Housing & Real Estate

“Setúbal is one of Portugal’s most undervalued property markets: half the price of Lisbon, just 45 minutes from the capital”

Setúbal’s Property Market

The Setúbal Peninsula is one of Portugal’s most dynamic real estate markets. Proximity to Lisbon (50 km), strong infrastructure, and natural surroundings make it attractive for both living and investment.

Key figures (2025–2026):

Purchase price growth on the Setúbal Peninsula was +29.3% year-on-year (2025), one of the highest in the country.

Renting

Average Rental Prices

Prices from Idealista and Numbeo, early 2026. Actual costs depend on condition, floor, neighbourhood, and parking.

Property Search Portals

Contract Types

Rental law is governed by NRAU (Novo Regime do Arrendamento Urbano, Law 6/2006).

Fixed-term (prazo certo): minimum 1 year, maximum 30 years. Automatically renewed for an equal period unless either party gives notice.

Open-ended (duração indeterminada): remains in force until terminated by either party. If no term is specified, the contract is considered open-ended.

Termination Notice

Tenant:

• Contract ≥ 1 year — 120 days before end
• Contract 6 months to 1 year — 60 days

Landlord (to oppose renewal):

• Contract ≥ 6 years — 240 days
• Contract 1–6 years — 120 days

Notice must be sent by registered mail (carta registada com aviso de receção).

Tenant Rights

• Automatic renewal of the contract
• Rent increase cap: once per year; in 2026 — maximum +2.24% (CPI-linked)
• Right of first refusal: if the landlord sells, the tenant (after 2 years) has priority
• IRS tax deduction: 15% of rent paid, up to €750 (2026)
• Eviction: only through Balcão Nacional do Arrendamento for debts of 3+ months

Buying Property

Purchase Process (for foreigners)

1. Obtain NIF (Tax ID Number) — mandatory for any financial transactions. Apply in person at Finanças or via a representative. EU residents no longer need a fiscal representative.
2. Open a bank account — needed for taxes, utilities, mortgage.
3. Search and offer — sign CPCV (promissory contract). Deposit usually 10%.
4. Due diligence — check debts, liens, cadaster through a lawyer (advogado).
5. Escritura Pública — notarial deed, signing, final payment.
6. Registration at Conservatória do Registo Predial.

Timeline: 4–8 weeks. Additional costs: 10–15% above price (taxes + fees).

Purchase Tax: IMT

IMT (Imposto Municipal sobre Transmissões) — property transfer tax. Paid before signing the escritura.

Rates for primary residence (2026):

IMT Jovem (under 35): exemption for first home up to €330,539.

Annual Tax: IMI

IMI (Imposto Municipal sobre Imóveis) — annual municipal property tax.

IMI Familiar discount: -€30 (1 child), -€70 (2 children), -€140 (3+ children).

Payment: in April, or in instalments (April, July, November if over €500).

Neighbourhoods for Living

Centro / Baixa

Historic centre: cobbled streets, squares, restaurants, Livramento market. Walkable, atmospheric, close to the Luísa Todi waterfront. Downsides: noise, limited parking, older housing stock.

Rent T1: ~€800–1,200/month. Purchase: ~€2,500–3,500/m².

São Sebastião

Residential area within the city, mix of old and new buildings. Shops, schools, public services nearby — quieter than the centre.

Rent T1: ~€650–900/month. Purchase: ~€2,200–3,000/m².

Azeitão

Village at the foot of Arrábida: vineyards, cheese producers, tranquillity. Car required.

Rent T2: ~€700–1,000/month. Purchase: ~€2,000–3,000/m².

More: Azeitão.

Palmela

Medieval castle, vineyards, 15 min north of Setúbal. Spacious homes at affordable prices, closer to Lisbon.

Rent T2: ~€600–900/month. Purchase: ~€1,500–2,500/m².

More: Palmela.

Rental prices on the Setúbal Peninsula are changing rapidly (~+7–10% per year). Check current listings at Idealista.

Utilities

Electricity

Main providers: EDP, Galp, Endesa, Iberdrola. Average price ~€0.22/kWh. Family bill: €70–100/month.

Water & Sewage

Provider: SMS — Serviços Municipalizados de Setúbal. Average bill: €25–40/month.

Gas

Many homes use bottled gas (botija de gás, 13 kg — ~€28–35). Piped gas is not available everywhere.

Internet & TV

DIGI is a new operator (since November 2024) with prices 2–3 times lower than the “big three”. Coverage is not yet 100% — check your address at digi.pt.

Estimated Utility Costs (T2 apartment)

Useful Contacts

Prices and rates as of February 2026. Verify information on official websites before making decisions.