Portugal’s housing market is going through a period of adjustment. Several national policies have changed the conditions for non-resident buyers, at the same time as international demand for homes for sale remains visible across many cities, particularly on the islands.
According to Portugal’s Instituto Nacional de Estatística, home sales to non-residents have been falling for three years. At the beginning of 2026, transactions to non-residents dropped by 15.6% year-on-year, to 1,770 homes.
At the same time, analysis of listing views on idealista shows that foreign families and investors, including Portuguese emigrants, continue to search actively for residential property in many parts of the country.
Changing incentives for buying property in Portugal
In recent years, the framework for people moving to, or investing in, Portugal has altered significantly. Several national measures have reduced the tax advantages that previously applied to many foreign buyers:
- End of golden visas linked to real estate investment
- End of the previous non-habitual resident regime
- Introduction of a new foreigners’ law
- Introduction of a new single IMT (property transfer tax) rate of 7.5%
International demand for homes for sale: where interest is strongest
Despite these shifts, international searches for property for sale in Portugal remain significant in many locations. In May 2026, the share of international demand for homes for sale reached double digits in 15 of the 20 major cities analysed by idealista/data.
Island capitals in the spotlight
The data show that the strongest relative weight of international listing views is found in the two autonomous regions (idealista/data):
- Funchal in Madeira – 22% of visits to homes for sale are from abroad
- Ponta Delgada in São Miguel, Azores) – 20% of visits are from abroad
These figures place the island capitals at the top of the national ranking for foreign interest in property for sale.
How Portugal’s main cities and regions compare
Across mainland Portugal, several district capitals also register notable shares of international demand for homes for sale.
The table below summarises the percentage of international visits to sale listings in each of the 20 major cities in May 2026 (idealista/data).
Share of international visits to homes for sale (May 2026)
City (district or regional capital) | International share of visits to sale listings |
|---|---|
Funchal | 22% |
Ponta Delgada | 20% |
Viana do Castelo | 18% |
Bragança | 16% |
Faro | 15% |
Vila Real | 14% |
Castelo Branco | 14% |
Viseu | 13% |
Guarda | 13% |
Aveiro | 12% |
Porto | 12% |
Lisboa | 10% |
Braga | 10% |
Setúbal | 10% |
Portalegre | 10% |
Porto and Lisbon sit mid-table in this ranking, with non-residents representing 12% and 10% of online demand respectively (idealista/data).
Which nationalities are driving demand for property for sale in Portugal?
United States and United Kingdom at the top
Across the 20 major cities analysed, the United States and the United Kingdom are the two leading sources of international demand for property for sale. Taken together, they occupy first place in 12 of the 20 cities in May 2026.
The United Kingdom is the top origin country for international listing views in seven cities:
- Funchal – 19% of foreign visits to homes for sale
- Faro – 16%
- Castelo Branco – 22%
- Setúbal – 14%
- Portalegre – 14%
- Beja – 17%
- Santarém – 24%
The United States stands out in particular in the Azores and several key mainland markets:
- Ponta Delgada – 44% of foreign visits to homes for sale (top origin country)
- Aveiro – 14%
- Porto – 14%
- Lisboa – 12%
- Coimbra – 10%
France and other European countries
French interest plays a prominent role in several parts of the country: It is the top origin country in:
- Viana do Castelo – 23% of foreign visits
- Bragança – 31%
- Leiria – 17%
In every city analysed, the top three origin countries together account for more than 30% of all foreign visits to homes for sale listed on idealista. This indicates that a small group of nationalities makes up a substantial share of external demand.
What the latest figures say about foreign interest in property for sale in Portugal
On the one hand, Portugal has implemented policy changes that have reduced tax advantages for foreign buyers and made buying property less appealing. At the same time, the country’s official statistics show a three-year decline in home purchases by non-residents.
On the other hand, the analysis of online behaviour reveals strong international interest in many markets, and notable demand in a wide range of mainland cities.
The combined reading of these figures from INE and idealista/data underlines that, even in a changing regulatory environment, foreign attention to the Portuguese residential market remains a visible feature across much of the country.
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