Portugal remains a favourite among overseas buyers looking for scenic living, a mild climate and relaxed pace of life. While the Algarve and Lisbon are known for their luxury appeal, affordable homes do still exist – if you know where to look. From coastal towns to rural hideaways and revitalised urban areas, this guide highlights where you can find value for money in one of Europe’s most popular property destinations.
We draw on the latest market insights for 2025 to help ensure you get more for your budget – whether you’re seeking a renovation project, a ready-to-move-in holiday home or a rental investment.
Contents
- Affordable coastal property
- Best value inland locations
- Low-cost city living
- Tips for a smart purchase
- Understanding purchase costs
Alcoutim is one of the places you should look if you want to buy in the Algarve affordably
Affordable coastal property
Coastal property in Portugal can be surprisingly affordable – if you look beyond the busiest tourist spots. The central Algarve’s Golden Triangle commands premium prices, but if you’re prepared to go east or north, you’ll uncover hidden gems where your budget stretches much further.
Along the Silver Coast, prices remain more accessible. Towns like Figueira da Foz and São Martinho do Porto offer spacious flats and townhouses for under €100,000, especially those needing cosmetic updates. These areas are popular with locals, so you can enjoy authentic Portuguese living while still being close to the sea. Expect good public services, relaxed town centres and fewer crowds, even in summer.
In the eastern Algarve, towns such as Vila Real de Santo António and Monte Gordo give direct access to long beaches without the high prices of central hotspots. Properties requiring modernisation sell for around €80,000–€120,000, with rental income potential during peak holiday months. Though, if you’re considering on renovating, make sure you research the potential pitfalls of buying property in Portugal.
For a balance between affordability, beach proximity and liveability, two locations stand out in 2025:
- Vila Nova de Cacela: On the edge of the Eastern Algarve, just a few kilometres from the sea. Apartments start from around €100,000, close to high-end attractions like the Monte Rei Golf Club.
- Alcoutim: Situated on the Guadiana river, this inland gem offers a distinctive Portuguese charm. Country homes with land are still available from €85,000, and the nearby river beach provides a tranquil alternative to the sea.
For a step-by-step walk through the purchase process, claim your free copy of our Portugal buying guide:
Best value inland locations
If you’re open to living away from the coast, inland areas of Portugal offer unmatched affordability. The Centro and Alentejo regions are popular choices for budget-conscious buyers seeking space, charm and authenticity. With fewer tourists and lower demand, prices reflect a slower market – which works in favour of buyers.
The Serra da Estrela region, known for Portugal’s highest mountains, is dotted with traditional stone cottages and renovation projects. Budget €50,000–€70,000 for a habitable two-bed cottage with land. For rural retreats and off-grid living, some properties are listed at under €30,000 – perfect for DIY enthusiasts seeking a long-term restoration project.
Central Portugal also has many river beaches and lakes, which provide great alternatives to the sea during hot summers. Towns are often well-connected by train and road to cities such as Coimbra and Porto.
Also, if you’re willing to live inland, discover what the Algarve has to offer away from the beaches.
The following locations offer exceptional potential if you’re looking for characterful homes at low prices:
- Viana do Castelo: This small northern city sits between ocean and mountains, offering flats from €150,000 and rural properties under €100,000 in surrounding villages. Access to wide beaches and the Camino de Santiago route adds to its year-round appeal.
- Miranda do Corvo: Located in the Coimbra district, this area combines hills, valleys and affordable stone homes ready for restoration. Expect to pay just €25,000–€40,000 for renovation-ready cottages. Lock-up-and-leave options under €100,000 are available near the town centre.
Low-cost city living
Cities may conjure images of high property prices, but Portugal’s regional hubs still offer good value. Lisbon and Porto have both attracted heavy international interest in recent years, yet redevelopment and urban regeneration continue to open up lower-cost opportunities.
Central Lisbon is becoming less affordable, but the outer districts – such as Alcântara and Marvila – still offer one-bedroom properties in need of upgrading from around €150,000. These neighbourhoods are undergoing modernisation and benefit from growing transport links.
Porto remains a popular city for overseas buyers due to its blend of history, culture and affordability. While the Ribeira riverside area is costly, districts like Paranhos or Campanhã offer excellent potential. Expect liveable flats from €120,000 with long-term capital growth potential.
Coimbra is among the cheapest cities in Portugal, with the added attraction of top universities and vibrant culture. If you’re seeking city life at a slower pace with countryside on the doorstep, it’s a strong contender. Studio apartments start at €70,000, while homes in the suburbs can be found from just €50,000.
Tips for a smart purchase
Finding a bargain in Portugal involves more than browsing listings – it requires timing, trust and a strong understanding of the local market. Below are proven strategies for getting the most from your property search:
- Work with a bilingual agent: Choose someone familiar with helping overseas buyers who can guide you through negotiations and paperwork.
- Do your research: Visit our property portal to compare prices and see how long properties have been on the market.
- Be ready to move fast: Bargain-priced properties often attract multiple buyers. Having your finances in place, including currency transfers, can set you apart.
- Buy where others aren’t: Properties in up-and-coming areas or overlooked villages often offer better value than tourist-heavy zones.
Recognising overpriced listings is another crucial skill. If a seller inflates a price for foreign interest, having local insight can make all the difference in negotiations. Tap into community forums, social media groups and expat networks for feedback on what a fair offer looks like.
Understanding purchase costs
When budgeting for a Portuguese property, don’t forget to factor in additional charges on top of the sale price. These typically range from 8–10%, depending on the price of the home and whether it’s a main or second residence.
The main additional costs include:
- IMT (Property Transfer Tax): For urban homes, the rate can go up to 6.5%, though first-time buyers may pay less. Rural properties usually incur a 5% charge. Properties under €97,064 (in 2025) used as a permanent home may be exempt.
- Stamp duty (Imposto de Selo): Charged at 0.8% of the purchase price.
- Notary and registration fees: These vary but typically cost between €1,000–€2,000.
- Legal fees: Hiring an independent English-speaking solicitor is strongly recommended. Expect to pay 1–2% of the property price.
Currency rates can also impact your total spend. Using a specialist like Smart Currency Exchange can help you lock in a favourable rate and avoid volatile market shifts, particularly over the two to three-month buying period. Book a call with Smart Currency Exchange to learn how their services can help them.
Understanding these costs from the outset will help you make clearer financial decisions and avoid unwelcome surprises later. It’s wise to speak to a financial adviser or a Your Overseas Home consultant before making any firm commitments.
Looking for more guidance on buying in Portugal? Book a consultation with one of our experts today.
