Are you moving to Portugal, but are not ready to commit yet? Renting property in Portugal offers better financial flexibility, no mortgage debt, and no local property taxes. Portuguese laws are tenant-friendly, and foreigners can rent in Portugal without any restrictions.
Renting in Portugal is fairly flexible when it comes to rental types. You can choose between short-term (vacation rental or non-tourist temporary rental) and long-term rental properties, all of which cater to different budgets.
However, Portugal’s rental market is tight in major cities such as Lisbon and Porto, which can make it confusing for expats to find a place to rent. Here are the average rental prices for 2026, what to expect, and what to avoid.
Renting in Portugal: Key Takeaways
Can foreigners rent long-term in Portugal?
Just like citizens, foreigners can rent property in Portugal for short- or long-term stays without any restrictions. Whether you plan to visit Portugal as a digital nomad, move there on a residence visa, or don’t have a Portugal residence permit at all, you can become a landlord and lease real estate or rent property as a tenant.
Simply put, renting in Portugal is freely available to any foreigner, regardless of where they come from, because Portugal has an open rental market.
To rent a property in Portugal as a foreigner, you need a Portuguese tax number (NIF), which is necessary for all fiscal activities, such as signing long-term rental contracts, getting a phone contract, opening a Portuguese bank account, starting a business, or working in Portugal.
You will be able to find rental options for short-term tenants who are interested in renting in Portugal for three months or even a month. Renting an apartment in a city center is the most common choice for expats seeking accommodation in Portugal, particularly in vibrant cities like Lisbon or Porto, famous for its port wine.
These apartments are often one-bedroom (T1) or four-bedroom (T4), most of which come with a fully-equipped kitchen, living room, and one or multiple bathrooms. Many expat rentals are furnished, especially those for students or short-term stays. However, it is not uncommon to find unfurnished properties in Portugal, as they are often the most practical option for long-term rentals.
For those who prefer more floor space and increased privacy, renting a house in Portugal is also an option – especially if you explore the outer areas and suburbs. Villas and country houses are less commonly available for long-term rent and are more often found as short-term or holiday rentals. This is due to their higher cost and greater demand among property buyers.
How much does renting in Portugal cost in 2026?
Rental prices in Portugal have been increasing in the last couple of years, mainly in Lisbon, Porto, and the Algarve.
According to Portugal’s National Statistics Institute (INE), the median house rental value for new lease agreements was €9.46 per square meter in Q1 2026. This data shows a 9.1% year on year growth (YoY) than the same time last year. In other words, the median rent for a 70 m² apartment in Portugal would be around €662 per month.
The highest median house rental values were recorded in Greater Lisbon (€14.38 /m2), Madeira (€11.97 /m2), Setúbal Peninsula (€11.35 /m2), the Algarve (€10.71 /m2), and the Porto Metropolitan Area (€10.13 /m2).
However, the actual prices for monthly rentals in Portugal are different for each location and property type.
Here is the average rent in Portugal in 2026 for major cities and towns:
| City/town | Monthly rent for a 1-bedroom apartment | Monthly rent for 3-bedroom apartment |
|---|---|---|
| Lisbon | €1,085–€1,446 | €1,696–€2,595 |
| Porto | €859–€1,146 | €1,485–€2,048 |
| Faro | €795–€912 | €1,340–€1,550 |
| Cascais | €1,015–€1,565 | €2,297–€3,442 |
| Coimbra | €572–€777 | €919–€1,337 |
| Funchal | €1,098–€1,335 | €1,754–€2,231 |
Source: Numbeo (July, 2026)
The Legal Framework: NRAU and Your Rental Contract
The Portuguese legal framework is designed to balance the rights and responsibilities of both tenants and landlords. Although landlords and tenants can create many terms of a lease, the rental laws are the ones that define the clear rules, such as how long a contract lasts, the notice periods, and rent increases. They are the ones that give you better stability and reduce the risk of disputes.
To understand the legal framework, it is important to comply with Portugal’s New Urban Lease Regime (Novo Regime do Arrendamento Urbano – NRAU) and the Portuguese Civil Code. Here is everything you need to know before you start renting in Portugal.
Duration of residential leases
Portugal’s rental market has two types of residential leases: Fixed-term and indefinite-duration leases.
Fixed-term residential leases
Fixed-term residential leases are residential tenancy agreements between the landlord and the tenant. Under Article 1095 of the Portuguese Civil Code (Código Civil), the initial lease term must be at least one year and no more than 30 years.
These limits do not apply to temporary rentals, such as those for work assignments, study, internships, or other short-term stays. Unless the contract states otherwise, fixed-term leases renew automatically, often for the same period as the original lease.
Both the tenant and the landlord can cancel the automatic renewal. For landlords, the statutory notice periods are:
- 240 days for a 6+ year lease
- 120 days for a 1-to-6-year lease
- 60 days for a 6-month lease to 1 year
- One-third of the contractual term for less than a 6-month lease
For a tenant to prevent an automatic renewal, the notice periods are:
- 120 days for a 6+ year lease
- 90 days for a 1-to-6-year lease
- 60 days for a 6-month lease to 1 year
- One-third of the contract term for leases less than 6 months
Tip: If the landlord has already notified opposition to renew the contract, the tenant could terminate the lease at any point before the end date by providing a 30-day notice.
Indefinite-duration residential leases
The tenant or the landlord can sign a rental contract in Portugal for an indefinite duration. Under Article 1100 of the Civil Code, this type of rental contract offers tenants housing stability and strong protection.
After living in the rental property for 6 months, tenants can terminate the lease at any time, provided they give a:
- 60-day notice for leases under 1 year
- 120-day notice for leases of 1+ years
Compared to tenants, landlords have very limited rights to terminate an indefinite-term residential lease. Portuguese law allows for a landlord to legally terminate this type of contract only in these examples:
- They or their child need the property as their permanent home.
- The property must be demolished or undergo major structural renovations that make it impossible for the tenant to remain there.
- They choose to end the lease without giving a reason, but must provide the tenant with at least 5 years’ written notice.
In all other cases, a landlord cannot end an indefinite-term residential lease on their own. If they do so without a legal reason, the termination may be considered invalid.
Tip: A notice remains legally valid in Portugal even if the recipient refuses delivery or it was received by someone other than the intended recipient at the correct legal address.
Rent increases in Portugal
In Portugal, a rental contract (Contrato de Arrendamento) can have its own rules for rental increases. If it does not, the landlord uses the annual rent update coefficient (coeficiente de atualização anual de renda) published by Statistics Portugal (INE), as long as at least a year has passed since the lease began or from the last rent adjustment.
The coefficient is calculated with the Consumer Price Index (Índice de Preços no Consumidor – IPC). In 2026, the coefficient is 1.0224 (2.24%). With limits such as these, landlords cannot charge extremely high rents to existing tenants.
Special transitional arrangements are still in place for leases that were signed before 1990 that have not been converted to the NRAU. In these particular cases, rent increases require a formal process for the landlord to initiate, and tenants may challenge the increase if they are from low-income households.
Deposits and Advance Rent: What Landlords Can Legally Ask
Under Portuguese law (Article 1076 of the Civil Code), there is a major difference between a security deposit (caução) and advance rent (renda antecipada).
Historically capped by the Mais Habitação package of 2023, the rules are expected to change in 2026, with the Proposta de Lei. These proposed changes are only a draft bill, not a law yet.
They were approved by the Council of Ministers on 9 July 2026 and will proceed to parliament for final approval. Until they are officially published in the Diário da República, the strict caps from the 2023 Mais Habitação package remain fully in force.
Here is what landlords can legally require when it comes to upfront payments.
Security deposit (caução)
The security deposit is a sum held by the landlord for the duration of the lease. Its sole purpose is to serve as a guarantee against property damage (beyond normal wear and tear), unpaid utility bills, or outstanding rent at the end of the tenancy.
- Maximum amount: The parties may agree on a security deposit of up to the total value of two months’ rent.
- Protection: Unlike other European countries, Portugal does not have a centralized government deposit-protection scheme. Landlords hold the deposit directly.
- Return policy: If there is no damage or debt, the landlord must return the deposit. Since there is no strict statutory deadline for this return, in most cases, a 30-day period is standard in Portuguese contracts.
Advance rent (renda antecipada)
Advance rent is simply paying for specific months of your lease ahead of time. As a tenant, you often pay the first month or the very last month of your contract, so you don’t pay rent during your final weeks of renting the property.
- The legal limit: Landlords can ask for a maximum of 2 months’ advance rent. The proposed 2026 reform seeks to raise the maximum cap on advance rent to 3 months.
- How it works: If you pay 3 months of advance rent when you sign the contract, those funds are legally allocated to specific lease periods (e.g., your first month of occupancy plus your final two months).
Contract Registration and Rent Receipts
Are you a landlord looking to rent out your property in Portugal? Registering a new rental contract in Portugal is quite a straightforward process, but it is legally mandatory. As a landlord, you need to register the lease agreement on the Portal das Finanças within 30 days of signing the contract with your tenant.
Doing so will trigger a one-time tax called the Stamp Duty (Imposto do Selo), which is equal to 10% of one month’s rent. You would pay the Stamp Duty tax to the Portuguese Tax Authority (Autoridade Tributária – AT).
After you register the new rental contract, each month, you must issue an official electronic rent receipt through the Portal das Finanças.
Tip: Although property buyers have to pay the Municipal Property Tax (IMT) every time they purchase a property in Portugal, IMT does not apply to rentals. So, tenants and landlords can cross that particular tax off their list.
Finding a Place to Rent in Portugal
The renting process might seem daunting, especially if it’s your first time looking for a rental. Where do you start, and what do you need? Thankfully, there are plenty of resources to help you find the right spot, whether you’re aiming for a city apartment or a countryside house. You have several options, whether working with a local real estate agent or using online property portals to rent privately through the property owner.
Property finder
For expats unfamiliar with Portugal’s diverse regions, hiring a property finder can be a game-changer. These professionals offer local insights and hands-on assistance, streamlining your rental search and helping you avoid costly mistakes. They filter through listings on your behalf, narrowing it down to quality homes that suit your budget—saving you both time and frustration. More importantly, they serve as a frontline defense against fraudulent listings and rental scams.
Our recommendations are BE Global Properties and Goldcrest Portugal Real Estate.
Real estate agent
It’s also a good idea to check the rental listings of a local or national property agency. They will have verified properties available, and it’s often much easier to go through the process as many agents speak English. However, when you find a property you are interested in, act quickly, as the rental market can be very competitive. Some of the most popular real estate agencies in Portugal are:
- ReMax
- Century21 Property Agency
- ERA Imobiliária
- Engel & Völkers
- Fine & Country
- Goldcrest buyer’s agents
Online platforms
A good resource for finding rentals in Portugal is by searching the many online platforms. Portugal has plenty of websites dedicated to finding your perfect home, and everything is usually taken care of online. However, as with anything online, you must exercise caution and verify the authenticity of the listing and advertiser when possible. Many real estate agents also list their rentals on these online platforms.
Here are some reliable sites to start your search for a place to rent in Portugal:
- Idealista
- Imovirtual
- iad Portugal
- Spotahome
- Custojusto
- Kyero
- Airbnb
- Casa Sapo
Steps for Renting Property in Portugal
With the right information, renting as an expat in Portugal will help you navigate the process smoothly. Here’s a step-by-step guide to help you understand what to expect when renting a property
Real estate agency
After you’ve found a property you like and are ready to move on to the next step, the real estate agent will present you with a rental agreement to sign.
Before signing the agreement, ensure you have a tax identification number in Portugal, as this number is crucial for various transactions, including opening a bank account.
After signing the lease agreement, you’ll typically need to pay an advance on the rent, which is usually around three months’ rent. Also, landlords may require a security deposit, an extra financial commitment.
Required documents
As long as you compile all the necessary documents, renting in Portugal should be a straightforward process. These documents can include:
- Valid ID such as a residency card or passport
- NIF (Número de Identificação Fiscal)
- Proof of income
- Proof of employment
- Portuguese bank account details, if requested
- Guarantor, if requested
Renting directly through a private landlord
If you rent directly from a private landlord in Portugal, you’ll follow a similar process. You’ll still need to provide the same documents, sign the agreement, and pay a deposit upfront. Be aware that some landlords may not speak English, which could complicate communication, especially if issues arise.
Do I need a guarantor for renting in Portugal?
Also known as “fiador” in Portuguese, a guarantor is a person who legally assumes responsibility for your rent payment in case you’re unable to pay it. Please note that they must be tax residents in Portugal with a valid NIF (Portuguese tax number) and have a stable income verified by a Portuguese IRS tax return.
While a guarantor is not mandatory for the validation of a lease contract, most landlords require one. As an alternative, landlords can request that you pay a few months’ rent upfront as a form of rental deposit.
This type of rent payment replaces the guarantor in some cases, and it’s called “Renda antecipada” in Portuguese.
Tenant Rights and Landlord Obligations in Portugal
Tenant rights
In Portugal, rental contracts automatically renew unless terminated by either party. Tenants cannot vacate a property on a whim; they must provide the landlord with a notice:
- To stop the contract from automatically renewing (Oposição à renovação): For standard contracts that last between 1 and 6 years, you need to give at least 90 days’ notice before the end date. If the contract is under 1 year, the notice drops to 60 days.
- To break the contract early (Denúncia antecipada): If you want to walk away midway through the lease, you can do so after one-third (1/3) of the contract duration has passed. You must provide the landlord with 120 days’ notice if the lease is 1 year or longer, or 60 days’ notice if the lease is under 1 year.
If you damage the property, the landlord has the right to retain the security deposit (caução) upon lease completion to cover repairs.
That being said, subletting (subarrendar) is often prohibited unless the contract explicitly allows it. If authorized, Article 1062 of the Portuguese Civil Code states that tenants cannot charge sub-tenants more than 20% above the original rent paid to the landlord.
Landlord obligations and evictions
Landlords cannot end a contract early without strict legal grounds. To oppose the automatic renewal of a standard lease (lasting 1 to 6 years), landlords must provide at least 120 days’ advance notice. They can only terminate a contract midway through if they intend to use the property for their own permanent residence or need to conduct deep structural renovations.
Under the proposed 2026 rental reforms, the rules for late rent payments could become stricter. If the bill is passed into law, landlords can initiate lease termination after two months of unpaid rent (reduced from the previous three-month rule). If the tenant ignores the warning letters, the landlord can initiate the streamlined special eviction procedure (Procedimento Especial de Despejo) through the Balcão Nacional do Arrendamento (BNA).
Where to go in the event of a dispute?
In the rare event that there should be an issue between tenants and landlords, help is at hand. The Associação dos Inquilinos e Condóminos do Norte de Portugal can give guidance and advice if there is a dispute. Those renting in Lisbon can also get help from Centro de Apoio do Novo Regime de Arrendamento Urbano (NRAU).
On that note, Portuguese law protects tenants who are facing hardships, such as low-income earners, people with disabilities, or tenants over 65 years old. Under Law no. 13/2019, specific protections exist to prevent the eviction of vulnerable individuals. If you need legal representation but cannot afford a lawyer, you can apply for state-funded legal aid (Apoio Judiciário) through Social Security.
Rental Support: Porta 65 and Social Housing
The “Porta 65-Jovem” is an incentive program for renting in Portugal, active since 2007. Any young person between 18 and 35 years old may apply. In the case of a couple, one person may be up to 37 years old, provided that the other person is no older than 35 years old.
The support consists of paying part of the monthly house rent and may be granted to couples, young people living alone, or those sharing a house in Portugal.
Unlike in the past, when applications only opened during brief, specific windows throughout the year, you can now apply for Porta 65-Jovem at any time of the year via the official housing portal. The application itself is free.
Popular Places to Rent Accommodation in Portugal
Popular choices for expats to find houses are metropolitan hubs like Lisbon and Porto or the southern allure of the Algarve. Each location has its advantages, and below, we’ll give you a quick overview of four of the most popular areas to rent in Portugal.
Lisbon
One of the cities emerging as a haven for digital nomads and expats, Lisbon is quickly transforming into a magnet for those seeking a Portuguese haven. Portugal’s capital city seamlessly merges coastal proximity and culture. However, it stands as one of Portugal’s pricier regions.
Expect to pay an average rent of €1,085–€1,446 per month for a one-bedroom apartment and between €1,696–€2,595 per month on average for a three-bedroom apartment.
Prices significantly increase if you rent in the city center, which encompasses some of the best neighborhoods in Lisbon.
Porto
The cradle of the famous Port wine, this scenic city is also a hub of artistic energy. Amidst vineyards and cellars, Porto boasts captivating tiled architecture and districts adorned with art boutiques and galleries.
While some apartments’ prices are comparable to those in the capital, more economical alternatives can also be found in this charming locale for those looking to rent in Portugal.
The average rent for a one-bedroom apartment in Porto is between €859–€1,146 per month and between €1,485–€2,048 per month for a three-bedroom apartment.
Braga
Braga is a captivating city in northern Portugal that marries ancient heritage with youthful energy.
Its historic charm, vibrant culture, and religious landmarks make it a unique and alluring destination for expats looking to rent in Portugal.
Apartment rentals in this stunning northern city are more affordable than in other big cities. You’ll pay between €654–€818 per month for a one-bedroom apartment and between €987–€1,306 average rent per month for a three-bedroom apartment.
Algarve
The Algarve, Portugal’s southern gem, is enchanted with its golden beaches, rugged cliffs, and warm Mediterranean climate. It’s a sought-after haven for relaxation, outdoor adventures, and picturesque coastal beauty.
Many apartment rentals in the Algarve are vacation or short-term, but you’ll find long-term rentals for various prices, depending on where in the Algarve you choose to rent.
The average rent for a one-bedroom apartment in Faro is between €795–€912 per month, and for a three-bedroom apartment, it is between €1,340–€1,550 per month.
Buying Versus Renting in Portugal
Renting a property in Portugal often offers a simpler, more flexible alternative to buying. The renting process involves minimal paperwork and no mortgage hassle, and many properties come fully furnished, allowing for immediate move-in. This is ideal for those looking to experience Portugal without long-term commitment or for digital nomads and short-term visitors who need a hassle-free setup.
On the other hand, buying property in Portugal can be a great choice if you’re considering making it your permanent home or looking for a solid investment opportunity. Owning real estate can offer stability and potential rental income, making it a valuable asset if you plan to stay long-term or leverage it as part of your investment portfolio.
Renting Out Your Property in Portugal
Renting out your property in Portugal can be a lucrative way to generate income. Before you start, ensure you’re licensed for renting in Portugal. Using online platforms can help you advertise and manage bookings efficiently. Consider furnishing and providing essential amenities to enhance your property’s appeal. If you’re uncomfortable managing bookings, rental agreements, tenant issues, or housing permits, hiring an agent might be a good idea.
For those renting in Portugal, whether short-term to tourists or long-term to residents, here’s what you need to know:
- Agency Fee: If you hire an agent to manage your property, expect to pay an agency fee, usually one to two months’ rent.
- Stamp Duty: You’ll need to pay Stamp Duty (imposto de selo), typically around 10 percent of the total rental value. So, if the monthly rent is €1,000, the Stamp Duty tax is €100.
- Municipal Property Tax (IMI): This tax ranges from 0.3% to 0.45% for urban properties and 0.8% for rural properties, based on the assessed value, and is due annually.
- Rental Income Tax: You must also pay tax on your rental income, which varies between 10% and 28% depending on the duration of the rental contract. Since Decree-Law 97/2026, any qualifying residential lease at or below €2,300/month gets a flat 10% rate on the Personal Income Tax (IRS), regardless of contract duration.
- Property license: If you rent out a property as a short-term tourist rental, you need an Alojamento Local (AL) license. For long-term rentals, you don’t need a specific rental license, but the property itself must have a habitation license (licença de utilização).
The average rent may be higher for properties in expensive areas. Considering these costs can help you better manage your rental property and ensure you stay on top of your financial obligations. Being informed will make the process smoother whether you’re dealing with rental income or the average rent in Portugal.
Renting in Portugal with Pets
Renting in Portugal with pets is feasible but requires some extra steps. The law limits pets to three dogs or four cats, with a maximum of four animals. A municipal veterinarian or health decree can make exceptions.
Finding a pet-friendly property can be tricky, as not all landlords or agencies are open to pets. Look specifically for listings that mention they are pet-friendly, as most agencies might not highlight these options.
Due to demand, the average rent for pet-friendly places will be higher. Check for properties within your budget, and be aware that some might have additional costs.
Keep your living space clean and well-behaved to maintain a good relationship with your landlord. Understanding your tenant rights will also help make your rental experience smoother.
Navigating renting with pets in Portugal can be manageable with careful searching, ensuring you and your pets find a suitable home within the average rent range.
Tips for Renters in Portugal
To ensure a smooth and positive experience as a tenant in Portugal, keep these essential tips in mind:
- View the property: Always visit the property and sign the rental contract before making any payments. This helps you understand all terms and see if the property meets your expectations.
- Request an inventory: Ask the landlord for an inventory list. If one isn’t provided, take detailed photos of the property when you move in. This can help resolve disputes and protect your deposit.
- Address repairs: If repairs are needed before you move in, discuss these with the landlord before signing the rental contract. Ensuring everything is in good condition will make your stay more comfortable.
- Clarify fees: Make sure to clarify any additional fees included in the contract with the landlord. Understanding these will help you manage your budget and avoid surprises.
- Check policies: Before finalizing the contract, confirm the smoking and pet policies. If necessary, negotiate these terms to fit your needs and avoid any misunderstandings later on.
- Learn the layout: Ask the landlord to show you the fuse box and any quirks of the property. This knowledge will help you handle any issues more efficiently.
- Record utilities: As soon as you move in, record the utility meter readings. This will ensure you’re only charged for your own usage and prevent overpayment.
By keeping these tips in mind, you’ll navigate renting in Portugal more smoothly and enjoy a hassle-free living experience.
How Can We Help You Find Your Dream Property?
Goldcrest Real Estate is the first buyer’s agent in Portugal, providing you with a tailor-made service to find your ideal property in Portugal. From sourcing to acquisition and aftercare, Goldcrest guides you throughout the buying process.
Here's how Goldcrest stands out in making your property dreams come true:
LOCAL KNOWLEDGE: Goldcrest has offices throughout Portugal, ensuring a strong presence from the mainland to the Azores and Madeira.
INDEPENDENT SERVICE: Goldcrest don’t represent any specific development or project, ensuring their advice remains impartial. By objectively analyzing every opportunity, Goldcrest focuses on maximizing your investment prospects. They partner with various agents, sellers, promoters, and developers, ensuring a broad spectrum of property options. The goal is straightforward: To help you find the best property at the most favorable price, whether you're buying or renting.
STREAMLINED PROCESS: Goldcrest provides a dedicated real estate consultant paired with a top-notch client management system for smooth information exchange. With the aid of advanced technology, like metasearch tools, they guarantee expansive market coverage. Goldcrest's viewing itineraries are tailored to your needs, and they're always ready to assist, be it in-person or on your behalf. When it comes to pricing, they use data-driven analysis to ensure you get the best deal. And, to make your journey smoother, Goldcrest assigns a dedicated onboarding account manager for every client.
ALL-ENCOMPASSING SOLUTION: Navigating financial aspects? Goldcrest is here to guide you through finance options and manage the required documentation. If you need property management solutions or connections to builders, architects, designers, and gardeners, they have you covered. Relocating? Their concierge services are designed to assist in everything, from securing accommodations to handling utility connections.
TRANSPARENCY AND PRIVACY: Goldcrest operates with a commitment to GDPR compliance, ensuring your data is protected. Expect a clear and detailed pricing model without any hidden surprises. Plus, they provide independent due diligence services to ensure every decision you make is informed.
