It is no secret that Portugal is a desirable destination for buyers from all over the world. With its Mediterranean climate, beautiful scenery, and friendly people, it is easy to see why. But what is the real cost of buying a house in Portugal?

The first thing to consider is the price of the property itself. Portugal has a wide range of prices, depending on the location and type of property you are looking for. The average price of a detached house in Portugal is €300,000, but this can vary significantly depending on the area. For example, in the popular Algarve region, prices start at around €650,000 for a villa and €333,000 for a flat.

The second cost to consider is the cost of the mortgage. Portugal has some of the lowest mortgage rates in Europe, making it an attractive option for buyers. The average mortgage rate in Portugal is currently around 2.5%.

The third cost to consider is the cost of living in Portugal. Portugal is a relatively affordable country to live in, with a cost of living index of just 46. This means that it is cheaper to live in Portugal than in many other European countries.

The fourth cost to consider is the cost of running a household in Portugal. Portuguese households spend an average of €1,500 per month on running costs, which is relatively low when compared to other European countries.

The final cost to consider is the cost of taxes in Portugal. Portugal has a relatively low rate of taxation, with a personal income tax rate of only 14%. This makes Portugal an attractive destination for buyers who want to buy for themselves to live in or as a buy-to-let.