Is it worth buying property in Portugal in 2026 or should I keep renting?

The two markets are moving in opposite directions, which makes the decision less about instinct and more about arithmetic.

The numbers checked in September 2026

In Lisbon the median transaction price is about 5,450 euros per square metre, up 9 to 12 percent year on year in nominal terms. Asking rents average about 22 euros per square metre a month, down about 3 percent on the year. An 85 square metre flat costs roughly 463,250 euros to buy, or about 1,870 euros a month to rent, which is close to 22 years of its own rent before running costs. Porto is cheaper on both sides: about 3,500 euros per square metre to buy and about 18 euros per square metre to rent, near 17 years of rent, which is why Porto has the wider yield for anyone buying to let.

The entry cost that decides it

On an 85 square metre Lisbon flat, closing costs run about 32,500 to 35,600 euros (6.6 to 7.3 percent) for a resident buying a permanent home, and about 43,900 to 47,000 euros (9.5 to 10.2 percent) for a buyer who is not a Portuguese tax resident, under the flat 7.5 percent IMT in force since 25 May 2026 (Decree Law 97/2026). That non resident rate is refundable if you become a Portuguese tax resident within two years, or if you let the home long term at a moderate rent within set conditions, but the request has to be filed and the full amount is due at the deed either way.

Renting has its own upfront bill, but a much smaller one: a deposit capped at two months of rent under article 1076 of the Civil Code, plus advance rent, which in practice means three to four months on signing.

Three things that tilt it towards buying

1. You will be a Portuguese tax resident, so you use the progressive IMT table, exempt up to 106,346 euros on a permanent home, rather than the non resident flat rate.
2. You are 35 or under buying a first permanent home, where IMT Jovem removes IMT and stamp duty up to 330,539 euros, worth up to 12,942 euros on a 300,000 euro flat.
3. You expect to hold for five years or more and you have the deposit: non residents borrow at only 65 to 75 percent loan to value, against 80 to 90 percent for residents.

What buying no longer gets you

Residency. Property stopped qualifying for the golden visa on 7 October 2023 under Lei 56/2023. Buy for a home, not a permit.

Compare the two paths in full, with the Porto numbers and the rent versus buy table, in our buying property guide.