Second home in Portugal: tax and advice from a Dutch Real Estate Agent

A second home in Portugal is a dream come true for many Dutch people. Sun, sea and a stable real estate climate make the country popular for both holidays and investments. But if you are a Dutch resident, you have to take into account tax rules in both countries. A Dutch Real Estate Agent in Portugal can make all the difference.

Why choose a second home in Portugal?

• Favourable climate and high quality of life

• Interesting real estate offers in the Algarve, Lisbon and Silver Coast

• Possibility of rental and increase in value

• Relatively low housing costs and taxes

Do you want to make the right choices? Then working with a Dutch Real Estate Agent Portugal is a logical step: someone who knows the local market and speaks your language.

Tax on second home Portugal for Dutch citizens

As a Dutch resident, you declare your worldwide assets in the Netherlands. This means that your Portuguese home falls into box 3 (savings and investments).

• Netherlands: The property is declared in box 3 at the Portuguese tax value (valor patrimonial tributária – VPT).

• Portugal: Portugal is also allowed to levy taxes, because the property is located there.

An experienced Dutch Real Estate Agent Portugal can explain how this works in practice and refer you to the right tax specialist.

Local taxes in Portugal

With a second home in Portugal you have to deal with:

• IMI (Imposto Municipal sobre Imóveis): annual municipal tax (0.3% – 0.45% of the VPT).

• AIMI (Adicional ao IMI): additional levy for luxury properties above €600,000.

• IRS (Income Tax): when renting in the Alojamento Local activity, you pay 28% on 35% of the net rental income in Portugal

Avoiding double taxation

Thanks to the tax treaty between the Netherlands and Portugal, you don't have to pay twice.

• In Portugal , you pay the local taxes.

• In the Netherlands , you can get an exemption for foreign real estate.

The home still counts towards your total assets, which can affect the amount of the box 3 tax.

Renting out your second home in Portugal

Many Dutch people choose to rent out their home (partly) via, for example, Airbnb.

• Portugal: Rental income must always be declared in Portugal.

• Netherlands: Rental income is exempt, but the house remains in box 3.

You often need an Alojamento Local license for rental. A Dutch Real Estate Agent in Portugal can guide you through this process.

Inheritance law and transfer in Portugal

In the event of death or gift, Portuguese rules apply, such as stamp tax (Imposto do Selo) in the case of transfer outside the immediate family. This can have tax consequences, which makes timely advice from a notary or tax specialist important.

Conclusion: Choose a Dutch Real Estate Agent Portugal

A second home in Portugal is attractive, but it comes with tax obligations. Thanks to the tax treaty, double taxation is prevented, but the rules are complex.

👉 Working with a Dutch Real Estate Agent in Portugal gives you security. This not only helps with the purchase, but also with rental, tax matters and the management of your home. This way you can enjoy your Portuguese dream home without any worries.