How much does it cost to build a new house in Portugal?

Based on the market data we use for this simulator, in 2026 new construction typically costs between €1,000 and €1,800 per m² with medium finishes, reaching €2,400/m² for premium in Lisbon. The fiscal baseline is €570/m² (Portaria 471/2025/1, IMI/VPT reference) and this calculator applies market multipliers per type of works and region - indicative values, subject to significant variation per project.

What's the price difference between Lisbon, Porto and the interior?

Greater Lisbon has construction costs 30-35% above the national average; Greater Porto is 15-20% above; inland regions are typically 10-20% below. These differences reflect local labour rates, materials transport, and demand.

Does the 6% reduced VAT apply to my project?

The reduced 6% VAT rate may apply to certain works on permanent primary housing, under specific conditions set out in Item 2.27 of List I annexed to CIVA (for example, when labour is the dominant component). For secondary housing or new-build for sale, 23% applies. This tool does not verify eligibility - always confirm with your accountant or the Portuguese Tax Authority.

How much does it cost to remodel a kitchen or bathroom?

A medium-finish kitchen costs between €7,500 and €15,000 in Portugal; a bathroom falls between €3,500 and €7,000. Premium finishes can double these values. In these cases, cost depends more on furniture, appliances and sanitary choices than on area.

Why did my contractor quote double this simulator?

This simulator gives an orientation estimate. Project-specific costs - demolitions, structural work, complex permits, special finishes - can justify higher values. If the gap is significant, ask for a detailed scope with measurements and compare with other quotes.

Does this calculation include fees, project and site supervision?

No. The simulator only covers construction cost (materials + labour). Municipal fees, architecture project, engineering projects, site supervision and financing costs are additional and can add 10-20% to the total.

Where do the numbers come from?

Fiscal baseline: Portaria n.º 471/2025/1 (IMI/VPT value; it's a fiscal reference, not a retail cost). Monthly adjustment: INE ICCHN index (Base 2021, CC BY 4.0). Multipliers per type of works, region and finish level: estimates derived from published market sources. The fiscal baseline and INE index are official; the multipliers are our own estimates.

Portuguese construction cost simulator (2026)

How construction costs are calculated in Portugal

The average construction value in Portugal is set annually by the Ministry of Finance via Portaria n.º 471/2025/1, which fixed €570/m² for 2026. This is the baseline used for IMI and VPT tax calculations.

From this baseline, real construction cost varies with three main factors: type of works (new build costs more than light renovation), region (Greater Lisbon is 30% above the national average), and finish level (premium can double the economy value).

The calculation uses the most recent year-on-year variation of INE's Construction Cost Index for New Housing (ICCHN Base 2021), published monthly by INE. The calculation version in use is identified on every result.

Points to clarify in your quote

Value far below the low estimate - ask the contractor what is included and whether any component is missing.
Value above the high estimate - confirm it includes municipal fees, project, VAT or any site-specific conditions.
Deposit requested above 30% - uncommon in the Portuguese market; ask for staged payments as work progresses.
Missing detailed scope of works and measurements - makes it hard to compare quotes from different contractors.
Contractor without a valid IMPIC licence for permitted works - ask for the alvará number and confirm its validity on our free IMPIC checker before proceeding.

Frequently asked questions

How much does it cost to build a new house in Portugal?: Based on the market data we use for this simulator, in 2026 new construction typically costs between €1,000 and €1,800 per m² with medium finishes, reaching €2,400/m² for premium in Lisbon. The fiscal baseline is €570/m² (Portaria 471/2025/1, IMI/VPT reference) and this calculator applies market multipliers per type of works and region - indicative values, subject to significant variation per project.
What's the price difference between Lisbon, Porto and the interior?: Greater Lisbon has construction costs 30-35% above the national average; Greater Porto is 15-20% above; inland regions are typically 10-20% below. These differences reflect local labour rates, materials transport, and demand.
Does the 6% reduced VAT apply to my project?: The reduced 6% VAT rate may apply to certain works on permanent primary housing, under specific conditions set out in Item 2.27 of List I annexed to CIVA (for example, when labour is the dominant component). For secondary housing or new-build for sale, 23% applies. This tool does not verify eligibility - always confirm with your accountant or the Portuguese Tax Authority.
How much does it cost to remodel a kitchen or bathroom?: A medium-finish kitchen costs between €7,500 and €15,000 in Portugal; a bathroom falls between €3,500 and €7,000. Premium finishes can double these values. In these cases, cost depends more on furniture, appliances and sanitary choices than on area.
Why did my contractor quote double this simulator?: This simulator gives an orientation estimate. Project-specific costs - demolitions, structural work, complex permits, special finishes - can justify higher values. If the gap is significant, ask for a detailed scope with measurements and compare with other quotes.
Does this calculation include fees, project and site supervision?: No. The simulator only covers construction cost (materials + labour). Municipal fees, architecture project, engineering projects, site supervision and financing costs are additional and can add 10-20% to the total.
Where do the numbers come from?: Fiscal baseline: Portaria n.º 471/2025/1 (IMI/VPT value; it's a fiscal reference, not a retail cost). Monthly adjustment: INE ICCHN index (Base 2021, CC BY 4.0). Multipliers per type of works, region and finish level: estimates derived from published market sources. The fiscal baseline and INE index are official; the multipliers are our own estimates.