Mid-term rental
profitability calculator

Understanding and Calculating Mid-Term Rental Profitability in Portugal (2025)

Mid-term rentals (contracts of 1 to 12 months, often with “contratos de arrendamento mobiliado” are an increasingly attractive alternative for investors. They combine greater stability of income compared to short-term rentals with higher yields than long-term unfurnished leases.

Target tenants are mainly digital nomads, expatriates, Erasmus students, and professionals on relocation. This makes the income more stable than short-term, with fewer voids and lower management intensity.

However, as with any investment, gross rent alone is not enough to measure profitability. You must also consider occupancy, operating expenses, management fees, and taxes.

Gross revenue: stability instead of volatility

Unlike short-term rentals where nightly rates and seasonality dominate, mid-term contracts are calculated monthly :

Gross revenue = Monthly rent × Number of months occupied per year

Example :

A T1 in Porto rented at €1,200/month for 10 months = €12,000/year gross revenue.

The main risk here is vacancy between contracts. A conservative projection usually considers 1–2 months of vacancy per year.

Operating expenses

Expenses are generally lower and more predictable than in Alojamento Local (AL) :

• Utilities (water, electricity, internet) – often capped or charged to tenants.

• Maintenance – smaller repairs and replacements.

• Condominium fees and property insurance.

• Platform commissions (Direct bookings are more consistent, and the absence of platform commissions must be taken into account)

Taxes : Imposto do Selo

Mid-term contracts are subject to Imposto do Selo (Stamp Duty) at signing:

• 10% of the monthly rent × contract duration (in months)

• Example: rent €1,200 × 12 months = €14,400 → IS = €120.

At Airnest REIM, we fully handle this process :

• Registration of the rental contract with the Tax Authority,

• Payment of the Imposto do Selo on your behalf,

• The amount advanced is then automatically deducted from your rental income, so you only receive a net payment without administrative burden

Rental income taxation

• Individuals: falls under Category F (rendimentos prediais).

• Tax options:

  • 28% flat rate (most common for investors).

  • Or aggregation to progressive IRS brackets (advantageous if your overall taxable income is low).

• Deductible: IMI, condominium fees, insurance, repairs, IS (if paid by landlord).

Companies: income taxed under IRC (21% + municipal surtax), after deducting expenses.

What your calculator does not include

• Legal environment (rent caps, eviction rules).

• Financing costs (mortgage interest)

• Depreciation of furniture & reinvestment cycle

Final thoughts: mid-term as the “balanced investment”

Mid-term rentals are the compromise solution:

• Higher yields than traditional long-term leases,

• Lower volatility and regulatory risk than AL,

• Simplified taxation with Imposto do Selo + IRS Category F.

It is particularly well-suited for investors seeking predictable cashflow, lower operational risk, and fewer legal hurdles.

Airnest REIM — Secure & Optimise Your Investment

At Airnest REIM, we guide you through the entire mid-term rental process:

• Lease drafting & registration,

• Imposto do Selo declaration & payment,

• IRS/IRC optimisation and expense deduction,

• Full management of contracts, tenants, and property,

• Dedicated investor portal & profitability tracking.

With us, your investment is secure, optimised, and stress-free.

Airnest REIM — your partner for mid-term rental profitability in Portugal.