Country Houses Portugal: Prices, Locations & Buying Guide

Why invest in a country house in Portugal?

Investing in a country house can be a profitable investment. Portugal’s countryside is vastly underrated, offering magnificent scenery, a peaceful respite from the bustling city, and a wonderful place to live. 

If you are considering buying a property in Portugal, you’ll find the diversity of real estate options to be one of the key advantages, where you can find all the different property types imaginable. Country houses, in particular, are an attractive option given the sheer magnificence of the Portuguese countryside. Properties are highly likely to appreciate over time, with potential for strong rental yields in future hotspot locations, such as the Douro Valley and Aljezur.

Properties in the Portuguese countryside are likely to be more affordable than properties in the countryside of other European countries, with interior regions in Portugal considerably cheaper than buying in the city or by the coast. According to the independent Portuguese real estate databank, Confidencial Imobiliário, property prices in central and northern Portugal are less than half the average price per square meter found in the Lisbon metropolitan area.

For investors, the Portuguese countryside is set to thrive, with commercial investments, infrastructure improvements, and better accessibility opening up rural areas. With a rise in wellness centers, boutique countryside hotels, and eco-tourism, investing in rural properties can be a smart move. There are also initiatives from the Portuguese government to boost tourism in the interior regions, diversifying the tourism sector.

How much do country houses cost in Portugal?

Portugal country house prices vary depending on size, location, features, and condition. While many affordable properties exist in more rural areas, such as Bragança, Guarda, and Castelo Branco, country homes in the Lisbon or Porto areas will be pricier, as with properties in the Algarve region.

• Prices in the Lisbon Greater Area average at €4,935 per square meter
• Prices in the Porto Greater Area average at €3,937 per square meter
• Prices in Algavre average €4,385 per square meter
• Prices in the Alentejo (€3,181), Center (€2,098), and Northern Portugal (€1,902) offer the most affordable real estate prices.

You can find properties for as little as €50,000 for fixer-uppers to well over 1 million for more luxury Portuguese country houses.

Where are the best regions for Portugal country homes?

The best regions to find country homes for sale in Portugal include the Algarve, Alentejo, Northern Portugal, and Central Portugal. Each location has a distinct mix of price and lifestyle, which we detail below. While more expensive, you will also find country homes close to Lisbon.

Algarve

The Algarve in Southern Portugal is well known for its beautiful beaches and golf resorts, where you’ll find quaint whitewashed fishing villages lining the coastline. Move a little back from the oceanfront and you’ll find splendid country homes at affordable prices. Some of the best options for finding country homes for sale in the Algarve are close to Tavira (eastern Algarve), Loulé, and São Brás de Alportel (center), and close to Sagres and Aljezur (west).

Alentejo

The so-called Algarve of Portugal, situated to the north of the Algarve, is a standout region for its peaceful ambiance, low population density, and incredible cuisine. The Alentejo is home to beautiful landscapes, from green rolling hills and endless vineyards to serene beaches on the west coast. Buying a country home in the Alentejo offers an idyllic escape from the bustle of busy city life.

Northern Portugal

In Northern Portugal, renovated country homes provide luxury living in the midst of stunning natural landscapes, such as the Douro Valley or close to the Peneda-Gerês National Park. The north of Portugal is still hugely undiscovered when compared with other parts of rural Europe, and you’ll find a traditional lifestyle that resists modern changes. You will also find stunning vineyards for sale in Portugal in the north, in the Douro Valley.

Property prices in Northern Portugal are amongst the most affordable in the country, while you are still close to historic cities such as Porto, Braga, and Guimarães. Country homes close to Castelo Branco, Guarda, and Bragança offer beautiful natural scenery on your doorstep.

Central Portugal

Central Portugal is moving slowly into the spotlight, offering spacious properties and country estates with large plots of land at some of the most affordable rates in Western Europe.

Similar to Northern Portugal, the center offers incredible value for money when it comes to buying property. You are also well placed to get around easily (depending on your location), with Lisbon, Porto, the Silver Coast (Costa de Prata), Spain, and historic cities such as Coimbra and Viseu close at hand. Santarém, just an hour north of Lisbon, is also an exceptional location, offering easy access to Portugal’s vibrant capital, while being able to enjoy the peace and quiet – and delights – of inland Portugal.

Lisbon

While more expensive, the countryside just outside Lisbon, such as close to Sintra and Casais, also has historic country homes and luxury estates. Proximity to the capital and coast are the key advantages of buying here – be able to enjoy a rural lifestyle within striking distance of the capital. Lisbon is also the home of some of the best luxury properties in Portugal, so you’ll find many exceptional renovated and more modern country homes in this part of Portugal.

How to Find the Right Country House

1. Define your lifestyle and priorities

While you should have a clear picture of property prices and an overview of the different regions of Portugal and what they offer, you’ll first want to define your lifestyle and priorities. For example, if you are moving with children, you will need to ensure close proximity to a good school. Make sure you have a good supermarket and shops nearby, check Internet speed, proximity to the hospital, water access, fire risks, and so on. Are you seeking a home that is ready to move into or a fixer-upper? Answering these questions is the starting point to finding the right country home for you.

2. Ensure your finances are in order

It is important to define your finances. If you wish to secure financing, you can take out a mortgage in Portugal, with more than 15 banks now offering loans to non-residents, with fixed, mixed, and variable rates each offering various advantages and drawbacks. Non-residents typically require a 30-4o percent deposit, but should speak with a qualified mortgage broker to ensure the best rates. Currently, low interest rates are advantageous to buyers seeking to take out a mortgage to finance their purchase.

3. Research the location

A property is a major investment, so you’ll want to ensure you are fully happy with both the property and the location. Visit at night and not just in the day to get a feel for the place when the sun goes down. Determine how far you are willing to travel for services, schools, and work, as over the long term, long commutes can be draining. If you are unsure as to which part of Portugal could be best for you, it is advisable to seek expert advice. Make sure the roads are well-maintained if in a more remote area, and it’s important to have good neighbors when living in the countryside.

4. Work with property experts

Working with an English-speaking real estate lawyer in Portugal (advogado) is essential to a seamless process. They can do due diligence, commit to checks on both the property and the seller, check the legal contracts, and verify the legal status of the land in the Land Registry (Caderneta Predial). They are an important cog in the process to ensure you don’t run into any difficulties now or in the future.

A real estate agent in Portugal or, preferably, a buyer’s agent is also incredibly valuable, helping not only with sourcing properties but also with negotiation and assistance throughout the buying process and saving you time, money, and hassle. Bear in mind that while real estate agents work on behalf of the seller, buyer’s agents solely protect the buyer’s interests, putting them in a more advantageous position.

5. Get your NIF and open a bank account

You will need to get a NIF (Portugal tax number) to purchase property in Portugal or for any other major financial transactions. You can get your Portugal NIF at your local finance office in Portugal or online before you move to Portugal. If you are a non-EU national, you will also need to have a fiscal representative. We also recommend opening a bank account in Portugal to save on international transaction fees.

6. Scrutinize rural property documentation

It’s essential to understand property documentation in Portugal, specifically in relation to rural properties. A real estate lawyer and buyer’s agent will be able to ensure you have all the correct documents, with a property lawyer ensuring that everything is correct and above board. Missing or incorrect documentation is common with old country homes, and your lawyer’s role is therefore crucial to avoid legal complications.

7. Complete the Promissory and Final Deed

When you’ve found your ideal home and liaised with the seller, you will then have to sign a Reservation Agreement and CPCV (Promissory Agreement). Usually, at this stage, a deposit of 10-30 percent is made by the buyer. The final part of the property buying process is signing the Escritura (Final Deed) in front of a Notary, where the remaining payment and the property purchase taxes are made. Lastly, the property will need to be registered in the Land Registry, for a fee of around €200.

Are there tax incentives for buying or renting Portugal country homes?

Renting country houses in Portugal

Renting a Portuguese country house is an excellent option if you’re looking for an escape from the city or want to test whether life in the countryside is for you before making a big commitment.

Another advantage of renting a country house in Portugal is the potential tax benefits laid out in Portugal’s State Budget proposal for 2023 (Lei n.º 24-D/2022, de 30 de dezembro). The proposal states that anyone who transfers their permanent residence to an inland countryside territory and rents a home there will benefit from a €1,000 tax deduction each year for three years.

The first year is the year in which the contract is signed, and the deduction applies to costs resulting from the transfer of a permanent residence to a landlocked area. This limit was previously only €502.

To be eligible for this tax benefit, you must provide certain invoices and documents to the Finance Portal. These documents must be related to the lease that results in transferring your permanent residence to an interior area.

Other Tax Incentives for the Portuguese Countryside

Moving to the Portuguese countryside can mean being eligible for some other great tax benefits.

Increase in education and training expenses

According to the 2023 State Budget, families with students who will attend educational institutions in interior areas can benefit from an increased IRS deduction on education expenses, with the limit increasing to €1,000.

Benefits for companies

If you are buying property in Portugal, but are also considering operating a business, there are tax benefits. Companies operating in inland territories in Portugal will benefit from a ‘net job creation regime.’ When hiring new permanent resident employees in these territories, the expenses incurred by the company will be considered at 120 percent of the respective amount for the purposes of determining Corporate Income Tax (IRC) taxable income. The qualifying wage costs considered here will include the company’s Social Security contributions, as well as the employee’s fixed compensation.

Summing Up: Buying Country Houses in Portugal

If you’re interested in buying country houses, Portugal offers much in the way of property types that cater to different requirements. You can find luxury farmhouses, extravagant estates, fixer-uppers, cheap rural property, and equestrian property in Portugal for sale. You might enjoy one main house with a swimming pool and plenty of fresh air, or a living area with high ceilings, air conditioning, and a sea view from the first floor.

From north to south, you’ll find spectacular countryside that is only beginning to get the recognition it deserves, as coastal areas and the bustling cities have typically taken the limelight. Buying property in Guarda, the Douro Valley, or close to Braga in the North could be a smart financial move, while Central Portugal, the Silver Coast, Alentejo, and Algarve each offer something slightly different depending on your lifestyle and preferences.

The good thing about buying a country home in Portugal is that even in the most remote area, you are not too far from a large city or town, due to the country’s relatively small size. To travel from Bragança in the north-east to Sagres in the south-west takes only a little over seven hours.

If the countryside is not for you, you’ll find modern penthouses and spacious apartments in the cities. Find out more: Top Areas to Find a City Penthouse in Portugal.

Goldcrest: Who We Are and How We Can Help You

Contact Goldcrest if you have your eye on a country house for sale in Portugal. We are a local buyer’s agent situated in Lisbon, Porto, and the Algarve, and provide insightful real estate expertise and strategic advice. From sourcing to property acquisition, we help clients identify outstanding investment opportunities in some of Portugal’s finest locations.

Whether you’re a family looking to relocate or invest in a country home for redevelopment, our team of experts provides professional services to help you find the right property without the hassle or fuss. Contact us to get the ball rolling on your Portuguese real estate investment.