Finding a Long-Term Rental in Portugal

The Portuguese dream is something a lot of people think of, but some are unsure about making a huge financial commitment or living somewhere new without having the option to move if things don’t work out.

This is where renting apartments, houses, or rooms in Portugal comes in. It's a great option to explore the country first before potentially buying real estate. It's also an excellent way to discover your favorite towns and cities, helping you to get a better idea about what’s right for you. And if it’s not right for you, you can easily change the scenery!

In the article below, we’ll take you through everything you should consider when renting apartments or houses in Portugal, from working with estate agents to paying rent and utilities, why getting your NIF number is so important, and if renting directly from the landlord is a good idea.

About Portugal

Portugal, a captivating country in southwestern Europe, has a rich history, stunning landscapes, and a vibrant cultural heritage. Known for its picturesque coastal towns, sun-kissed beaches, and world-class surfing spots, Portugal attracts expats from all over the globe. The country boasts a diverse geography, ranging from rugged mountains in the north to rolling plains and golden beaches in the south.

Portugal and its history are steeped in exploration and maritime history, as it was once a formidable seafaring nation. The legacy of this era is evident in the charming port cities of Lisbon, Porto, and Faro, where cobblestone streets, ancient castles, and ornate cathedrals coexist with modern developments.

Portuguese cuisine is a delight for food enthusiasts, with dishes such as salted cod, pastel de nata (custard tart), and grilled sardines showcasing the country's culinary strength. Additionally, Portugal is renowned for its outstanding wines, including the famous Port wine produced in the Douro Valley.

With its warm Mediterranean climate, friendly locals, and a wide range of cultural and outdoor activities, Portugal offers a truly unique lifestyle for people from all walks of life.

Why should you rent in Portugal?

Renting real estate in Portugal offers numerous advantages that make it an attractive choice for individuals and families alike. Firstly, Portugal is known for its relatively affordable rental market compared to other European countries, especially in smaller cities and towns outside of major urban centers like Lisbon and Porto. Unlike many other places, this affordability allows for a higher quality of life on a reasonable budget.

Secondly, Portugal's pleasant climate, with milder winters and sunny summers, is a significant draw for those seeking a comfortable and enjoyable living environment. The country's diverse geography provides a range of landscapes to choose from, whether it's the stunning coastline, picturesque countryside, or charming historical towns.

In addition, Portugal is known for its high safety levels, low crime rates, and excellent healthcare and education systems, making it an ideal place to call home. The Portuguese people are friendly and welcoming, celebrating their rich cultural heritage while also embracing modern influences.

What’s more, Portugal offers a relaxed and laid-back lifestyle, with a strong emphasis on work-life balance. This allows residents to enjoy their leisure time to the fullest, whether it's exploring the country's stunning natural beauty, savoring delicious cuisine, or engaging in various outdoor activities.

Generally speaking, to rent in Portugal provides an excellent opportunity to experience a high quality of life, affordability, safety, natural beauty, and welcoming culture, making it an enticing choice for those seeking a new place to call home. Expats can have this experience here without having to commit to investing in real estate and can take their time getting to know their new surroundings.

Get your NIF Number and a Bank Account

One of the first things you need to do before you can rent in Portugal is to get your NIF number (Número de Identificação Fiscal) and a Portuguese bank account. Without either of these, it’s very difficult to take part in any kind of business transaction in Portugal.

Get-NIF

The NIF number is a tax identification number, and you can apply for it yourself or can get an attorney to assist you. Alternatively, for an all-around personalized and hassle-free service, our experts here at GetNIF can help you with this, as well as assist with opening the bank account for you.

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Work with a Real Estate Agent

Working with a real estate agent in Portugal to find places and properties to rent can be highly beneficial when searching for a rental property. Here are several reasons why engaging the services of a real estate agent is a wise choice:

Local market expertise: Real estate agents possess in-depth knowledge of the local rental market. They are well-versed in property availability, rental rates, and neighborhood trends. This expertise allows them to provide valuable insights and guidance, helping you find the right rental apartments, houses, or rooms that meet your specific requirements.
Extensive listings: Real estate agents have access to a wide range of rental property listings, including both public and exclusive options. They can provide you with a comprehensive selection of properties that match your criteria, saving you time and effort in the search process.
Negotiation skills: Experienced real estate agents are skilled negotiators. They can advocate for your interests, ensuring that you secure the best rental terms, including favorable lease terms, rental price, and any necessary repairs or maintenance.
Language barrier assistance: If you're not fluent in Portuguese, a real estate agent can bridge the language gap. They can communicate with landlords, rental managers, and other relevant parties on your behalf, ensuring clear and effective communication throughout the rental process.
Legal knowledge: Renting houses, apartments, or rooms in a foreign country often involves navigating different legal systems and documentation. Real estate agents are well-versed in local laws and regulations, ensuring that all necessary paperwork is handled correctly and protecting you from potential pitfalls or legal complications.
After-sales support: A reputable real estate agent provides ongoing support even after you've secured a rental property. They can assist with any issues that may arise during your tenancy, acting as a liaison between you and the landlord or real estate management company.

Although it’s possible to search for apartments or houses in Portugal independently, working with a real estate agent can streamline the process, provide valuable expertise, and ensure a smoother and more successful rental experience in Portugal.

Renting Directly from the Owner

It’s possible to rent apartments and houses in Portugal directly from the owner. Renting directly from the owner can have certain advantages and considerations:

Cost efficiency: Renting directly from the owner may eliminate the need to pay additional fees or commissions to a real estate agent or property management company. This can potentially lead to cost savings for the tenant. You may also be able to negotiate cheaper rent per month directly with your landlord.
Direct communication: Dealing directly with the property owner allows for direct communication and negotiation. It can provide the opportunity to discuss rental terms, clarify any specific requirements or preferences, and potentially customize the lease agreement to some extent. They’ll most likely know the amenities and features of the apartment or house best so you know what you’re getting.
Flexibility: Renting directly from the owner may offer more flexibility in terms of negotiating lease terms, such as rent price per month, length of the lease or rent, or specific conditions. This can be particularly beneficial for those seeking unique rental arrangements or specific rental periods.

However, there are also considerations when renting directly from the owner:

Limited options: If you rent directly from owners, it may offer a more limited selection of available properties compared to working with a real estate agent or property management company, as owners may not actively advertise their properties or have an extensive network.
Legality and documentation: When you rent directly from the owner, it’s important to ensure that all legal requirements and necessary documentation are in place. This includes a thorough review of the lease agreement, clear terms regarding security deposits, utility payments, and any other contractual obligations, as well as your rent per month.

Regardless of whether you rent from an owner or through a middleman in Portugal, it is crucial to conduct proper due diligence, thoroughly review the terms of the lease, and ensure open communication with the landlord to establish a positive and mutually beneficial rental arrangement.

Deposits and Utilities

As a tenant in Portugal, it’s important to understand the obligations and responsibilities associated with paying deposits and utilities, on top of rent. Here's a breakdown of the typical practices in Portugal:

Security deposit: When you rent a property in Portugal, landlords often require a security deposit as a form of financial protection against potential damages or unpaid rent. The deposit is usually equivalent to one to three months' rent and must be paid upfront. It is held by the landlord throughout the tenancy and returned to the tenant at the end after deducting any legitimate deductions for repairs or outstanding payments.
Rent payment: Rent is typically paid monthly in Portugal. Landlords may request payment via bank transfer, direct debit, or in cash. It’s important to establish clear payment terms in the rental agreement, including the due date and preferred payment method.
Utilities: Generally, tenants in Portugal are responsible for paying their utility bills, which typically include electricity, water, gas, internet, and TV services. These costs are in addition to the monthly rent. Utility bills are typically paid directly by the tenant to the respective service providers, based on consumption. It is essential to keep track of usage and ensure timely payment to avoid any disruption of services. In some cases, the landlord will include utilities in the rental price, but this is the exception to the rule.
Council tax: In Portugal, tenants may be responsible for paying council tax, known as "IMI" (Imposto Municipal sobre Imóveis). However, this tax is often the responsibility of the property owner, so it is important to clarify this in the rental agreement.
Rental insurance: While not mandatory, tenants may choose to obtain rental insurance to protect their belongings and provide liability coverage. This insurance is separate from the landlord's insurance, which typically covers the structure and fixtures of the property.

It’s crucial to thoroughly read and understand the rental agreement before signing it to ensure clarity on deposit terms, rent payments, and utility responsibilities. It is also advisable to keep copies of all relevant documentation and receipts as proof of payment for future reference.

This is where the help of an estate agent may come in handy to make sure that you don’t sign anything that could cause problems further down the line.

Furnished or unfurnished?

Deciding whether to rent furnished or unfurnished apartments and property in Portugal depends on your specific needs, preferences, and circumstances. Here are some factors to consider:

Convenience: Renting a furnished property offers convenience, as it eliminates the need to purchase or transport furniture. This option is especially beneficial for those who are relocating temporarily or do not wish to invest in furniture.
Flexibility: Unfurnished properties and apartments provide more flexibility, allowing you to personalize the space according to your own taste and style. You have the freedom to bring in your own furniture and decorations, creating a home that truly reflects your preferences.
Cost: Furnished properties typically come at a higher rental cost due to the inclusion of furniture and appliances. However, renting an unfurnished property may require you to invest in furniture, which can be a significant upfront expense.
Length of stay: If you plan to stay in Portugal for a short period, renting a furnished property may be more practical, as you won't have to deal with the hassle of buying and selling furniture when you leave. For longer-term stays, an unfurnished property allows you to create a space that feels like your own home.
Storage: If you already have furniture or belongings that you want to bring with you, renting an unfurnished property gives you the opportunity to store and use your items. This can be advantageous if you have sentimental or high-value possessions.

In the end, the decision to rent a furnished or unfurnished property in Portugal depends on your personal circumstances, budget, and desired level of customization. Consider your priorities and weigh the convenience, flexibility, cost, and length of stay to make an informed decision that suits your needs.

Discovering Your Ideal Home

Once you have found your ideal space out of all the properties and apartments for rent in Portugal, you’re free to enjoy the beauty of Portugal and everything it has to offer. Renting properties in Portugal is a straightforward process, especially if you enlist help from real estate agents who will ensure your best interests are always at the forefront of negotiations.

Most importantly, whatever you choose to do, make sure you have your NIF number and a bank account as a sound starting point. It will make any future transactions during your time in Portugal much easier.