There is a good supply of properties for long-term rental appropriate for foreigners who want to live for some period of time in Portugal.

The top nationalities for long term rentals in Portugal

Due to the excellent programme of benefits and tax exemptions for foreigners who decide to live in Portugal, the demand has been very high from the French, British, Italians, Canadians and North Americans.

Foreigners make huge tax savings on pensions or income earned in their country of origin, while enjoying the good weather and very budget-friendly lifestyle in Portugal.

Who rents a house for long term in Portugal

Foreigners looking for a house for long-term rental in Portugal are classified into three groups.

The digital nomads, usually single or as a couple, intend to live in Portugal for only a few months or a maximum of two years, in order to discover the country. These foreigners usually look for studios or houses with only one room, in neighbourhoods with leisure activities, good restaurants, entertainment, social and evening life.

Highly qualified businessmen and professionals and their families want to get to know the country better in order to take up permanent residence. Renting a house gives them time to find the best house to buy. These foreigners look for houses with three to five bedrooms, located in quiet neighbourhoods, near international schools, with easy access to the beach or children’s or youth playgrounds.

Retired people, usually as a couple, want to enjoy the good weather, security and outdoor lifestyle they can find in Portugal. These foreigners usually look for houses with one or two bedrooms, with large outdoor spaces, in quiet neighbourhoods, close to supermarkets, medical clinics, with easy access to beaches or green areas.

Top quality fully furnished rental properties

In Portugal, there are houses for long term rental with very high quality, new construction or totally renovated, located in excellent neighbourhoods. All these houses are properly furnished and equipped with everything that is necessary, namely, fridge, microwave, oven, televisions in all rooms, etc. The tenant has only to bring his personal items and settle in the house. Most importantly, most of these houses have excellent private outdoor spaces and often a swimming pool.

Term, rent, warranty, household expenses and tax payment

A lease is considered long term when the contract has a term equal to or greater than one year. In Portugal, landlord and tenant are free to agree on any term for the lease.

The rent of the property depends on the city and neighborhood in which the house is located. Lisbon, Porto and certain locations in the Algarve are the most expensive areas. The lowest rents are in the countryside regions of Portugal.

Normally, in long term rentals, landlords ask foreign tenants to pay six months or even a year’s rent in advance to ensure that the rent is paid promptly.

In long term rentals, the household expenses (electricity, water, communications, etc) are paid by the tenant. In the higher segment houses, the services are already connected, so the tenant really only has to pay the monthly bills. This avoids the foreign tenant having to spend days or weeks searching for the best service/plan, making contracts and activating services.

It is important to note that the foreign tenant has to get the Portuguese tax payer number in order to be able to make the house rental contract in Portugal. This number is freely provided and without any obligation to pay tax in Portugal. The tax is paid by the landlord in all rental contracts.

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