What does a holiday rental in Portugal earn?
Across the markets Terrivio tracks, gross yields in Portugal typically range from 5–8% and net yields from 3–5% after operating costs and acquisition costs. The spread between the two is the whole story: platform fees, cleaning, management, utilities, insurance and local taxes usually consume 35–50% of gross revenue.
Worked example: a €240,000 property at €115 per night and 60% occupancy books about 219 nights and grosses roughly €25,185 a year (10.5% gross yield). After 25% variable costs and €3,600 fixed costs, NOI is about €15,289 — a net yield of 5.9% on the total investment of €259,200.
Purchase costs and taxes in Portugal
Budget roughly 8% on top of the asking price for acquisition costs. The main component is the IMT 0–7.5% (progressive) + 0.8% stamp duty. These costs are sunk on day one, which is why Terrivio divides NOI by the total investment — not the asking price — to compute net yield.
Under the simplified regime, AL income is taxed on 35% of gross revenue (50% in containment zones); non-residents pay a flat 25%. Annual IMI property tax is 0.3–0.45% of the tax value.
Tourist tax: Lisbon €4 · Porto €3 per night. It is normally collected from guests but affects your competitive nightly rate.
Short-term rental rules in Portugal
An Alojamento Local (AL) registration is mandatory. The 2023 national freeze was reversed in 2024–2025; municipalities now set their own containment zones — Lisbon and Porto restrict new ALs in central parishes.
Regulation is the biggest single risk in European STR investing. Terrivio's risk score weights regulatory risk at 25% and flags night caps, licence requirements and enforcement intensity for every analysed listing.
Where to look: cities and portals in Portugal
Popular short-term rental locations include Lisbon, Porto, Algarve (Lagos, Albufeira), Madeira and Comporta. Each has a different seasonality profile — Terrivio shows the 12-month revenue curve so you can see how much of the year carries the return.
Listings are mostly published on Idealista, Imovirtual, Casa Sapo and Supercasa. Terrivio reads these portals directly: paste the listing URL and the pipeline extracts price, size, rooms and location automatically.
How to analyse a Portugal listing with Terrivio
- Copy the listing URL. Open the property on Idealista or another supported portal and copy the address bar URL.
- Paste it into Terrivio. Terrivio scrapes the listing, geocodes the address and pulls market ADR and occupancy for the segment (property type, bedrooms, location).
- Review yield and cashflow. You get gross and net yield, NOI, monthly cashflow, break-even occupancy and 10-year IRR — using Portugal-specific acquisition costs and taxes.
- Check risk, tax and rules. The report shows the 10-dimension risk score, the recommended tax regime for Portugal and the STR rules that apply to the exact city.
Frequently asked questions
Is a holiday home in Portugal a good investment in 2026?
It depends on the micro-location and on regulation. Typical net yields are 3–5%; the best results come from locations with year-round demand and clear licensing. Always model the net figure, not the gross.
How much are purchase costs in Portugal?
Plan for roughly 8% of the price: IMT 0–7.5% (progressive) + 0.8% stamp duty, plus notary, registry and agent fees where applicable.
Do I need a licence to rent out short-term in Portugal?
An Alojamento Local (AL) registration is mandatory. The 2023 national freeze was reversed in 2024–2025; municipalities now set their own containment zones — Lisbon and Porto restrict new ALs in central parishes.
Which Portugal property portals does Terrivio support?
Terrivio analyses listings from Idealista, Imovirtual, Casa Sapo and Supercasa and 40+ other European portals. Paste any listing URL to start.