Renting out property in Portugal: landlord guide

Costs of buying

• Property transfer tax (IMT) is charged on a sliding scale, rising to 6% on homes that are not your own residence, and 7.5% on the most expensive homes.
• Stamp duty is 0.8% of the price, plus notary and registry fees.
• IMI property tax is charged every year at 0.3–0.45% of the tax value of urban property; holdings above €600,000 also pay AIMI.

Buying as a foreigner

• There are no restrictions on foreigners buying property; you need a Portuguese tax number (NIF).
• Buying property no longer qualifies for a golden visa (since October 2023).
• Non-residents outside the EU and EEA usually appoint a tax representative in Portugal.

Official guidance: Portuguese Tax Authority (Portal das Finanças) · ePortugal: public services

How rental income is taxed

• Net rental income is taxed at a flat 25%, for residents and non-residents alike. Residents can choose to add it to their other income instead.
• Long leases are taxed at lower rates, falling as the contract length grows.
• Leases must be registered with the tax authority, and rent receipts issued through the Portal das Finanças.
• Annual returns (IRS) are filed between 1 April and 30 June.

Expenses claimable against rental income

• IMI and AIMI, condominium fees, insurance, repairs and maintenance, and energy certificate costs.
• Loan interest and depreciation are not claimable against rental income in Portugal.

Tenancy rules

• Deposits are limited to two months' rent.
• Rent can rise once a year by at most the government's yearly coefficient, unless the lease says otherwise.
• Short-term holiday lets need a local accommodation (AL) registration, and some areas limit new ones.

Key dates

• 1 April to 30 June: Annual income tax return (IRS)
• May (or May, August, November): IMI property tax, in one to three instalments
• Each time rent is received: Issue the electronic rent receipt

Questions landlords ask

What is a good rental yield in Portugal?

Gross yields of 4–6% are common for long-term lets in Lisbon and Porto. Check the net figure, after the 25% tax and condominium fees, in the rental yield calculator for Portugal.

How is rent taxed in Portugal for non-residents?

At a flat 25% of net rent, the same as for residents, with lower rates for long leases. Loan interest is not claimable.

Can I get a golden visa by buying property in Portugal?

No. Property purchases stopped qualifying for the golden visa in October 2023.

Which expenses can I claim against rental income in Portugal?

IMI and AIMI, condominium fees, insurance, repairs and maintenance. Loan interest and depreciation are not claimable.

Official sources

• Portuguese Tax Authority (Portal das Finanças)
• Diário da República (laws, including the rent coefficient)
• ePortugal: public services