Navigating the real estate market as a foreigner can be overwhelming, especially when investing in a country like Portugal. From understanding legal requirements to selecting the right location, many questions arise.
Without the right guidance, you might miss out on lucrative opportunities or encounter unforeseen complications in the process.
This guide provides a comprehensive overview of everything you need to know about property investment in Portugal as a foreigner in 2024.
Whether you’re looking for high rental yields, scenic locations, or long-term appreciation, we’ve got you covered with data-backed insights, legal advice, and expert recommendations.
Property Investment in Portugal as Foreigner
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Source: Statista 2024
Portugal continues to stand out as one of the top destinations for property investment in Europe.
With a growing economy, favorable government policies, and a real estate market that continues to appreciate, the country has become a magnet for international investors.
According to Statista, Portugal’s real estate market is projected to reach a value of US$1.64 trillion by 2024, with residential real estate accounting for a significant portion.
This market is expected to grow at an annual rate of 4.97% until 2029, which translates into excellent long-term returns for investors.
In 2024, there are no restrictions on foreign property ownership in Portugal.
Whether you're buying for investment, residence, or rental income, the process for foreigners is largely the same as for Portuguese citizens.
Here’s a step-by-step overview:
| Expense | Value/Percentage |
| IMT Transfer Tax | 0% - 7.5%, based on property value |
| Stamp Duty | 0.4% - 0.8% |
| Notary and Registration Fees | 0.2% - 1.2% |
| Annual Property Tax (IMI) | 0.3% - 0.8%, depending on location |
| AIMI (Wealth Tax) |
0.7% - 1%, if property value exceeds €600,000 |
Source: Immigrant Invest & Get Golden Visa, value subjected to change
Portugal offers a wide range of real estate options, from bustling cities to quiet coastal towns.
Below are the best regions for property investment, along with their average price per square meter:
| Location | Average Price per m² | Key Benefits |
| Lisbon | €7,785 | The capital city with a booming tech scene and high rental demand |
| Porto | €4,541 | A vibrant coastal city offering excellent tourism and rental opportunities |
| The Algarve | €2,557 - €4,718 | Famous for luxury villas and high rental yields from tourism |
| The Silver Coast | €2,500 - €3,800 | Affordable beachfront properties with rising demand |
Source: Get Golden Visa, Berkshire Hathaway, & Immigrant Invest, value subjected to change
Lisbon is Portugal’s most sought-after real estate market.
The city is attracting tech startups and international investors, with neighborhoods like Baixa-Chiado and Lapa witnessing significant property appreciation.
Despite the high prices in these areas, demand remains strong, especially for long-term rentals targeting digital nomads.
Porto is a coastal city known for its historical charm and growing commercial importance.
Foreign investors find value in the city’s diverse property offerings, ranging from beachfront homes in Foz Douro to commercial properties in Ribeira.
The Algarve is famous for its stunning beaches and luxury properties.
Regions like Vilamoura and Lagos are particularly popular with high-net-worth individuals, making it one of the most lucrative areas for real estate investment in Portugal.
The Silver Coast is gaining popularity as an affordable alternative to the Algarve.
Towns like Peniche and Nazare offer pristine beaches at lower price points, making this region a great option for those seeking future property appreciation.
The Portuguese real estate market is experiencing steady growth, fueled by a combination of domestic demand and international investment.
Key trends include:
According to Mortgage Direct, Portugal's urban areas, especially Lisbon and Porto, are seeing a surge in demand due to the increasing number of digital nomads and young professionals relocating to these cities.
This demand is driving up apartment prices and rental rates.
With tourism at an all-time high, there’s been a noticeable increase in vacation rental properties across popular destinations like Lisbon, Porto, and the Algarve.
This trend is expected to continue, with Statista projecting steady market growth of 4.97% annually until 2029.
In line with global trends, Portugal is seeing a rise in sustainable real estate projects.
Investors are increasingly interested in properties that meet ESG (Environmental, Social, Governance) standards, further driving demand for eco-friendly developments.
Obtaining a mortgage in Portugal is possible for both residents and non-residents.
Here's an overview of the available financing options:
According to Get Golden Visa, the interest rates for variable rate mortgages in Portugal are tied to the Euribor index, which fluctuates based on European banking conditions.
These rates can be beneficial during periods of low inflation but are subject to change.
Based on Immigrant Invest, A fixed-rate mortgage allows for better budgeting as the interest rate remains constant for a specified period, usually between 5 and 20 years.
After this period, the mortgage may switch to a variable rate unless otherwise specified.
Rental yields in Portugal vary depending on location, with higher returns in cities like Lisbon and Porto.
Here are some tips to maximize your rental income:
The cost varies depending on the location. For example, in Lisbon, prices reach €7,785 per square meter, while in the Algarve, prices start at €2,557 per square meter.
Yes, foreigners can purchase property in Portugal without restrictions, provided they have a Portuguese NIF number.
Buyers pay the IMT transfer tax, stamp duty, notary fees, and AIMI totaling 9-12% of the property’s value.
Rental yields range from 5% to 14%, depending on the location. Lisbon, Porto, and the Algarve offer the highest returns.
Although the Golden Visa no longer accepts real estate investments, you can obtain residency through the D7 Visa by showing proof of €820 per month in passive income.
Foreigners can secure mortgages with a 20% down payment. Loan terms can extend up to 50 years for residents and 30 years for non-residents.
Yes, the market is projected to grow at a CAGR of 4.97%, making it a solid investment opportunity.
Investing in Portugal’s real estate market in 2024 presents a wealth of opportunities for foreign buyers.
From high rental yields in prime locations to a stable economy and favorable residency options, Portugal is an ideal destination for long-term property investments.
With a clear understanding of the market trends, legal requirements, and financing options, you can confidently make your next investment in this thriving European market.
Ready to invest in Portugal’s booming real estate market? Start your property journey today and secure high returns in one of Europe’s most attractive investment destinations. Contact us now!
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