Rent a house in Portugal

The desire to live close to Lisbon is not just apparent in the property sales market; it is equally visible in rentals. Peripheral municipalities around the capital dominate the list of the 10 most sought-after areas for renting a home in the summer of 2025.

Lisbon consolidates its status as the most expensive place to rent in Portugal, with three central parishes occupying the top positions. The country's rental market set a new record in October 2025, with the national median reaching €17 per m2.

The Portuguese government, led by Luís Montenegro, has introduced a new category called “moderate rent”. This has attracted a lot of attention because landlords who rent homes for between €400 and €2,300 per month can get tax benefits, such as a lower income tax (IRS) rate — reduced from 25% to 10%.

Living near major urban centres, where rents are more affordable, continues to be the main focus of rental searches in Portugal.

A quick look at the rental map of Portugal reveals clear differences in prices across the country in the second quarter of 2025. The cost of renting a home ranges from a high of €22.2 per square metre (€/m²) in Lisbon to a low of €6.8/m² in Castelo Branco.

From Europe or other corners of the world to Portugal. Every year, many foreigners arrive in the country with the intention of buying or renting a home, seeking to improve their quality of life or make a profitable investment.

The Portuguese rental market experienced a slowdown in mid-2024, likely due to both a lack of available properties and new incentives for home purchases, such as lower interest rates or the IMT exemption for young buyers.

Renting a house in Portugal continues to place an increasing strain on family budgets.

Although rent in Portugal has risen by 6.5% over the past year, the rental market continues to experience high demand, which is complicated by the lack of rental properties in Portugal.