Portugal real estate market — prices, rental yield and trend

• Average price: $2,430 / m²
• Gross rental yield: 5.26%
• 12-month price change (USD): 13.19%
• Net rental yield: 4.73%
• Transaction cost: 11.2%
• Bubble-risk band: high
• Price basis: national average

Portugal is one of the faster-moving markets Glopra tracks: the average residential square metre now costs $2,430, +13.2% in dollar terms over the last twelve months. That makes it the 207th most expensive of the 264 markets in the set.

What a buyer pays in Portugal

The $2,430 figure is a national average across all residential property types, which flattens a wide spread — the capital typically runs far above it and small towns far below. Buying costs — transfer tax or stamp duty, notary, registration and agency — come to about 11.2% of the price here. On a 100 m² apartment at the average price that is roughly $27,216 on top of the $243,000 purchase price. That is above the 9.5% median across the set — the entry cost is part of the investment case here. Of that, the transfer tax alone is 1–8% depending on the buyer and the property; the rest is notary, registration and agency fees. Inside Portugal we track 21 local markets separately: Lisbon at $5,931 (144.1% above the national figure) down to Braga (city) at $2,354.

What it earns

A square metre lets for about $10.7 a month. Against a purchase price of $2,430 per square metre that is 5.3% gross, before tax. Both figures come from the same source and the same period, so you can check the arithmetic yourself. It ranks 129th of 311 markets by gross yield. Rental income is taxed at 10–25% — the rate is not a single number here. That is the difference between 4% and 4.7% net on the same property. The 4.7% net figure we publish uses 10%. On the way out there is a third tax: a non-resident seller pays 6.3–24% on the gain, depending on how long the property was held and who is selling.

How the tax works. 10% under the reduced rate for long-term residential lets (EBF art. 45-C, Decree-Law 97/2026, in force from 1 January 2026 to the end of 2029), which applies only while the rent is at or below €2,300 a month; above that threshold the standard 25% non-resident rate applies (CIRS art. 72). There is no flat expense allowance, so the statutory rate is the effective rate. The 10–25% band reflects that threshold, and the reduced rate has not yet been confirmed for non-residents by a tax-authority circular. Source: diariodarepublica.pt.

Where the price sits against its own history

Prices are +69.5% over five years and +185.4% over ten in local terms. Today’s level sits 45.4% above the country’s own long-run trend. A gap that size does not have to close, but it is the number to watch. Glopra’s bubble-risk score for Portugal is 84 out of 100 — high risk. Of the 65 markets scored, 3 read higher. It combines the deviation from trend, price-to-income and the pace of recent growth — a warning light, not a forecast.

Portugal house price index, 2016–2026 (2016 = 100)

Rebased to 100 in 2016, the index stands at 271.6 in 2026. The series is in local currency, and the twelve-month numbers above show how much of that a dollar buyer actually keeps.

Who can buy in Portugal

Freehold, no restrictions. That is the rule a foreign buyer meets first, not legal advice — check the current position locally before you commit.

How this figure is built

The price figure for Portugal is built from recorded transaction prices. It was last refreshed on 2026-10-22. We rate our confidence in this market’s data high: the underlying series is official and current. We recompute every market the same way; a figure that fails our checks is suppressed, not guessed.

Sources: idealista.pt · ec.europa.eu · globalpropertyguide.com. Snapshot: 2026-10-22.