Property Investment
Investing in Portugal Real Estate
PortugalZap specializes in premium real estate opportunities across Portugal, offering international investors a trusted gateway to one of Europe’s most attractive property markets. Whether you're seeking a second home, a strategic investment, or a pathway to Portuguese residency through real estate, we provide expert guidance every step of the way.
With deep local insight and a global perspective, our team connects discerning clients with high-quality properties in Portugal’s most desirable regions .
At PortugalZap, we don’t just find you a property — we help you unlock a lifestyle, a legacy, and a secure investment in one of Europe’s safest and most vibrant destinations.
Why Invest in Property in Portugal?
Portugal has become a top destination for real estate investment, offering both financial opportunity and lifestyle appeal. Over the past decade, the country has seen a strong rise in property values, with prices more than doubling since 2014. This steady growth is backed by increasing demand from both local and international buyers.
One key driver is Portugal’s welcoming stance on immigration, which has helped grow the population for five years in a row. More than one million foreign nationals now live in the country, fueling demand for both short- and long-term rentals—especially in popular regions like Lisbon, Porto, and the Algarve.
These areas continue to attract investors thanks to their high rental yields and price appreciation. In Lisbon, for example, foreign buyers pay significantly more per square metre than locals, reflecting strong interest in premium locations. Whether you're looking to generate rental income or make a long-term investment, Portugal offers a stable, growing market with broad appeal.
Rents in Portugal Could Rise Significantly in 2025
New figures from Portugal’s National Statistics Institute (INE), released on October 22, 2024, point to a potential rent increase of 2.16% starting January 2025. This adjustment is based on the country's average inflation rate and applies to all rental contracts—including older ones signed before 1990—as long as at least 12 months have passed since the last rent update.
While this year’s projected increase is far lower than 2024’s sharp 6.94% jump (the highest in three decades), it still reflects the ongoing upward trend in housing costs. To put it into perspective: for a monthly rent of €850, a 2.16% hike adds around €18.36.
However, things could look very different for landlords who haven’t raised rents in the past few years. Under current laws, property owners are allowed to apply cumulative inflation adjustments from the last three years. In those cases, rents could increase by more than 11%, potentially bringing an €850 lease up to €947.20—a rise of €97.20.
Even rent agreements that predate 1990 can be updated in line with inflation, provided the required time has passed since their last revision.
With housing costs on the rise and legal room for significant adjustments, both tenants and landlords should be aware of what's coming in 2025.
Buying Property in Portugal as a Foreigner
Portugal is one of Europe’s most attractive destinations for foreign property buyers—and for good reason. The country places no restrictions on foreigners owning real estate. In fact, international buyers enjoy the same property rights as locals, making the buying process straightforward and secure.
The real estate market in Portugal has shown consistent growth, making it a reliable option for investment. Property prices increase steadily, with an average rise of 1.9% per quarter. Just seven years ago, a 100 m² home could be purchased for around €85,500—today, that same property could sell for €340,000.
€3,400/m² — Average property price across Portugal
1.9% — Average quarterly price growth
11% — Average associated costs (fees, taxes, etc.)
Whether you're looking for a stylish apartment in a city center or a luxury home by the coast, Portugal has options to suit all budgets. For example:
€3.4 million — Penthouse in central Lisbon, overlooking the Tagus River
€1.25 million — Apartment in Porto’s historic downtown
€450,000 — Modern apartment in Aveiro, Central Portugal
2024 at a Glance: Key Investment Insights
Median Property Price: €1,736/m² (as of Q2 2024)
Top Regions by Price Growth: Lisbon Metro, Algarve, Madeira
Most Expensive Districts: Santo António (€6,315/m²), Marvila, Cascais
Population Growth: Over 1 million foreign residents and growing
Rental Increase Forecast for 2025: Up to 11% in some cases
How Foreigners Can Buy and Invest in Property in Portugal
Buying real estate in Portugal as a non-resident is a relatively simple and welcoming process. The first step for any foreign buyer is to obtain a Portuguese Tax Identification Number (commonly known as a NIF). This number is essential for carrying out property transactions and other financial activities, like opening a bank account, setting up utility services, or paying taxes.
Getting a NIF is generally quick and easy. You’ll need to show a valid ID—usually your passport—and in many cases, a local lawyer or real estate agent can help handle the process on your behalf. If you're overseas, some agencies also offer tax representation services so you can sort everything remotely, without the stress.
Beyond the NIF, there are a few other important steps to consider. Hiring a trusted legal representative is highly recommended. A local lawyer can ensure you understand Portugal’s property laws, confirm there are no legal or financial issues attached to the property, and help you navigate the paperwork smoothly.
You’ll likely also need to open a Portuguese bank account to handle payments and future property-related expenses, such as taxes, utilities, and maintenance.
Time to Invest in Portugal’s Capital
Picture a city bathed in sunshine, rich in history, buzzing with culture, and offering some of the best property deals in Western Europe. Welcome to Lisbon — Portugal’s charming capital and one of the most attractive real estate markets in the EU.
Cost in Portuguese Property Purchases
When you purchase real estate in Portugal, IMT is one of the first costs you’ll encounter. It’s a municipal tax levied on property acquisitions, and the rate you’ll pay depends on several factors, including the property’s price, purpose, and type.
Sending Money to Portugal
If you're spending time in Portugal—whether you've moved for the sunshine, the lifestyle, or just a temporary stint—you'll likely need to move funds from abroad. Choosing how to transfer money can make a big difference to your bottom line.
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