May 14, 2023
Reading Time: 3 min

How did real estate investor income in Portugal grow in 2022?

The annual return on investment in commercial real estate in Portugal rose to 8% in 2022. Portugal has become one of the few European countries with positive dynamics in the real estate market.

See what commercial properties are in demand among investors and why they buy them.

Vladlena Baranova
Vladlena Baranova

Lawyer, AML Compliance officer, certified CAMS specialist

Portugal residence permit by real estate investment

How did real estate investor income in Portugal grow in 2022?

Analytical agency MSCI has published a Portuguese commercial real estate market report, Portugal Annual Property Index. In 2022, the property profitability increased to 8% per annum: a 1,2% annual growth.

Revenue increased following the commercial real estate demand growth and raised rent rates. According to CBRE Portugal, in 2022, the Lisbon office space market set a historical record: companies rented 272,000 square meters of offices.

Lisbon is a popular destination for expats. They move to the city to create a company or a startup. Living in Lisbon is also 2—2.5 times cheaper than in other Schengen capitals.

Comparison of Portugal real estate investment returns

Property types




4% per annum

12,5% per annum

Retail premises

7,3% per annum

8,5% per annum

Industrial facilities

7,6% per annum

7,8% per annum

Office spaces

6,9% per annum

7,3% per annum

Other assets, e.g. medical offices

4,4% per annum

4,4% per annum

The MSCI report also notes that income from other investment assets was lower than income from real estate. For example, the owners of shares received an income of +7.7% per annum, but the owners of bonds did not earn anything: the yield on securities fell to ‑18.7%.

What else do real estate investors get in Portugal?

In addition to the liquid asset, which generates an income of 4.4 to 12,5% per annum, investors can get a residence permit in Portugal.

Buying commercial real estate is one of the investment options of the state residence permit program in Portugal, the so-called “golden visa”. To get the status, applicants invest in the following:

  • €350,000 or more in properties built more than 30 years ago or located in regeneration areas;

  • €500,000 or more in newer properties.

For those who buy property in a low-density area of the country, the minimum investment threshold is reduced by 20%, amounting to €280,000 and €400,000, respectively.

The terms of the residence permit program do not restrict investments in commercial real estate. Investors can purchase property in any region of Portugal.

Investors who buy a residential property to participate in the Portugal residence permit program must choose properties only in the country’s interior regions, in the Azores or Madeira. Lisbon, Porto, and coastal and resort areas are not considered interior.

How an investor can get a Portugal residence permit in 2023

In the spring of 2023, the Portuguese government announced the closure of the residency by investment program. The bill is currently under consideration in the country’s parliament and will later be signed by the President.

Until a final decision is made, foreigners have time to apply for a Portugal residence permit by investment.

After the program closes, investors can still obtain a residence permit if they invest at least €250,000 in the cultural heritage of Portugal. They will also need the approval of competent authorities, such as the national development bank BPF or the National Innovation Agency.

Over time, all golden visas will be converted to Portugal D2 visas for entrepreneurs. But investors will not be required to live in Portugal for 183 days a year: 7 days will be enough.

Portugal Golden Visa is one of the most popular in the world. In April 2023, investors received 116 residence permit cards, of which 28 were issued to US investors, 15 to Chinese investors, and 14 to UK investors.

Since 2012, Portugal has issued 12,037 residence permit cards to investors and 19,600 to their family members. The country earned almost 7 billion euros from the program. Of this, 6.2 billion euros were real estate transactions.

Elena Ruda

Elena Ruda,

Chief Development Officer in Immigrant Invest, lawyer

Real estate purchase is the most popular option among investors. Over the past 11 years, about 90% of applicants have chosen this option. Our clients also prefer to invest in Portugal real estate. We select suitable properties for them, review the transaction legality, and help them finalise a purchase and sale agreement.

Investors also obtain a Portugal residence permit via the D7 visa, designated for financially independent individuals with passive income. To apply for a visa, investors must buy or rent a property in Portugal and confirm a monthly income of at least €760. Unlike the golden visa, D7 visa holders must stay in the country for at least 183 days a year.

Immigrant Invest is a licensed agent of government programs in the European Union and the Caribbean. If you want to buy a property and get a residence permit in Portugal, please consult our investment program experts.