Latest news and stories about expat finances in property in Portugal for expats and residents.
Economist João Rodrigues de Santos warns that a public guarantee scheme is encouraging young people to take on mortgages with high repayments and minimal financial headroom, just as Portugal faces major international uncertainty. With wages among the third‑worst in the EU, the end of pandemic-era supports and the prospect of rising interest rates, many borrowers — including first-time buyers and expats — are exposed to rapid financial distress. The combination of weak income growth, a heated property market and policy incentives to lend underestimates downside risks; the commentator argues for tighter underwriting, better safety nets and targeted borrower support to reduce systemic vulnerability.
Update: The economist reiterated in a CNN Portugal piece that the public guarantee is actively pushing young buyers into mortgages with high repayments and little buffer amid heightened international uncertainty. He highlighted that the withdrawal of pandemic-era supports and the prospect of rising interest rates mean many borrowers — notably first-time buyers and expatriates — could rapidly fall into financial distress, strengthening his call for stricter underwriting standards and targeted safety nets to contain systemic risk.

The Euribor rate rose this Friday for three and six months and fell at 12 months compared with Thursday. With today’s changes, the three-month rate, which advanced to 2.033%, remained below the six-month (2.143%) and 12-month (2.248%) rates. The six-month Euribor rate, which moved ...

Home Business Expanding high-net-worth with Blacktower Expanding high-net-worth with Blacktower Blacktower Financial Management Expands High-Net-Worth Offering in the Algarve with Appointment of David Vacani By Advertiser, in Business · 10 hours ago · 0 Comments Credits: Supplied Image;Author: Cl

Financial reporting shows the three‑month Euribor remained at 2.016%, while the six‑ and 12‑month rates rose to about 2.146% and 2.251% respectively, widening the curve between short and longer terms. The moves reflect daily money‑market shifts and will influence variable‑rate mortgage costs and short-term borrowing pricing. Mortgage holders should note modest upward pressure on medium/longer reset periods and check how their lender calculates variable payments.
Euribor (Euro Interbank Offered Rate) is the benchmark interest rate at which European banks lend to one another and is widely used as the reference for variable‑rate mortgages in Portugal. Changes affect monthly payments directly: the recent figures reported were 2.034% (3‑month), 2.104% (6‑month) and 2.255% (12‑month), so a rising Euribor typically increases costs for borrowers with tracker or variable loans.

Lisbon's residential property market is strengthening its appeal to buyers from North America, consolidating the city as a preferred European destination for property purchases and investment.

The Euribor rate fell on Tuesday at three months and rose at six and 12 months compared with Monday. With these changes, the three-month rate remained below the six- and 12-month rates. The six-month Euribor rate, which in January 2024 became the most ...

Residential rents increased by 5.3% in 2025 compared with the previous year.

The Lisbon Tenants' Association also says that the increase from €600 to €900 in the cap on the deduction for rents paid is 'clearly unfavourable to tenants'.

Outlets report small day-to-day Euribor shifts: three- and six-month Euribor rates rose slightly while the 12-month rate fell or eased marginally, with published short-term averages around 2.02–2.05% (three-month), ~2.13% (six-month) and roughly 2.25% (12-month) depending on the source. The changes are modest but relevant for borrowers with products indexed to short-term Euribor: expats with variable-rate mortgages or loans should check how their lender updates payments and consider whether a switch to a fixed rate or lender review is advisable.
Euribor (Euro Interbank Offered Rate) is the benchmark interest rate at which European banks lend to one another and is widely used as the reference for variable‑rate mortgages in Portugal. Changes affect monthly payments directly: the recent figures reported were 2.034% (3‑month), 2.104% (6‑month) and 2.255% (12‑month), so a rising Euribor typically increases costs for borrowers with tracker or variable loans.

Home Business The investment map is changing, and Portugal is at the center of this change The investment map is changing, and Portugal is at the center of this change For decades, large international investment flows have followed predictable patterns.

Data show that, over the last decade, house prices have risen at roughly four times the rate of average wages, deepening the housing affordability gap.

Economist João Rodrigues dos Santos analyses the advantages and disadvantages of the new IRS withholding tables which, he says, are likely to bring even more 'uncertainty' to the Portuguese. Highlighting the 'distressing' wage reality in Portugal, the expert draws attention to rising housing prices and the instability of variable interest rates.

Portugal has once again stood out in Europe for house prices. In the third quarter of 2025 it was the eurozone country where housing prices rose the most. How far can this rise in prices go? Listen to the new episode of Economia dia a dia, Expresso's daily podcast, hosted by Juliana Simões.

According to Eurostat data, house prices in Portugal rose by 17.7% in the third quarter of 2025. Meanwhile, EU countries are preparing to provisionally approve the trade agreement with Mercosur.

Among the Member States, the largest year-on-year increases in house prices were recorded in Hungary (21.1%), Portugal (17.7%) and Bulgaria.

Nuno Leal, co‑CEO of Doutor Finanças, says the tax measures in the government’s housing plan — due to be debated in Parliament on Friday — should help increase supply in the market. He concedes the package tends to favour property owners and landlords but considers it “relatively balanced”, noting the measures are centred on those who hold property while aiming to ease supply constraints. The assessment focuses on likely effects on rental supply and owner incentives rather than specific legislative detail.

Economist Vera Gouveia Barros argues that the most effective element of the Construir Portugal programme is tax relief on rentals, citing an ‘almost mechanical effect’ from a proposed 10% autonomous IRS rate for rents up to €2,300. She suggests this tax cut will directly influence rent levels and landlord behaviour, with likely quick transmission into the market. However, the package omits a dedicated room‑rental option — a gap that could limit lower‑cost housing supply and options for students, workers and expats. Barros’ analysis implies policymakers should pair fiscal incentives with targeted measures for small‑unit and shared accommodation and monitor market adjustments to avoid unintended rent inflation or supply imbalances.

The increase should be targeted mainly at vacant homes, and a reduction in IMT (property transfer tax) should also be implemented.

The State’s €1,550 million fund to guarantee up to 100% housing finance for young people is almost fully committed: €1,460 million (94%) has already been allocated to banks, leaving under €90 million available for future distributions. The near-exhaustion of the guarantee reduces headroom for new beneficiaries and shifts pressure onto banks and policy makers to consider whether to broaden, renew or restrict the scheme, with implications for the housing market and public finances.

Domestically, Álvaro Santos Pereira says the main concern is the property market.
Trump goes after Venezuela's oil and shakes up the global geopolitical landscape. At home, a young homeowner has defaulted on their mortgage payments. And those affected by Oeno are protesting.

Check the rates here

A wave of policy and market changes due to take effect in 2026 will raise the cost of housing for Portuguese households and alter incentives across the sector. Measures affecting rents, mortgage lending rules and tax treatment of construction and property are set to impact owners, tenants and prospective buyers, with knock-on effects for affordability, market dynamics and the state budget. The package will reframe public incentives and regulatory risk for investors and households alike, requiring households and professionals to reassess financing, renting and development decisions.


Goldcrest Advisers - Portugal Buyer's Agent •