Homeowners with a mortgage (crédito habitação) that is due for review in April will see an increase in their monthly bank repayments. While the impact on very recent contracts may be limited, those with older variable-rate agreements face higher costs due to interest rate trends. Mortgage-holders should note that many younger borrowers are increasingly opting for mixed interest rates (taxas mistas) to ensure more predictable monthly costs.

The government has approved new regulations to resolve undivided inheritances, aiming to boost housing supply and enhance fire prevention efforts.

The Portuguese government is set to approve tenancy law reforms this Thursday to accelerate eviction processes for non-payment, aiming to restore landlord confidence and increase the supply of habitable rental properties in major metropolitan areas.

The Tax and Customs Authority (Autoridade Tributária e Aduaneira) has clarified that the capital gains tax (mais-valias) exemption for reinvesting in a primary residence is limited when a property owned by one person is sold to buy a home jointly. In such cases, the tax benefit only applies to the share of the new property corresponding to the original owner, typically 50%. Homeowners planning to sell a property they purchased while single to buy a new home with a partner should be aware of these potential tax liabilities.

The Portuguese real estate market saw record highs in 2025, with prices and transactions on the rise. The five largest real estate agency networks in Portugal reported a significant revenue growth of 24.4%, attributed to an influx of nearly 25,000 house sellers contributing to the booming market.

Buying real estate in Portugal involves more than just a property transaction for international families; it is a strategic decision that encompasses tax implications, succession law, and asset management.

Costs associated with obtaining a municipal construction permit can be deducted when calculating real estate capital gains for income tax (IRS), provided they genuinely enhance the property and are still valid at the time of sale, clarifies the Tax Authority (AT). This allows the fee paid for the urban planning permit to be added to the value of the property, potentially reducing the capital gains tax owed upon sale.

Update: New Guidance on Permit Costs The Tax Authority has released additional guidance stating that homeowners must retain all documentation related to the permits to ensure eligibility for the deductions, emphasizing the importance of proper record-keeping during property transactions.

Mortgage repayments for loans with the most commonly used term are set to increase, with an average rise of nearly five euros for a loan amounting to 150,000 euros.

Azul Empírico, a subsidiary of the Davidson Kempner fund, has proposed a significant investment of 203 million euros to acquire the agricultural company Herdade da Comporta, indicating a strong interest in the agricultural and real estate market in the region.

The municipal council of Loulé has formally acquired 60 housing units for public rental in a €15.1 million investment backed largely by national recovery funds. The public deed was signed The post Loulé buys 60 homes for public housing in €15.1 million deal appeared first on Portugal Resident.

Update: Public deed signed and financing confirmed

The public deed has been signed, formalising the €15.1 million purchase, with the cost largely covered by national recovery funds to secure 60 units for public rental in Loulé.

In 2023, Portugal ranks among the EU countries with the lowest purchasing power, with its average annual income allowing for the purchase of only 11 baskets of essential goods, significantly less than the 24 baskets that can be afforded by an average Luxembourger. This disparity highlights the economic challenges faced by Portuguese residents, particularly in the context of rising housing costs.

Portugal has experienced significant increases in house prices since 2020, according to data from Pordata. Despite this rise, the country still ranks among those with the lowest purchasing power, with only Greece having higher housing costs relative to income.

The sale of GES assets has generated 149 million euros, with significant transactions involving real estate properties. Notable sales include the former headquarters of GES and various properties located in Quinta do Peru, Sesimbra, Oeiras, and Monfortinho.

The UTAO report indicates that the proposed rental deduction by the IRS will only assist 11% of tenants, as the majority of discounts are directed towards landlords, leading to a significant revenue loss exceeding 50%.

The Golden Visa program in Portugal is increasingly seen as a strategic investment tool amidst economic uncertainty in Europe. It has demonstrated that intelligent investments can lead to widespread prosperity, benefiting both investors and the local economy.

Construction costs for new housing rose 4.0% in 2025 versus 2024, accelerating from a 3.4% increase the prior year, according to the National Institute of Statistics (INE). The rise was driven chiefly by a 7.7% increase in labour costs — the largest component — although that labour increase actually eased compared with 2024. The data point suggests mounting pressure on housing affordability and margins for developers, with labour market dynamics continuing to be the main cost-side risk for the sector.

The article discusses the challenges families face in purchasing a home, highlighting the rising costs and financial barriers that make homeownership seem unattainable for many.

Reported house prices rose 16% year‑on‑year, but the data provided appears inconsistent: the body states prices reached €2,111 per square metre in Q3 last year, while the headline claims €5,000 per square metre in Lisbon. This likely reflects different measures or geographies (national average vs Lisbon city centre, asking vs transaction prices). Verify source breakdowns and timing; implications include tighter affordability, stronger expat/investor demand in Lisbon, and amplified regional divergence in the housing market.

EURIBOR's recent stabilisation underlines the importance of looking beyond sensational headlines and focusing on what affects households day to day. The move gives many borrowers breathing space — repayments on a €150,000 loan due for review in February would shift to between €634 and €652 — yet longer-term pressures remain evident: the accumulated loss of purchasing power over 25 years has already exceeded 30 per cent. The paradox of global shocks and mortgage-rate dynamics shows why policymakers, markets and households must prioritise practical indicators that influence living standards.

Households with mortgages tied to the six-month Euribor — the most commonly used term — will see their monthly instalments increase in February. The change raises borrowing costs and is likely to squeeze household budgets as loan repayments climb.

In early February more than 30% of households with variable-rate mortgages will see repayments fall as contracts indexed to the 3‑ and 12‑month Euribor are re‑set lower. However, borrowers tied to the 6‑month Euribor face higher payments, producing a mixed outcome across the mortgage stock. The distribution of effects depends on contract type and review timing: short‑term indexers and recently re‑set trackers gain immediate relief and some boost to disposable income, while those on six‑month fixings — and borrowers nearing the end of introductory fixed deals — may experience pressure on household budgets. The divergence highlights how small shifts in short‑term money‑market rates can materially alter household cashflows, influence refinancing demand and sales in the property market, and shape borrower decisions about switching to longer fixed rates. Policy and money‑market expectations for Euribor through the year will determine whether the February moves are temporary relief or the start of a sustained trend.

Only around 25% of Portugal’s properties and infrastructure are insured against natural disasters, a weakness exposed by a recent week of severe storms. Material damages are still being assessed while major multi-risk insurers — notably Fidelidade, Generali Tranquilidade and Ageas — are accelerating claims handling on the ground. The low insurance penetration highlights underinsurance and significant fiscal and economic exposure, creating both reputational and commercial opportunities for insurers to expand coverage. Analysts say the event underscores the need for faster claims processes, clearer public–private risk-sharing mechanisms, targeted incentives to raise uptake, and investments in resilience and risk mapping as climate-driven extreme weather becomes more frequent.

An IGF audit of the Institute of Financial Management’s property portfolio finds that Social Security is holding 854 empty homes while Portugal faces an unprecedented housing crisis. The report criticises inefficient asset management, poor utilisation and weak oversight of the Social Security housing stock, creating lost opportunities to relieve market pressure. The findings point to a need for clearer inventory, faster reallocation or disposal procedures, and greater transparency and coordination between agencies to convert idle public housing into usable supply.