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One of the biggest questions people face before relocating is whether they should buy or rent property in Portugal. The right choice depends on your goals, lifestyle, and long-term plans. And if you’re applying for a visa, understanding the requirements becomes even more important.
In this guide, we break down both options clearly so you can decide what makes the most sense for your move to Portugal.
The Portuguese Real Estate Market Overview
Anyone looking for accommodation in Portugal—whether to live or to invest—should know that property prices have been rising steadily. Demand from international buyers seeking residency, lifestyle benefits, or investment opportunities continues to exceed the available supply.
Over the last five years, property prices have increased by roughly 35–40% nationwide, with some high-demand areas like Lisbon, Porto, and the Algarve showing even stronger growth. This makes the market very attractive for investors searching for solid returns, but more challenging for newcomers looking to rent long term.
Government initiatives such as the NHR (Non-Habitual Resident) program and the Golden Visa helped fuel this growth by attracting higher-income expats, remote professionals, and retirees seeking tax advantages, residency options, and overall quality of life—including access to Portugal’s public healthcare system.
Visa Proof of Accommodation
For your visa application, you must provide proof of accommodation, which is typically either a 12-month rental agreement or a property deed in your name. This proof is required twice during your relocation process: first at the consulate, to approve your visa, and later at AIMA, when converting your visa into a residence card.
While some consulates may accept short-term accommodation, most prefer something more solid—usually a 12-month lease that covers the entire initial period of your relocation.
For expats who already know Portugal well and have a clear idea of where they want to live, buying a property in Portugal before moving can be a good option. It may save a full year of rental expenses and can make it easier to move your belongings.
However, for those who have never been to the country or are uncertain about the best area to live, renting in Portugal first is usually the safer choice. It gives you time to explore Portugal, understand the lifestyle in different regions, and make a more confident long-term decision.
When Should You Rent Property in Portugal Before Moving?
If you’re new to Portugal and unsure where to live
Renting is the smartest choice when you’re still discovering the country. It gives you time to explore different cities and neighborhoods without pressure. Portugal isn’t a large country, so during your first 12 months you can easily travel, compare regions, and find the place that truly fits your lifestyle before making a long-term decision.
If you need flexibility during your first months
A rental offers a smoother transition, allowing you to settle in, understand local routines, and get used to the cost of living. Portuguese rental law also gives tenants flexibility: although a standard lease is 12 months, you can legally end it after 7 months (4 months minimum stay plus a 90-day notice period). This makes it easier to move to another property or a different area if your needs change.
If you want to avoid upfront costs
Renting first can help you manage your finances while you study the property market. Although you may need to pay rent in advance and a security deposit, buying a property in Portugal requires significantly higher upfront costs. Portugal property taxes such as IMT and stamp duty can reach around 8% of the purchase price, making renting a more affordable starting point until you’re ready to commit to a long-term investment.
If your career involves relocations and mobility
If you’re moving to Portugal for work but your role may change locations—either within the country or abroad—renting is usually the safest option. It keeps you flexible in case your company transfers you to another city or if new career opportunities require you to relocate again. This way, you avoid the commitment of owning a property before knowing how stable your work situation will be.
Get In Touch With a Portugal Property Specialist
Portugal Residency Advisors® has assisted numerous international investors in successfully investing in Portugal. Discover how our trusted, all-in-one solution makes your investment journey smart and simple.
When You Should Buy Property in Portugal Before Moving?
When you already know the area where you want to live
If you’re familiar with the region and confident about your long-term plans, buying can be more cost-effective than renting. Many foreigners identify great opportunities even before moving to Portugal—either during scouting trips or through trusted local agents. In a competitive market, good timing can make a big difference and help you secure a property with strong value.
When you prefer to invest rather than pay rent
Purchasing a home allows you to build equity, benefit from potential market appreciation, and avoid paying rent year after year. For buyers who need financing, Portugal’s mortgage market doesn’t discriminate between local and international applicants. Foreign investors often receive competitive terms, making ownership an attractive alternative to long-term renting.
When you want to personalize your living space
For many people, the ability to customize their home is one of the main reasons to buy rather than rent. Owning a property gives you the freedom to design the space to fit your needs and lifestyle. In addition, construction quality in the country varies widely, and this becomes especially noticeable during the colder Portuguese winter months. Features commonly missing in rental homes—such as central heating or air conditioning—lead many expats to prefer buying so they can upgrade the property to their own comfort standards.
How to Find Property for Sale or Rent in Portugal?
Finding a property to rent or buy in Portugal remotely—especially without local assistance—can be challenging. Language barriers, different legal rules, and unfamiliar market practices all add complexity. Still, it’s completely possible when you know where to look. Here are the two main ways to search for property in Portugal:
Search Online Platforms
Portugal has a well-developed real estate market with several online portals where you can browse listings, register for alerts, and receive notifications when new properties that match your criteria appear. Some listings are managed by real estate agencies, while others are posted directly by owners—who may not always speak English fluently, making communication and negotiations more difficult.
Examples of real estate portals in Portugal includes Idealista, Imovirtual or Casa Sapo.
Local Real Estate Agencies
Working with a local agency to find your accommodation can make the process easier, especially if you’re still abroad. However, it’s important to understand that most Portuguese agencies work for the seller or landlord, not the buyer.
They operate on a commission structure, meaning they earn more when the property sells or rents at a higher value. Because of this, some agents may prioritize showing foreign clients the properties that bring them the highest commission rather than the ones that best meet the client’s needs.
Examples of real estate agencies in Portugal includes Sotheby’s, Engel & Volkers, Remax, etc.
Work With a Portuguese Buyer’s Agent
A Portuguese buyer’s agent represents only the buyer or tenant, providing a fully independent service. They have access to the entire market—regardless of the listing agency or property owner—and their role is to protect your interests, not the seller’s.
For expats relocating to Portugal, a buyer’s agent is often the most valuable partner. They help you understand the market, arrange viewings, negotiate prices, verify documentation, and avoid common pitfalls that newcomers may not notice.
Why Choose To Work With Us
Local Expertise
We know Portugal. Due to our extensive local knowledge, we believe that concentrating our services in a single country destination is the best way to give you the most thorough and useful information.
Holistic Approach
We offer a streamline communication channel for the entire process, delivering a comprehensive service that encompasses all facets of your real estate investment journey, including property search, negotiation, legal matters, due diligence, and property management.
Independent Service
As an independent buying agent, we have the flexibility to collaborate with any agent, seller, promoter, or developer, providing you access to all available options in the real estate market. This enables us to objectively analyze every opportunity and find the right property for you at the best price, free from complications.
Simple Process
Technology plays a significant role in our company, allowing us to provide you detailed property market information and minimize our clients’ involvement in paperwork. As customers ourselves, we understand how to best serve your needs.
Frequently Asked Questions
Is it better to buy or rent property?
The decision depends on your financial situation and long-term plans. Buying can offer equity-building and stability, while renting provides flexibility.
What are the advantages of buying property in Portugal?
Benefits include equity building, potential for investment, and leaving assets for future generations. It can also be a more permanent housing solution.
How can I find available properties for sale or rent in Portugal?
Online platforms like Idealista and local real estate agencies are popular options for property search.
What are the rental market trends in Lisbon and Porto?
Rental prices in Lisbon have been rising, making it more expensive than Porto. Porto offers more affordable rental options.
Is it worth buying property in Portugal?
Investing in property in Portugal presents an excellent opportunity, whether you seek a vacation residence, retirement home, or rental investment. Notably, short-term property rentals in Portugal’s tourist and university towns have shown impressive profitability.
Is it cheap to buy a house in Portugal?
Compared to many Western European countries, buying a house in Portugal is generally considered affordable. The cost of housing can vary significantly depending on the location within Portugal, with major cities like Lisbon and Porto having higher property prices compared to rural areas.
Is Portugal a tax haven?
Portugal is not typically considered a traditional tax haven like some other countries known for offering extremely low tax rates and financial secrecy. However, Portugal does offer certain tax benefits and incentives to attract foreign investors and residents such as NHR regime.
What is the average salary in Portugal?
In 2022, the average monthly salary for employed workers with Social Security-declared earnings was €1,269.34.
How much is house tax in Portugal?
The yearly municipal property tax (IMI) is levied at rates varying from 0.3% to 0.8% for urban properties and 0.8% for rural properties. Furthermore, a stamp duty of 0.8% is applied to any property transaction or transfer.
Is it hard to buy a house in Portugal?
For foreigners, the process of purchasing property in Portugal is generally uncomplicated. In terms of required documents, you will need the following: Your NIF number (Portuguese tax identification number) and a Portuguese bank account.
How long does it take to buy a house in Portugal?
In Portugal, the legal procedures and paperwork typically require approximately up to two months to complete, depending on the specific residential property and the associated legal requirements.
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