Compensa comprar casa para arrendar? Conheça os dados de 2023

Is it worth buying a house to rent out? Discover the 2023 data.

According to data released by Idealista and later shared in a news article by Notícias ao Minuto, in 2023 it was worthwhile to buy a house to rent in most Portuguese cities. Find out more about the data, the profitability by district, and if the process is worth it, then.

15 Jan 20243 min

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Is this one of your goals for this year? If so, talk to a credit intermediary from Poupança no Minuto, who will help you understand if your case is worth it, considering the house and respective conditions of the housing loan you aspire to. But first, get to know the 2023 data, and how to do the math to understand if this is an investment that makes sense.

In 2023, was it worth buying a house to rent?

According to data from Idealista, shared by Notícias ao Minuto, buying a house to rent it out yielded 7.3% in 2023, being more profitable in this period compared to 2022.

"The gross profitability of buying a house in Portugal to rent it out was 7.3% in 2023, one percentage point (p.p) higher than that calculated for the same period in 2022 (6.3%). Today, profitability in housing is 1.7 p.p higher compared to that observed in 2021, which was 5.5%", reads the news released by the information website.

Regarding the return on investment by district capital, the data released indicate that "it is in Santarém where it is most profitable to buy a house for investment, with a return of around 7.5%," the news states.

Next, profitability was higher in the city of Coimbra with 7%, Évora and Leiria with 6.9%, Setúbal with 6.2%, Braga and Porto with 5.9%.

On the other hand, the profitability compared to buying a house for rent was lower in 2023 in the cities of Lisbon with 4.6%, Faro with 5.1%, Aveiro and Funchal with 5.5%.

In 2024, do you want to buy a house to rent?

If you want to buy a house to rent in 2024, you should know the following information:

  • In case you want to take out a home loan to finance the property, it will need to be for the purpose of a second home. This makes the process more costly, as in the case of a secondary home, the bank only covers up to 80% of the property value (acquisition or evaluation, whichever is lower);
  • You have to pay two taxes to move forward with the purchase: Stamp Duty and Municipal Property Transfer Tax (IMT);  
  • You should calculate the return to understand if, in your specific case, with the installment you will pay for the loan and its conditions, the above taxes, plus the Annual Property Tax (IMI), possible condominium fees, and the tax on rental income are worth it, compared to the amount you will receive from the subsequent lease. As for this last tax, you should take into account that, from the amount paid by the lessee, you have to subtract 28% if the contract is less than 2 years old, 26% if it is between 2 and 5 years, 23% if it is between 5 and 10 years, 14% if it is between 10 and 20 years, and 10% if the contract is over 20 years.  

So, if subtracting all these costs to consider, and the balance remains positive in the medium/long term, the profitability of the process ends up compensating.

Note that having access to the right credit proposal can help you get the best financing conditions at the lowest cost.  

To do this, turn to a credit intermediary like Poupança no Minuto, which will present you with the various market proposals from different banks, and help you decide which proposal is most beneficial for you! Contact us and find out more about how we can help you with the purchase of your home, with the right financing.

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