🎃Trick or Treat? Portugal’s New Housing Policies Rise from the Crypt

Happpy time travel day, friends! ⏲

This morning we all went back in time one whole hour. Clocks have fallen back, which means your Sunday just got 60 minutes longer.

A haunting historical note: Long before modern time zones, ancient civilizations like the Romans and Egyptians adjusted their schedules to the rhythm of daylight. Roman water clocks even used different time scales for different months to reflect changing sunlight hours.

So with today’s bonus hour, you have no excuse not to read this newsletter all the way through, even though, true to form, it's scarily long again. 👻

What’s lurking in today’s brew:

Ready to brave the darkness? Let's dive in... if you dare. 🕷️

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On November 13, beehiiv’s biggest updates ever are dropping at the Winter Release Event.

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Casa do Alentejo in Lisbon is a hidden gem tucked behind an unassuming doorway near Rossio Square, revealing an opulent Moorish-style palace once known as Palácio Alverca. Built in the 1600s as the residence of the Viscounts of Alverca, it later became Lisbon’s first casino before transforming in 1932 into a cultural hub for migrants from Portugal’s Alentejo region. Today, visitors can explore its breathtaking courtyard filled with arches, tiles, and lanterns, dine in rococo-era halls adorned with mirrors and frescoes, and enjoy traditional Alentejo cuisine in one of Lisbon’s most atmospheric settings.

Halloween in Portugal is becoming more popular, especially in cities like Lisbon, Porto, and the Algarve. Expect costume parties, themed pub crawls, and spooky events at bars or schools. While not a traditional Portuguese festival, it’s embraced by younger people and expats as a fun, lighthearted night out.

🥐 Pão‑por‑Deus on All Saints Day – Saturday, 1 November 2025

Both take place on November 1st, and they are closely connected in meaning and timing. All Saints’ Day (Dia de Todos‑os‑Santos) is the official Catholic holiday honoring all saints and remembering the dead, while Pão‑por‑Deus is the cultural and community expression of that remembrance.​

On the morning of November 1st, children go door‑to‑door carrying little bags and saying “Pão‑por‑Deus!” in exchange for bread, cakes, nuts, fruit, or sweets. This comes from an old tradition of giving food to the poor or to represent offerings for souls of the departed. All Saints’ Day as the religious side, and Pão‑por‑Deus as the local and family‑friendly way of marking it.

Amadora BD - International Comics Festival

WOW Porto Halloween Experience

Porto Halloween Pub Crawl

For a curated list of Halloween parties and experiences all over Portugal, visit my Notion page here.

More events at Portugal.com

EDP Porto Marathon

Halloween Run Party (10th Edition)

Candlelight Concerts Series

Candlelight Concert - Designer Outlet Algarve

Showcooking & Wine Tasting at Restaurante A Vela

Sip & Paint Algarve

Lego Fan Factory at MAR Shopping

ParTee Family Park - Vale do Lobo

Benagil Cave Sunset Boat Trip

Over the next few weeks, we’re running short, 2-minute surveys exploring a different slice of expat life in Portugal each time.

Each week, we’ll tease one juicy finding from the previous survey, but the full results will be unveiled at the end of this series in our very own Expat Hustle Newcomer’s Guide, created by this awesome community. Don’t miss your chance to be part of it!

A quick overview of surveys open and coming up:

✨ Fun fact from Week 4’s “Comfort Zone Package” survey: Turns out 18% of our readers basically run a mini import business from their own kitchen, regularly shipping or packing comfort items from home! 🍫🫖🧴 (And yes, the survey is still open if you missed it!)

👻 This week, we’re tackling one of Portugal’s spookiest challenges: getting digitally settled.

From Wi-Fi installations that test your patience, to MB WAY moments that make you feel like a local hacker, every expat’s tech journey has a story. So tell us: what tripped you up, what made life easier, and how “tech-adjusted” do you really feel now?

Because let’s face it, surviving the digital jungle of Portugal deserves its own badge of honour. 💻✨

Take the quick 2-minute survey below to help us map out the Tech & Connectivity Challenge: the apps, gadgets, and digital hacks that make expat life in Portugal run smoothly (or at least feel slightly less chaotic).

Portugal’s been going through a transformation worthy of a Halloween remake, with new rules, new priorities, and yes, a few scares along the way. The housing market hasn’t escaped the shake-up either.

With major reforms aimed at rebalancing affordability, boosting supply, and recalibrating taxes for foreign buyers, the property market is entering a new phase.

This week, our friends at Fresh Portugal and Fresh Properties help us pull back the curtain on what’s really happening behind the scenes, and how expats and investors can turn potential “frights” into fresh opportunities.

👻 It might not be as spooky as it sounds… once you know where to look.

Let’s hand things over to the experts, shall we?

🏘

Major policy shifts are reshaping Portugal’s housing market — here’s how they could affect foreign buyers, landlords, and investors.

If you’ve been following Portugal’s housing headlines lately, you’ll know big changes are underway. The government has just approved a new set of housing measures aimed at cooling the market, boosting supply, and making homes more affordable for residents. But as with all policy shifts, the impact on property owners, landlords, and foreign buyers is mixed — and worth understanding before your next move.

At the heart of the government’s new plan is a push to increase the number of homes available for local families. Around €4 billion has been allocated for housing initiatives, with a goal of creating over 30,000 affordable homes through public and private partnerships.

To fast-track supply, officials plan to simplify urban planning and licensing procedures, particularly at the municipal level — a long-standing frustration for developers and private builders alike. This could make it easier and faster to build or renovate, a welcome step for those investing in rehabilitation projects.

But the biggest headline grabber is the government’s intention to rebalance the tax system — easing pressure on residents while tightening rules around speculative investment.

Two measures stand out in the 2026 State Budget that directly impact expats and investors:

● IMT (Property Transfer Tax) – Non-residents could face higher rates when buying property in Portugal. The goal is to cool price inflation in high-demand areas such as Lisbon, Porto, and the Algarve by discouraging speculative activity.

● AIMI (Additional Municipal Property Tax) – This annual tax on high-value properties will remain in place, though there’s growing debate about adjusting thresholds to reflect market realities.

The good news for those focused on renovation is that the 6% VAT rate for restoration work on residential properties remains. For investors targeting older homes or urban regeneration zones, that’s still a strong fiscal incentive to buy and improve rather than build new.

A core pillar of the plan is to expand affordable rental options by converting state-owned buildings into housing and rewarding landlords who offer below-market rents.

Over 15,000 public housing units are slated for completion by 2026, with an additional €800 million allocated for renovation and social housing projects. This marks a move toward a more balanced model, blending private investment with state-led initiatives to address housing scarcity and affordability.

Another important part of the new policy package supports young first-time buyers.

Under the proposed measures, buyers under 35 will benefit from IMT and stamp duty exemptions on homes below specific price thresholds, along with state-backed mortgage guarantees to help cover down payments. These steps aim to keep younger generations in Portugal by making homeownership more attainable.

While not directly relevant to expats, it’s an important signal: the government is prioritizing residential access for locals. Over time, this could mean more targeted restrictions or tax changes for foreign buyers in urban or high-demand zones.

For expats, Portugal remains an attractive market, but these changes mark a shift in tone. The era of light-touch regulation and generous tax breaks is giving way to a more structured, resident-first housing policy.

If you’re buying a home to live in full-time, these adjustments shouldn’t cause concern. But investors seeking short-term yields — particularly through holiday rentals or flipping — will face greater scrutiny and tighter margins.

For those focused on renovation and long-term ownership, however, the environment remains favorable. Simplified planning, stable VAT incentives, and demand for well-located, refurbished homes all point to continued opportunity.

No single reform can solve Portugal’s housing challenges overnight, but this latest package suggests a more sustainable approach — one that balances affordability, regulation, and investment.

For expats and investors, the message is clear: focus on long-term value, stay informed about evolving tax rules, and align with Portugal’s broader goal of creating livable, community-driven housing for all.

…

Portugal’s latest housing reforms are reshaping the property landscape — but not closing the door on opportunity. Investors who understand the new tax environment, focus on renovation, and plan for long-term value rather than short-term speculation will be best positioned to thrive in this next phase of Portugal’s housing market.

🏘

With thanks to our collaborator, Stephanie Box, Real Estate Consultant at FRESH Properties, for her valuable insights and contributions to this article.

For more information on all things property, you can reach out to Stephanie via email below. Alternatively, WhatsApp the surprisingly helpful AI Estate Agent, Pedro, for real-time answers to your questions.

📧 Email: [email protected]

Bread (pão) is a big deal in Portugal, it’s fresh every day, and every region has its own favorite. Here are just a few types you’ll come across:

Once you’ve tried these, you’ll see why Portuguese bread is more than food - it’s tradition.

🗣 Curious to learn more everyday words and cultural gems? Mia’s free starter course “Kickstart Your Portuguese - The Basics” is a great place to start.

💡 Mia from Mia Esmeriz Academy is a Portuguese teacher from Porto with more than 15 years of experience teaching foreigners. She helps expats become fluent in Portuguese in a clear and practical way. Alongside her courses, she also shares free content on Instagram, Facebook, and TikTok.

Thanks for reading! 💌

Hustle on!

Angelique🧞‍♀️

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