Updated: July 15, 2025

 

Portugal’s real estate market shows no signs of slowing down. From Lisbon to the Algarve, investment opportunities are ripe for the taking, with Portugal’s property market set to outpace that of the EU, UK, and USA until 2027.

If you have bought property in Portugal – or are considering buying property in Portugal – managing the property can be complex, particularly when doing so from outside the country. This is why securing the assistance of a great property management company can be the winning formula to maximize your investment and safeguard your property.

In this article on Property Management Portugal, we’ll cover everything you’ll need to know about property management in Portugal, including the key services a good property manager can assist you with and how to choose the right property management company for your personal situation.

Key Takeaways

  • A property management company can help you navigate the complex Portuguese property market and ensure legal compliance with local regulations (such as the Alojamento Local license for short-stay rentals).
  • They will be your ears and eyes to ensure your property is well-maintained and managed.
  • Your property is a valuable asset, and a property management company will ensure that your property is safeguarded and protected, keeping it in optimal condition.

What is Property Management in Portugal?

property management in portugalProperty management begins from the moment you successfully purchase a property in Portugal and have the keys in your hand. Primarily, a property management company in Portugal will assist with the management and maintenance of your property, informing you of any issues that arise and making sure your property is in first-rate condition. Should you choose to rent out your property, they can also take care of tenant management, repairs, and cleaning services.

Particularly if you are a non-resident, having a property management company is a no-brainer to take care of your property while you are overseas, while residents who may be spending spells outside of Portugal should also consider the peace of mind and convenience that come with hiring a reliable property management company in Portugal.

Why hire a property management company in Portugal?

why hire property management company portugalA property management company in Portugal will ensure your property is in tip-top shape, should you not have the time to look after it. This is especially the case if you are based overseas. Should you choose an experienced company, their commitment to quality service and their expertise in the Portuguese market will make owning and managing the property incredibly easy.

If you don’t speak Portuguese, they will be essential to ensure your property gets the best maintenance services, and they will be able to help with reporting specific tax and accommodation obligations to the relevant authorities.

Property maintenance and upkeep

  • They can carry out regular inspections of the property to ensure everything is in order.
  • They can inform you of issues and organize any repairs that are needed.
  • Provide 24/7 contact for tenants or guests, if required

Assistance with legal and tax complexities

  • Ensure that your property complies with local rental laws, should you be renting out long or short-term
  • Provide guidance on financial aspects and ensure your tax obligations are met.

Peace of mind

  • Your property management company will be your ears and eyes for your property, making sure everything is in order.
  • They will handle any issues with tenants or guests, so you won’t need to worry.
  • They can assist with financial reporting and communication with the relevant authorities.
  • They can provide marketing services to ensure you have tenants throughout the year.

Want to know about renting out your property? Check out our ultimate guide for landlords.

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Main Services Offered by Property Management Companies in Portugal

We’ve outlined the key benefits of working with property management companies in Portugal, but below we break down the key services that they can help you with.

Category

Service

Description

Property maintenance

Frequent inspections

Regularly monitor the property's condition and catch any potential problems early on

Repairs and renovations

Coordinating with the best licensed contractors and supervising any repair and construction work to ensure work is of a high standard

Cleaning services

Managing regular cleaning schedules, including turnover services for short-term stays

Maintenance of amenities

Ongoing care and upkeep of landscaping, tennis courts, gardens, and swimming pools (if applicable)

Utility management

Ensure utilities are up and running and working correctly, and taking responsibility of timely bill payments

Financial management and reporting

Rent disbursements

Timely transfer of rental income from the tenant to the property owner.

Expense tracking

Monitoring and documenting all operational and maintenance expenses

Financial statements

Issuing clear, regular reports for your finances, detailing income and expenditures

Tax preparation

Liaising with certified accountants or fiscal representatives to facilitate tax compliance

Legal and administrative compliance

Ensure legal compliance

Ensuring compliance with any legal or administrative requirements

Condominium representation

Acting on the owner’s behalf in condominium assemblies (if applicable) and managing shared property fees

Legal coordination

Support with legal matters such as contract disputes, tenant issues, and handling enforcement actions

Attracting clients

Marketing of the property

Many companies can assist with marketing, posting your property on relevant channels, professional photography, etc.

High occupancy rate

Ensure your property attracts tenants throughout the year

Property Management Fees in Portugal

property management fees portugalProperty management fees in Portugal will depend on the property management company that you choose to work with and, if you choose to rent out your property, whether you are renting it out short-term or long-term.

  • Long-term rentals typically range from 8 to 12 percent, with some firms going up to 15 or even 20 percent for more full-service options.
  • Short-term rentals, as they typically require more hands-on care and property maintenance, can be as high as 30 to 40 percent of your rental income.
  • Property management services, whereby you are not renting out your property, but are just looking for a property management company to keep an eye on it while you are overseas, will cost you less.

Fees will also depend on the services you wish to leverage from the company, with more complete packages costing more. Services typically included in a basic package include rental collection and tenant liaison, routine inspections, and financial reporting, while overseeing major repair works, marketing services for your property, may cost more. The size and location of your property will also influence the price.

Choosing the Best Property Management Company for You

Be sure to carefully review companies to get the best deal, while also ensuring their trustworthiness and reliability. Below, we provide a quick overview of how to find the best property management company for your specific situation.

Commit to research and check for referrals

  • The first step is to research the property management companies out there, jotting down potential companies that could be a fit, including their fees and services. Look for “expat property management services Portugal” and you’ll find some good initial options to sift through. A good way to shortlist companies is to check reviews on expat forums, Facebook groups, or Google reviews.
  • Even better, if you know people who have worked with property management companies already, ask for their advice, or, if you have worked with a real estate agent in Portugal or, even better a buyer’s agent, they should have connections to experienced property management companies, or, in some cases, provide these services themselves.

Experience and expertise are everything

  • Look for companies that have proven experience in managing properties for international buyers and who understand the intricacies of the real estate rental market and follow market trends.
  • Make sure they have a clear understanding of local regulations or Portuguese law and ask specific questions about whether there are any regulations that you should be aware of.

Communication and transparency

  • For peace of mind, you’ll want a property management company that is highly responsive, acts on the initiative, and provides you with timely updates on aspects of your property that you need to be aware of.
  • Ask about their success stories and get to know how they work. Attention to detail is key, so be prepared to write down and ask as many questions as possible to make sure you are comfortable working with them, such as “How do you handle emergencies?” and “What is your tenant screening process?”
  • Make sure you are aware of any additional costs that may come up. Transparency is highly important for a successful working relationship.

Carefully review the contract and insurance

  • Read the property management contract carefully, working with a real estate lawyer in Portugal to double-check it for added protection. Ensure the fee structure is clear, along with termination clauses and notice periods.
  • Ensure that the property managers have liability insurance to protect you from negligence or errors on the part of the property management company.

In this section of our Property Management Portugal guide, we detail the key legal and tax considerations you’ll need to be aware of, which are essential for property owners in Portugal.

GC-ICON-75Your NIF number

To buy property in Portugal, you will need to have a Portuguese NIF number, and we highly recommend having a Portuguese bank account to save on currency exchange rates. If you own property in Portugal, you will already have a NIF number.

Alojamento Local (AL) Licensing

Should you be renting out your property in Portugal in the short term, you will need to have an Alojamento Local (AL) License for your rental property. This is required for all short-term rentals and requires that your property be registered with the Câmara Municipal. Bear in mind that there are currently restrictions on obtaining a license in certain areas, such as Lisbon, as a result of the oversaturation of tourist rental properties.

For the latest information on the AL License, you can check out our Alojamento Local guide, which has the latest information and will provide you with everything you need to know.

GC-ICON-62Rental Income Taxation

As a rule, rental income in Portugal is taxed at a flat rate of 28 percent for both residents and non-residents. However, a reduced rate of 25 percent applies to residential rental contracts that are signed or renewed from October 2023 onwards, provided certain conditions are met.

There may also be deductible expenses for rental property taxation, so we recommend working with an experienced tax accountant to optimize your tax affairs and for advice on financial management. They will also be able to assist with issuing your invoices to the Portuguese Tax Authority (Finanças) on the Portal das Finanças.

GC-ICON-105Condominium rules (if applicable)

While there is no Homeowners Association (HOA) in Portugal, should your property be part of a condominium, there will be shared costs to bear in mind. For example, with the maintenance of shared spaces and guest services , such as the swimming pool, gardens, gym, etc. You will need to understand the rules of the condominium and make the necessary payments.

Goldcrest: How We Can Help You

Goldcrest is the first buyer’s agent in Portugal. We have helped hundreds of clients discover their dream property in Portugal, from investment properties to family homes. Branching out, we also provide comprehensive property management services, including property set-up and assistance with the maintenance and monitoring of your property (for long term rentals).

Should you be seeking a trusted property management company with years of experience on the Portuguese property market and knowledge of managing properties that provides tailored solutions to your specific situation, don’t hesitate to get in touch with us.

Frequently Asked Questions about Property Management in Portugal

Long-term rentals typically range from 8 to 12 percent of the rental income but can go higher for more comprehensive services. Short-term rentals can be as high as 30 to 40 percent of your rental income.

Buying property in Portugal pitfalls include legal and bureaucratic hurdles, hidden taxes and fees, and a lack of due diligence (in thoroughly checking the seller and the property). Make sure to work with a real estate lawyer in Portugal and a real estate professional to safeguard your interests.

If you are renting a unit in a condominium, make sure you are aware of how the maintenance of shared spaces and guest service works in practice to ensure you follow the condominium rules.

The average price in Portugal will range dramatically depending on where you choose to buy. Lisbon’s Metropolitan Area, for example, commands prices of €4,935, while the average asking price of property in the Algarve is €4,385, Porto’s Metropolitan Area is €3,937, while the North and Alentejo regions are €1,903 and €3,181, respectively. These prices are from the Portuguese real estate databank, Confidencial Imobiliário.

Yes, Americans can rent an apartment in Portugal. Should they choose to stay in Portugal for more than three months, they will need to secure Portuguese residency.

While not mandatory, it’s highly recommended to hire a property manager to ensure everything is in order with your property and to provide you with tailored solutions to any issues that may crop up. As your property is a valuable asset, making sure it is maintained and well-managed is essential. A property manager can assist with tenant communication, maintenance, management, repairs, and provide 24/7 support to guests, if required.

If you are not renting out the property, then a property manager is not as vital, but still worth seeking out to conduct regular checks of the property and ensure everything is as it should be. More than anything, this will provide you with peace of mind while you are out of Portugal.

Property managers can assist with Alojamento Local licensing, ensuring that you are aware of the regulations and providing assistance where necessary. They can assess the eligibility of your property, for example, and help map out the route for you to obtain an AL license.

Short-term rentals typically require more hands-on property management, as tenant turnover is higher and more repair work may be needed. For long-term rentals, renters usually take better care of the property, and there is less maintenance and management required. The key difference is in the length of the contract and the level of involvement required.

Required documents include the following. The exact documents will vary depending on if you are renting out your property in the short term or long term, so be sure to check the exact documents needed with your real estate lawyer. 

  • NIF
  • A rental contract (Contrato de Arrendamento) 
  • Alojamento Local license (for short-term rentals)
  • Energy certificate (can be requested from ADNE, but you should have one as a property owner)
  • Property Title (Caderneta Predial)
  • Habitation License (Licença de Utilização)
  • Ensure you have safety compliance items, such as a fire extinguisher, etc. 
  • Invoice and tax reporting set-up
  • Insurance documents
  • Inventory list (can be useful to tenants)
  • Guest Reporting Registration (SIBA) – Mandatory to report guest stays to immigration authorities

Property managers in Portugal can act as a record-keeper to ensure the owner’s tax obligations are met, keep on top of expenses and potential deductions, and ensure that you adhere to all tax compliance requirements.