Property Maintenance Costs in Portugal

Property maintenance in Portugal is not cheaper than in other European countries, such as, for example, Spain or France. Thus, renting a one-room flat in the centre of Lisbon, Paris and Madrid costs tenants about 1.4 thousand euros per month. Expenses include utilities and rent. Owners pay capital gains tax and annual property tax.

In this article we will take a closer look at information about property taxes, insurance, utilities and rental rates in different areas of Portugal.

Taxes

Real estate owners have to pay annual property tax (Imposto Municipal sobre os Imóveis, IMI) that ranges from 0.3% to 0.8% depending on the taxable value of the property.

Capital gains tax upon the sale of the property for non-tax residents is 28% on the difference between purchase and sale price.

Inheritance tax in Portugal was abolished, although a stamp duty (Imposto do Selo) of 10% is applied instead.

Utility bills

For a two-bedroom flat, electricity costs 60–80 euros per month on average and water charges 20 euros per month. In Lisbon, Porto and other large cities, buildings are connected to a central gas system. In some regions, owners will have to buy gas cylinders which cost about 80 euros each and last about two months for a family of four. Average utility costs are 114 euros per month.

Utility charges for an 85 m² apartment, €/month

Rent in Portugal

Due to strong demand, rents in Portugal have been steadily rising, and by March 2025 they had increased by 4.9% year-on-year overall, according to property portal Idealista.

Average rental price of a one-bedroom flat, €/month

Insurance

Real estate insurance is not obligatory in Portugal. The exception is homeowners who obtain a mortgage as they are required to get insurance. Extended insurance can cover several risks, unlike a basic fire insurance policy. They can cover risks such as floods and other natural disasters and cost 300–500 euros per year. Basic policies cost from 80 euros per year.