Photo: Adobe Stock Author: Redaction New rule only covers sales from 2026 Anyone who sold their main residence in 2025 is excluded from the new IRS exemption regime for capital gains , even if they reinvest part of the proceeds in a rental property in 2026. The Tax Authority (AT) clarified, in a binding ruling, that the new regime only applies to transfers carried out between 1 January 2026 and 31 December 2029. Therefore, the date of the sale is decisive in determining whether the capital gains can benefit from the tax exemption. Reinvestment has specific requirements The new regime allows certain gains to be excluded from taxation when the proceeds from the sale of a home are reinvested in the purchase of a property intended for residential letting, within the rental limits established by law. The reinvestment can take place between 24 months before and 36 months after the sale. The intention to reinvest must also be declared in the IRS return for the year in which the transfer took place. To retain the tax benefit, a residential tenancy agreement must be signed within the legally established rental limits and within the applicable deadline. The property acquired through the reinvestment must also remain on the rental market for at least 36 months, consecutively or intermittently, during the first five years. Sale date determines eligibility In the case analysed by the AT, the taxpayer sold their main residence in 2025 and intended to use part of the proceeds received in 2026 to purchase an apartment for residential letting. Although the reinvestment would take place while the new rule was already in force, the AT considers that the capital gains arose from the transfer carried out in 2025. Therefore, the relevant date for determining whether the regime applies is the date of the sale, not the date on which the reinvestment is made. Capital gains from 2025 are excluded Decree-Law No. 97/2026 establishes that the new rules take effect from 1 January 2026 and cover transfers carried out until 31 December 2029. As a result, a home sold in 2025 cannot benefit from this tax exemption through a subsequent reinvestment. The AT concluded that, in this case, the capital gains do not meet the timing requirements established under the new regime. Where the reinvestment is only partial, the tax exemption may also be proportional to the amount actually reinvested, provided that the other conditions set out in the IRS Code are met.
Photo: Adobe Stock Author: Redaction Start with the price per square metre The price per square metre is one of the first indicators to consider. It allows you to compare properties of different sizes and provides a reference for the prices in a particular area. According to the SUPERCASA Price Report , in August 2026, the average asking price for properties for sale in Portugal was €3,066/m². However, there were significant regional differences: in the Lisbon district, the figure reached €4,592/m², while in the Guarda district it was €996/m². Therefore, comparing a home only with the national average can provide an inaccurate picture. The most relevant approach is to analyse prices in the area where the property is located and, whenever possible, compare homes with similar features. Location is not the only factor Even within the same area, prices can vary considerably. Size, condition, year of construction and features such as a garage, lift, balcony or terrace can justify differences in price. The exact location also matters. Two properties in the same parish or even on the same street can have different values, depending on their features and demand in the area. That is why an average price should be seen as a starting point rather than a property valuation. Compare the property with similar ones After understanding the prices in the area, the next step is to analyse the property itself. The Appraise property by Infocasa allows you to obtain an estimated value based on market data and comparisons with similar properties. This provides a more specific reference for assessing whether the asking price is close to the expected value for that type of property. For real estate professionals, Infocasa allows them to deepen this analysis and access market information to support property valuations and decision-making. The asking price is not necessarily the final price It is also important to distinguish between the asking price and the price at which a home is eventually sold. The asking price can be influenced by demand, the propertys condition, location and the terms of the negotiation. Therefore, before making an offer, it is worth following a few simple steps: check prices in the area, compare similar properties and analyse the estimated value of the property in question.
Source: Adobe Stock Author: Redaction The 10-year period does not mean you must keep the home The public guarantee on mortgage loans allows young people up to the age of 35 to obtain financing of between 85% and 100% of the transaction value, with the State potentially guaranteeing up to 15% of that amount. The guarantee applies for a maximum of the first 10 years of the mortgage agreement. However, this period does not mean that the homeowner has to remain in the property for a decade. If they decide to sell the property before then, the public guarantee can end before the maximum period expires. What happens when you sell the property? According to the Banco de Portugal (BdP), it is possible to sell a property purchased under this scheme. When the sale takes place, the public guarantee ends when the bank issues the mortgage discharge document or with the institutions express consent to the transfer of the property. In practice, the sale must be arranged with the bank, as the property is mortgaged. The homeowner will need to settle the outstanding mortgage and complete the procedures associated with the transfer of the property. The public guarantee does not automatically transfer to a new home The public guarantee is linked to the mortgage agreement and the conditions established under the scheme. Therefore, selling the property does not mean that the support can simply be transferred to a new purchase. The BdP also establishes that access to the scheme requires, among other conditions, that the buyer has not previously benefited from the public guarantee. Therefore, anyone who has already used this support will not be able to use it again for a future purchase. What should young buyers bear in mind? Before selling a home purchased with a public guarantee, it is important to contact the bank and understand how the mortgage will be settled or transferred, as well as the procedures required for the transfer of the property. The public guarantee was created to make it easier for young people to access their first permanent home, but it does not remove the responsibilities associated with the mortgage. Financing is still provided by the bank, and the borrower remains responsible for repaying the debt. For anyone considering buying a home, understanding the public guarantee rules before signing the mortgage is essential to understand not only the eligibility conditions, but also the consequences of a future property sale.
Source: Adobe Stock Author: Redaction Start by defining a selling strategy Before advertising the property, it is important to understand the local market and determine what price can realistically be achieved. A realistic valuation helps position the home competitively and attract potential buyers. Setting the price too high can put off interested buyers and extend the time it takes to sell. Conversely, a price that reflects the propertys characteristics and the local market can generate more interest and increase the chances of receiving offers. You should also set your objectives in advance: how much you hope to achieve, your preferred timeframe and how far you are willing to negotiate. Having these criteria defined makes decision-making easier throughout the process. Presentation can influence the decision How the home is presented plays an important role in buyers first impressions. High-quality photographs, tidy spaces and a complete description help showcase the propertys features more effectively. Before taking photographs or welcoming potential buyers, small improvements can make a difference. Cleaning, decluttering, fixing minor issues and making rooms brighter are simple measures that can improve the propertys overall appeal. The property should also be promoted to the right audience. A well-prepared advert, published through the appropriate channels, increases visibility and can speed up contact with potential buyers. Negotiation and follow-up require preparation Receiving an offer does not necessarily mean you should accept it immediately. The amount offered is only one of the factors to consider . Payment terms, deadlines, financing and the security of the transaction can also influence the decision. It is equally important to prepare all the necessary documentation and keep track of every stage of the sale. The process may involve contacting buyers, arranging viewings, answering questions, negotiating and handling administrative procedures. Using an estate agent can make these tasks easier. An agent understands the market and can help position the property, manage its promotion, arrange viewings and support the negotiation. The commission is a cost, but it should be considered in relation to the service provided and the potential return. A suitable strategy can help you sell your home on better terms and avoid mistakes that could delay or complicate the transaction.
Source: Adobe Stock Author: Redaction Prepare the documentation before the sale Before advertising the property, gather the necessary documentation and check that the information is up to date. Relevant documents include the Urban Property Tax Register , the Permanent Land Registry Certificate and the Energy Performance Certificate . The propertys planning status should also be checked. Following the changes introduced by the Urban Planning Simplex, it is no longer mandatory to present or prove the existence of the use permit and the housing technical file as part of the purchase and sale process. Having the documents organised makes it easier to answer potential buyers questions, avoid delays and facilitate the stages leading up to the deed. Set the price and understand the costs Setting an appropriate price is essential to sell a property. Location, size, condition, energy efficiency and the prices charged for similar properties in the area should all be considered. A professional valuation can help determine a price that is better aligned with the market. It is also important to calculate the costs associated with the sale. These may include documentation, the Energy Performance Certificate, any works or improvements and the commission charged by an estate agent, where applicable. Property capital gains are another aspect to consider. The sale of a property may be subject to income tax, with the calculation carried out according to the applicable tax rules and after taking certain eligible expenses and costs into account. In the case of a permanent main residence, tax may be excluded when the sale proceeds, after deducting the loan used for the purchase, are reinvested under the terms provided by law. Reinvestment can take place between 24 months before and 36 months after the sale. However, there is an important condition: the property being sold must have been used as the owners or their households permanent main residence, as evidenced by the tax address, during the 12 months preceding the transfer or, where earlier, the date of reinvestment. Exceptions apply in certain exceptional circumstances. Prepare the property and organise the sale The presentation of the property can influence buyers interest. Before viewings, clean thoroughly, organise the spaces, make the most of natural light and fix minor issues that could negatively affect the perception of the property. The Promissory Purchase and Sale Agreement (CPCV) remains an important stage of the process, allowing the terms agreed between buyer and seller to be established, such as the price, deadlines and deposit amount. Using an estate agent can simplify the sale, from defining the strategy and promoting the property to negotiating and overseeing the various stages of the transaction. In 2026, selling a property therefore requires more than setting a price and finding a buyer. Having the documentation ready, understanding the tax costs and assessing the terms of the transaction in advance can help avoid surprises and make the process simpler and safer.
Source: Adobe Stock Author: Redaction Property sales can be unblocked The President of the Republic, António José Seguro, has enacted the legislation authorising the Government to create a new regime for undivided estates. The measure aims to facilitate the sale of properties when heirs cannot reach an agreement. The new special procedure will apply to properties forming part of undivided estates that have not yet been divided when the rules come into force. In this way, one heir may request the sale of the property through a specific procedure, even without the agreement of all the others. The aim is to prevent disagreements between family members from leaving a property unused or delaying the completion of the estate division for long periods. Not all properties are covered Despite the change, there are situations that are excluded from the new sale procedure. The family home cannot be covered, unless the surviving spouse gives their express consent. The same protection applies to de facto unions. Undivided estates that are in a state of insolvency are also excluded. The new rules are expected to cover estates that have been opened but not yet divided when the regime comes into force. New rules for managing the estate The legislation also introduces changes to how an undivided estate can be administered. In certain situations, the heirs may choose, by simple majority, another person to take over the administration of the estate and the duties of executor of the estate. It also creates the possibility of appointing a testamentary executor with powers to divide the estate. This person may take on functions related to the administration, liquidation and division of the assets, with the aim of making the succession process simpler. The rules governing the exercise of these functions will be defined later by the Government. What should heirs know? For those who own a property that forms part of an undivided estate, the main change is the possibility of unblocking a sale when there is no agreement between all the parties involved. However, the regime does not mean that any property can automatically be sold at the request of a single heir. There are exceptions, and the procedure laid down in the new legislation must be followed. The Government will have 180 days, after the legislative authorisation comes into force, to approve the rules implementing this new regime for undivided estates.
Source: Adobe Stock Author: Redaction Why is location so important? Location is one of the factors that has the greatest influence on a propertys value and can represent a significant proportion of its final sale price. More than the propertys features, the area where it is located affects buyer interest and its potential for appreciation over time. If you are thinking about selling, understanding the impact of location allows you to set a price that is more in line with the market and create a more effective sales strategy. Properties close to public transport, shops, schools and services tend to attract greater demand and maintain more consistent value. On the other hand, factors such as heavy traffic, noise, pollution or urban deterioration can reduce the areas appeal and negatively affect the propertys value. Factors that increase a propertys value There are several location-related elements that can increase the value of a home. Proximity to underground stations, railway stations or good road connections is one of the most valued aspects, especially in large cities. The presence of schools, hospitals, supermarkets, green spaces and local shops also helps make an area more attractive. Safety, the quality of public spaces and a well-maintained environment are equally important factors in purchasing decisions. In many regions, uninterrupted views, proximity to the sea or natural areas can represent a significant increase in value, particularly in tourist destinations or premium markets. The areas appreciation potential Beyond its current value, it is important to analyse the future development of the location. Urban regeneration projects, new infrastructure, public or private investment and transport expansion can transform less valued neighbourhoods into highly sought-after areas. For this reason, assessing the growth potential of the area where the property is located is essential to understanding its future value and defining the best sales strategy. How to make the most of location when selling Although it is not possible to change a propertys location, it is possible to highlight its strengths. When preparing your property for sale, emphasise its proximity to transport, schools, services, shops, green spaces or leisure areas. It is also important to compare your property with recent sales in the same area, understand the price per square metre and monitor the local market. This information helps define a competitive and realistic asking price. A valuation based on up-to-date information helps reduce the time the property stays on the market, increase buyer interest and improve your negotiating position. If you are planning to sell, understanding the influence of location is one of the first steps towards determining the true value of your home.
Source: Adobe Stock Author: Redaction House sales continue to lead the market House sales maintained a stronger growth rate than the rental market in 2025, reinforcing the importance of home purchases in Portugals residential market. According to data from the National Statistics Institute (INE), 169,812 family dwellings were sold, an increase of 8.6% compared with the previous year. The total value of transactions reached €41.2 billion, the highest amount since the statistical series began in 2009. During the same period, 149,628 new rental contracts were signed, representing growth of 5.4%. The difference of more than 20,000 properties between sales and new rental agreements confirms the stronger momentum of house sales. Lower interest rates over the past year and improved access to mortgage credit are likely to have contributed to this performance, although supply remains insufficient to meet demand. House prices rise faster than rents House prices once again outpaced rental growth. The median house price increased by 16.8% in 2025, reaching €2,076 per square metre. Greater Lisbon, the Algarve, the Setúbal Peninsula, Madeira and the Porto Metropolitan Area continued to record the countrys highest sale prices. In the rental market, the median rent for new contracts increased by 9.7%, reaching €9.29 per square metre. Despite this significant rise, growth remained below that recorded for house sales, reflecting different trends across the two market segments. Regional differences remain significant Price developments were not uniform across the country. Municipalities such as Lisbon, Cascais and Oeiras continue to record the highest values for both home purchases and rentals. However, across much of Greater Lisbon and the Setúbal Peninsula, rents increased proportionally more than sale prices. In contrast, the Porto Metropolitan Area and the Algarve recorded relatively stronger growth in house sale prices than in rents. Bank valuations grow at a slower pace Bank property valuations for home purchase financing also increased in 2025, surpassing 146,000 operations, the highest figure since 2009. Even so, growth stood at just 4.3%, below the 8.6% recorded in transactions. This difference indicates that an increasing share of house sales was completed without bank financing. The proportion of valuations relative to the number of transactions fell compared with the previous year, highlighting changes in the way buyers finance home purchases.
Source: Adobe Stock Author: Redaction House prices reach historic high House prices in Portugal rose again in the first quarter of 2026, reaching a new historic high. The median price of homes sold stood at 2,337 euros per square metre, representing an annual increase of 19.8%. Despite this rise, the number of transactions fell compared with the same period of the previous year, reflecting a market with lower activity but increasingly higher values. In the first three months of the year, 35,953 homes were sold in the country, 10.5% fewer than in the same period of 2025. The decline in sales was recorded in most regions, being more pronounced in Madeira, the Aveiro Region, Alentejo Litoral and the Leiria Region. By contrast, Terras de Trás-os-Montes and Alto Tâmega e Barroso were the only sub-regions to record an increase in transactions. Regional differences continue to widen The rise in house prices was widespread across the country’s 26 sub-regions, although at different rates. The largest increases were recorded in Lezíria do Tejo, the Setúbal Peninsula and Médio Tejo, while Beiras e Serra da Estrela, Douro and Beira Baixa recorded the more moderate increases. Greater Lisbon continues to lead prices, with a median value of 3,836 euros per square metre, followed by the Algarve, the Setúbal Peninsula, Madeira and the Porto Metropolitan Area. At the opposite end is Beiras e Serra da Estrela, which recorded the lowest median value in the country. The data also reveal that buyers residing abroad continue to purchase properties at higher values than buyers with tax residence in Portugal, a difference particularly evident in Greater Lisbon and the Porto Metropolitan Area. Most populous municipalities record new increases Among municipalities with more than 100,000 inhabitants, house prices accelerated in almost half of the cases. Guimarães and Vila Franca de Xira stood out with the largest annual increases, while Matosinhos was the only municipality where appreciation remained below 10%. Lisbon, Cascais and Oeiras remained the municipalities with the highest median house prices, all above 4,500 euros per square metre. Barcelos, meanwhile, recorded the lowest median value among the most populous municipalities. Market maintains pressure on access to housing Despite the drop in the number of sales, the residential market continues to show strong pressure on prices. Housing appreciation remains higher than income growth, making access to home purchase more difficult for many families. The latest data show that demand continues to support market appreciation, even in a context of lower transaction volume. The evolution of prices confirms that housing remains one of the most pressured segments of the Portuguese economy, with new historic highs marking the beginning of 2026.
Source: Adobe Stock Author: Redaction House sale prices continue to rise Recent data on the residential market show that house sale prices in mainland Portugal recorded a cumulative increase of 5.7% up to May 2026 compared with the end of 2025. Despite the appreciation, the market is growing at a more moderate pace than in the previous year. Following a sharp rise in prices during 2025, this years growth reflects a slowdown in appreciation. In the first five months of 2026, the average monthly increase stood at around 1.1%, below the pace recorded in the second half of last year. Even so, the average price of residential properties remained high, reaching €3,123 per square metre between March and May. Price growth slows compared with last year Although house sale prices continue to increase, the pace is less intense than in the same period of 2025. The cumulative growth rate fell from 8.4% last year to 5.7% in 2026, reflecting a gradual market normalisation following a period of strong growth. The data also show that the year-on-year growth rate slowed to 20.4% in May. Despite this moderation, prices continue to rise steadily, showing that the residential market remains on a positive trend, albeit at a slower pace. Market records fewer transactions Activity in the property market was less dynamic during 2026. Around 37,800 residential transactions were completed in the first quarter, below the quarterly average recorded throughout 2025. Between March and May, market activity stabilised at approximately 38,500 completed sales. Despite the lower number of transactions, house sale prices continue to be supported by the imbalance between available supply and housing demand. The shortage of new housing, combined with rising demand, continues to put upward pressure on prices. This explains why, despite fewer transactions and a more challenging economic environment, the residential market continues to follow an upward trend.
Source: Adobe Stock Author: Redaction House sales increase in Portugal and across the European Union House sales increased in Portugal during 2025, following the trend seen in most European Union countries. Recent Eurostat data show that the Portuguese market recorded an annual rise of 10.5% in residential property transactions, placing Portugal in 10th position among the Member States with available data. Despite the positive performance, the growth in house sales was lower than in 2024, when transactions increased by 15.2%. The slower pace follows the recovery of the national housing market recorded in the previous year. Portugal maintains growth at a more moderate pace The recovery in house sales in Portugal comes after the sharp decline recorded in 2023, a period marked by rising mortgage interest rates and reduced household purchasing power. As market conditions improved, transactions increased again, although at a more moderate pace. Among the countries analysed by Eurostat, the largest increases in house sales were recorded in Slovenia, Lithuania and Austria. In contrast, Croatia, Bulgaria and Poland were the only markets to register a decline in the number of transactions in 2025. European housing market continues to recover The data show that the recovery in house sales across the European Union began in 2024, following a period of slowdown caused by the economic and financial environment. In several countries, the housing market regained momentum, reflecting a gradual improvement in activity. In Portugals case, the figures confirm the recovery of the sector, although growth was less pronounced than in the previous year. Even so, Portugal remains among the European Union countries with one of the strongest increases in house sales, reinforcing the positive trend in the national housing market.
Source: Adobe Stock Author: Redaction Housing sales continue downward trend The Portuguese property market started 2026 with signs of cooling. After a period marked by record highs in both prices and activity, housing sales fell for the second consecutive quarter. Between January and March, 37,745 homes were transacted, 8.7% fewer than in the same period last year. Data released by the National Statistics Institute (INE) also shows that the decline was more pronounced in new-build homes. New home sales fell by 11.6% to 7,389 units, while existing homes recorded a drop of 8%, totalling 30,356 transactions. Despite the reduction in the number of deals, the total value of transactions reached €9.9 billion, up 3.2% year-on-year, reflecting the continued rise in prices in the residential market. House prices continue to rise, but at a slower pace House prices maintained strong growth in the first quarter of 2026, although with signs of moderation. The House Price Index increased by 17.8% compared with the same period in 2025, a rate 1.1 percentage points lower than in the previous quarter. This was the first slowdown in prices since the second quarter of 2024. Existing homes continued to lead growth, with a 19.7% increase, while new homes rose by 12.6%. On a quarterly basis, house prices grew by 3.8%, below the 4% recorded at the end of 2025. Used homes increased by 4.2%, while new builds rose by 2.7%, confirming that demand pressure remains stronger in this segment. Households dominate purchases and non-residents decline Households remained the main drivers of the housing market in Portugal. In the first quarter of the year, they purchased 32,828 homes, equivalent to 87% of all transactions. Investment by this segment reached €8.6 billion, representing 86.4% of total value. Buyers with tax residence outside Portugal reduced their presence in the market. Between January and March, 1,770 homes were purchased by non-residents, a year-on-year decrease of 15.6%. At regional level, the number of transactions fell across all areas of the country, with the sharpest declines recorded in Madeira, the Azores and the Algarve. However, several regions still recorded increases in transaction value, showing that rising property prices continue to support the market despite lower activity. The INE data therefore points to a less dynamic housing market in terms of sales volume, but one still characterised by high house prices and significant residential property appreciation.
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