Expat Rentals in Portugal: Tips and Legal Advice

Home | Investment | Expat Rentals in Portugal: Tips and Legal Advice

Expat Rentals in Portugal: Tips and Legal Advice

by | Wednesday, 16 April 2025 | Investment, Real Estate

expat portugal rentals

Renting a home in Portugal has never been more popular among expats—for good reason. With its sun-drenched coastline, historic charm, friendly locals, and affordable cost of living, Portugal offers a high quality of life that attracts digital nomads, retirees, students, and families alike.

Whether you’re relocating permanently, planning a sabbatical, or testing out the local lifestyle before buying a property, this guide to expat Portugal rentals will walk you through everything you need to know—from top rental locations and pricing to contracts, tenant rights, and tips to avoid scams.

Why Portugal? Why Now?

Portugal ranks as one of the safest countries in the world and boasts a laid-back Mediterranean lifestyle, stunning scenery, and welcoming communities. But it is the Autonomous Region of Madeira, the Pear of the Atlantic, one of the regions with the most dynamic real estate market. As more foreigners discover the island’s charm, the rental market continues to expand to meet the growing demand for long- and short-term leases.

Can Expats Rent Property in Portugal?

Absolutely. There are no legal restrictions preventing foreigners from renting property in Portugal. To sign a lease, you’ll need:

  • A Portuguese Tax Number (NIF)
  • Proof of identity (passport or ID)
  • Proof of income or employment (or a guarantor, if required)

Most rentals require two to three months upfront, including a security deposit. Some landlords may ask for additional references if you’re new to the country or don’t have a local job.

Popular Locations for Expat Portugal Rentals

Lisbon

The capital is a buzzing hub for professionals, creatives, and digital nomads. Areas like Alfama, Bairro Alto, and Príncipe Real are popular, though more expensive, at 22 €/m2 as of March 2025.

Madeira

This island paradise offers breathtaking views and a mild climate year-round, perfect for nature lovers and remote workers. As of March 2025, the average rental was 15,9 €/m2.

Types of Rental Properties for Expats

  • Apartments (T0, T1, T2…): The most common rental for expats, especially in cities.
  • Houses and Villas: These are available in suburbs, smaller towns, and countryside regions and are scattered around Madeira Island.
  • Flatshares: Popular with students and younger expats. Expect to pay €300–€600/month. Not common on Madeira Island

Where to Find Expat Portugal Rentals

Online Portals

  • Idealista
  • Imovirtual
  • Spotahome
  • Flatio
  • HousingAnywhere

Understanding Rental Contracts in Portugal

Portuguese rental contracts come in two forms:

  • Fixed-Term: Set for a specific duration (typically 1–5 years)
  • Open-Ended: Automatically renew unless cancelled by tenant or landlord

Key contract points:

  • Rent amount and payment date
  • Lease duration and renewal terms
  • Responsibilities for utilities and maintenance
  • Pet policy and rules on modifications
  • Subletting permissions

Tenants must typically provide two months’ notice before ending a lease. Landlords must follow the same rule unless they reclaim the property for personal use or significant renovations.

Renting Through an Agency vs Private Landlord

  • Agency: Professional, often English-speaking, offers added security—but might charge fees.
  • Private Landlord: Often cheaper and more flexible—but may require Portuguese language skills and additional due diligence.

Renting with Pets

Portugal allows pets in rentals only with landlord approval. It’s best to confirm pet policies before signing and clarify the number of animals permitted (max three dogs or four cats per household).

Final Tips for Expat Renters in Portugal

  • Always view a property before paying or signing anything.
  • Take photos when moving in to document the condition.
  • Clarify which utilities are included and which are not.
  • Keep copies of all contracts and receipts.
  • Learn a few Portuguese rental terms like “mobilado” (furnished) and “despesas incluídas” (utilities included).

Should You Rent or Buy in Portugal?

Renting vs Buying

  • Flexible lifestyle vs Long-term investment
  • Lower upfront costs vs Potential for rental income
  • Easier for newcomers vs Real estate appreciation potential
  • It is ideal for exploring different regions vs Full property control

For most expats, starting with a rental is the most brilliant move—especially if you’re still exploring diverse areas of Portugal.

Start Your Rental Journey Today

Portugal has something for everyone—from buzzing city life to peaceful coastal escapes. Finding your new home can be easier with a wide selection of expat Portugal rentals and a supportive community of locals and expats alike.

Whether you’re moving for a fresh start, retirement, or a change of scenery, Portugal welcomes you with open arms—and a place to call home.

How Madeira Corporate Services Can Help with Expat Portugal Rentals

Navigating the rental market in a new country can be complex, especially when local laws, language barriers, and regional differences come into play. That’s where Madeira Corporate Services steps in.

With more than 25 years of experience assisting expats, investors, and international professionals, our team of professionals provides comprehensive support throughout your relocation process—ensuring a smooth, compliant, and stress-free experience when securing a rental property in Madeira Island.

How We Support You:

Contract Review and Legal Guidance

Our legal experts will review your lease agreements, explain key terms, and ensure your rights are protected under Portuguese law. We help you avoid common pitfalls and ensure full compliance with local regulations.

NIF Registration and Setup Services

Obtaining a Portuguese Tax Number (NIF) is essential for renting property. We streamline the process on your behalf, along with assistance in setting up a local bank account and other bureaucratic essentials.

Communication and Negotiation

We handle communications with landlords or agencies to eliminate confusion, especially if there are language barriers. We negotiate terms that serve your best interests and clarify contract conditions before you sign.

Ongoing Relocation Support and Tax Compliance

Beyond rentals, we assist with utility setup, residency requirements, tax compliance, and long-term relocation strategy. Our services ensure that every part of your move is handled with professionalism and care.

Whether planning a short-term stay or preparing for permanent relocation, Madeira Corporate Services offers you trusted, on-the-ground expertise to successfully make your move to Portugal.

Other Articles

Our Newsletter

Join our mailing list and get the latest information about incorporating in Madeira (Portugal), Expat Services and Vessel Registration.

Need Help?

Should you have any questions about us and our services, please do not hesitate to contact us.

Contact Us

Other Articles

Want to talk with us?

Should you have any questions about us and our services, please do not hesitate to contact us.