Renovating a house in Portugal (UK guide): costs, permits and more

Have you found a property in Portugal with great potential but in need of renovation? Or perhaps you’re dreaming of a Portuguese renovation project down the line? We’ll take you through the essentials of renovating a house in Portugal, explaining the process from start to finish.

In this guide, we’ll cover the pros and cons of renovating a house in Portugal, break down all the costs and help you create a renovation schedule. We’ll also tell you what you should consider before even starting.

Finally, since renovation can be costly and chaotic, you may want to make this process less stressful. The Wise account will allow you to send large amounts of money between the UK and Portugal for low fees*.

That means you could use what you save in fees or hidden markups to cover any upfront renovation payments. It can even auto-convert your pounds to euros at the mid-market rate and help you save even more.

For large amounts, Wise has a dedicated team of experts to guide you through every step of your transfer so you can move bigger amounts of money to Portugal with ease.

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Is it worth buying a house to renovate in Portugal?

There are many reasons why you might be considering renovating a house in Portugal. Perhaps you’re planning to move to Portugal, sell your property, rent it out, or turn it into a second residence or holiday home.

However, before moving forward, it’s important to step back and decide whether renovation is truly the right choice for you. Just like building a home from the ground up, renovating involves careful planning, budgeting, and a range of costs to consider.

To sum it up, here are the pros and cons to renovating a house in Portugal:

Pros:

• Incentives in certain zones, like Urban Regeneration Areas (ARU)¹
• Being able to customise the house to your lifestyle
• Usually cheaper than buying property in Portugal or building from scratch
• More sustainable than building

Cons:

• Some layout changes may not be possible
• Dealing with complicated paperwork
• Renovating historical buildings can be complex

📚Pitfalls of buying property in Portugal

Where to purchase a property to renovate in Portugal

If you’re unfamiliar with the Portuguese real estate market or would like professional guidance, working with an agent can be helpful. If you prefer to search independently, here are some well-known Portuguese property websites:

• Rightmove
• Zoopla
• Idealista
• A Place in the Sun
• Pure Portugal
• Casa Sapo

There are also several government and municipal support programmes available for renovating historic buildings in Portugal. One of the most significant is IFRRU 2020, which offers loans on highly favourable terms for renovation projects located in Urban Rehabilitation Areas.²

Many municipalities run their own schemes, providing support such as direct co-funding for façade restorations and other rehabilitation works.²

What to consider when renovating a house in Portugal

Home renovations can be challenging even in the UK, and taking on a project abroad adds an extra layer of complexity. Along the way, you may encounter delays or challenges, such as permit issues or keeping to your original schedule.

It’s important to consider carefully whether you’re prepared for the process, including any potential setbacks. If you decide to move forward, here are some key points to keep in mind to help make your renovation in Portugal run more smoothly:

• Is it a protected or listed building?
• How does Portuguese planning permission work?
• How do property evaluations in Portugal work?
• Do you have a renovation schedule in place?
• How to hire contractors for home renovations in Portugal
• Do you have the right insurance?
• Do you have a contingency plan in place?
• Are there fees and tax considerations for renovating a house in Portugal?
• Should you carry out a Portuguese house renovation yourself?
• What do you do if something goes wrong?

1. Is it a protected or listed building?

To check whether a Portuguese property is located in a protected area, you can use the DGPC Atlas. This is the official heritage mapping system from the Directorate-General for Cultural Heritage, showing classified buildings, heritage protection zones, and historic monuments.³

You can also confirm the status with the local city hall or by reviewing the municipal plan, since protected areas are often included in urban planning and zoning maps.

2. How does Portuguese planning permission work?

Planning rules vary by municipality, but you generally start by checking whether construction is allowed through Viabilidade de Construção, issued by the local Câmara Municipal.⁴

Your architect then submits a Projecto de Arquitectura, followed by a Projecto de Especialidade with technical details for approval. Once both are accepted, you apply for the Licença de Obras to begin work.⁴

After construction is complete, you obtain a Licença de Habitação to legally occupy the property.⁴

3. How do property evaluations in Portugal work?

Property evaluations in Portugal are carried out by licensed professionals, usually engineers, architects or real estate management experts. They assess the property’s condition, size, location and legal status to determine the fair market value.⁵

4. Do you have a renovation schedule in place?

Creating a detailed renovation schedule is essential for a successful project. A typical timeline looks like this:

• Stripping out the existing interiors
• Structural work
• Roofing and external work
• Plumbing, heating and electrical systems
• Insulation (if necessary)
• Flooring and plastering
• Bathroom and kitchen fit outs
• Painting
• Decoration, interior design and final touches

5. How to hire contractors for home renovations in Portugal?

The quality and pace of your renovation will rely heavily on your contractor team. They should hold certifications from Instituto da Construção e do Imobiliário (InCI) or be registered on the Plataforma de Registo de Técnicos e Empresas (PRTE).⁶

Consider hiring a translator, especially in the initial stages or when talking about international invoices.

6. Do you have the right insurance?

It’s important that your contractor has insurance covering any liability or damages. This should include third-party damages, worker injuries or different construction-related incidents.⁷

7. Do you have a contingency plan in place?

Renovations rarely go exactly to plan, so it’s important to prepare for changes. Consider including change order rules in the contract, so you know how any changes will be approved and how costs will be handled.

In case of delays from weather, material shortages or other unexpected issues, setting some extra money aside can be helpful.

8. Are there fees and tax considerations for renovating a house in Portugal?

The main costs you’ll encounter are the required building permit fees. Some banks have hidden markups in their exchange rate fees. With Wise, the exchange rate is the mid-market one (this is the one you’ll normally find on Google) and you’ll see all fees upfront so using Wise to pay your renovation costs may be cheaper, since your pounds will be automatically converted at the mid-market exchange rate and fees are low*.

If you renovate property in Urban Rehabilitation Areas (ARU), you may get temporary municipal property tax (IMI) exemption, as well as property transfer tax (IMT) exemption. You may also get a reduced VAT rate of 6% instead of 23% on renovation work and deductions on personal income tax (IRS) for renovation expenses.⁸

📚Tax implications of buying property abroad

9. Should you carry out a Portuguese house renovation yourself?

If possible, it’s best to hire professionals for renovating a house in Portugal. At the very least, consult an expert to ensure the work complies with all legal and regulatory requirements.

10. What do you do if something goes wrong?

If you encounter a problem, seek independent legal advice right away and make sure you gather all relevant documents, such as contracts and invoices.

Keep in mind that the Foreign, Commonwealth & Development Office (FCDO) can’t intervene in private legal disputes abroad. However, they could give you a list of translators, interpreters and English-speaking lawyers.⁹

Portuguese house renovation costs

Now that we’ve covered the key considerations, let’s look at renovation costs in Portugal. We’ll break down the main refurbishment expenses and give you an idea of what you can expect to pay on average.

How much does a new roof cost in Portugal?

Roof structural problems are often one of the biggest expenses when renovating a house in Portugal. The reconstruction could cost anywhere from €5,000 to €25,000, which is roughly between £4,300 and £21,700.¹⁰

Roof insulation upgrades cost an additional €20–€40 per square metre, or £17–£35.¹⁰

How much does flooring cost?

The price of new flooring depends on the material. For example, quality vinyl flooring costs around €23 per square metre or around £20, while labor is another €25–€30, or £22–£26.¹⁰

Cost of fitting a kitchen in Portugal?

Full kitchen renovations in Portugal cost €7,000–€15,000 on average, or approximately £6,000–£13,000. The final cost will be higher if you get custom cabinetry or premium appliances, but it can also rise due to higher labour costs in certain regions.¹⁰

Cost of fitting a new bathroom in Portugal?

Remodelling a bathroom in your Portuguese house can cost between €2,500 and €5,000 on average, or £2,100–£4,300. The exact price depends on how much plumbing work you need and whether you’re changing the layout significantly.¹⁰

Layout changes might require additional permits, which might add up to €800 or £690 in costs.¹⁰

How much does it cost to paint an entire house in Portugal?

On average, you’ll pay €18 per square metre for exterior painting, although it can cost up to €65/sq.m.¹¹ The average price of interior painting is €9/sq.m, although it can cost up to €12.¹²

This is between £16–£56 for exterior painting and £8– £10/sq.m. for painting the inside of the house.

How much does it cost to rewire a house in Portugal?

Electricians in Portugal charge €15 per hour on average, or £13. However, working with old structures costs up to €40 per hour (£35).¹⁰

Cost of converting a loft in Portugal

The cost of converting a loft can vary significantly depending on the size and current state. On average, this can set you back between €5,000 and €12,000, which is £4,300– £10,400.¹³

How much does it cost to renovate a house in Portugal

Let’s list the main expenses in your Portuguese renovation:

Renovation type 🔨	Average cost 💶
New roof	€5,000–€25,000 (£4,300–£21,700)
Flooring	€25–€30 per square metre (£22–£26)
New kitchen	€7,000–€15,000 (£6,000–£13,000)
Bathroom renovation	€2,500–€5,000 (£2,100–£4,300)
Painting	€18–€65 per sq.m. (££8– £10) for exterior €9–€12 per sq.m. (£8– £10) for interior
Rewiring	€15–€40/hour (£13– £35)

How to pay for renovating a house or property in Portugal

That covers the main points to consider before renovating a house in Portugal, giving you a clearer idea of likely costs and what the process involves.

Renovating a house in Portugal can be expensive, with costs ranging from contractors and materials to permits and approvals. A Wise account can help you avoid any hidden fees and help you cut costs on foreign currency transactions.

The Wise account is an alternative to traditional bank accounts. It will allow you to send money between the UK and Portugal at the mid-market exchange rate, for low, transparent fees*.

There’s even a dedicated support team for all large amount transfers to help put your mind at ease when transferring high amounts of money to Portugal.

Request a call back 📞

FAQs: Renovating and refurbishing a house in Portugal

Let’s answer some common questions about renovating a house in Portugal:

How much does an architect cost in Portugal?

Architectural plans which you need for permit applications cost between €2,000 and €5,000 (£1,700–£4,300).¹⁰

What is the Portugal Renovation Grant?

Portugal offers several government-backed financial support programmes for renovating houses in designated Urban Rehabilitation Areas. Many municipalities also provide incentives for renovating older properties, especially in historic town centres.²

Why are there so many abandoned properties in Portugal?

Many properties in Portugal are abandoned due to various reasons, such as high renovation costs, rural depopulation and issues like inheritance disputes that make restoration or sale difficult.¹⁴

Sources used:

1. Be Global Properties - Urban Regeneration Areas
2. Portugal Property - renovation grants in Portugal
3. Ministry of Culture, Youth and Sports - DGPC Atlas
4. P.P.Property - planning permission
5. Portugal Mortgage Brokers - property evaluation
6. Your Overseas Home - renovating a home in Portugal
7. Riviera Renovations - what to check before signing a renovation contract
8. Supercasa - support for home renovation
9. Gov.uk - guidance for buying property abroad
10. Investropa - Portugal renovation costs
11. Fixando - exterior painting
12. Fixando - interior painting
13. Idealista - converting a loft
14. With Portugal - why are there so many abandoned buildings in Portugal?

Sources last checked on date: 19-Jan-2026