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Tenant default in Portugal costs far more than the missed rent. Add court fees, legal costs, damage, and opportunity cost, and the real figure routinely lands between €5,400 and €10,800.
The problem
Investors model gross yield but rarely model default. That blind spot is expensive: when default hits, the loss isn’t one number — it’s a stack of them, compounding over months.
The full cost stack
- Lost rent across the eviction period — rarely recovered.
- Court and BAS fees, plus enforcement agent costs.
- Legal fees for a lawyer or solicitor.
- Property damage, common in contested exits.
- Opportunity cost — the unit can’t be re-let while occupied.
Your specific number
In Lisbon (€18+/sqm) or Porto (€15+/sqm), a larger unit pushes the loss past the €10,800 ceiling. Seeing your number reframes how you price risk.
Frequently asked questions
Does insurance cover all of these costs?
Many GLI policies cover lost rent and legal costs within limits; property damage is often handled separately. Always read the policy.
