Ongoing Property Costs

What Is It?

Ongoing Property Costs are the recurring expenses associated with owning a property in Portugal, regardless of whether the home is used as a primary residence, holiday property, or investment.

Many buyers focus exclusively on the purchase price and overlook the real cost of ownership after completion.

Why Is It Important?

Realistic Financial Planning
Understanding ongoing costs helps buyers anticipate the true financial commitment of property ownership and avoid unexpected expenses after moving in.

Investment Evaluation
Essential when assessing rental profitability or long-term holding costs.

Financial Sustainability
Even when financing is approved, these ongoing expenses directly affect long-term affordability.

Main Ongoing Costs

Municipal Property Tax — IMI (Imposto Municipal sobre Imóveis)

An annual tax paid to the local municipality.

Typically ranges between 0.3% and 0.45% of the property’s VPT (taxable value).

Usually paid once per year or in instalments depending on the amount due.

Condominium Fees

Applicable to apartments or properties within shared buildings.

These fees generally cover:

• maintenance of common areas,

• cleaning and building management,

• lift maintenance,

• building insurance,

• reserve funds for future repairs.

Typical range:
👉 €25 to €150 per month, depending on the building.

Insurance

Home Insurance (Seguro Multirriscos)
Mandatory when a mortgage exists and strongly recommended in all cases.

Life Insurance
Required by Portuguese banks when financing is involved.

Utilities

Regular service costs such as:

• electricity,

• water,

• gas,

• internet and telecommunications.

Even occasionally used properties usually carry minimum standing charges.

Maintenance and Repairs

A widely used rule of thumb:

👉 Set aside approximately 1% of the property value per year for maintenance.

This covers natural wear and future repairs such as painting, equipment replacement, or unexpected fixes.

Quick Example

For a €300,000 apartment:

• IMI: ~€300–€600 per year

• Condominium: ~€600–€1,800 per year

• Insurance: ~€250–€600 per year

• Maintenance reserve: ~€3,000 per year

➡ Estimated annual ownership cost: €4,000 to €6,000

Practical Tip

A common mistake among foreign buyers is calculating only:

mortgage payment + purchase price.

The more important question is:

What will it cost to own this property every year?

Answering this before buying leads to far better long-term decisions.