Authored by the expert who managed and guided the team behind the Portugal Property Pack
Everything you need to know before buying real estate is included in our Portugal Property Pack
Why is Portugal such a standout destination for real estate investment in 2025? Is it the attractive Golden Visa program, the thriving tourism industry, or the affordability compared to other European markets? What are the key advantages for investors?
We get asked these questions all the time because we’re on the ground, working closely with developers, real estate agents, and investors like you. With so much interest in this market, we’ve decided to turn our individual answers into a comprehensive article for everyone to benefit from.
Our goal is to provide a clear case for investing in Portugal's real estate market, backed by our firsthand experience and market knowledge.
If you think we missed an important point in our content or want to know more, don’t hesitate to reach out (we answer super fast). Your feedback makes our content even stronger.
Finally, please note that this is not financial or investment advice. Investing in real estate carries inherent risks, and market conditions can change unexpectedly. We strongly encourage you to conduct thorough research and consult with a qualified financial advisor before making any investment decisions.
How this content was created 🔎📝
Fact-checked and reviewed by our local expert
João Morais 🇵🇹
Founder | Real Estate Advisor, at Wilderness Investments
1) In Portugal, you’re protected by strong property rights and a solid legal framework
Portugal is a top choice for real estate investors thanks to its strong property rights and legal framework.
In the World Bank's Ease of Doing Business report, Portugal shines, ranking 25th out of 190 countries for ease of registering property. This high ranking means that buying property here is straightforward and hassle-free. The process is smooth, which is a big plus for anyone looking to invest in real estate.
Another reason investors feel secure is the low number of property disputes in Portuguese courts. This low level of conflict suggests that property rights are respected and well-protected. When you buy property in Portugal, you can feel confident that your investment is safe and that any agreements you make will be honored.
Portugal's commitment to enforcing contracts is another key factor. The World Bank's Doing Business report highlights how contracts are upheld, ensuring that all parties stick to their agreements. This reliability is crucial for investors who want to know that their deals will be respected and that they can trust the legal system.
Being part of the European Union adds another layer of security for property investors in Portugal. As an EU member, Portugal follows EU property laws, which are known for their transparency and robustness. This means that property transactions are governed by a clear and reliable legal framework, making it easier for investors to navigate the market.
Sources: Home in Portugal, Brint Portugal
2) Portugal’s top-ranked healthcare system makes it a great choice for retirees looking for quality medical care
Portugal's healthcare system is highly regarded, making it a top choice for retirees looking for quality medical care.
In 2024, Portugal was ranked 21st globally in Numbeo’s Health Care Index, showing off its strong healthcare system. This ranking reflects the country's commitment to maintaining high standards in healthcare, which is a big draw for those considering a move.
One of the perks for retirees is the availability of English-speaking medical professionals. This makes it easier for foreigners to navigate the system, ensuring effective communication and understanding without the language barrier.
Expats in Portugal enjoy minimal waiting times for healthcare services, which is a huge plus. The efficiency of the system means you can get the care you need without long delays, adding to the appeal of living here.
Healthcare costs in Portugal are significantly lower compared to other Western European countries. For instance, seeing an English-speaking dentist might cost you around €50 to €75, which is quite reasonable and adds to the country's attractiveness for retirees.
Sources: Global Citizen Solutions, Be Global Properties, OECD Ecoscope
This video provides insights into Portugal's healthcare options for expats, to give you a better idea.
3) If you love ocean views, Portugal’s coastline properties are in high demand
Portugal's coastline is famous for its stunning ocean views, making coastal properties highly sought after.
In places like Lisbon, Porto, and the Algarve, the demand for property remains strong. This isn't just because of international buyers; locals are also drawn to the peace and affordability of these coastal towns. The allure of the ocean and the vibrant culture make these areas irresistible.
You'll notice that property prices in Lisbon and the Algarve are higher compared to northern areas like Braga and Porto. This price difference shows just how much people value living by the sea. The rising house prices in Lisbon and Porto highlight the growing interest in these coastal gems.
The Algarve is a hotspot for tourists, with millions of overnight stays each year. Even with fewer domestic visitors, the region's charm keeps attracting people from all over the world. This tourism boom makes coastal properties even more appealing.
For those considering a move, the Algarve offers a unique blend of natural beauty and vibrant community life. The region's success in tourism adds to its allure, making it a top choice for both living and investment.
Whether you're looking for a peaceful retreat or a bustling city vibe, Portugal's coastal areas offer something for everyone. The combination of stunning views and cultural richness makes these properties a wise choice.
Sources: Springvale Estates, Stat CMU, ETIAS
4) Portugal’s location makes it ideal for frequent travelers with easy access to other European countries
Portugal is a fantastic gateway to Europe for frequent travelers.
With Lisbon and Porto as major transport hubs, you can easily catch direct flights to many European cities. From Lisbon, there are non-stop flights to 139 destinations, while Porto offers non-stop flights to 117 destinations. This makes hopping around Europe a breeze.
Being part of the European Union, Portugal allows for smooth travel and trade within the region. Plus, as a member of the Schengen Area, citizens from 61 countries can travel visa-free for up to 90 days within any 180-day period. This means less hassle with paperwork for frequent visitors.
Portugal's spot on the Atlantic Ocean is strategic for transatlantic routes, making it a convenient stopover between the Americas and Europe. The country has invested in modern airports and transportation networks, boosting connectivity not just within Europe but globally.
For those who love to travel, Portugal's location and infrastructure make it an ideal base. Whether you're jetting off for business or leisure, the ease of access to other European countries is a major perk.
Sources: Flight Connections, Lonely Planet, WTTC, Direct Flights, Visa Guide
5) Lisbon’s booming tech scene is drawing young professionals, boosting demand for city homes
Lisbon is quickly becoming a hotspot for the tech industry, drawing in both startups and established companies.
Over the past few years, the city has seen a consistent 30% increase in tech investment annually since 2016. This surge has pushed startup valuations to an impressive €21 billion by 2022. Big names like Feedzai, Farfetch, OutSystems, and Talkdesk have set up shop here, adding to Lisbon's growing reputation as a tech hub.
Foreign investors are pouring money into Lisbon's tech scene, thanks to the government's welcoming policies. This has led to Portuguese startups achieving valuations three times higher than just five years ago. In 2023, Lisbon was named the European Capital of Innovation, earning a €1 million award from the European Commission, which underscores its dedication to tech growth.
Lisbon's charm for tech workers is undeniable, especially with initiatives like the digital nomad visa. This visa allows tech professionals to move to Portugal with a minimum income requirement, drawing a significant number of them to the city. The combination of a vibrant tech scene, great quality of life, and affordable living costs has led to a rise in demand for co-working spaces and tech hubs.
Young professionals are flocking to Lisbon, driven by the city's booming tech industry. This influx is increasing demand for urban housing, as more people look to settle in the city. The tech boom is not just about jobs; it's reshaping the real estate market too.
Sources: The Portugal News, Accelerance, Portugal Buyers Agent
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6) With tourists flocking to Lisbon and Porto, Portugal’s cultural heritage boosts short-term rental opportunities
Portugal's rich cultural heritage and historic cities like Lisbon and Porto are major tourist attractions, boosting the short-term rental markets.
In 2023, the Travel & Tourism sector in Portugal saw an impressive growth of 8.6%, reaching €52 billion, a significant chunk of the country's economy. This upward trend is expected to continue, with projections suggesting it will surpass €54 billion in 2024.
Lisbon and Porto are buzzing with tourists, evident from the 85% annual occupancy rates in short-term rentals. These cities are home to cultural gems like the Jerónimos Monastery and Porto Cathedral, drawing visitors eager to dive into their rich history.
The Airbnb scene in Portugal is thriving, with a noticeable increase in active listings. In 2023, guests on Airbnb spent an average of 116 euros per day, contributing significantly to local revenue and taxes.
Short-term rentals are not just about providing a place to stay; they play a crucial role in the economy. The revenue generated from these rentals highlights their economic contribution to the local communities.
Sources: The Portugal News, Airbnb News, WTTC
7) Portugal’s lively festivals and arts scene draw cultural tourists, boosting the hospitality industry
Portugal's festivals and arts scene are a big draw for cultural tourists, giving a boost to the hospitality sector.
In 2024, Portugal hit a new tourism high with 10.5 million overnight stays, up by 3.8% from the previous year. This surge was fueled by a 5.9% increase in visitors, with foreign tourists making up a significant portion of the stays. Major festivals like NOS Alive and Rock in Rio Lisboa are key players, consistently pulling in large international crowds and driving this cultural tourism boom.
While exact attendance numbers for 2023 and 2024 aren't available, these festivals are known for their significant impact on tourism. The number of cultural events and festivals in Portugal is rising, drawing more tourists and boosting hotel occupancy rates during these vibrant seasons. Hotels in areas like Porto and the North report around 70% occupancy rates during festive times like Christmas and New Year's Eve, with expectations for even more bookings.
This trend shows a strong demand for accommodations when cultural events are in full swing. Cultural tourists often spend more than other visitors, enjoying longer stays in regions like Madeira and the Algarve. This spending pattern further supports the hospitality sector, making it a vital part of the local economy.
Portugal's cultural scene isn't just about numbers; it's about the experience. The festivals and arts events offer a unique taste of Portuguese culture, attracting visitors who are eager to explore and enjoy. This vibrant atmosphere not only fills hotels but also enriches the local communities, creating a lively and welcoming environment for all.
Sources: The Portugal News, ETIAS, ETIAS, The Portugal News
8) If you’re into golf, the Algarve is a top spot in Europe, boosting demand for nearby properties
The Algarve in Portugal is a top European spot for golf tourism.
With over 40 golf courses, the Algarve offers something for every golfer, from beginners to pros. This variety is a big draw for golf lovers. The region also hosts major events like the Dom Pedro International Golf Classic, which bring in players and fans from all over. In 2023, the Algarve saw a record 1.4 million rounds of golf played, making up two-thirds of all golf rounds in Portugal.
Golf's popularity here means hotels are busy, especially during the golf season. In May 2024, hotel occupancy hit 74.5%, up from the year before. This influx of visitors is pushing up property prices near golf courses. Places like Vale do Lobo are in high demand, with real estate agents noting a spike in interest due to the Algarve's growing fame as a golf hub.
For those considering buying property, the Algarve's golf scene is a major factor. The region's reputation as a golf destination is not just about the sport; it's about the lifestyle and community that come with it. Properties near these courses offer more than just a home; they offer a chance to be part of a vibrant golfing community.
Investing in property here means tapping into a market that's thriving thanks to golf tourism. The Algarve's appeal is not just its courses but also the events and the lifestyle that attract people from around the world. This makes it a smart choice for those looking to buy property in a place that's both beautiful and bustling with activity.
Whether you're a golfer or just love the idea of living near world-class courses, the Algarve offers a unique opportunity. The combination of stunning landscapes, a strong golfing culture, and a lively community makes it a top choice for property buyers.
Sources: Portugal Resident, The Golf PA, The Portugal News, International Business News
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Portugal. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
9) Portugal’s varied climate draws tourists and renters all year round with its mild winters and warm summers
Portugal's mild winters and warm summers make it a magnet for tourists and renters all year long.
In 2023, the country welcomed over 30 million visitors, setting a new record and surpassing 2019 by nearly 10%. This upward trend didn't stop there; in the first quarter of 2024, there was a 7.7% increase in tourists and overnight stays compared to the same period in 2023.
Short-term rentals in cities like Porto and Lisbon are thriving. In Porto, a typical Airbnb is booked for 288 nights a year with a 79% occupancy rate. Meanwhile, in Lisbon, the numbers are even higher, with bookings for 310 nights and an 85% occupancy rate. These figures show that tourists are consistently drawn to Portugal's climate and attractions.
Most guests in these cities are international, with a significant number from the United States. This international interest underscores Portugal's global appeal as a destination. The country's popularity among digital nomads, thanks to its pleasant climate and favorable visa policies, further supports the idea that Portugal's climate is a key factor in attracting people year-round.
Portugal's diverse climate, with its mild winters and warm summers, plays a big role in attracting tourists and renters all year round. In 2023, Portugal saw a record-breaking number of over 30 million visitors, which was nearly 10% more than the previous record year of 2019. This trend continued into 2024, with a 7.7% increase in tourists and overnight stays in the first quarter compared to the same period in 2023.
Short-term rental properties in cities like Porto and Lisbon show high occupancy rates, indicating a strong demand from tourists. In Porto, a typical Airbnb listing is booked for 288 nights a year with a median occupancy rate of 79%, while in Lisbon, it's booked for 310 nights with an 85% occupancy rate. These high occupancy rates suggest that tourists are consistently drawn to Portugal's climate and attractions.
Sources: ETIAS, Airbtics Porto, Airbtics Lisbon
10) Portugal’s mix of mountains and beaches gives you diverse investment options
Portugal's diverse landscapes, from mountains to beaches, offer varied investment opportunities.
In coastal areas like the Algarve, property values are rising, making them hotspots for profitable investments. The median price of dwellings in Portugal saw a 12% increase in October 2024, reflecting strong growth. These regions, with their stunning beaches and scenic views, are attracting both local and international buyers.
In the Douro Valley, there's a growing demand for rural properties, highlighting the allure of Portugal's natural beauty and its wine industry. The number of dwelling completions rose by 6.8% year-over-year in 2023, showing that investors are keen on the unique opportunities these rural landscapes offer.
The Azores are gaining attention for eco-tourism and sustainable developments, presenting a unique investment potential. With its natural beauty and favorable climate, the Azores is an attractive destination for tourists and investors interested in sustainable projects.
Portugal's varied landscapes, from the lush Douro Valley to the pristine beaches of the Algarve, offer a range of investment opportunities. Whether it's the rising property values in coastal areas or the demand for rural properties, there's something for every investor.
Investors are increasingly drawn to Portugal's diverse regions, each offering unique opportunities. From the eco-friendly projects in the Azores to the scenic beauty of the Douro Valley, Portugal's landscapes are a magnet for investment.
Sources: Global Property Guide, Brint Portugal
11) With more digital nomads, there’s a growing demand for short-term rentals in scenic and culturally rich areas
The rise of digital nomadism has significantly increased demand for short-term rentals in scenic and culturally rich areas, especially in Portugal.
Portugal has become a hotspot for digital nomads, with tens of thousands choosing it as their base. Lisbon alone is home to about 16,000 digital nomads, drawn by its vibrant culture and stunning views. The city's mix of history, modern amenities, and a lively social scene makes it a perfect fit for those working remotely.
The COVID-19 pandemic changed the way we work, leading to a boom in remote jobs. Many countries, including Portugal, introduced digital nomad visas to attract these workers. This move has made it easier for digital nomads to settle in appealing locations, boosting the demand for short-term rentals as they look for flexible living options.
Platforms like Airbnb have thrived in Portugal, with cities like Porto seeing a surge in popularity. In 2023, Porto boasted 9,240 active Airbnb listings, with a median occupancy rate of 79%. The city's charm, with its rich culture and beautiful landscapes, makes it a magnet for digital nomads who want both work-friendly spaces and leisure activities.
Digital nomads often seek places that offer a balance of work and play. Porto, with its scenic views and cultural depth, provides just that. The city's high occupancy rates on platforms like Airbnb highlight its appeal to those who want to explore new places while maintaining their work commitments.
Sources: Euronews, Airbtics, Home in Portugal
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12) Portugal’s Golden Visa lets non-EU investors gain residency by buying property, drawing in international buyers
Portugal's Golden Visa program is a big hit with non-EU investors looking to buy property.
In 2023, there was a noticeable jump in applications, with 352 Golden Visas granted through the fund investment route. This was a 45.4% increase from the previous year, even after the real estate investment option ended. It shows the program's strong appeal.
The Golden Visa program has had a huge impact on Portugal's real estate market. Since 2012, property prices have surged by 42%, far outpacing the EU average. This rise is partly due to the demand from the Golden Visa program.
There's even a "Golden Visa premium" on properties at the €500,000 investment level. This means properties at this price point are especially sought after by international buyers.
For those considering a move, Portugal offers a mix of beautiful landscapes, a warm climate, and a rich cultural heritage. The Golden Visa program is a gateway to enjoying all of this while gaining residency.
Sources: ETIAS, Savory & Partners, Global Citizen Solutions
In this video, you can learn about Portugal's Golden Visa program, which allows non-EU investors to gain residency by purchasing property. It covers investment criteria for 2024, making it highly relevant to the statement.
13) Portugal offers tax breaks for foreign investors, boosting your potential returns
Portugal is now a top choice for foreign property investors, thanks to attractive tax incentives from the government.
The Non-Habitual Resident (NHR) tax regime is a major draw, offering reduced tax rates on foreign income. This means investors can enjoy significant tax savings, with a typical rate of 20% on income from outside Portugal, which is quite competitive compared to other countries.
Another appealing option is the Golden Visa program, which has seen a surge in interest. In the first nine months of 2023, 352 visas were granted through the fund investment route, marking a 45.4% increase from the previous year. This program not only provides residency but also offers tax benefits, making Portuguese real estate even more enticing.
Investors are particularly drawn to cities like Lisbon and Porto, where the real estate market is thriving. These cities offer a mix of modern amenities and historic charm, making them ideal for both living and investment. The steady growth in property values in these areas further enhances their appeal.
Moreover, Portugal's stable political environment and high quality of life add to its attractiveness. The country is known for its pleasant climate, beautiful landscapes, and vibrant culture, which are significant factors for those looking to relocate or invest.
With these incentives and benefits, Portugal stands out as a prime destination for property investment, offering a unique blend of financial advantages and lifestyle perks.
Sources: PwC Tax Summaries, Get Golden Visa, Global Citizens Solutions
14) Eco-conscious investors will love the country’s focus on renewable energy and sustainability
Portugal is a top choice for eco-conscious investors because of its strong focus on renewable energy and sustainability.
In April 2024, Portugal hit a major milestone by generating 95.4% of its electricity from renewable sources. Solar energy alone covered 10.5% of the country's electricity consumption, showcasing Portugal's leadership in the European shift away from fossil fuels.
The Portuguese government has been instrumental in this green transition. They've rolled out progressive policies and financial incentives like feed-in tariffs, tax breaks, and subsidies, which have fueled the growth of renewable energy projects. This makes Portugal an attractive destination for green companies looking to invest.
Portugal is aiming to be carbon neutral by 2045, which is five years ahead of the EU's target. This ambitious goal highlights the country's dedication to sustainability and its proactive stance on reducing carbon emissions.
The government is actively updating its National Energy and Climate Plan to meet these targets, showing a clear commitment to aligning with its sustainability goals.
Sources: Euronews, Portugal Government, List Solar
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Portugal versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
15) With efficient public transport, suburban homes in the country are more accessible and desirable
Portugal's public transportation is on the rise, with train usage jumping by 19.1% in 2023.
In the bustling third quarter of 2023, 53.2 million passengers hopped on trains, while the metro saw 63.7 million riders, marking a 16.2% increase. This surge shows how public transport is making suburban areas more reachable and appealing.
The government is pouring money into this trend, planning to spend €1.34 billion in 2024 on public transport. This includes expanding metro lines in Porto and Lisbon and introducing a new system in the Mondego region, all aimed at boosting suburban connectivity.
People are loving it too. In Covilhã, a survey gave Transdev’s employees a 9.1/10 satisfaction rating, showing that the system is not just efficient but also commuter-friendly, making suburban living more attractive.
While exact travel time reductions aren't detailed, the increased usage and hefty investments suggest that commuting times have likely improved, making suburban properties even more enticing.
Sources: The Portugal News, Rail Journal, Transdev
16) With new airports and highways, the country’s focus on infrastructure boosts property values
Portugal's focus on infrastructure development is boosting property values.
In 2023, the government ramped up spending on projects like new airports and highway expansions, making travel easier across the country. The A22 highway, for example, now connects the Algarve region more efficiently, making properties along this route more appealing. This improved connectivity is a game-changer for potential buyers and investors.
With the Algarve's new airport under construction, expect a surge in property prices due to increased tourism and better accessibility. This development is set to make the region even more attractive to both local and international buyers.
Real estate agencies are buzzing about the rising demand for properties in well-connected areas. In Lisbon, for instance, the improved public transportation system has led to a noticeable increase in apartment demand. Experts believe that these infrastructure upgrades will drive long-term property value growth.
Foreign investors are also taking note, pouring money into regions with new infrastructure. This influx of investment highlights the positive impact these developments have on property values, making it a hot topic in the real estate world.
Sources: Portugal Government, Diário de Notícias, Público, APPII, Imovirtual, JLL
17) With Portugal becoming a popular filming spot, there’s growing interest in its scenic properties
Portugal is becoming a hotspot for international film productions, thanks to its stunning and varied landscapes.
Movies like Netflix's "Heart Of Stone" and Universal Pictures' "Fast X" have chosen Portugal for its picturesque settings and cost-effective production incentives. The country offers a cash rebate system and low production costs, making it an attractive option for filmmakers.
As these films showcase Portugal's beauty, more people are visiting the locations they see on screen, a phenomenon known as film-induced tourism. The Turismo do Centro de Portugal Association is capitalizing on this by promoting the region's scenic spots through engaging videos.
Social media platforms like Instagram and YouTube are buzzing with posts that highlight Portugal's breathtaking landscapes. This online exposure not only draws tourists but also catches the eye of potential property buyers who are enchanted by these views.
Media coverage and social media trends are amplifying Portugal's reputation as a top filming destination. The country's natural beauty and cultural richness are becoming increasingly appealing to those looking to invest in property.
With its growing popularity in the film industry, Portugal is seeing a surge in interest from people wanting to own a piece of its charming and cinematic locales.
Sources: KFTV, Sapientia, SENAL News
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18) Expat families are drawn to the country because of its international schools and strong education system
Portugal's international schools are becoming a top choice for expatriate families.
In recent years, there's been a 20% increase in international school enrollment in Portugal. This surge is largely due to the demand for bilingual education and programs that open doors to international universities and careers. Families are recognizing the high quality and relevance of education in these schools, making them an attractive option.
Expat families often find themselves pleased with the education their children receive in Portugal. These schools provide a sense of continuity with their home countries' education systems, offering English-medium instruction and globally recognized qualifications. This alignment with international standards is a big draw for many.
Portugal's international schools offer a variety of curricula to meet diverse educational needs. Options like the International Baccalaureate (IB), British, and American systems are available, catering to different preferences. Schools such as Oeiras International School and United Lisbon International School showcase this diversity, ensuring families can find the right fit for their children.
These schools not only provide excellent education but also help children adapt to a new culture while maintaining ties to their roots. The presence of international schools in Portugal is a testament to the country's commitment to providing world-class education for expatriate families.
For families considering a move to Portugal, the education system, especially its international schools, offers a compelling reason to make the leap.
Sources: GSIN Education, Portugal Homes
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility. Finally, please note that we are not affiliated to any of the sources provided. Our analysis remains then 100% impartial.