Cheap Houses for Sale in Portugal: An Overview

Portugal is one of the most affordable countries in Western Europe. Known for being the seventh safest country in the world, offering a high quality of life, and having a vibrant and growing tourism industry, Portugal also has plenty of housing options to suit different budgets and lifestyles.

International investors will be happy to know that buying property in Portugal does not have to break the bank. You can find a dream house situated near the capital city of Lisbon or even along the Douro River in Portugal’s second-largest city, Porto.

If you’re looking for cheap houses for sale in Portugal, this guide offers a brief overview of the towns where you can find affordable houses for sale in Portugal, the types of houses available, and the financial and legal aspects associated with investing in the Portuguese real estate market.

Where can I find cheap houses for sale in Portugal?

Whether you are looking for an apartment near the capital city of Lisbon or a country house located in a quiet village, international buyers in search of cheap houses for sale in Portugal can explore various options across the country.

A recent report by the Portuguese National Statistics Institute (INE) revealed Portugal’s 20 inter-municipal communities where the increase in average house prices slowed down in the fourth quarter of 2023. Several towns and villages within these 20 inter-municipal communities identified in the report present opportunities for affordable property investments. These communities include the Aveiro District, situated along the central coastal region, which offers budget-friendly real estate options for foreign investors buying a house in Portugal.

Additionally, Oeste, positioned on the western central coast, including its administrative center, Caldas da Rainha, is worth considering for its affordability. Another promising area is the municipality formerly known as Beira Baixa, located in north-central Portugal, close to Viseu and Guarda, where Viseu Portugal real estate prices remain relatively low compared to the national average cost for property in Portugal.

For those in search of cheap houses for sale in Portugal under 100k, municipalities like Penedono, within the Viseu district, are potentially prime destinations. With a bit of research and the help of a local real estate expert in these regions, international buyers can potentially find their dream homes without breaking the bank.

In the table below, we share the list of inter-municipal communities with cheap properties for sale in Portugal. The following regions offer property options at prices lower than the median house price in Portugal, which is €1,619 per square meter.

The Types of Cheap Homes for Sale in Portugal

Portugal offers a varied selection of houses available for purchase across the country. From first-floor apartments and detached houses to condos, farms, and villas, you’re sure to find your ideal property type.

The most convenient way to find these properties is to use a real estate site that features up-to-date listings of properties for sale in Portugal. Use their filters in your search and narrow your options down by searching for details about the property type. You can also search for features such as more than one kitchen or bathroom, select the number of bedrooms, property location, proximity and easy access to schools and public transport, and property price. You can even set up your email address to receive alerts regarding properties you’re interested in.

You’ll find many different types of properties listed at a range of Portugal house prices. For instance, you could easily search for and find one-bedroom country houses in Figueira de Castelo Rodrigo, 194 square meters of land in Vagos, or a coastal villa with three bedrooms in Funchal, the capital of Madeira Island. Another affordable option to look into is prefab homes in Portugal.

Repossessed property is also an excellent option to explore when looking for cheap houses in Portugal. Banks in Portugal often repossess properties and advertise them on their real estate site or portal at bargain prices.  If you want to make the most of the country’s breathtaking views, check out coastal areas, such as the Algarve, the Silver Coast, and Setúbal, for cheap property for sale.

Exploring the Financial and Legal Aspects of Buying Houses in Portugal

Considering the financial and legal aspects is an important step for foreign investors who want to buy a house in Portugal. In the sections below, we will look at how you can finance the dream home you find for sale in Portugal and discuss how legal and property management services can be of great benefit to you during the process.

Financing options for buying property

Foreign buyers interested in purchasing cheap houses for sale in Portugal have the option of applying for a mortgage from Portuguese lenders, whether you are a permanent resident, expat, or investing from abroad. The eligibility requirements consist of a number of factors, including having a solid credit score and history and a reliable income from stable employment, passive investment, or business ownership.

The mortgage application process involves reaching out to a Portuguese bank, lender, or mortgage agent who will provide a preliminary analysis or estimate. Mortgages in Portugal commonly feature fixed interest rates spanning 25 to 30 years, with Euribor serving as the base rate to which banks add their margins.

The evaluation criteria for a Portuguese mortgage require applicants to demonstrate a solid financial standing, including factors such as income, debts, employment history, and property valuation. Successful applicants must also exhibit the capacity to manage monthly payments throughout the loan term, ensuring a smooth and sustainable financing solution for acquiring property in Portugal.

The NIF (Número de Identificação Fiscal) needed for property purchases

Obtaining a Portuguese Número de Identificação Fiscal (NIF) number is a crucial step in the real estate purchasing process in Portugal. The NIF is the tax identification number required for conducting essential financial transactions in the country and simple activities like opening a bank account or renting an apartment.

It is also advised that you acquire a Portuguese bank account to avoid high foreign transaction fees during property acquisition and to have the opportunity to apply for a mortgage. You can apply for a NIF number at the local Portuguese tax office or with legal assistance. Our partner, Global Citizen Solutions, offers more details on how to get a NIF Portugal Tax Identification Number.

Acquiring property management services

Ensuring the upkeep of your property is vital, especially if you intend to rent it out or sell it in the future. Collaborating with a property management company can alleviate the responsibility of maintaining the property.

These services encompass various tasks, including regular maintenance and handling tenant needs. For property owners seeking convenience and efficiency, enlisting property management services can be advantageous.

To explore further details on finding a property manager in Portugal, refer to our How to Find a Property Manager in Portugal article.

Legal services for property transactions

The services provided by a Portugal real estate lawyer are crucial for ensuring a smooth and legally sound property transaction in Portugal. These professionals play a vital role in helping buyers understand, sign, and navigate the required documents, such as the Contrato Promessa de Compra e Venda (CPCV), which outlines the terms of the purchase.

Additionally, they oversee the entire purchasing process, remotely handle bureaucratic procedures, and conduct due diligence checks on the property, including verifying the legal ownership and checking for outstanding debts. Real estate lawyers also review contracts, such as reservation agreements, and provide legal advice on mortgage repayments and insurance requirements.

They ensure that buyers have all the necessary documentation, including the Energy Certificate and Caderneta Predial (land registry certificate), to proceed with the transaction legally. Working with an independent lawyer will offer you peace of mind, knowing that your interests are protected and that you are fully informed about the legal aspects of your property purchase in Portugal.

Goldcrest: How We Can Help You

Goldcrest is a buyer’s agent based in Lisbon, Porto, and the Algarve. Equipped with local knowledge, exclusive networks, and international experience, we provide expert, impartial advice on real estate investments and how to buy property in Portugal. From scouting out the perfect property to property acquisition and beyond, we have you covered throughout the process.