The housing market in mainland Portugal recorded 39,210 transactions in the second quarter of 2026, up 7.0% from the previous quarter, when 36,650 homes were sold. This result reverses the 12.1% decline recorded in the first quarter compared to the end of 2025, a period when approximately 41,000 homes were sold per quarter, according to data from Confidencial Imobiliário.

Streamlining prior notification, reducing administrative steps, and simplifying procedures are among the key changes introduced by this system.

The package of tax relief measures, aimed primarily at homeowners and including, among other things, a reduction in VAT, has been signed into law by the President of the Republic.

According to Confidencial Imobiliário, 37,750 homes were sold in mainland Portugal during the first quarter of the year, representing a 9.4% decline compared to the previous quarter, when approximately 41,600 transactions were recorded. This performance confirms the trend of slowing activity that has been observed since the second half of last year.

After receiving the green light from Parliament, the government approved on Friday the decree-laws regulating the housing tax package—which includes reductions in personal income tax (IRS), corporate income tax (IRC), and VAT—as well as amendments to the urban planning Simplex system.

The housing price index rose 17.6% in 2025, an increase of 8.5 percentage points from 2024 and the highest rate in the available data series. These figures were released Monday by the National Institute of Statistics (INE).

The number of buildings issued building permits in Portugal fell by 14.2% in the fourth quarter of 2025. Meanwhile, the number of housing units issued building permits for new single-family homes rose by 16%.

On March 2, the President of the Republic enacted the Legislative Authorization Laws proposed by the Government on housing, which were approved by Parliament on February 20.

It is up to property buyers to ensure that they have effective use for their own permanent residence for at least one year.

The residential market in mainland Portugal reached a new sales peak in 2025, sustained by robust and continuous demand. According to Confidencial Imobiliário, based on data reported to SIR – Sistema de Informação Residencial (Residential Information System), approximately 165,000 homes were sold in 2025, representing a 9.8% increase compared to 2024 and setting a new historical high for activity.

On January 9, the Portuguese Parliament approved, in general terms, the housing package presented by the Government in early December. The proposed laws will now be sent to the respective parliamentary committees to be discussed and voted on in detail, before the final overall vote in plenary, which is expected to take place by April.

The average construction value per square meter to be applied in 2026, for the purposes of Municipal Property Tax (IMI), is €570. This represents an increase of €38 compared to 2025 and may be reflected in a rise in tax.