From Europe or other corners of the world to Portugal. Every year, many foreigners arrive in the country with the intention of buying or renting a home, seeking to improve their quality of life or make a profitable investment. And although there are fewer tax incentives available for this profile of real estate clients, it is those living outside European borders who have the greatest interest in packing their bags and settling in Portugal, according to the latest data from idealista/data.
Changes in tax incentives for foreigners
Tax incentives for foreigners have undergone many changes in recent years, with the end of the Golden Visa for real estate investment, as well as the previous regime for Non-Habitual Residents (RNH), introduced by the former socialist government of António Costa. These changes had a negative impact on the demand for homes to buy from those living outside the European Union (EU) throughout 2023, creating instability in this indicator during 2024. The interest of these non-EU citizens in rental properties followed a similar trajectory.
What stands out is that, despite the lack of stability in policies aimed at foreigners, the demand for homes from citizens living outside the EU has always been higher than the interest shown by those living in EU countries throughout this period, both in terms of home purchases and rentals (with the latter being more pronounced), the data from idealista/data further shows.
A slight increase in interest from non-EU citizens in purchasing and renting homes in Portugal was also observed in the final stretch of 2024 (to 54% and 63.8% of total international demand, respectively), although it is still far from the levels recorded at the end of 2022, before these changes to tax benefits for foreigners came into effect.
At that time (in December of the previous year), the long-awaited decree regulating the Tax Incentive for Scientific Research and Innovation (IFICI+), the replacement for the former RNH regime, was published in the Diário da República. However, it was only two months later that two key documents for applying this incentive were released: the registration form and the list of qualified job positions. The registration deadline on the Tax Authority Portal is short, as foreigners only had until Monday, March 31, to apply for IFICI+, after an exceptional extension (the original deadline was March 15, 2025).
What has been observed globally regarding the attraction of foreigners is not uniform. Some countries have already imposed (or will impose) restrictions on property purchases by foreigners, such as Canada, Australia, and Spain. However, there are others that are encouraging their arrival, such as New Zealand and the US, which will relax their Golden Visa policies to attract wealthy investors.
Stay up to date with all the latest real estate information and data reports through our daily and weekly newsletters. You can also keep track of the luxury property market with our monthly luxury newsletter.
Homes for sale: Non-EU foreigners lead demand in 15 major cities
Foreigners living outside the EU – such as Brazilians or Americans, for example – lead the demand for homes for sale in Portugal across 15 major cities. In Ponta Delgada, in the Azores, seven out of every ten foreigners interested in buying a home in our country reside outside European borders. The proportion of international visits beyond the EU is also over 64% in Braga, Coimbra, and Viseu.
The majority of international demand for homes in Porto also came from outside the EU (60.4%), as well as in Lisbon (60.2%), according to the same data from idealista/data for the last quarter of 2024.
In Faro, Portalegre, Guarda, Viana do Castelo, and Bragança, foreigners living in EU countries were the most active in searching for homes to buy in Portugal.
What is also noticeable is that, in the past year, there was an increase in demand for homes from non-EU residents in 11 municipalities, including Bragança, Porto, Funchal, and Lisbon. The evolution of their interest remained practically unchanged in five major cities (Braga, Setúbal, Santarém, Vila Real, and Viseu). It decreased in Guarda, Leiria, Ponta Delgada, and Castelo Branco.
Non-EU residents dominate demand for rental properties in Portugal
Almost all 20 district capitals in Portugal have a demand for rental homes from foreigners outside the EU that far exceeds the interest from those living within European borders – the only exception being Funchal, on the island of Madeira (47.8%).
Viseu is the major city where non-EU foreigners dominate the demand in the residential rental market (80.2%), followed by Braga (78.2%) and Leiria (75.1%). In Porto (65.7%), Lisbon (59.8%), and Faro (56.3%), these families also dominate the demand.
In the past year, the demand for rental homes from non-EU foreigners increased in 11 municipalities, with Portalegre, Faro, and Funchal leading the rises. On the other hand, this indicator stabilised in Aveiro and decreased in eight municipalities (Guarda, Castelo Branco, Santarém, Viseu, Leiria, Bragança, Beja, and Viana do Castelo).
Selling a home in Portugal in summer: practical tips for success
During the summer, people tend to spend more – especially on leisure. The long, sunny days encourage people to get out and about, so plans and activities naturally multiply. Foreign visitors also take advantage of the holiday period to explore Portugal's seaside paradise. But does that mean they’re also ready to invest in property?
LandCo and Aedas to build a 116-home tower in the Algarve
Property developer LandCo and Aedas Homes have signed a strategic alliance to develop a unique project in the Portuguese Algarve. The two companies will build an initial residential tower with 116 homes in Portimão, named Ribamar, situated opposite Praia da Rocha and only 100 metres from the sea.
Urgent property sales in Portugal
Purchasing real estate doesn’t have to be a lengthy process, even in the heart of summer. If you’re planning to settle into your new home this season, there are ways to speed up your search and find great deals faster. One of the best options? Urgent property sales in Portugal, offering a unique chance to secure a home quickly and at an attractive price.
Portugal leads house price rises in the EU in the first quarter of 2025
Year-on-year house prices increased by 5.4% in the euro area, 5.7% in the EU, and... 16.3% in Portugal, according to Eurostat.
Potential pitfalls of buying property in Portugal: a guide for foreign buyers
Dreaming of buying a property in Portugal and starting a new life under the sun? It should be an exciting experience, but for many expat buyers, the process can feel overwhelming and complicated. The legal system is different, the paperwork is in Portuguese, and the buying process differs greatly from your home country.
Cheap property in Portugal under €150K: best deals for 2025
Looking for cheap property in Portugal under €150,000? Despite house prices at record highs, there are still great bargains available if you know where to look. From affordable apartments in quieter parts of the Algarve to budget-friendly homes on the outskirts of Lisbon and Porto, as well as charming rural properties, Portugal offers a variety of options for buyers on a budget.
