Homeowners with variable-rate mortgages will see monthly payments increase by up to 18 euros this month as Euribor rates react to geopolitical tensions. Data from the National Statistics Institute (Instituto Nacional de Estatística or INE) shows inflation rose to 2.7% in March, largely driven by higher fuel costs. These market shifts are affecting both existing contracts and new loans, including those with mixed-rate options.

A new analysis indicates that Portugal is among the Eurozone countries most affected by European Central Bank (Banco Central Europeu) interest rate increases. Because a high proportion of Portuguese mortgages (crédito habitação) have variable rates, rising costs lead to a sharper contraction in household spending compared to other European nations. Economists also warn that the national economy is showing signs of slowing down due to broader European trends and geopolitical tensions. Those with variable-rate mortgages should monitor ECB policy shifts closely for impacts on their monthly budgets.

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.

Euribor movements were mixed on Thursday: the three‑month rate rose, the six‑month rate fell (to about 2.137%) and the 12‑month rate stayed unchanged, ECO reports. Separately, RTP says the average mortgage interest rate for new loans fell to 3.111% in January. Homeowners with variable or recently indexed mortgages should check which Euribor term their loan follows, since short‑term swings can change monthly payments.