Property for rent in Portugal
The average value of housing rent in Portugal registered a monthly variation of -0.2% in May 2020, a value 0.3 percentage points (p.p.) lower than that registered in April.
In which areas of Lisbon and Porto is it more attractive and/or profitable for owners to put their houses up for rent? A recent study, "Investir no Mercado de Arrendamento" (Investing in the Rental Market), conducted by the real estate consultant JLL, seeks to answer these and other questions.
There will be changes to the extraordinary support for rental payments from July onwards in Portugal, following a proposal presented by the Government and approved in Parliament at the end of May 2020.
The government's proposed law that extends the rental support measures that allow tenants in difficulties to use a loan to pay rent and non-residential tenants to defer rental payments has been approved in Parliament.
House rental prices per square metre (m2) rose 3.1% in April 2020 in Portugal, compared to the same period in the previous month (March).
The Minister of Infrastructure and Housing in Portugal, Pedro Nuno Santos, has revealed that the possibility of extending the period for granting loans by the Institute of Housing and Urban Rehabilitation (IHRU) is being studied.
Rental market prices, namely in Portugal's capital Lisbon, have skyrocketed in the last few years, as has been in the case for the purchase and sale of property in the city.
The initiative of António Costa's socialist government to protect the rental market from the impacts of the crisis caused by the COVID-19 pandemic is a two-faced coin. It determines, on the one hand, that landlords can benefit from interest-free loans to compensate for the lack of rent payments.
The Portuguese parliament has adopted several temporary exceptional measures in the housing field due to the coronavirus outbreak, including the suspension of evictions, the termination of house rental contracts and the foreclosure of mortgages.
The Government in Portugal has decided to suspend lease agreement deadlines and renewal periods to protect tenants in what is an exceptional period of restrictions on the movement of people, given the coronavirus outbreak in Portugal.
If you rent out a property in Portugal then be aware that there are some changes in the amount of income tax (IRS) that you will have to pay on your rental income when it is declared.
Renting out your holiday home the rest of the year while you are not using it can be an additional source of income. The Portuguese real estate sector is currently very dynamic, and demand is on the rise, often exceeding supply so that higher rents can be charged.