What are the running costs of a house in Portugal?

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What are the running costs of a house in Portugal?
Published on 6th December 2019
(5min read)

Once you’ve decided where you want to buy property in Portugal and how much you can expect to pay based on average house prices there, you’ll also want to know about the price of upkeep and maintenance. It’s important to know what other expenses you’ll have to pay on your new Portuguese home after the initial purchase is made (apart from the obvious ones like water, gas and electricity bills).

In this video, Portugal Homes’ Co-Founder and CEO, David Poston, elaborates on the costs of buying a home in Portugal. There are some government costs, Legal fees and if you choose to live overseas, fiscal representation services that companies like Portugal Homes can provide.


Property tax

  • IMI Municipal Property Tax (Imposto Municipal Sobre Imóveis): This is a tax on homeowners in Portugal, but you don’t have to pay if it’s your main residence or if you rent it out on a long-term or permanent basis of at least 10 years. If you have to pay, you’ll receive a letter from the tax authority between January and April, as the tax is to be paid in two parts in April and September. If you don’t get anything, you may want to ask the tax office. It is calculated based on the value of the property, taking into account the market value, the location and the type of property. There are three categories:
    • Urban buildings (prédios urbanos): 0.7% - 1.3% of the fiscal value for town- or city-based homes.
    • Country buildings (prédios rusticos): 0.8% of the fiscal value for buildings in agricultural use or unbuilt land in the outskirts of cities.
    • Mixed buildings (prédios mistos): When used as a mixture of both these uses, it’s tax category falls in the middle.

Other expenses

  • Home insurance: Just as with any other house, it’s a good idea to have home and contents insurance on your Portuguese property. In Portugal, the standard rate charged by insurance providers is from 180 to 380 euro a year, but that obviously varies with property type, location and value.
  • Home administrator: If all this red tape seems like too much work for you, especially in Portuguese, another option is to just hire a property manager to do the paperwork and organize the payments for you. These kinds of services cost about 100 to 150 euro per year, and allow you to sit back and relax in your home in the sun and not worry about the running costs!

Utility bills

The monthly cost of utilities in Portugal depends on how big your house is and how many people live there. For example, heating, electricity and water for one person in a 45m2 studio can cost between €80 to €90 per month.

Utilities for two people in an 85m2 apartment can be between €120 and €130 per month.


Comparing these prices to the UK or Spain, the costs are much cheaper, enabling people to actually afford a better lifestyle in Portuguese cities than in other european cities.

Electricity bills

Unfortunately electricity bills in Portugal can be very high; according to Eurostat, a kWh costs €0.2246, which is 22% higher than in the UK, however our advice is to use your off-peak time as much as possible for the washing machine, dishwasher and heaters in winter.

Water bills

The cost of installing the metre is an average of €50. However, the price of water per cubic metre varies between cities.

For instance, in Santo Tirso, a small city in northern Portugal (see Portugal Map) the price of water is around €240 per 120 cubic metres of consumption. This doesn’t include the cost of sanitation and municipal solid waste.

See here the price of water in Lisbon.

For a couple, the average monthly cost of water can be about €30.

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About Portugal Homes

PortugalHomes.com specializes in investments through Real Estate and Golden Visa. We help buyers find the right property overseas, whether it be for Golden VisaNHR, Investment or simply a place in the sun. Our properties are selected with great thought in mind to give our clients the best opportunities. We offer the complete service from introducing them to the Legal RepresentativesCurrency ExchangeMortgage AdvisorsProperty ManagementRental and Furniture Packages along with making sure all our staff are trained to fully understand the buying process and taxes for every scenario. Portugal Homes provides the complete service to anyone looking to buy a new or resale property overseas for holiday use or as a short or long-term investment.

To find out more, please contact us:
  • Phone: +351 213 471 603
  • E-Mail: info@portugalhomes.com
 
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Buying Property in Portugal

Portugal Homes has very experienced and knowledgeable professionals working with some of the most established and reputable developers Portugal has to offer. Our vast experience allows us to guide you through the best investment choices.

Whether you want a holiday home or an investment property, we select the best units for your profile and take care of all the process from start to finish. Even after the sale! Our After Sales services assume the responsibility of furnishing your property at your taste, taking care of the property in your absence, managing the rentals if you wish to rent your property when you’re not in Portugal and so much more!

To learn more about the Portuguese Non-Habitual Resident Program and our After Sales services, please fill the form below.

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Thank you. Lovely experience with all of the staff. George was very helpful, knowledgeable and had a good grasp of the financials. Will recommend Portugal Homes to friends. Also excellent experience with the After Sales - very helpful.

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