Portugal's housing market is hot — the fastest-rising prices in years, and foreigners pay more than locals on average. Here's the market in official numbers, and every tax you'll pay on a purchase.
Figures verified 2 July 2026| Area | Median price €/m² (Q4 2025) | ≈ USD/m²* | A 120 m² home |
|---|---|---|---|
| Portugal (national) | €2,198 | $2,510 | ~€264,000 |
| Lisbon (city) | €5,198 | $5,930 | ~€624,000 |
| Porto metro area | €2,455 | $2,800 | ~€295,000 |
| Algarve | €3,295 | $3,760 | ~€395,000 |
*At €1 = $1.14 (1 July 2026). Source: INE local housing price statistics, Q4 2025.
The trend matters as much as the level: INE's house price index rose 18.9% year-on-year in Q4 2025 (17.6% average across 2025). Waiting has been expensive.
| Tax | What it is | 2026 numbers |
|---|---|---|
| IMT | Transfer tax, paid by the buyer at purchase | Progressive. For a primary residence, 0% up to €106,346, then marginal rates rising to 8% in the mid-brackets; ~7.5% single rate on homes above ~€1.16M. Second homes pay slightly higher scales. |
| Stamp duty | On the deed | 0.8% of the price (plus 0.6% on mortgages over 5 years) |
| IMI | Annual property tax | 0.3–0.45% of the taxable value (VPT) for urban property — the VPT is usually well below market price |
| AIMI | Wealth surcharge | On residential VPT above €600,000 per person (€1.2M per couple electing jointly): 0.7% to €1M, 1% to €2M, 1.5% above |
Rule of thumb: budget roughly 7–8% of the purchase price for taxes, notary, registration, and legal fees on a mid-range second home — less for a primary residence in the lower IMT bands.
Almost everyone who's done this well rented for a year before buying. Median rents on new leases (Q1 2026, INE): €9.46/m² nationally, €17.42 in Lisbon city, €10.13 in the Porto metro area, €10.71 in the Algarve. A 90 m² apartment at the national median runs about €851/month. Expect landlords to ask for a Portuguese guarantor or several months upfront if you have no Portuguese income history — negotiable, but plan for it. Long-term (12-month) contracts also strengthen your visa file.
CPCV promissory contract, due diligence, the escritura, and where buyers get burned.
Guarantors, upfront payments, contract types, and your rights under Portuguese tenancy law.
Loan-to-value realities, age limits that matter to over-55 borrowers, and current rates.