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 ~€1.15M. 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.
INE medians, the 17.8% index, and the Algarve town by town — with USD conversions.
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