Portugal offers a wealth of culture and scenery with a stunning year-round climate. It's an attractive place to live and work, with an open-door policy for internationals seeking a European base with great airlift, restaurants, rich culture and a mild climate within a cosmopolitan coastline, where English is widely spoken.

While we may attribute the early market recovery to fiscal and visa incentives, the real estate markets in Portugal have matured entirely independent of any incentives and offer investors an excellent opportunity to own a piece of this dynamic European country and all its lifestyle and cultural benefits

Why Portugal?

1.Favorable Market Conditions - Portugal's real estate market has shown consistent growth over the past decade, driven by strong demand in both the residential and commercial sectors. Property prices, while rising in popular areas like Lisbon, Porto, and the Algarve, are still more affordable compared to other Western European markets. This presents an opportunity for significant capital appreciation in the coming years, particularly in areas that are undergoing regeneration or are experiencing strong economic growth.

2. High Rental Yields and Demand - Portugal, particularly Lisbon, Porto, and the Algarve, is a popular destination for tourists, expats, and retirees, leading to high demand for short-term rentals. This strong demand for rental properties has resulted in attractive rental yields for investors, especially in the tourism-heavy Algarve and the cosmopolitan cities of Lisbon and Porto. The tourism sector contributes significantly to Portugal’s economy, and property owners can benefit from seasonal and long-term rentals, offering reliable income streams in a strong currency.

3. Tax Incentives and Benefits - Portugal offers a range of tax incentives to foreign investors, particularly through programs such as the Non-Habitual Resident (NHR) tax regime. This program provides attractive tax benefits to foreign nationals who move to Portugal, including exemptions on foreign income and reduced rates on Portuguese income tax for a period of 10 years. This makes Portugal an appealing destination for individuals looking to reduce their tax liabilities while enjoying a high quality of life.

4. Strong Economic Growth - Portugal's economy has been experiencing steady growth in recent years, with significant improvements in sectors like technology, tourism, and exports. The country’s efforts to modernize infrastructure, particularly transportation (including the expansion of Lisbon’s metro and Porto's airport), and attract foreign businesses, are boosting economic development

5. Proximity to Europe and Quality of Life - Portugal enjoys a strategic location on the Iberian Peninsula, with excellent air, sea, and land connectivity to the rest of Europe, making it a hub for business and travel. The country’s beautiful natural landscapes, mild Mediterranean climate, rich cultural heritage, and low cost of living (compared to many other Western European countries) contribute to its appeal as a place to live and work. This attracts international buyers and investors who are looking for a high-quality lifestyle at a relatively low cost.

6. Growing Demand for Luxury and Coastal Properties - Portugal’s real estate market has seen a surge in demand for luxury properties, particularly in coastal regions like the Algarve, Cascais, and parts of Lisbon. The increasing number of affluent foreign buyers, particularly from the UK, France, and Germany, has been driving the demand for upscale residences and holiday homes. The Algarve, with its stunning beaches, golf courses, and overall lifestyle appeal, is particularly popular with international buyers seeking a second home or retirement property.

Richard Haller

Managing Director

Offshore Real-Estate and Investment Migration