Why Finding a Rental Home in Portugal Is So Difficult

Portugal’s housing crisis is making it increasingly difficult for many immigrants and low-wage workers to find an affordable place to live, particularly in Lisbon and Porto. With Portugal’s minimum monthly wage reaching €920 in 2026, even people who have jobs can struggle to pay rent, cover everyday expenses and meet landlords’ requirements. Moving to smaller cities may reduce housing costs, but it can also mean fewer employment opportunities and more difficulty accessing essential services.

High rents and low salaries: The biggest problem

For many workers in Portugal, the main problem is simple: rents are too high compared with the salaries they earn.

Lisbon and Porto attract people looking for jobs, education, better transport and access to public services. However, the demand for housing in these cities makes it difficult for people on modest incomes to find apartments they can afford.

Consider a worker earning the national minimum wage of €920 per month before applicable deductions. If that person finds an apartment costing €900 a month, almost the entire gross monthly salary would go towards rent alone.

The worker would still need money for food, electricity, water, transport, telephone bills and other basic expenses. For someone living alone, renting an entire apartment at that price may simply be unrealistic.

Portugal’s OECD Economic Survey 2026 confirms that housing affordability is a serious structural problem, with low-income households particularly affected. The report says that increasing the supply of homes, improving the rental market and providing better support for people who cannot afford market prices are important parts of the solution.

Why restaurant and hospitality workers struggle

Restaurant workers, kitchen assistants, cleaners, retail employees and other people in lower-paid jobs can face a particularly difficult situation.

Many earn salaries close to the minimum wage, while the cost of renting a private apartment can consume most or even more than their monthly earnings. Although some workers receive higher salaries, tips or additional income, these are not guaranteed for everyone.

Sharing accommodation is one way to reduce expenses, but it is not always a suitable long-term solution. People may have to share bedrooms or common areas with several others, accept limited privacy or live farther away from their workplace.

The problem becomes more difficult for people supporting children or sending money to family members abroad. They may have to choose between paying for suitable housing and meeting other essential needs.

Having a job does not automatically mean someone can afford a home. This is one of the central issues behind Portugal’s housing affordability problem.

Why immigrants can face additional difficulties

Immigrants face the same high rental prices as other residents, but some may also struggle to meet the conditions requested by landlords.

When applying for an apartment, prospective tenants may be asked to provide documents showing their income, employment status and ability to pay rent. Some landlords also request a fiador, meaning a guarantor who can assume financial responsibility under the relevant agreement if the tenant fails to meet their obligations.

For a person who has recently arrived in Portugal, finding a Portuguese guarantor can be difficult. They may have a job and enough income to pay monthly rent but lack family members or established contacts in the country.

Community discussions show how frustrating this can become. In a 2026 discussion on Reddit’s PortugalExpats community, renters described difficulties finding accommodation without a guarantor and reported requests for several months of rent in advance.

In another discussion published in November 2025, a renter described making ten unsuccessful applications over three months despite having employment and other documents, eventually finding accommodation through a personal connection.

These are individual experiences, not official statistics showing how frequently immigrants are rejected. However, they illustrate how competition, financial requirements and a lack of local connections can combine to make the search more difficult.

The upfront payment problem

Finding an affordable monthly rent is only one part of the challenge. Tenants also need enough money to move into a property.

Depending on the agreement, the initial costs may include rent paid in advance, a security deposit and moving expenses. These payments can create a major barrier for someone who has only recently started working in Portugal.

Some people posting in Portugal’s online housing communities report being asked for six months of rent in advance or even a full year because they do not have a Portuguese guarantor.

Such requests should not automatically be treated as lawful or as standard practice across Portugal. Article 1076 of the Portuguese Civil Code sets limits on advance rent payments, and the legality of a particular arrangement depends on the applicable rules and contract terms.

Before transferring a large sum, tenants should check the written contract, confirm the identity of the landlord or authorised agent and understand exactly what each payment covers.

Is discrimination also part of the problem?

Some immigrants worry that landlords prefer local applicants or reject people because they are foreigners. Such experiences deserve attention, but it is important to distinguish discrimination from other reasons an application might be unsuccessful.

Portugal’s Article 1067-A of the Civil Code prohibits discrimination in access to rental housing on grounds including nationality, language, ethnic origin and territory of origin. It also prohibits discriminatory restrictions or preferences in rental advertisements.

This means that nationality-based discrimination in access to housing is not simply a matter of personal preference that landlords are free to impose.

However, not every rejection proves discrimination. A landlord may consider income, employment stability and other relevant circumstances, provided the assessment complies with the law.

The practical concern is that requirements such as a local guarantor or an established Portuguese income history can be harder for newcomers to satisfy. When combined with high rents and intense competition, these barriers can leave immigrants struggling to secure accommodation even when they are employed.

Why moving to a smaller city is not always the solution

When rent in Lisbon or Porto becomes unaffordable, moving to a smaller city may seem like the obvious answer.

In some places, housing can be cheaper, allowing workers to spend less of their income on accommodation. But the decision involves more than comparing rental prices.

Smaller cities and inland areas may offer fewer vacancies in certain occupations, including restaurant and hospitality work. Some residents may also face longer journeys to workplaces or have fewer convenient transport connections and services.

A person who moves to save €200 a month on rent could lose that advantage if they struggle to find a job or have to spend more time and money travelling. The outcome depends on the town, occupation, available transport and individual circumstances.

This creates a difficult choice: stay in a major city and compete for expensive housing, or move somewhere cheaper and potentially face fewer job opportunities.

For many immigrants, staying close to employment, public transport and established communities is not simply a preference. It can be an important part of building a stable life in a new country.

Why does Portugal have a housing shortage if so many homes exist?

Portugal’s housing problem is not explained by the total number of buildings alone. What matters is whether suitable homes are available where people need them, at prices they can afford.

The OECD’s 2026 report notes that 12% of dwellings were vacant and 19% were used as holiday homes in 2021. These figures refer to that year and do not mean that every property could immediately become a long-term rental.

Some homes may be in places with fewer employment opportunities, while others may require renovation or have ownership and practical obstacles that prevent them from being rented out. Meanwhile, building new homes can be slowed by regulatory requirements, construction costs and lengthy approval procedures.

The OECD also identifies Portugal’s relatively small social rental housing sector as a concern. For households unable to afford market rents, limited access to affordable public housing can leave few alternatives.

The result is a mismatch between housing needs and the homes people can realistically access. Increasing the number of suitable homes, improving the use of existing properties and expanding affordable housing are all relevant to addressing the problem.

What needs to change?

Portugal’s housing affordability problem requires action on several fronts, rather than a single measure.

Important priorities include:

• More affordable rental homes: Increase the supply of homes that low- and middle-income workers can realistically afford.
• More social housing: Improve access to suitable housing for people who cannot afford private-market rents.
• Fair rental practices: Apply the law against discrimination and ensure that rental conditions are lawful and transparent.
• Better use of existing properties: Explore practical ways to bring suitable vacant homes into long-term residential use.
• Improved transport and regional opportunities: Make it easier for people to live in lower-cost areas without losing access to employment and essential services.

These are long-term challenges that require effective planning, investment and cooperation between national and local authorities. Their success should be measured by whether people can actually find suitable homes at prices they can afford.

Final thoughts: Working in Portugal should mean being able to afford a home

Portugal offers employment and opportunities to people from many backgrounds, but finding a place to live can be a serious obstacle for those earning modest salaries.

In Lisbon and Porto, high rents can place an entire apartment beyond the reach of a minimum-wage worker. For some immigrants, the challenge becomes even greater when they cannot provide a local guarantor, face large upfront payment requests or struggle to compete with other applicants.

Moving to a smaller city may help with housing costs, but it is not a complete answer if suitable jobs and essential services are harder to access. Meanwhile, official research shows that Portugal needs to address deeper problems involving housing supply, affordable rental options and support for households under financial pressure.

A stable home should not remain out of reach simply because someone earns a modest salary or has recently moved to Portugal. The real test is whether the country can make housing accessible to the people who work in its cities, contribute to its economy and are trying to build a secure future there.