Finding Housing in Portugal: A Guide for Newcomers

Portugal is not only a country with a mild climate, friendly people, and rich culture, but also a place where finding housing can be a real challenge, especially for those who have just moved. The real estate market here is diverse, and to make your search easier, it’s important to understand the local specifics in advance.

Housing Typology: What Do T0, T1, and T2 Mean?

Before diving into the details, it’s helpful to understand what T0, T1, T2, etc., mean, as the system of classifying housing by type and number of rooms in Portugal may differ from what you’re familiar with in your home country. Here’s what these designations indicate:

• T0 — Studio: A single room combining the bedroom, living room, and kitchen. Usually a compact option suitable for one person.
• T1 — One-bedroom apartment: One bedroom plus a separate living room and kitchen (or a combined kitchen-living room).
• T2 — Two-bedroom apartment: Two bedrooms plus a living room and kitchen.
• T3, T4, and above — Three, four, or more bedrooms. These options are typically designed for families or larger groups.

Additional Designations

• T1+1: This refers to an apartment with one bedroom plus an additional room that can be used as a bedroom, office, or storage, but it is not officially classified as a full room.
• Kitchen and living room as separate spaces: In Portugal, kitchens and living rooms are often considered additional rooms. Their presence is assumed by default in the typology but is not included in the bedroom count.

Housing Quality and Features

• In Portugal, you can find both modern buildings with high standards of insulation and equipment, as well as older homes that may lack conveniences like heating.
• If you’re looking for furnished housing, this needs to be confirmed separately, as most long-term rental properties are rented unfurnished.

Types of Housing in Portugal

Portugal offers a variety of housing options for expats. Here are the main ones:

Short-term Rentals
This type of housing is ideal for the first weeks or months while you are getting settled. For example, you can rent apartments through platforms like Airbnb or Booking. These options are convenient if you want to avoid bureaucracy at the beginning. However, short-term rentals are usually more expensive than long-term ones.

Tips:

• Always confirm the availability of all necessary amenities.
• Check reviews about the owner.

Long-term Rentals

If you plan to stay for a long time, this is a more economical option. Long-term rentals involve monthly payments, a deposit (usually 1–2 months), and an official contract.

Keep in mind that in Portugal, housing is often rented unfurnished, so be prepared for additional furnishing costs.

Property Purchase

Buying property is suitable for those planning a long-term stay in Portugal. The process includes obtaining a tax identification number (NIF), signing a contract with a notary, and arranging a mortgage (if needed). This can be a good investment, particularly in tourist regions.

Apartments, Houses, and Studios

In Portugal, apartments are popular, especially in major cities like Lisbon and Porto. If you prefer a quieter environment, small houses or studios in the suburbs are worth considering.

Main Steps for Finding Housing

Budget Planning

Before starting your search, it’s essential to decide how much you are willing to spend on rent or a purchase. Consider not only the cost of the housing itself but also additional expenses. Beyond utilities and a security deposit, make sure to budget for:

• Transportation: Public transportation costs (in Lisbon, for example, a monthly pass costs around €40–50) or car expenses (fuel, insurance, parking).
• Food: Food and dining expenses can vary significantly depending on the region and your habits. On average, a monthly food budget is €200–300 per person.
• Internet and mobile services: Communication services in Portugal are relatively affordable. Home internet costs €25–40 per month, and mobile plans range from €10–20.
• Other daily expenses: Clothing, entertainment, sports, and healthcare (if your insurance doesn’t cover everything).

Planning these expenses will not only help you manage your personal budget wisely but also play a role when renting long-term housing. Landlords often require proof of your financial reliability, so in addition to your income, they may also consider your regular expenses. For instance, if your expenses exceed 30–40% of your monthly income, this might affect the landlord’s decision to rent to you.

Choosing the Right Neighborhood

Choosing the right neighborhood is key to comfortable living in Portugal. Each region and city has its own characteristics that can significantly impact your lifestyle.

Climate Features by Region

• Northern Portugal (Porto, Braga, Guimarães): Cooler and rainier, especially in winter. Temperatures rarely drop below 5 °C, but rain is frequent.
• Central Portugal (Lisbon, Cascais, Sintra): Mild climate with warm winters (10–15 °C) and sunny, not overly hot summers due to the Atlantic Ocean.
• Southern Portugal (Algarve): The warmest and driest area of the country. Summers can be hot (up to 35 °C), and winters are mild. A great location for sun lovers.
• Mountainous Areas (Serra da Estrela): Cold winters and snowy peaks are rare for Portugal but do occur here.

Ethnic Diversity and Cultural Atmosphere

• Lisbon: A cosmopolitan city with many expats from Brazil, Africa, and Europe. It’s easy to find international communities here.
• Porto: A city with a more traditional Portuguese atmosphere, though the number of expats is steadily growing.
• Algarve: Popular among British, German, and French expats. There are many English-speaking communities here.
• Small towns and villages: Predominantly home to native Portuguese, offering an immersive local cultural experience.

Job Market

• Lisbon and Porto: Major economic hubs with opportunities in technology, tourism, education, and services.
• Algarve: Ideal for work in tourism, hotels, and restaurants, though the job market is seasonal.
• Small towns: It’s harder to find high-paying jobs, but the cost of living is lower.

Where Should You Live?

• For Young People:
  If you enjoy an active lifestyle, nightlife, and career opportunities, Lisbon and Porto are excellent options. In Lisbon, neighborhoods like Bairro Alto and Santos are known for their nightlife, while Parque das Nações is great for professionals.
• For Families with Children:
  Peaceful suburbs with good infrastructure and schools are ideal. For example, Cascais and Sintra near Lisbon offer access to nature, beaches, and excellent schools. Algarve is also popular among families for its warm climate and safety.
• For Retirees:
  Algarve is perfect for those seeking a warm climate, tranquility, and well-developed infrastructure for seniors. The town of Lagos is known for its medical services and relaxed atmosphere. Small villages in central Portugal are also suitable for those seeking seclusion.

Examples of Popular Neighborhoods

• Lisbon:
  • Bairro Alto: Nightlife, bars, and restaurants.
  • Alfama: Historic streets, Fado music, unique architecture.
  • Parque das Nações: Modernity, offices, and airport access.
• Porto:
  • Ribeira: Historic center with a tourist vibe.
  • Boavista: Business district with modern buildings.
• Algarve:
  • Faro: Administrative center with an airport and all amenities.
  • Lagos: Beaches, tranquility, and popularity among British retirees.
• Small Towns:
  • Coimbra: A university hub, perfect for students.
  • Aveiro: A romantic city with canals, peaceful and picturesque.

What to Consider:

• Availability of public transportation.
• Proximity to supermarkets, pharmacies, schools, and hospitals.
• Neighborhood safety.

Choosing a neighborhood is a crucial step when relocating, and it should be based on your needs, habits, and lifestyle. Regardless of your preferences, you’re sure to find a place in Portugal that feels like home.

Creating a List of Requirements: Priorities and Market Realities

The housing market in Portugal is becoming increasingly competitive, especially in large cities like Lisbon, Porto, and the expat-favored Algarve region. High demand means that good housing at a reasonable price gets rented very quickly. To increase your chances and avoid unnecessary stress, it’s essential to prioritize and clearly define your requirements in advance.

Step 1: Prioritize What Truly Matters

Before you start your search, make a list of requirements and divide them into three categories:

• Essential (must-haves):
  These are things you cannot compromise on:
  • Size and number of rooms: Is a studio sufficient, or do you need one or two bedrooms if you have a family?
  • Proximity to work or school: Is being close to the office or university essential?
  • Transportation access: Are there metro, buses, or trains nearby?
  • Safety of the neighborhood: Especially important for families with children or older people.
  • Rent cost: Does it fit your budget?
• Desirable (nice-to-haves):
  These factors improve quality of life but are not critical:
  • Furnished housing: Saves time and money on setup, especially if you’ve just moved.
  • Balcony, terrace, or access to open spaces.
  • Modern renovations and amenities: Air conditioning, good insulation (important in winter).
  • Parking or garage availability if you own a car.
  • Proximity to shops, cafes, or fitness centers.
• Extras (luxury items):
  These are pleasant bonuses but won’t be dealbreakers:
  • Ocean or city views.
  • Swimming pool or garden.
  • Prestige of the area.
  • Proximity to parks and green spaces.

Step 2: Research the Housing Market

The rental market in Portugal can be unpredictable. For instance, in Lisbon and Algarve, demand far exceeds supply, so be ready to compromise. Understand in advance which of your wishes may be unavailable or very expensive. For example, fully furnished apartments or central city housing will be significantly more expensive.

Step 3: Prepare for Quick Decisions

In a competitive environment, you may need to decide immediately after viewing a property. If you have clearly defined priorities, it will help you avoid doubts and make quick decisions.

Step 4: Be Flexible

Sometimes reality doesn’t match expectations, so be prepared to compromise. For example, if you find suitable housing in a neighboring area with slightly worse transportation access but otherwise meets your needs, it’s worth considering.

Short-term Rentals: What to Choose for the First Stay?

Popular Platforms

For short-term rentals, you can use websites like Airbnb, Booking, Uniplaces, or HomeAway. These services offer a wide range of options that can be rented within just a few days.

Tips for Choosing

• Always check reviews: Reviews from previous tenants will help you understand how accurately the listed conditions match reality.
• Compare prices: On platforms like Airbnb, the cost of renting for a month is often significantly lower than booking a property on a daily basis. For example, a monthly rental might cost only 10–20% more than a two-week stay. This is because landlords often offer discounts for long-term bookings.
• Pay attention to offers: Sometimes, the platform may automatically split your booking into two different periods, offering two separate properties under one reservation. This can be inconvenient, especially if you plan to stay in one place. Always read the booking details carefully and ask the host if you have any doubts.
• Check cancellation policies: In case your plans change, verify whether refunds are possible. This is particularly important for long-term bookings.

Long-term Rentals: How to Prepare?

The long-term rental market in Portugal is one of the most competitive, especially in major cities like Lisbon, Porto, and the tourist region of Algarve. High demand is driven by an influx of expats, tourists, and students, as well as a limited housing supply. To find a suitable option, it’s important to be prepared for certain challenges and specific features of this market.

Required Documents and Conditions

To sign a long-term rental agreement, you will need to provide:

• Tax Identification Number (NIF): A mandatory document for any legal transactions in Portugal.
• Proof of income: This is typically a bank statement showing regular deposits or a letter from your employer.
• Passport or residence permit: A document verifying your identity.
• Guarantor: Some landlords require a guarantor, especially if you don’t have a stable income in Portugal.

Financial Terms of Rental

In Portugal, the standard requirement is a security deposit equal to two months’ rent. However, recently, landlords are increasingly requesting much higher amounts. This might include:

• A deposit for 3, 4, or even 6 months in advance.
• In some cases, landlords may ask for a full year’s rent as prepayment.

Key Point: Such amounts are often treated as a deposit, not prepayment, meaning the money is returned only at the end of the lease if the landlord determines that the property has been left in perfect condition. Deposit refunds are not always guaranteed, especially if the contract includes vague terms.

Regulations and Landlord Influence

Although the rental market in Portugal is regulated by law, many terms depend on the landlord. Decisions by landlords are often subjective:

• Non-mathematical selection: Even if your income meets the requirements, the landlord might choose another tenant based on personal impressions or preferences. For example, families may be favored over groups of friends.
• Challenges for foreigners: If you’ve just arrived and cannot prove a stable income in Portugal, landlords might refuse or request a larger deposit.

How to Improve Your Chances?

1. Prepare your documents in advance: Have all the necessary paperwork ready. This shows your organization and seriousness.
2. Be flexible: Given the high demand, be prepared to consider options not only in city centers but also in suburban areas.
3. Present yourself as reliable: During personal meetings with the landlord, it’s important to make a good impression as a responsible tenant.
4. Be ready to negotiate: Sometimes you can negotiate lower deposit requirements if you demonstrate your financial reliability and serious intentions.

Popular Platforms for Searching

For long-term rentals, use trusted platforms such as:

• Idealista (idealista.pt)
• OLX (olx.pt)
• Casa Sapo (casa.sapo.pt)

Also, check expat groups on social media (e.g., Facebook) and local communities on Telegram.

Working with Real Estate Agents

If you find it difficult to navigate the market independently, consider hiring agents. They can help:

• Find suitable options.
• Negotiate with landlords.

However, be aware that their services typically involve a commission, usually equal to one month’s rent.

Long-term renting in Portugal is a challenging process that requires patience and preparation. By understanding the market’s specifics and approaching the task with a clear plan, you’ll be able to find a home that meets your expectations.

Financial Aspects of Renting

In recent years, the rental market in Portugal has become extremely competitive, especially in major cities and their suburbs. Finding housing for less than €1,000 per month is becoming increasingly difficult.

Average Rental Costs by Region

Based on data from the platform idealista.pt, the following average rental prices can be highlighted:

• Lisbon:
  • T0 (studio): from €900/month
  • T1 (1 bedroom): from €1,300/month
  • T2 (2 bedrooms): from €2,600/month
• Porto:
  • T0: from €700/month
  • T1: from €900/month
  • T2: from €1,200/month
• Algarve (e.g., Faro):
  • T0: from €800/month
  • T1: from €1,000/month
  • T2: from €1,300/month
• Coimbra:
  • T0: from €600/month
  • T1: from €700/month
  • T2: from €900/month
• Braga:
  • T0: from €650/month
  • T1: from €750/month
  • T2: from €850/month

Additional Expenses

In addition to rent, monthly utility bills should be factored in:

• Electricity: on average €50–100/month, depending on usage.
• Water: approximately €20–30/month.
• Gas: if used, around €20–40/month.
• Internet and TV: packages cost approximately €30–50/month.

Setting Up Utilities

For long-term rentals, tenants are typically required to sign contracts for utilities in their own name. However:

• Changing the name on existing contracts: In some cases, it is more practical and cost-effective to change the name on existing contracts rather than signing new ones.
• Discuss with the landlord: Some landlords prefer to keep utility contracts in their name and include the cost in the rent.

Recommendations

• Budgeting: When planning your budget, consider not only rent but also additional expenses, which may total €150–250 per month.
• Attention to contracts: Ensure that rental agreements clearly specify the terms of utility payments and who is responsible for their setup.
• Be prepared: Given the high competition in the rental market, it is advisable to prepare all necessary documents in advance and be ready to make quick decisions.

With proper budgeting and preparation, you can navigate Portugal’s competitive rental market and secure a home that meets your needs.

Renting Property with Children and Pets in Portugal

In Portugal, the legislation governing rental housing provides both landlords and tenants with certain rights and responsibilities.

Living with Children

Portuguese law prohibits discrimination against tenants based on the presence of children. This means a landlord cannot refuse to rent a property solely because you have children. However, landlords may be concerned about potential damage to the property and might request a higher deposit.

• Rental contracts:
  Rental agreements typically do not include specific mentions of children, as this is considered standard practice.
• Discriminatory conditions:
  If a landlord attempts to impose discriminatory conditions (e.g., prohibiting living with children), this can be challenged in court.

Living with Pets

Unlike children, pets can be restricted in rental housing. Landlords have the right to include a clause in the rental agreement prohibiting or limiting the presence of pets.

• If pets are prohibited:
  If the agreement specifies that pets are not allowed, violating this condition could be grounds for terminating the lease.
• If pets are allowed:
  Once a landlord agrees to allow pets, they cannot later demand their removal unless the agreement has been violated (e.g., significant property damage).

Key Considerations

Portuguese law protects tenants with children from discrimination, but landlords have more freedom when it comes to pets.

To avoid misunderstandings:

• Discuss all terms before signing the lease.
• Ensure that any agreements regarding pets or children are documented in writing.

If you have questions or concerns, consult a lawyer or real estate expert to ensure your rights are protected and to clarify any ambiguities.

How to Avoid Rental Scams in Portugal

Rental scams are relatively common, especially in high-demand cities. Below are recommendations to help protect yourself and avoid unpleasant situations.

How to Verify a Landlord?

Before signing a contract or transferring money, it is essential to confirm the landlord’s reliability. Here are several ways to do so:

• Request copies of property documents:
  • Ask the landlord for a document confirming their ownership of the property (e.g., Certidão de Teor).
  • Verify that the details in the listing match the information in the document.
• Verify the landlord’s identity:
  • Request their identification (e.g., Cartão de Cidadão or passport).
  • If negotiations are conducted through an agent, confirm their authorization to represent the landlord.
• Cross-check with the registration service:
  • Use the Portuguese tax authority portal (Portal das Finanças) to verify the property registration details.
• Be attentive to details:
  • If the landlord refuses to provide documents, avoids personal meetings, or requests prepayment without a contract, consider these warning signs.

These steps will help you minimize risks and protect yourself from scams. However, the market is so competitive that landlords and agents often prefer not to spend time on extensive negotiations or proof of ownership before a contract is signed.

Trusted Platforms and Agencies

Even on popular platforms like Idealista, OLX, or Casa Sapo, you may encounter unreliable intermediaries. To reduce risks, consider contacting trusted real estate agencies.

Top Reliable Agencies in Portugal:

• Remax Portugal (remax.pt)
  One of the largest agencies in the country, offering a wide range of properties.
• ERA Portugal (era.pt)
  A well-established agency with a good reputation in the rental and sales market.
• Century 21 Portugal (century21.pt)
  An international agency known for professionalism.
• Zome Real Estate (zome.pt)
  A modern agency with a transparent system.

When working with an agency, clarify:

• Their terms of service (the commission is usually equivalent to one month’s rent).
• The full list of documents they provide.

How Are Rental Contracts Registered with the Tax Authority?

By law, every rental contract in Portugal must be registered with the tax authority (Portal das Finanças). This protects both the tenant and the landlord.

Registration Process:

• Preparing the contract:
  • The contract must include all key details: the parties involved, the property’s address, the rental amount, the deposit amount, and the contract’s duration.
  • The contract must be signed by both parties.
• Registering the contract:
  • The landlord is responsible for registering the contract on the tax authority portal within 30 days of signing it.
  • After registration, you will receive a copy of the document with the Tax Identification Number (Número de Identificação Fiscal), and a notification will appear in your Portal das Finanças account confirming the contract registration.

Why Is This Important?

• Only a registered contract has legal validity.
• It protects you from sudden eviction and allows you to officially register your residence.

If the landlord refuses to register the contract:

• This is a red flag. The landlord might be avoiding paying taxes, which could affect your legal protection.
• Confirm in advance whether the contract will be registered and include this condition in your agreement.

Tips for Safe Renting

• Never transfer money without signing a contract:
  • Do not send money to third parties.
  • Avoid paying a deposit to “hold” the property or for viewing purposes.
  • Only transfer money to the accounts listed in the contract and only after signing it. Ensure all payments are documented with receipts or bank statements.
• Be cautious of prices that seem too low:
  • If the rent is significantly below market value, it might be a scam.
• Research the landlord or agency:
  • Look for reviews or mentions of the landlord or agency online, or ask for recommendations in expat communities (e.g., Facebook or Telegram groups).
• Use secure platforms:
  • Work only with platforms that guarantee payment security, such as Airbnb or Booking, if searching for short-term housing.
• Be careful with payments:
  • Use only verified payment systems or bank transfers. Avoid cash payments without proper documentation.

Relocating is always a challenge, but with proper preparation, you can find housing that will become your home in this beautiful country. Good luck!