Hi there,
The property tax is paid by the property owner. 17% VAT is charged on the rent amount. Many people are skipping that, however, that is illegal. The law on charging VAT was inserted 2 to 3 years ago.
Best areas are Polana, Sommerchield, and Triunfo. Rent can vary from 800 USD to 5000 USD.
I am currently looking for a client to give my house for rent as I am relocating in April. And my house in is the prime area of Polana. It's walking distance to most restaurants (Indian, Chinese, Italian, Portuguese, etc...) supermarket and shopping 24 (shopping center and Polana shopping center), Bar pub, etc. And I have created my ad on housing on expat and OLX websites.
If you want cheaper and affordable houses, you can find in areas like Alto-Mae, Baixa, Chamanculo, and other areas, rent can vary from 200 USD to 400 USD.
Purchase prices may vary from 50k to 500k USD. This is the good time to buy as the country's economy is facing downwards, and real estate prices are down too.
Hope I was helpful.
Regards, Rajiv.
