% on the value of the transaction.
This Tax is applicable in many other cases, such as opening bank credit and other financial transactions.
Municipal Property Tax (IMI): An annual tax on property ownership, with rates ranging from 0.3% to 0.8% of the property’s assessed value.
This tax rate varies from 0.3% to 0.8% and is applicable on the property’s value.
Therefore, buying a property worth 475,000€ would incur in the following costs:
- Property: 475,000€
- IMT: 26,040.60€
- Stamp Tax: 3,800€
What is the tax burden for renting a property?
For each property rent, the owner will have to pay Stamp Tax.
This amount corresponds to 10% of the monthly rent.
As noted earlier, property owners must pay the annual IMI, calculated by multiplying the government-set tax rate for that year by the property’s assessed tax value.
Also, the income obtained through leasing is taxed depending on the duration of the contract:
- Less than 2 years: 28%
- From 2 to 5 years: 26%
- From 5 to 10 years: 23%
- From 10 to 20 years: 14%
- Over 20 years: 10%
In specific situations it is possible to withhold IRS or IRC on the rents paid by the tenant and then make the adjustment in the annual Income Tax Return.
If the property is an apartment or a house located in a closed condominium, you must also include the condominium value as an expense.
Read Also: Why Americans are Choosing Portugal for Real Estate Investments
What is the quality of the properties in Portugal?
The magic answer is: It depends.
I will not lie, most properties in Portugal are old, especially those located near downtown.
It’s important to note that old doesn’t necessarily mean uninhabitable. Many older properties are in excellent condition, while others may require renovations. Only a small number are truly unfit for living.
If you leave downtown, you’ll be able to see new buildings prepared for the hot or cold weather, modern, and so on.
Let’s say you chose an old apartment to live in. These are the main concerns I would have:
- what is the energetic certificate of the place?
- how thick is the wall with the neighbors?
- can the construction material keep the winter cold away?
- how is the apartment heater? (yes, it can be really cold in the winter)
Also, a general analysis of the property by an electrician and a plumber may be in good taste.
Will I have to pay for a realtor?
The realtor will certainly charge you for their service if you use it.
Bringing the right buyer and seller together is no easy task. In addition, responsibilities like handling paperwork are often managed by real estate lawyers.
According to the real estate agency, different costs are associated with their commission.
Overall, the commission can vary between 3% and 5% of the transaction price, making it known that most companies charge the rate of 5% in Portugal.
Therefore, buying a property worth 400,000€ would generate a commission value of around 22,000€ to 25,000€.
Is the real estate in Portugal a good investment?
It can be. Buying an old apartment near the beach and doing a small renovation can increase the property’s price incredibly.
Many Portuguese, especially older generations, don’t place much emphasis on aesthetics. Yet even small updates can transform the look of an apartment and significantly boost its selling price.
Buying for renting can also be a good idea.
How much can we charge (monthly) for renting a property? The same answer to buy one. It depends.
Consider a 2 bedroom apartment, well located and in good condition, in the following cities:
- Lisbon: between 1,000€ to 1,500€
- Porto: between 700 to 1,200€
- Braga: between 500€ to 1,000€
- Faro: between 600€ to 1,100€
Is it a good investment? You have to do the math, but in general, considering the period in which the property is going to be rented, it can give you extra income with (almost) no stress.
If I decide to buy to sell a property as an investment, will I have to pay taxes?
Along with all the expenses mentioned for the purchase of the property, the sale of a property will certainly result in capital gains that, as you imagined, will be taxed.
This is a complex topic that could fill entire books just to cover the basics, which is why many law firms specialize exclusively in these situations.
But let’s try to keep it simple. Like many other countries, Portugal imposes a capital gain tax on the sale of assets in general (depending on the capital origin).
Capital gains from selling property are calculated as the difference between the sale price and the purchase price, adjusted with monetary coefficients and certain applicable charges and expenses.
Depending on whether you are a resident or not in Portugal, and also if this property is your primary residence, different tax rates will apply.
If you are a resident of Portugal:
- The gains obtained worldwide (including the sale of property or even retirement) are taxed as income.
- Any real estate gains are added to your annual income and taxed based on income tax rates, which range from 14.5% to 48%.
- Capital gains will be considered at 50% of their value, applying the general rates provided for in the IRS Code.
If you reinvest the proceeds into another primary residence in Portugal—or within the EU/EEA countries that have a tax treaty with Portugal—you may be exempt from paying capital gains tax.
The new property must be purchased between 24 months prior and 36 months after the date of sale of the property that generated the capital gain.
If you are not a resident of Portugal:
- The capital gain from the sale of real estate in Portugal is subject to a tax rate of 28% for individuals and 25% for legal entities.
This is a subject that draws a lot of attention, if you have any specific questions, please let us know.
Can I obtain Portuguese Citizenship if I buy a property in Portugal?
Not anymore. Until recently, Portugal’s Golden Visa program allowed people to qualify for residency, and eventually citizenship, by investing in real estate. But as of 2023, that option was closed. You can still apply for a Golden Visa through other types of investment (like creating jobs or supporting cultural projects), but simply buying property no longer qualifies.
So, what’s the path now?
You can still become a resident in Portugal through other visa routes, like the D7 visa (for people with passive income or pensions) or the Digital Nomad visa (for remote workers).
After living legally in Portugal for five years, you can apply for citizenship and, eventually, a Portuguese passport—whether you own property or not.
Owning a home here can make life easier, but on its own, it’s no longer a shortcut to citizenship.
How can Viv Europe assist me in this process?
We hope we helped you understand a little more about the real estate market in Portugal.
This is also why having professional assistance when buying property in Portugal can be so important.
By doing this process yourself, you will certainly get tired (of trying to find information about this procedure), and you will also run the risk of being misled.
Here are the activities that this company will provide:
- Search for properties according to the client’s requirements.
- After choosing the property, proceed with a full legal analysis of the property and the seller’s situation.
- Draw up the purchase and sale contract and deed.
- Register all documents to change the ownership of the property.
- Complementary activities such as opening NIF, bank account and accessory tasks.
Whenever you are ready, we’re only one call away – book a consultation with Viv Europe and set your application apart from the rest. Start your investment process with guidance from financial experts that align your investments with your financial goals!
Interested in getting more information about real estate and any other topic in Portugal? Join our Facebook Group – All About Portugal For Expats. Ask questions, read stories, and get to interact with over 15,000 expats who have been through the same journey as you. See you soon!
