Updated: July 11, 2024

 

Whether you’re looking for a new home or an investment opportunity, purchasing a property is a big step that takes careful consideration. A great start is to determine what you want – a property with a swimming pool or easy access to the ocean, a view of the city or the sea, a quiet area or a busy location, a house or an apartment – before searching for property for sale in Portugal. But you will also need to understand the Portugal real estate market to determine which location is best for you.

In this ultimate guide to the Portugal real estate market, we provide you with an overview of the market before offering insights into the prime locations to consider in Portugal. Plus, we will arm you with the latest data on the property market, why you should consider Portugal real estate, and predictions on the future of the property market.

An Overview of Portugal’s Real Estate Market

Portugal has a growing economy (the country’s GDP is expected to grow by 1.3 percent and 1.8 percent in 2024 and 2025, respectively, according to the European Commission), low mortgage rates, and a dynamic real estate market, with around 70 percent of the building stock dating from before 1991. In this section, we’ll provide you with some key information about what’s happening with the Portuguese property market right now and key property trends. 

Portugal real estate map

To better understand the real estate market and key areas, you can take a look at the map below.

map-of-portugal-real-estate

 

The current state of the real estate market in Portugal

Portugal house prices have been increasing gradually since 2013 and more steeply in the last six years or so. The average value of homes is also rising, with a 7.6 percent year-on-year increase in the third quarter of 2023. This has been the result of a combination of factors that centers on increased demand. For instance, more expats are looking for a higher quality of life and moving to the country, while increasing numbers of tourists have their sights set on Portugal. Plus, if we look specifically at Lisbon, Web Summit relocated to the Portuguese capital in 2016, underlining that Lisbon was the place to be for start-ups and tech companies and creating a wave of tech and startup companies relocating to Lisbon, Porto, or Braga.

Recently, however, there has been a fall in the number of property transactions. With this said, the latest information from SIR – Residential Information System has shown that, after a fall of around 20 percent in the number of property transactions, the market has steadied since the second quarter of 2023, with there being a small recovery with a 2.5 percent cumulative increase.

Key property trends in Portugal

The Portuguese economy has shown strength in its recovery from its recession and financial crisis. The most significant property trend in Portugal in recent years has been regarding demand outstripping supply, particularly in the major Portuguese cities.

Investment in the country has been seen through continuous renovations of derelict buildings, the construction of apartment buildings, and the increasing number of new hotels. Indeed, investors looking to invest in the property market will find ample opportunities.

While there was a fall in the number of transactions, the market has steadied since the second quarter of 2023. In 2024, it is predicted that the Portuguese economy will gain some momentum, albeit against political and economic uncertainties both within Portugal and on a global scale. While interest rates are high at the moment, they look set to fall, which will likely bring about more favorable market conditions attracting more foreign buyers to invest in Portugal.

Property Prices in Portugal

While property prices in many major Portugal cities are increasing, prices remain reasonable compared to other Western European countries. In this section, we’ll present key property prices in Portugal before delving into the three main areas in greater detail: Lisbon, Porto, and the Algarve.

In the table, you can see the average asking prices for residential real estate in the cities of Lisbon and Porto.

Cascais

Lisbon City

Cascais

Oeiras

Porto City

Matosinhos

Vila Nova de Gaia

2017

Є4,162

Є2,766

Є2,247

Є2,172

Є1,355

Є1,085

2018

Є4,582

Є3,207

Є2,669

Є2,868

Є1,652

Є1,282

2019

Є5,319

Є4,059

Є3,093

Є3,187

Є2,030

Є1,622

2020

Є5,607

Є4,554

Є3,393

Є3,467

Є2,533

Є1,942

2021

Є5,898

Є4,932

Є3,704

Є3,562

Є2,651

Є2,318

2022

Є6,233

Є5,563

Є4,350

Є4,000

Є3,372

Є2,737

2023

€6,009  

€5,835 

€4,585 

€4,296 

€3,547  

€2,989 

In this section, we have outlined the latest real estate information for the key three areas in Portugal: Lisbon, Porto, and the Algarve.

Real estate in Lisbon

As mentioned, Lisbon is the most expensive area in Portugal for finding properties for sale. The average asking price per square meter for a home sits at €6,009, while for the Metropolitan Area, this falls to €4,061.

Lisbon real estate is the most diverse and expensive in Portugal. Given its status as a capital city, financial hub, and tourism magnet, it is hardly surprising that the area is expensive to purchase property.

Greater Lisbon is slightly more affordable, while the Lisbon coast also provides inhabitants with a great balance between coastal and city life.

  • Lisbon City rental yield: 5.2 percent.
  • Lisbon Metropolitan Area average rental yield: 6.7 percent

Real estate in Porto

Regarding real estate and tourism, Lisbon and the Algarve are usually attractive figureheads for the country. Nevertheless, smart investors looking for future-proof investment properties in Portugal have been focusing on the historic city of Porto for some time.

Porto real estate is a safe bet. The average asking price per square meter in the Porto Metropolitan Area is €3,291, while in Porto City, this stands at €4,296, while areas like Gondomar and Valongo offer more affordable asking prices at €1,895  and €1,839, respectively.

There is no doubt that Porto has exciting opportunities for property investment. While the location offers the same historical charm as Lisbon, it provides a more relaxing lifestyle. Suppose you’re looking for a home for sale in Portugal or an investment opportunity. In that case, Porto’s real estate scene has a wide selection of properties for sale or to rent out. It includes exclusive apartments in beautiful old buildings with stunning views of the river or the Atlantic Ocean.

After Lisbon, Porto is the second largest of Portugal’s cities. This is why there are numerous exciting career opportunities in the evolving tourism industry and other areas like the fashion, textile, and footwear industries. Greater Porto has a GDP of about €43 billion. The local economy is supported by an extensive public transport network consisting of trams, trains, and metro lines.

Porto still offers property for sale at comparably moderate prices. But since the location is rapidly developing into a tourist magnet as part of its ongoing regeneration, the city could soon become a hotspot for luxury living, with investors snapping up new listings.

  • Porto City average rental yield: 5.6 percent
  • Porto Metropolitan Area average rental yield: 6 percent

Real estate in the Algarve

The second most expensive area in Portugal is the Algarve. Algarve real estate offers a wide array of property types, from modern apartments to beach villas. Property investment opportunities are in great demand with foreign buyers, especially in the ‘Golden Triangle’ of the Algarve between Vale do Lobo, Quinta do Lago, and Almancil. This area is considered the upper end of the market, with a high volume of foreign buyers investing here.

The average asking price for property in the Algarve will vary depending on the location. Keep in mind that by the coastline, you will pay significantly more, while a few kilometers inland, you will pay significantly less.

To give you some examples, in Faro, the average asking price for property is €3,519, while in Olhão, the average is €3,395. In Lagos, in the western Algarve, the average property price in 2023 was €4,476, while in Tavira, often referred to as the most authentic part of the Algarve, average property prices were €3,309 per square meter.

Goldcrest: How We Can Help

As a local buyer’s agent situated in Portugal, Goldcrest provides insightful real estate expertise and strategic advice. From sourcing to property acquisition, we help clients identify outstanding investment opportunities in some of Portugal’s finest locations. Goldcrest has access to property listings and new listings you won’t find elsewhere in the market.

Book a complimentary call to discuss your options with our team of experts today.

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Investment Opportunities: Portugal Real Estate

Rental yields in Lisbon City were 5,2 percent in 2023 while, for Lisbon Metropolitan Area, rental yields stand at 6.7 percent. Porto can also be a lucrative venture. In the city, yields stand at 5.6 percent, while for the Porto Metropolitan Area, this rises to 6 percent.  Note that these are averages, and rental yields in different neighborhoods in Lisbon and Porto will vary. You will find a vast range of Portugal homes for sale and you should take time to understand the investment potential of the property before buying.

Exploring Portugal Real Estate for Sale: Country Guide

Determining where to buy real estate is an important step when looking at the Portugal real estate investment opportunities available and determining what will be a sound property investment for you. It just so happens that location is key when purchasing a property. Due to the country’s diverse landscapes and vibrant cities, Portugal offers a variety of lifestyles, emphasizing the importance of finding the right location to search for your dream home.

Lisbon, the hip capital

lisbon real estateFor many starting their search, the first city that comes to mind is Lisbon. Lisbon’s real estate market is an attractive place to buy property. The city has parks, gardens, museums, cafés, and restaurants. Coupled with its symbolic river and monuments, the capital city offers a blend of historical, traditional, and modern properties for sale. If a swimming pool in the city isn’t enough to cool you down, the Lisbon coast offers access to some of the most beautiful beaches in Portugal.

In fact, the Lisbon coast is great for those looking for a mix of city and coastal lifestyles. Known as the city of light, Lisbon is a unique, thriving city with great public transport and diverse, quality property options for the buyer. A popular location for expats in Portugal, Lisbon offers everything you need when moving abroad.

Cascais, the ideal seaside town

Why-buy-property-in-CascaisCascais, a seaside town on Portugal’s Estoril Coast, is arguably the perfect location in Europe for lifestyle buyers. Cascais real estate provides unrivaled luxury. Just a short 30-minute drive from Lisbon, Cascais offers historic villas with outrageous ocean views and modern apartments nestled in the charming town center.

The real estate market reflects a mix of traditional Portuguese architecture and contemporary designs, appealing to those seeking a luxurious yet authentic living experience. With gorgeous beaches, a mild climate, world-class restaurants, and plenty of activities to get involved with, from watersports to golf, you are well covered. The beautiful Sintra-Cascais Natural Park is also on your doorstep.

Algarve, the coastal dream

Algarve-real-estate-for-saleAnother fantastic location to start your Portugal search is the Algarve. Best known for its heavenly beaches, internationally acclaimed golf courses, and an inspiring combination of mountain and ocean views, the Algarve has it all in terms of property types. It’s also the perfect place to find your dream home with a sea view.

Whether you consider buying a property in the Algarve’s picturesque fishing villages or near the exclusive luxury resorts, warm, sun-filled days are usually guaranteed in this beautiful region dedicated to leisure and the art of living well. Many properties in the Algarve will include a swimming pool, plus the Atlantic Ocean is close at hand, should you prefer a dip in the sea.

The Algarve also offers one of the most exclusive European markets for luxury property. You can find top properties like luxury villas for sale, and you can rent your property out by the coastline to tourists for much of the year. Regarded as one of the best destinations to own a holiday home, the Algarve offers great returns on your investment due to its bustling tourism industry.

Porto, iconic and artistic

porto-portugal-real-estate-for-saleIf you’re searching for more affordable areas in Portugal, cities like Porto are great places to look for an investment property or your dream home. Around every street corner in Porto, you’ll come across enchanting cobblestone streets, brightly colored buildings, and traditional culinary gems. For nature seekers, you’ll find that the city is located near the coastline and the Douro River, which flows through the middle of Porto.

There are plenty of parks, gardens, and green spaces in and around the city, making Porto an ideal destination for owning a luxury property. Fast becoming the ‘it’ destination to own Portugal homes, Porto’s real estate prices are more affordable than in Lisbon, with strong market demand.

Another advantage of having a property in Porto and Lisbon – plus Faro in the Algarve – is that they each have an international airport. This is particularly handy if you’re a keen traveler and want to visit nearby destinations easily. For nature lovers, you’ll also have the Douro Valley on your doorstep, home to some of the best vineyards in the world.

The Alentejo, the rural escape

Alentejo Portugal real estateThe Alentejo region is a place of true beauty, largely untouched by the traps of modern life. The Alentejo real estate market is an excellent place to find your dream home in the depths of nature. You’ll find a range of property types, from countryside villas to homes with stunning ocean views.

The Alentejo region is an attractive place to invest in. Instead of searching for Portuguese homes with a swimming pool, you can discover property for sale in coastal regions that offer convenient access to stunning beaches, allowing you to bask in warm weather for a significant portion of the year. Many properties are available for sale or rent, including apartments, townhouses, villas, country homes, and beach houses.

The Alentejo is one of the more affordable parts of the country, where you can buy a Portugal house at a much cheaper rate than you can expect to find in the Algarve. Évora, Elvas, Coimbra, and Aveiro are good starting points.

The Silver Coast, unrivalled sea views

If you are dreaming of the perfect beach location but also want to soak up an authentic Portuguese lifestyle, then the Silver Coast is the place for you. Situated in between Lisbon and Porto on the west coast, you’ll find an array of quaint little villages and towns, pristine beaches, stunning landforms, and excellent seafood. Towns such as Nazaré, Peniche, and Ericeira are each excellent locations – and favorites with surfers – and where the local way of life still permeates. If you are looking for a quieter option than the Algarve, yet no less beautiful, then the Silver Coast could be the perfect spot.

The islands: Madeira and the Azores

madeira portugalInvesting in real estate in Madeira and the Azores, the two Portuguese autonomous islands, presents a compelling opportunity due to their unique blend of natural beauty, high quality of life, and growing tourism industries. While both are unique in their own way, each boasts stunning landscapes, offering a tranquil lifestyle amidst lush greenery and scenic coastlines. Additionally, the islands’ relative isolation has shielded them from over-tourism, making them attractive to those seeking a peaceful retreat.

You can find out more about Madeira in our article on Madeira real estate, while for more information on the Azores, our article on Azores real estate has you covered.

Where do people live in Portugal?

People from different walks of life tend to have different preferences regarding real estate. Many Brits buy in the Algarve, for example, although Americans and other Europeans have increasingly been snapping up properties here over the past decade or so.

French and Brazilian nationals tend to invest in Porto, while German buyers are well-represented in Faro and Lisbon.

Homes for sale Portugal: Choosing the perfect location

Since Portugal is so diverse, it is recommended that you do some research first to find out where exactly you want to buy — in a family-friendly neighborhood, by the coast, or inland? In the sun-drenched south or the green north? Use websites to investigate new listings and get an idea of what is available where.

It’s not just a question of geography but also of a lifestyle preference, which can vary greatly depending on whether you opt for bustling Lisbon, the beaches and resorts of the Algarve, or the leisurely life in a country village.

Do some homework before buying your dream home, even if that means renting an apartment on-site for a few months just to get a feel for the life and the climate there. This is also a great opportunity to go in person and look at properties for sale in Portugal.

You should also think about public transportation accessibility. If you are looking for a holiday home, you may want to look at Portugal cities near an airport unless you plan to have or rent a car: Lisbon and Porto are the main hubs, but Faro also has an international airport.

Real Estate Portugal: Property Types

Whatever property type you are looking for, you will likely find it in Portugal. There are a diverse range of houses in Portugal for sale, from charming countryside cottages to contemporary urban residences. Here are just a few of the property types you can find in Portugal.

Houses for sale in Portugal

If you are looking for a house for sale in Portugal, there are many options, from countryside cottages to modern urban residences. Traditional charm meets contemporary design in properties scattered across picturesque villages and bustling cities, providing a range of options for varied lifestyles.

Modern apartments

Urban living in this stunning Western European country is epitomized by sleek, modern apartments for rent in Portugal found in Lisbon or Porto. These residences are also available for purchase and cater to those who seek a cosmopolitan lifestyle in the heart of vibrant cultural hubs. If you are looking for an apartment for sale in Portugal, note that while many older apartments do not have heating, modern apartments normally do, as it can get cold indoors in the winter months, but it is still worth checking this.

Historic townhouses

For history enthusiasts, Portugal’s historic townhouses offer a unique charm. Nestled in centuries-old neighborhoods, these homes showcase intricate architecture and cultural authenticity. Renovated for modern comfort yet retaining their historical essence, townhouses provide a blend of old-world charm and contemporary living. For example, the narrow streets of Alfama in Lisbon provide a clear flashback to the past.

Beachfront properties

Portugal’s stunning coastline features a variety of beachfront properties, from seaside cottages to luxurious villas. Offering direct access to sandy shores and breathtaking ocean views, these homes along the Algarve or Silver Coast provide the perfect setting for a coastal lifestyle.

Portugal houses for sale: Luxury real estate

Discerning buyers seeking opulence will find an array of luxury properties in Portugal. From sprawling mansions with lush gardens to high-end penthouses with city views, these residences cater to refined tastes. Exclusive amenities, premium finishes, and prime locations define Portugal’s allure as a destination for luxury living.

Check out our expert guide to buying a property in Portugal

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Lifestyle in Portugal

The continued boom of expats looking to set up shop in Portugal is attributed to many reasons. From the country’s delectable cuisine to pristine beaches, from a diverse range of landscapes to a lower cost of living, there are many reasons to consider living in Portugal. And this is without mentioning the sublime climate and the welcoming locals. Another major plus is that English is spoken very well, particularly in the key cities and the Algarve.

To sum up, some of the key pull factors for expats are the following:

Sublime weather

Top-quality education

Natural beauty

Safety and security

Gastronomy

Excellent healthcare

Lower cost of living

Cultural richness

High quality of life

English-speaking locals

Practical Information on Portugal

In this section, we delve into essential practical information to be aware of if you are considering buying real estate in Portugal.

Climate in Portugal

Portugal boasts an incredible climate. Despite Portugal having a coastline along the Atlantic Ocean, its climate closely resembles that of many Mediterranean countries. This translates to hot summers and temperate winters. While the north of Portugal can experience colder temperatures, the south of the country boasts high temperatures, even in winter, with averages of around 18 Degrees C (64 Degrees F).

Public transportation in Portugal

With an affordable train network across the country, plus good bus connections, it is relatively easy to get around Portugal. Lisbon and Porto have extensive metro systems and a tram network. However, if you want to get off the beaten track or discover some of the less explored beaches, then it is best to have a car.

International schools in Portugal

Portugal has 51 international schools catering to a range of curricula, such as the International Baccalaureate, the American curriculum, and the British curriculum. Most of the international schools in the country are focused in Lisbon, Greater Lisbon, Porto, and the Algarve.

Healthcare in Portugal

Portugal’s healthcare system is generally very good, ranking in the 22nd position in Numbeo’s 2023 Healthcare Index. While public healthcare is preferred by many, given its minimal costs and accessibility, many expats choose private healthcare for convenience, cutting down on waiting times. Private healthcare is also much more affordable compared with private healthcare in other European countries or in the USA.

Why Buy Portugal Real Estate

Portugal’s real estate market is varied and dynamic. With an array of locations to choose from – plus a wide choice of property types – you should be able to find the ideal property that meets your requirements.

With demand outstripping supply and many options to secure a nice yield through short-term or long-term rentals, in addition to capital appreciation, there are many reasons to consider finding Portuguese property for sale.

The future of Portugal’s real estate market

CPCV-Portugal-Real-EstateIt’s always complicated to determine the future of Portugal’s real estate market, as there are many uncertainties that can have a knock-on effect on house prices and the property market. While some companies have predicted that house prices will increase by 8.7 percent, others, such as Caixabank, have predicted that house prices will fall by 2.1 percent in 2024.

If you are considering buying property in the country, given the continued increase in demand, you should be able to secure a nice return on your investment in the long term. Plus, with property prices still quite affordable in many parts of Portugal – particularly outside the central areas, where you’ll find some bargains – buying property remains a smart move.

Making your Portugal real estate investment a reality

After you have gotten to grips with the Portuguese real estate market, you will need to know how to begin navigating how to buy property in Portugal. You will want to have a clear idea of your desired location, what type of property you are interested in, and have defined your budget.

This is where having a buyer’s agent by your side, such as Goldcrest, can help you reduce stress and hassle, save you money, and streamline the buying process.

Get in Touch

Homes in Portugal are widely sought after among expats, and it’s easy to see why. Portugal’s real estate prices ensure you can find something that fits your budget, while the country’s diverse landscape and various property types ensure your needs will be met. Whether you’re searching for a property in the coastal Algarve, Lisbon, or rural Alentejo, the perfect property awaits.

Contact the team to access exclusive information on the property market in Portugal and find out just how much you can save on your international investment.

Frequently Asked Questions about Portugal's Real Estate Market

Yes, US citizens can buy real estate for sale in Portugal and will have no problems being a property owner of a Portuguese property. You will need a Portuguese tax file number (Número de Contribuinte or NIF, Número de Identificação Fiscal) to complete the property purchase. You have to apply for it at the local tax authority or financial administration and pay a small fee. You can use the address of your lawyer as the correspondence address if you do not have your address in Portugal.

You will also need to appoint a tax representative in Portugal. Portuguese banks have no problem lending to foreigners, but non-residents only get 70 percent of the property’s price, while Portuguese residents get up to 80 percent. You can easily apply for a loan from a local bank. However, the language can be a hurdle here, too. It is best to use a mortgage broker. Not only will they speak your language, but they will also be able to secure a much better deal than you.

Yes, British people have no problems buying real estate in Portugal for sale. UK citizens can be a property owner of a Portuguese property. They will need to secure a residency permit to remain in Portugal for more than three months.

It is recommended to hire a lawyer when buying real estate or to seek advice from a company that specializes in property legislation. A Portugal real estate lawyer commissioned by you will represent you in all legal matters and will also be an important partner for you after the real estate purchase. Portuguese law and the associated bureaucracy are sometimes very complex, so this is one of the bases for a successful purchase or sale. The attorney’s fee is usually around one percent of the purchase price, so it should be viewed as a necessary component of the cost of your property purchase. Hiring a lawyer is in your interest as the buyer since you could find yourself having to navigate many hurdles later down the line.

If you are looking for a Portugal property for sale, additional fees to take into consideration include Notary fees, legal fees, and land registry fees.

As a rule, around ten percent of the total purchase price is agreed upon, which must be paid when the preliminary contract is signed. This can vary if a property is, for example, under construction and if other agreements have been made between the buyer and the seller or their legal representatives.

Real estate in Portuguese cities is generally very affordable, and they are amongst the cheapest cities in Europe to buy property.

The Silver Coast, Alentejo, and Northern Portugal are among the most affordable areas within Portugal. Cascais, Lisbon, and the Algarve are the most expensive areas for buyers.

The Algarve is a great location to find a beachfront property. The Lisbon coast and the Alentejo region offer access to some of Portugal’s beautiful beaches and so are also good options for looking for beachfront properties. A quick search online using the keywords “buy house Portugal close to the beach”, “buy home in Portugal by the beach”, or “buy house in Portugal by the beach” will provide you with an overview of top locations, after which you can speak with an experienced real estate professional to discuss your options.

There are many reasons to buy property in Portugal: The country is safe and stable, it has sunny weather year-round, the landscapes are diverse, forming part of the Iberian Peninsula, and there is a low cost of living, excellent healthcare, and a wide range of international schools. There is also a wide range of different property types, making it easy to find your dream home in the country, whether it’s a modern city apartment or a beach-side villa. As a property owner in Portugal, should you make a smart investment, your property will likely increase in value over time.

Portugal cities will each have their own unique vibe. Lisbon is obviously one of the best places to invest in, given its popularity amongst expats, digital nomads, and tourists. Elsewhere, Porto, the second-largest city, is an excellent option. Given the city’s increasing popularity, there is excellent potential for both short and long-term rentals. Portugal cities to consider in the Algarve region include Faro, Lagos, and Albufeira, each of which is very popular with tourists.

A real estate bubble is suggested to exist in Portugal due to greater tourism and the high demand for property, resulting in higher prices. If interest from foreign investors continues as it has in recent years, this property investment Portugal real estate bubble is set to stay for a while.

If you are wondering about investing in Portuguese real estate, you’ll be pleased to learn that the country’s property market has been thriving in recent years. From buzzing Portuguese cities to tranquil seaside towns, the country has much to offer. If you are looking to buy a home in Portugal, it is a good option, whether you are a retiree or looking to move with your family.

Whether it is a good time to purchase property in the country will depend on your unique circumstances. Your best move would be to consult a real estate agent or buyer’s agent with expert knowledge of Portugal’s real estate market. They will be able to provide you with professional advice tailored to your needs.

In Portugal, shared liquidity is described by CMVM as follows: “A public company (the issuer) whose shares are admitted to trading on a regulated market in Portugal may enter into a ‘liquidity contract’ with a financial intermediary (credit institution or investment company).

No, with the implementation of the new legislation that came into force on 7 October 2023, real estate options and capital transfers no longer serve as qualifying investment avenues within the program.

Nevertheless, numerous alternative investment pathways remain eligible for the program.

The price of homes for sale in Portugal will vary considerably based on what you are looking for, and you’ll want to have a budget in mind before beginning the search. The price of property in Portugal will depend on where you buy. Lisbon, the capital, has its own price range, with the average asking price per square meter for a property being €6,009 in 2023. Porto, Coimbra, and Aveiro, are more affordable options if you are looking to buy property in a Portuguese city, while the Alentejo and Silver Coast also offer lower-priced properties.

Yes. Portugal offers a stable market with increasing property values, tax incentives, and a thriving tourism industry, making it a lucrative investment option. Its attractive climate and landscapes further enhance its appeal to investors. If we take a look at the capital, Lisbon, in 2023, rental yields stood at 6.7 percent in the Lisbon Metropolitan Area and 5.2 percent in Lisbon City. Similar strong yields can be found across the country, from Porto in the north to the Algarve in the south.

Portugal boasts a wide selection of property types. Properties for sale in Portugal range from quaint cottages to luxurious villas, from modern apartments by the ocean to rural estates, catering to diverse tastes and budgets.

Foreigners will face no restrictions when it comes to buying proeprty in Portugal. They will need to obtain an NIF number (Portuguese tax identification number), and we highly recommend that they open a Portuguese bank account.

Legal requirements include obtaining an NIF number (Portuguese tax number). You will also need to ensure that you have the correct documents, shown below:

  • Photo identification: A valid document confirming your identity.
  • Contrato Promessa de Compra e Venda (CPCV): The buying contract or property deed. This outlines the terms and conditions of the property purchase.
  • Energy Certificate: The seller must present this document to you to provide information about the property’s energy efficiency.
  • Stamp Duty: This is a tax required by the Tax Authority for property transactions.
  • Caderneta Predial: The land registry certificate contains information about the property, including its location, boundaries, and registered owner. Issued in paper format, the land registry certificate serves as evidence of the legal status of a property as of the date of issuance and compiles and describes the current registrations applicable to that property.

While it is not a requirement to have a lawyer, we highly recommend seeking legal assistance to assist you with buying real estate in Portugal.

The average asking price of a property in Portugal will vary considerably depending on the location. In the Lisbon Metropolitan Area, the average asking price in 2023 was €4,061 per square meter, while in the Porto Metropolitan Area, the average asking price was €3,291 per square meter. In the popular Algarve region, the average asking price was €3,897.

If you are looking for more affordable properties, the average asking price in the Alentejo is €2,685, while in the North and Center, prices stand at €1,740 and €1,864 per square meter, respectively.

Popular regions for real estate investments in Portugal include Lisbon, Porto, Algarve, the Silver Coast, and the autonomous islands of Madeira and the Azores, each offering unique attractions and investment opportunities. Increasingly, the South West, and locations such as Melides and Comporta are providing to be popular with property investors.

You’ll need to settle taxes both upon purchase and annually. Initial taxes comprise the Property Purchase Tax (IMT) and Stamp Duty. Subsequently, you’ll be responsible for the Municipal Property Tax (IMI) and potentially the Portuguese Wealth Tax (AIMI) if your property exceeds a valuation of €600,000. Additional fees include Notary fees, land registration fees, and legal fees.

Simply put, the property buying process in Portugal involves finding a property, negotiating the price and terms, signing a promissory contract, and completing the deed at the Notary.

Should you be seeking financing options to purchase property, there are more than fifteen banks that offer mortgages and lending options for foreigners.

It is no longer possible to invest in property in Portugal under the Golden Visa scheme. This investment pathway was discontinued in October 2023. There remain, however, attractive investment options on the table, such as the Portugal Golden Visa investment fund pathway.

The Portuguese real estate market has been resilient, with steady growth in property prices and increasing demand from both domestic and international buyers. 2023 also saw a record number of tourists flocking to Portugal, highlighting the demand for short term rentals, while tech companies and digital nomads continue to seek out long-term rental options in key cities, such as Lisbon, Porto, and Braga.