Portugal House Prices Hit Record in 2026: Where Homes Cost Most and Least

House prices in Portugal rose 7.5% year on year in October 2026 to a record national median of 3,249 €/m², according to the idealista index. Learn more about the most expensive and cheapest cities, the fastest-growing districts and the taxes foreign buyers pay

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House prices in Portugal reached a new record in October 2026. According to Euronews, which cites the idealista property index, asking prices rose 7.5% year on year, and the national median reached 3,249 €/m² at the end of October.

The rise matters to expats, investors and anyone planning to buy a home in Portugal: prices went up in every district capital analysed, and buying costs for non-residents changed in 2026. Below is a summary of where housing is most and least expensive, where prices are climbing fastest and what a foreign buyer pays on top of the price.

Planning to buy a flat or a house in Portugal as a foreigner?

A record market and new tax rules for non-residents leave little room for mistakes in a contract or a tax calculation. A Real estate lawyer at Visit World checks the property and the documents, explains the taxes that apply to your case and supports the deal up to signing. Book a consultation with a real estate lawyer before you sign.

How much have property prices in Portugal risen in 2026?

Euronews describes the October figure as a new record high. The key numbers from the idealista index are:

• annual rise in asking prices — 7.5%;
• quarterly rise — 1.2%;
• national median at the end of October — 3,249 €/m².

Asking prices rose in all 20 district capitals and autonomous regions included in the analysis. Ukrainian business outlet Finance.ua repeated the same figures on 7 November, noting that the national median now exceeds 3,200 euros per square metre.

Neither source explains the causes of the rise. Euronews does, however, link the report to its coverage of housing protests in Lisbon at the end of October 2026.

Where is housing in Portugal the most and least expensive?

Cities

The Lisbon property market remains the most expensive in the country, with a median of 6,248 €/m². Porto is in second place and Funchal, the capital of Madeira, in third; the sources do not give median prices for these two cities.

The cheapest city is Castelo Branco, where the median asking price is 1,119 €/m² — more than five times lower than in Lisbon.

Regions

• Lisbon Metropolitan Area — 4,525 €/m², the most expensive region;
• the Algarve — second most expensive;
• Madeira — third most expensive;
• the Centre region — 1,810 €/m², the cheapest.

The sources do not separate prices for apartments and houses.

About property prices in Lisbon, Porto and the Algarve compared — read more at the link.

Where are property prices rising fastest?

The strongest annual growth was recorded outside the main hubs, according to idealista:

• Vila Real — 20.3%;
• Guarda — 18.4%;
• Beja — 17.6%;
• Leiria — 16.9%;
• Faro — 15.5%.

For buyers looking at cheaper inland towns, this means the price gap with the coast is narrowing quickly.

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Can foreigners buy property in Portugal?

Portugal has no nationality restriction on property ownership, and residency is not required to buy, according to Portugal Property Invest. A buyer needs:

• a personal NIF (tax number) — each spouse or co-purchaser needs their own; it is used to complete the purchase, pay taxes, sign notarial documents and open a bank account;
• a Portuguese bank account;
• proof of funds for the lawyer's anti-money-laundering file.

What has changed for foreign buyers

• Buying property no longer qualifies for the Golden Visa: Law 56/2023 removed the real-estate route in October 2023. Real-estate funds and capital transfers were also removed; the main remaining route is a €500,000 investment in a regulated fund with no real-estate exposure.
• The NHR tax regime is no longer generally available to new arrivals.
• The new Nationality Law, in force since 19 May 2026, requires 10 years of residence for most nationalities, 7 years for EU and CPLP nationals, and an A2 Portuguese exam.
• Short-term rental rules have become stricter in several cities, so Alojamento Local licensing should be checked with each municipality.

What taxes and costs come on top of the purchase price?

The figures below come from advisory and commercial sites, not from the Portuguese tax authority, so they should be confirmed before a deal.

Property transfer tax (IMT)

• Non-resident buyers pay a flat 7.5% IMT on urban property bought for housing since 25 May 2026 under Decree-Law 97/2026, according to The Abroad Buyer.
• Residents buying a main home on the mainland pay 0% up to €106,346, then marginal rates of 2%, 5%, 7% and 8%; above €660,982 the rate is a flat 6%, and above €1,150,853 a flat 7.5%.
• IMT Jovem: buyers aged 35 or under buying a first main home pay 0% up to €330,539 on the mainland.
• Second homes and investment properties — from 1% from the first euro.
• Rural property — flat 5%; other urban non-housing property — flat 6.5%.
• Purchases through entities in blacklisted jurisdictions — 10%.

A refund or exemption of the non-resident rate is possible if the buyer becomes tax resident or lets the property long-term at a moderate rent. One source sets a two-year window for becoming resident; the others do not state a period.

Stamp duty and annual taxes

• Stamp duty on the purchase — 0.8% of the higher of the price or the taxable value (VPT);
• mortgage stamp duty — 0.6%, 0.5% or 0.04% per month, depending on the loan;
• after purchase — annual IMI, plus AIMI above a wealth threshold.

For example, according to Pearls of Portugal, a non-resident buying a property for €250,000 pays €18,750 in IMT and €2,000 in stamp duty.

About purchase prices, rent and market trends in Portugal in 2026 — read more at the link.

What should expats and investors do now?

• Compare cities by median price: the difference between Lisbon and Castelo Branco exceeds 5,000 €/m².
• Take into account fast growth in Vila Real, Guarda, Beja, Leiria and Faro when negotiating.
• Get a NIF and a Portuguese bank account before making an offer.
• Calculate IMT according to your tax residency: the non-resident rate of 7.5% noticeably raises the total cost.
• Do not count on property for a Golden Visa or residency, and check local short-term rental licensing if you plan to let the property.

Rising prices and different tax rates for residents and non-residents make every purchase in Portugal a case-by-case calculation. A Real estate lawyer will check the documents and the tax burden of your deal. Book a consultation with a real estate lawyer at Visit World.

We remind you! In our previous article, we wrote about where real estate prices in Europe increased the most in 2026.

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