Housing and real estate in Portugal: renting, buying and the 2026 rules

What things cost: the statistics, not the listings

Property portals show asking prices; the INE publishes what was actually signed. Twelve months to March 2026:

Foreign buyers pay a third more per square metre than the local median in Lisbon and Porto — partly location, partly the premium paid for turnkey homes. A furnished, renovated flat in central Lisbon rents well above the median; 1 300–1 800 € for a decent two-bedroom is the market, not the exception.

• 2 + 2 months: deposit and advance rent, each capped at two months (Civil Code art. 1076.º)
• +2,24 % maximum rent increase in 2026, once a year
• 7,5 % IMT for a non-resident buying a home since 25 May 2026 — refundable in two cases
• 375 € for deed and registration at Casa Pronta (700 € with a mortgage)

Renting: the rules that protect you

The residential lease (contrato de arrendamento para habitação) is governed by the Civil Code and the NRAU (Lei n.º 6/2006, revised by Lei n.º 13/2019). The points to check before signing:

• Term. A fixed-term lease is at least one year (art. 1095.º n.º 2); it renews automatically for three years unless a party opposes. Shorter “temporary” leases exist for non-permanent purposes only.
• Deposit and advance. The landlord may ask at most two months of rent as deposit (caução) and at most two months paid in advance (art. 1076.º). Six months up front is not lawful, however common the demand.
• Rent increases. Once a year, by the coefficient the INE publishes — 1,0224 for 2026 — unless the contract says otherwise; about +2,56 % is expected for 2027.
• Leaving early. After a third of the term has run, the tenant may terminate with 120 days’ notice (60 days for leases under a year); to prevent renewal at the end, 90 days. The landlord who opposes renewal of a one-to-six-year lease must give 120 days’ notice.
• Registration. The landlord must register the contract with Finanças (Modelo 2) and pay stamp duty of 10 % of one month’s rent; the tenant then deducts rent in the IRS return (900 € in 2026, 1 000 € in 2027 under DL n.º 97/2026). No registration, no deduction — and a sign that the landlord is not declaring the income.
• Never pay before you have visited and signed. Fake listings with “owner abroad, send the deposit for the keys” target newcomers who search in English.

Buying: the procedure

IMT in 2026, including the non-resident rate

The transfer tax (IMT) is computed on the higher of the price and the tax value, with brackets updated by the 2026 State Budget (Lei n.º 73-A/2025). For a main and permanent home:

A second home or a home for rental follows the “other housing” scale (1 % from the first euro, same upper brackets). Buyers under 35 purchasing a first main home are exempt up to 330 539 € (the scale of art. 17.º n.º 1 b).

Since 25 May 2026, a buyer who is not a Portuguese tax resident pays a flat 7,5 % on any home, with no exemption or reduction (CIMT art. 17.º n.º 10, added by DL n.º 97/2026) — unless they were previously tax resident here. The tax is refunded on request (the difference against the normal scale) if the buyer becomes tax resident within two years of the purchase, or lets the property within six months at a moderate rent — at most 2,5 × the minimum wage, 2 300 € a month in 2026 — for at least 36 months during the first five years. The refund request is filed within six months of becoming resident or of signing the lease. Buyers domiciled in a listed tax haven pay 10 % in all cases.

Owning: IMI, AIMI, capital gains

• IMI, the annual municipal tax: 0,3 % to 0,45 % of the tax value (valor patrimonial tributário) for urban property, set by each municipality; 0,8 % for rural land. Paid in one to three instalments from May.
• AIMI, the additional tax on high-value holdings: applies above 600 000 € of aggregate tax value per person (1,2 million for a couple opting jointly) — detail on the tax pages.
• Capital gains on a later sale: half the gain is taxed at progressive rates for residents, with reinvestment relief for a main home; non-residents are taxed on the gain as well. The office’s accountants compute it before you sign.

Mortgages for newcomers

Banco de Portugal’s 2026 recommendation, applied to contracts assessed from 1 August 2026, caps loans at 90 % of the lower of price and valuation for a main home, 80 % for other purposes, a debt-service ratio of 45 %, and maturities of 40 years for borrowers up to 35, 35 years above. Those are ceilings for residents with Portuguese income; banks lend to non-residents on stricter terms, usually with a larger down payment and shorter terms, and always with a Portuguese account and NIF. A mortgage adds the bank’s valuation (a few hundred euros), the mortgage registration (the 700 € Casa Pronta fee) and, as a rule, life and home insurance.

Questions