Real estate is one of the most popular investments for expats in Portugal. Whether you’re looking for a home, a holiday rental, or a long-term investment, understanding the Portuguese property market is crucial.
Why Portugal’s Property Market Appeals to Expats
Property prices in Portugal remain considerably lower than in Northern Europe, yet the country offers excellent weather, culture, and EU access. Lisbon and Porto have seen steady appreciation, while rural areas offer affordable entry points and strong rental yields.
The Costs of Buying Property
Beyond the purchase price, factor in:
- IMT (Property Transfer Tax) – 0.8–8%
- Notary fees – typically 0.8%
- Registration fees – 0.5%
- Lawyer fees – 0.5–1%
- Ongoing annual property tax (IMI) – up to 0.8% of property value
Rental Income and Tax
Rental income is subject to Portuguese income tax at rates from 14.5% to 48%. You can deduct expenses including mortgage interest, maintenance, insurance, and property management fees.
Capital Gains
Your primary residence typically qualifies for a capital gains exemption. Investment properties face capital gains tax at rates up to 28%.
Our team can help you understand the tax implications of your property investment and structure it efficiently.
Contact us
if you want to know more about how we can help, speak to a member of our team today.
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