Property maintenance costs in Portugal

Property maintenance in Portugal is cheaper than in countries like the UK and the USA. For example, it costs about €3,000 per year to maintain a one-bedroom apartment in Lisbon and about €5,000 for a three-bedroom villa in Faro.

Taxes

Real estate owners have to pay annual property tax (Imposto Municipal sobre os Imóveis, IMI)) that ranges from 0.3% to 0.8% depending on the taxable value of the property.

Capital gains tax upon the sale of the property for non-tax residents is 28% on the difference between purchase and sale price.

Inheritance tax in Portugal was abolished, although a stamp duty (Imposto do Selo) of 10% is applied instead.

Utility bills

For a two-bedroom flat, electricity costs €40 per month on average and water charges €17 per month. In Lisbon, Porto and other large cities, buildings are connected to a central gas system. In some regions, owners will have to buy gas cylinders which cost about €50 each and last about two months for a family of four. Average utility costs are €102 per month.

Utility charges for an 85 m² apartment, €/month

Insurance

Real estate insurance is not obligatory in Portugal. The exception is homeowners who obtain a mortgage as they are required to get insurance. Standard insurance covering risks such as fire, flood and other natural catastrophes costs €180–380 per year.

Property maintenance in other countries:

Public utilities in France

Property maintenance in Greece costs

Property maintenance costs in Italy