Rent a house in Portugal

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.