Our Guide on Renting or Buying a Home in Portugal

Jump right in:

• Renting a House or Apartment
• Renting as a Foreigner
• Short-Term Rentals
• Rental Process and Rules
• Buying Property as a Foreigner
• Short-Term Rentals
• Utilities
• Internet and Mobile Phones

Renting a house or apartment

In this section, you can find the average rent in different parts of Portugal as well as some basic terminology that’ll help you while you’re house hunting.

What is the average rent in Portugal?

On average, housing in Portugal costs around 16.7 EUR (approx. 20 USD) per m2 in rent per month.

Rent prices will vary greatly depending on the part of the country in which you choose to live and the type of housing you need. Cities closer to the coast will typically be more expensive than the inland east side of the country. Lisbon and Porto top the list for the most expensive cities in the country.

When it comes to monthly rent prices, these are the most and least expensive districts in Portugal, with amounts shown per square meter:

Furnished or unfurnished homes

You’ll find both furnished and unfurnished accommodation in Portugal. An apartamento mobilado is a furnished rental. This usually means the accommodation has all the essential furniture such as beds, couches, and dressers, and might even include some decor.

Unfurnished apartments will typically have a functional kitchen, with a stove, oven, and cupboards, and a fully functional bathroom.

Know the terminology for apartments

The terminology used is T0, T1, T2, T3, and so on — the numbers correspond to the number of bedrooms. For example, a T1 is an apartment with one bedroom, a kitchen, a bathroom, and a living room. A T0 is a studio apartment. If you see a +1 next to the number, such as a T3+1, this means there is an extra room that is not formally classified as a bedroom, often used as an office or storage room.

Renting as a foreigner

Renting in Portugal should not be a problem for foreigners. However, you might experience some difficulty communicating with potential landlords when viewing a house. Some older generations may not speak any language other than Portuguese.

In general though, you’ll experience the same struggles as nationals when it comes to finding affordable housing and securing a place. In cities like Porto or Lisbon, rentals are likely to be taken off the market within one or two days of having been advertised.

What are the required documents for renting?

You’ll need the following documents when signing a rental contract in Portugal:

• valid ID or passport • Portuguese tax identification number (NIF) • proof of income, such as recent paystubs, bank statements, or a tax return

If you cannot provide a paystub or tax return, you may be asked for a guarantor. They will need to provide the same documents.

As a tenant, you can request the following documents from your landlord:

• caderneta predial (land register) • licença de habitação (habitation certificate, a license that guarantees the building can be inhabited) • energy certificate

Rental contract and deposit

The most common rental contracts, or contratos de arrendamento, are one-year contracts, two years, and even up to six years. Contracts longer than six years are also possible, but less common. The maximum period established by law for a rental contract is 30 years.

Some contracts may last less than one year, but these are increasingly uncommon. Rental contracts must clearly state the agreed duration. Renewals are typically based on what is written in the agreement.

Your rental contract should have the following information:

• personal details of both parties such as name, date of birth, nationality, and marital status • exact location of the rental property • number and date of the licença de habitação (habitation license) • rules and conditions established between tenant and landlord

You are typically asked for a deposit equal to one or two months’ rent in advance.

Rental process and rules

As for some rules you can expect as a tenant in Portugal, here are the things to know:

• Having a written contract is mandatory — verbal contracts are not legally recognized. • Your landlord may forbid you from subletting the rental. • Your landlord can review and update the rent once a year, in accordance with legal limits set by the government. • Your landlord does not have the right to enter your home without permission. That being said, you can report them if they enter or have entered the property using their own key. • Your landlord is obligated to register the rental contract with Portal das Finanças, the official website of the Portuguese tax authorities. • You may deduct rental expenses on your taxes if your NIF is associated with your rental address and your receipts are properly issued. • If you plan on renting with a pet or adopting one in the meantime, make sure to state that and include a clause in your contract that allows you to do so, so you do not run into issues later on. • If your rental contract is longer than six months, you may terminate it after completing one third of the contract period, provided you give 120 days’ notice if the contract is one year or longer, or 60 days’ notice if it's shorter than one year.

Utility bill payments

When renting in Portugal, the most common practice is for tenants to pay their own utility bills. In these cases, you would need a contract with each utility company under your own name and a bank account for payment through direct debit. However, it is also not uncommon for utility costs to be included in the monthly rent, especially if your contract is short-term. This can be advantageous for tenants, since it means they would not need to draw up utility contracts.

For the case of water, it is usually possible to register the service online, by mail, or in person, by presenting your rental contract, ID, and tax number. On the other hand, this monthly cost tends to be a fixed amount added to your rent, instead of the actual expenses. That means you cannot account for utility costs if you need to reduce your spending, and you may be paying this expense when going on vacation or abroad. As always, if you opt for a rental with utility bills included in the rental price, make sure to ask for invoices of such expenses, even if just to estimate what your rent should be with utilities included.

Short-term rentals

If you need a short-term or vacation rental when you first arrive in Portugal, you will not have any difficulty finding a variety of options. You can find a vacation rental for almost anywhere in the country on popular accommodation websites.

You will not need any documents for short-term rentals besides your ID or passport. As for average costs, a vacation rental can (1) range between 50 and 200 EUR (approx. 60–230 USD) per night, depending on factors such as location, season, type of accommodation, and amenities.

Local accommodation, such as apartments and holiday homes, usually ranges between 50 and 150 EUR (approx. 60–175 USD) per night, but in tourist hotspots or during high season, prices can easily exceed 200 EUR (approx. 230 USD).

Hotels also vary widely: three-star hotels often charge between 50 and 100 EUR (approx. 60–120 USD) per night, while luxury hotels may charge over 200 or even 300 EUR (approx. 230–350 USD) per night. Hostels are a more affordable option, typically costing between 15 and 30 EUR (approx. 17–35 USD) per night, depending on the city and season.

Buying property as a foreigner

If you want to know how to buy a house or property in Portugal as a foreigner, you can find everything you need here. In this section, we cover average house prices, types of properties you can buy, requirements for property purchase, and more.

House prices in Portugal

Houses in Portugal cost an average of 2,898 EUR per m² (approx. 3,400 USD per m²).

The capital once again tops the list of the most expensive districts in the country for homes. Houses in Lisbon cost around 4,407 EUR per m² (approx. 5,150 USD per m²).

Below is a list of property prices in different regions of Portugal, with amounts shown per square meter:

What types of property can you buy in Portugal?

Buying a home in Portugal will mostly depend on your needs and the extent of your household. You’ll be able to find both houses and apartments of all sizes.

• Apartment sizes in Portugal range from studios to five-bedrooms or more. • A moradia or casa is a typical detached home. This may or may not include surrounding outdoor areas such as a patio, front or backyard. Most homes in Portugal are surrounded by a wall with a front gate which can range from knee-high to eye-level or higher. • Casa geminada is a semi-detached home — two symmetrical houses that share one wall. • Quintas are typical Portuguese farms or rustic houses. These can be found in more inland areas of the country, although you may be able to find some in suburban areas. • Condomínios or condos are individual apartment buildings with shared common areas. These are usually safer than regular apartment complexes and you can expect better maintenance, since these are quite costly. • Terreno stands for land. If you wish to build your own home, make sure the property is registered for habitation purposes and not agricultural. You can only build on agricultural land under very specific conditions. Check with the city hall (Câmara Municipal).

Process and steps for buying a house in Portugal

If you have not yet begun your search for a new home, you can start doing so with real estate agencies or websites. Once you have found a place that suits you, and the house viewing was a success, you can begin the process of buying a home in Portugal.

1. Try to negotiate the price of the property. Usually, you will have some room for negotiation, so not negotiating could be a waste of money.
2. Make a down payment to reserve the property — this usually corresponds to at least 10% of the property's total value.
3. Signing a contrato-promessa de compra e venda (CPCV) is advisable. This document is not mandatory but it offers some guarantee on both parties while you wait to sign a deed (e.g, while waiting for the mortgage to be approved, for the construction to be finished, or for the property to obtain all the necessary licensing).
4. Sign and notarize the property deed (escritura).
5. Take out a loan with a bank if you can’t pay upfront. To take out a mortgage, you are typically asked for proof of residence, proof of income (e.g, your last paychecks or bank statements), documents related to current financial obligations (e.g., rent, mortgage, debts, etc.), and details about the property such as promise of a contract or the deed.

What documents do you need?

When signing a binding sales contract, which needs to be witnessed by a notary, you will typically need the following documents:

• energy certificate of the property • ficha técnica da habitação (property information sheet) • infrastructure certificate • payment of the stamp, Imposto de Selo • caderneta predial (land register) • Valid ID and Portuguese tax number (NIF) • Contrato-Promessa de Compra e Venda (CPCV) • licença de utilização (habitation license, if applicable)

Buying a house in exchange for permanent residence

Thinking of buying a house in Portugal to get a visa or citizenship? To obtain the Portuguese Golden Visa through real estate investment, the minimum required amount is 500,000 EUR. This amount can be reduced to 400,000 EUR if the property is located in a low-density area. There is also the option to invest 350,000 EUR in properties over 30 years old or located in urban rehabilitation zones, including renovation work. After five years, you can apply for permanent residence or citizenship in Portugal. You must spend at least 7 days per year in Portugal during the first year and 14 days in subsequent two-year periods.

Utilities

Know all about utility companies in Portugal and how to set up your utilities. You will need to sign a contract with each company, usually for the duration of your rental contract.

Things to know about utilities in Portugal

In Portugal, both electricity and gas are used as a source of energy throughout the country. The use of natural gas is mainly for cooking and heating your home during winter. In some municipalities, you can find piped natural gas, especially in urban areas, but in many rural zones, gas supply is usually bottled.

In many historic centers, natural gas is not always available due to infrastructure limitations. This is often related to structural constraints rather than safety concerns.

Electricity and gas companies

The main electricity and gas suppliers in Portugal are:

• EDP • Galp • Endesa • Iberdrola

These companies operate in a free market, which means they can set their own prices and you are free to switch between suppliers if you wish to.

Portugal’s water supplier

Water in Portugal is provided by regional or municipal companies, many of which belong to the public group Águas de Portugal. The company has several regional offices such as Águas do Norte or Águas do Centro Litora l which have several offices operating at the city level.

If you need to set up water in your home, you can usually do it online, by phone, or in person depending on the region. You will need a rental contract of the place where you intend to set up water, or the property deed (escritura) in case you own the property, as well as your valid ID or proof of residence in the country.

Required documents

You will typically need:

• ID or passport • tax number • bank account number (IBAN) for direct debits • rental contract • details about the property that pertain to each utility: o CPE (código de ponto de entrega) for electricity — this number can be provided by the electricity company once you tell them your address o CUI (código universal de instalação) for natural gas — this number can be provided by the company that distributes gas in your area o water meter number and current count

Internet and mobile phones

Find out how to get connected in the country¬. In this section, we explain how to get an internet and a cell phone contract in Portugal, including how to get a SIM card and Portuguese phone number, and how to set up cable TV.

How to get internet and TV in Portugal

Setting up an internet connection, TV, and landline in Portugal is fairly easy. You just need to call a service provider and can have everything installed in a matter of days. You will find decent coverage for fiber optic internet throughout most of the country, which means fast internet connection almost anywhere.

You can surf each company’s website to learn about their deals. Most have packages with internet, TV, landline, and cell phone with mobile data. You can also call them directly to get more information on each product and negotiate a better deal.

Popular cell phone and internet providers

Some of the most popular companies that provide communication services are:

• Vodafone • NOS • MEO • NOWO

These companies provide internet, TV, and a landline phone for 30 to 50 EUR (approx. 35–60 USD) a month. If you want to include one or more mobile phones in your plan, you would pay approximately 10 to 20 EUR (approx. 15–25USD more for every cell phone you add.

How to get a SIM card and phone number

You can get a SIM card and a Portuguese phone number with any of the companies mentioned above. Your cell phone plan can be included in your television and internet pack. If you choose to go with a separate provider for your cell phone plan, you will need to compare specific cell phone plans with the biggest providers.

To get a Portuguese phone number, you can connect to a service provider of your choice online, and request your SIM card through their website. This can be delivered to your home free of charge within a week.

For this, you will have to provide some information about yourself such as your name, address, NIF, and email.

Television in Portugal

Cable TV in Portugal gives you access to hundreds of channels. The most popular channels are Portuguese, broadcasting mostly Portuguese soap operas, daily shows, and news. However, international channels are found in most, if not all, TV plans.

You will be happy to know the Portuguese do not dub foreign movies or TV shows, opting for subtitles instead. This means you can watch a number of shows in English or their original language even on Portuguese channels. If you want to watch your home country’s TV in Portugal, you can always opt for a TV plan with more channels, and maybe personalized to your liking, though this option will be more expensive.