Real estate in Portugal: prices and costs of getting a residence permit in Europe

Real estate agencies offer fully furnished and equipped houses and apartments with a fine turnkey finish. It is not always new property, but not older than the 1993—1995 year of construction. At the same time, there are options for purchasing real estate under construction.

Most options used to qualify for the Portugal Golden Visa Program.

Houses. One can buy a cosy house in the countryside of Albufeira, Algarve, Lagos or Vilamoura for €500,000 or €600,000.

These will be comfortable suburban villas up to 400 square metres, with three or four bedrooms, and a landscaped plot of area up to 2.5 thousand square metres. The house will probably have a terrace with a private pool and a parking lot.

The properties are usually equipped with solar panels and heating and air conditioning systems.

Luxury villas. If you want to buy property in Portugal at a higher level, you will be offered a vast selection of luxury villas and apartments.

Apartments. For €500,000, one can purchase modern apartments in the centre of Lisbon, Porto, Braga, Sintra or Coimbra.

Such apartments have three to five bedrooms, an area of up to 150—160 square metres in an elite building, and large panoramic windows. A parking lot will have 3 to 5 available spaces.

The apartments are usually located in a closed condominium with a garden, swimming pool and gym.

Commercial real estate. In large cities like Lisbon and Porto, an investor can buy premises for offices, restaurants and shops with a tenant and a guaranteed rental yield.

Investors also buy shares and apartments in large resort complexes in tourist areas such as Cascais.

Examples of properties in Portugal

Portugal, Sagres

€30,000,000+

4-star hotel with guaranteed income, Lagos

Portugal, Funchal

€350,000 — €450,000

Modern apartments with one-two bedrooms and commercial premises, Funchal, Madeira

56 m² — 96 m²

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1—2

Portugal, Albufeira

€1,400,000 — €4,500,000

Apartments and villas in a luxury resort managed by Marriott International

194 m² — 386 m²

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Until 2023, buyers of real estate in Portugal could participate in the Portugal Golden Visa Program. In that case, housing acquisition was not regarded as a private purchase but as an investment in the national economy.

To get a residence permit in Portugal, an investor could buy:

1. Luxury property worth at least €500,000.

2. Properties located worth at least €400,000 in regions with low population density.

3. Properties worth at least €350,000: for restoration, built more than 30 years ago and in cultural and historical heritage areas.

4. 30-year-old real estate worth at least €280,000: for restoration, located not only in areas of cultural and historical heritage but also in regions with low population density.

From 2022, it was not possible to get a Portugal Golden Visa for the purchase of residential property in large and coastal cities like Lisbon, Cascais, Porto, and others.

It was allowed to buy property in the interior regions of the country and the autonomous regions of Madeira and the Azores.

Restrictions did not apply to commercial real estate; it could be bought in any region of Portugal.

Nowadays, investors cannot buy properties in Portugal and get residence permits in return. However, such an option is available in five other EU countries. Namely, in Greece, Cyprus, Malta, Spain, and Hungary.

Purchase. When you buy a property, you pay 0,8% of its value in the form of stamp duty and 0—7.5% as the transfer tax.

Annual tax. Portugal has a relatively low property tax compared to other European countries. Depending on the region and city, its rate is 0.3—0.8%. The highest tax is in Lisbon and resort towns and is lower in the countryside.

Sale. If the investor is not a tax resident of Portugal, they do not live in the country for more than 183 days a year; then they pay 28% of the capital gains tax on the difference between the purchase price and the sale price.

Donation. The gift tax in Portugal is 10%.

Rental. The rental tax in Portugal is relatively high and is levied at 28% of rental income. However, tax non-residents who reside in a country that has signed an agreement on avoiding double taxation with Portugal can receive a preferential rate.

1. Though getting a Portugal Golden Visa is not possible through a property purchase, having accommodation is a mandatory condition for other residence permits, such as residency for financially independent people or digital nomads.

2. It is unnecessary to live in the purchased property; it can be used as a "safe haven" or rented out.

3. The gross return on residential rental properties is 7,2% as of Q3 2024. Santarém offers the highest yield at 8%, while Lisbon, Funchal, and Viana do Castelo yield around 5%, with lower investment risks and a higher likelihood of renting.

4. The property owner can apply for citizenship 5 years after applying for the first residence permit.

5. The resident’s children will be able to study in Portuguese universities without a student visa.

6. The Portugal residence permit is a personal travel document as its holder no longer needs a visa to travel around the Schengen countries.

7. A residence permit provides access to services of European banks.