Your Guide to Renting in Portugal and Tenants’ Rights

Renting in Portugal has become a widespread choice, particularly among expatriates and newcomers. The country has a rich array of rental properties, ranging from spacious houses to compact furnished apartments. Not to mention that, whether your preference leans towards coastal villages or dynamic city centers, Portugal caters to a diverse range of rental preferences. 

House renting is especially appealing for those seeking to immerse themselves in Portuguese life, explore various regions, or maintain flexibility before committing to property ownership. 

But one of the largest challenges for expats moving to Portugal is the process of renting a property. Crucial factors like location, budget considerations, and how much space you need all come to the forefront when renting in Portugal. 

We know that handling the intricacies of bureaucracy, understanding local regulations, and pinpointing the most suitable resources demand attention before delving into the rental process. That’s why we created a comprehensive guide that will provide you with essential insights about renting in Portugal.

Renting in Portugal

According to a report released by Eurostat, 77.8% of the population opted to buy a house in Portugal, compared to 22.2% who chose to rent in 2022. For those who can’t afford a mortgage, renting comes as a good alternative.

The Portuguese housing market offers an extensive range of properties, from traditional houses with gardens to modern apartments in urban settings. Urban settings primarily offer apartments and student lodgings, while on the periphery, in smaller towns, or amidst the countryside, house rentals are more common.

Furnishing options vary from unfurnished (sem mobília) to partially or fully furnished (mobilado), and the latter two options are usually preferred by short-term renters. While renting directly from the owner is an option, expats often find it more convenient to engage an English-speaking real estate agent to help them with the buy.

The cost of renting in Portugal

While they can vary significantly depending, rental prices in Portugal tend to be higher in major cities. In places like Lisbon, and Porto, the rise in house rents over the last five years is higher than 40%, according to data from INE.

Currently, the average rental price in Portugal is €15 per square meter, a 30% increase in comparison to July 2022. The Lisbon region registered the highest value at over €18 euros per square meter.

However, rent in Portugal is still lower than compared to other European countries, as well as the United States.

Buying versus Renting in Portugal

Renting a property in Portugal generally offers greater simplicity compared to buying real estate. Minimal paperwork and the absence of a mortgage requirement streamline the process. Moreover, properties often arrive furnished, so you can move in straight away.

For those who want to make Portugal their permanent home, buying a property should be considered. It could double as an investment, giving you supplementary income through renting. If the rent versus buy decision remains uncertain, our guide on Portugal Real Estate could provide valuable insights.

To compare living costs, consult our article on Comparing Living Costs Portugal vs USA.

Popular Places to Rent Accommodation in Portugal

Popular choices for expats are metropolitan hubs like Lisbon and Porto or the southern allure of the Algarve. Each location comes with its own advantages, and below we’ll give you a quick overview of four of the most popular areas.

The rental market in 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 between €900 and €1,800 per month for a one-bedroom apartment and between €1,400 and €3,500 per month for a three-bedroom apartment. Prices significantly increase if you choose to rent in the city center, which encompasses some of the best neighborhoods in Lisbon.

If you’re a landlord looking for a property manager, you may find our article How to Find a Property Manager in Lisbon helpful.

The rental market in 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 parallel the capital’s prices, more economical alternatives can also be unearthed in this charming locale.

The average price for a one-bedroom apartment in Porto is between €700 and €1,200 per month and between €1,000 to €2,500 per month for a three-bedroom apartment. For landlords, read our article on How to Find a Property Manager in Porto.

The rental market in 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.

Apartment rentals in this stunning northern city are more affordable than in other big cities. You’ll pay between €600 and €850 per month for a one-bedroom apartment and between €850 and €1,450 per month for a three-bedroom apartment.

The rental market in the 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 rentals or short-term rentals, but you’ll find long-term rentals for a variety of prices, too, depending on where in the Algarve you choose to rent.

On average, a one-bedroom apartment will cost between €600 and €1,500 per month, and a three-bedroom apartment will cost between €1,000 to €3,500 per month.

Types of Property to Rent in Portugal

Portugal offers a diverse array of property types to suit various preferences and lifestyles. The options are plentiful, from charming apartments in bustling city centers to quaint cottages in picturesque villages.

In general, you’ll find the property listed by the typology: the number of bedrooms. T1 means the property has one bedroom, T2 stands for two bedrooms, and so on.

It’s also worth noting that many apartments and houses are not well insulated, so winters can get cold inside. You may want to check with the landlord and ask for a heater if there isn’t one.

Portugal’s property market caters to every taste, whether seeking historical charm, contemporary comfort, or a blend of both.

Apartments

Apartment rentals are common in Portugal, but some people rent houses. Budget restraints can also lead to people renting a room instead of the whole apartment, and sharing a property with a flatmate can be a great option.

Portugal vacation rentals

As Portugal is a popular vacation destination, you’ll find lots of vacation rentals amongst property rental listings, too. Some landlords prefer vacation rentals as they can make more money from renting their property in the short term.

Student housing in Portugal

Unlike in some other European countries, on-campus accommodation is rare in Portuguese universities, and most students live in student halls close to the university or rent privately. As with flatshares, rental prices can be kept to a minimum by sharing apartments or houses with other students.

Houses

Traditional Portuguese houses, often characterized by unique architectural features, are available for rent. These may include townhouses, villas, or cottages, offering different levels of privacy and space. They’re more common in coastal areas.

Finding a Place to Rent in Portugal

With the help of the Internet, it’s easy to find apartments or other properties to rent in Portugal, but some tenants may prefer the help of an agent, especially if they’re not fluent in Portuguese.

Online portals

You’ll find a plethora of online portals on the Internet that advertise apartments, rooms, and houses to potential tenants. Websites such as Housing Anywhere or Idealista can be useful starting points in your search for accommodation. If your stay is short-term, then Airbnb could be a great option to find your ideal apartment or house. If you’re renting your property, then consult our article on Airbnb Investment.

Make sure to check local Facebook groups either, especially if you speak some Portuguese. You may find a private landlord through the social networking site.

Property agents

A property agent is invaluable when searching for a place to rent. Most agencies will take potential tenants through the whole process, from viewing the property to negotiating the rent to signing the rental contract. An additional bonus is that a property agent can help if there are any problems during your tenancy and negotiate with the landlord, especially if language is a barrier.

Agencies specialized in expat rentals

Some rental agencies cater to expats, in particular, to ensure that contracts are understood and the tenants know the process of paying a security deposit, paying a certain amount of rent upfront, and paying monthly rent and utility bills. Those agents can also help with any issues down the line and act as a go-between between landlord and tenant.

Flatshares

Flatshares are a great option for those who are on a tight budget and don’t want to rent a whole apartment or house by themselves. Flat sharing means that you’ll have your own private bedroom but share all other amenities of the apartment or house, including kitchen, living room, and bathroom.

The price you’ll pay will be a fraction of the normal rental price, but be mindful that utilities will also need to be paid unless they are included in the monthly amount.

How to Rent Property in Portugal

Renting as an expat can be a daunting experience, and in the following sections, we’ll take you step-by-step through everything you need to know before renting a property in Portugal.

Renting through a property agency

Once you have found a property that you like, you’ll need to act quickly, as the market for rentals in Portugal is very competitive. The subsequent step requires you to sign the lease agreement. It’s also really important to consider that, in order to rent in Portugal, you need a tax number, Número de Identificação Fiscal or NIF).

The NIF number is very important in Portugal, as without it, you won’t be able to open a bank account or make any business transactions. You’ll also need to submit other documents, which may include bank statements, tax returns, and evidence of current employment.

For students who are not in paid employment, a parent or guardian will have to act as a guarantor (fiador). In cases where students are not engaged in gainful employment, the involvement of a parent or guardian may be imperative to furnish the required documents.

When you have successfully completed the lease agreement, you’ll have to pay a certain amount of rent in advance (referred to as renda antecipada), which depends on the landlord. Typically it’s the equivalent of approximately three months’ rent, and this sum is a standard requirement. Additionally, landlords might request an additional financial commitment in the form of a security deposit (known as caução).

Renting directly through a private landlord

Some landlords will consider renting their properties privately, but you can expect to follow the same process as outlined above, meaning you’ll have to provide the same documents, sign contracts, and pay a deposit up-front. Be mindful that some landlords don’t speak English, which could make communication difficult, especially if there are any issues.

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 them. Please note that they must be a Portuguese citizen, working and over 18.

While a guarantor is not mandatory for the validation of a rental contract in Portugal, most landlords in the country require a guarantor. As an alternative, landlords can request that you pay a few months rent upfront (usually three) in advance. This type of rent payment replaces the guarantor in some cases and it’s called “renda antecipada”, in Portuguese.

Additional Rental Costs in Portugal

When renting in Portugal, it’s best to be aware of any additional costs you may face in addition to your rent.

Rental price (monthly rent)

Rental costs vary, depending on the typology of the property (if it’s a one or two bedroom apartment, for instance), the location (by the beach, in the city center, etc), and amenities, such as air conditioning. City locations, and especially Lisbon, are also usually more expensive than rural areas or more northern cities.

Generally speaking, the rent doesn’t include bills, for which you’ll have to pay separately. Some listings do include them, and if you prefer that, then look out for despesas incluídas in the description of the listing.

You usually pay your rent via bank transfer, although some landlords may ask for the rent in cash. If you don’t stick to the rental agreement and miss payments, you could be liable to pay the landlord financial compensation and also risk being evicted.

Rental deposit

Amongst the details of your contract, you’ll also find the rental deposit, which is usually three months’ rent upfront. You may also be required to hand over a security deposit that covers any damages that may occur during your tenancy.

Of course, if there are no issues and you fulfill all points of the contract, you’ll get both deposits back at the end of your tenancy or won’t have to pay rent for the number of months you prepaid.

Agency and administration fees

As the tenant, you’re not responsible for agency or administration fees. However, if you hire an agent to find you an apartment and help you with administration, you’ll have to pay their fees, of course.

Utility costs

As mentioned above, most of the time, tenants pay the cost of utilities such as gas, electricity, water, and the Internet themselves. It’s rare that these are included in the monthly price. Of course, this does not apply to a vacation rental. You can expect that the cost of your stay is all-inclusive.

Help with costs

Portugal offers a range of support to help with rental expenses. Individuals aged 18 to 35 can contact the Porta-65 Jovem initiative. Moreover, subsidies are accessible for retirees and the jobless. To access the latter, enrolling at the local employment center (Centro de Emprego) is a prerequisite before seeking the benefit.

Social Housing in Portugal

The management of social housing (habitação social) falls under the jurisdiction of the Instituto da Habilitação e da Reabilitação Urbana (IHRU).

Both residents and expats with permanent residency are eligible to seek rental assistance (arrendamento apoiado). This aid targets individuals and families facing substandard living conditions or limited income. An application can be completed online via the Portal da Habitação. The program tailors the rental expenses to align with the candidate’s financial capabilities.

Renting in Portugal with Pets

Renting with pets in Portugal is a feasible option by law, but it’s important to be aware of certain considerations and navigate the process with care.

Currently, the maximum number of pets allowed in a flat can’t exceed three adult dogs or four adult cats and, in no case, four animals. There can be exceptions to this, for instance, if authorized by a municipal veterinarian or by a health decree, which can allow a maximum of 6 adult animals.

While there is a growing awareness of pet-friendly housing, not all landlords or property managers are open to tenants with pets. It’s advisable to specifically search for properties that explicitly state they are pet-friendly.

As a responsible pet owner, ensure that you maintain a clean and well-behaved environment. This not only fosters a positive relationship with the landlord but also contributes to a harmonious living situation with neighbors.

Tenancy Contracts in Portugal

When renting in Portugal, you’ll come across fixed-term (contrato com prazo certo) and open-ended contracts (contrato por duração indeterminada). The majority of tenancy agreements tend to span at least a year.

You should find the following details in a standard contract:

• Names and identification of all involved parties
• The rental property’s address
• The rental amount and due date
• Duration of contract

Once the contract is signed, both the landlord and tenant should keep a copy for future reference.

Tenant rights and obligations

In Portugal, rental contracts automatically renew unless terminated by either party. Tenants must provide a minimum of two months’ notice prior to vacating a property. While modifications to fixtures are generally permitted, it’s advisable to review the contract or consult the owner. In the event of property damage, the landlord can retain the deposit upon lease completion.

Subletting (subarrendar) is typically prohibited unless stipulated in the contract, necessitating landlord permission. Moreover, per Decree-Law no. 47344 article 1062, sub-tenants cannot be charged more than 20 percent of the original contract amount.

Landlord rights and obligations

Most landlords will give two months’ notice before terminating a contract. Occasionally, landlords have to provide a reason for terminating the contract, for example, that they need to renovate it or need to live in the property themselves.

If a tenant falls behind on rent for three months, landlords will send them a written notification that the rent is overdue. If this is ineffective, then the eviction procedure  (procedimento especial de despejo) can be initiated via the Balcão Nacional do Arrendamento.

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 who rent in Lisbon can also get help from Centro de Apoio do Novo Regime de Arrendamento Urbano (NRAU).

Portuguese law also protects and guides both parties involved if there are problems. Law no. 13/2019 lists actions that can be implemented in case of a dispute to ensure that anyone in a vulnerable situation is protected. Should you need a lawyer but can’t afford one, legal aid can be called upon through Social Security.

Utilities and Telecommunications in Portugal

As mentioned before, utilities are usually not included in your rent unless you’re in a vacation rental. You can assume that all vacation rentals are inclusive of utilities, including WiFi.

If you’re renting short or long-term in Portugal, you’re responsible to cover the costs of all utilities. You should be told if the landlord already has agreements with providers, and if so, then all you have to do is request an ownership change (mudança de titularidade). If there are no prior agreements, you’ll have to set up the providers yourself.

Generally, one company can provide gas and electricity, and a separate one provides water. If you also need to set up an Internet and TV connection, we’d recommend that you compare offers and pricing of various providers before being locked into a contract.

Moving in and Moving out of Portugal

Once the contract has been signed and you’ve settled the deposit, you can move into your new place at a date agreed upon by both parties. We’d recommend that you contact the utility providers in time, as it can take a few days for everything to switch over.

If you’r renting a furnished apartment, your landlord may provide you with an inventory. Make sure you check this and note down any discrepancies or damages upon your arrival and flag those to the landlord or the agency.

If you want to move out before the agreement is over, contact the letting agent or landlord as soon as you can. You should expect to give at least two months’ notice. Once your leaving date has been agreed upon, your landlord or the agency will arrange a viewing of the property to inspect it for its condition. If there are no discrepancies or damages, you can expect your damage deposit back in full.

Renting out Your Home in Portugal

Renting out your house in Portugal can be a lucrative option for generating income. Consider using online platforms to advertise and manage bookings. Furnishing the property and providing essential amenities can enhance its appeal. It may be worth enlisting the help of a property manager unless you’re familiar with handling bookings, rental agreements, tenants, and any issues yourself.

If you mainly rent to tourists, you have to pay a tourist tax, a charge you can pass on to the tourists. If you’re letting your property to long-term tenants, you’re responsible for the following:

• If you hire an agent to handle business for you, you need to pay an agency fee – this is usually one to two months’ rent
• You’re responsible for stamp duty (imposto de selo) – which is usually 10 percent of the rent value
• There’s also Municipal Property Tax (IMI) to pay. This is between 0.3 percent and 0.8 percent of the value of the tax asset and has to be paid annually.
• You also have to pay tax on rental income. This is between 10 percent to 28 percent, depending on the duration of the contract.

Tips for Renters in Portugal

To ensure that your experience as a tenant in Portugal is a positive one, we have some important tips for you to consider:

• Ensure you view the property and sign a contract before making any payments.
• Ask for an inventory. If the landlord doesn’t offer one, take photos when you move in, in case there are disputes in the future.
• If you believe there are repairs that should be made before you move in, liaise with the landlord before signing the contract.
• Clarify any contract-included fees with the landlord.
• Check smoking and pet policies before signing and negotiating if necessary.
• Ask to be shown the fusebox and any quirks the apartment may hold so you don’t get caught out.
• As soon as you move in, take note of meter readings for utilities so you don’t overpay on bills.

Frequently Asked Questions about Renting in Portugal