Real estate investment in Portugal

Portuguese law does not restrict foreigners from acquiring real estate; they have the same rights as citizens of the country. Portugal is one of the most popular countries among investors in Europe.

The liquidity of real estate investments is confirmed by statistics: every quarter, the price per square metre of housing increases by an average of 1,9%. Seven years ago, a house of 100 m² cost €85,500, and today it is sold for €340,000.

€3,400

Average price per 1 m²

1.9%

Average price growth per quarter

11%

Associated costs, of the property value

How the residential property price index is growing in Portugal

Cost of a 3-bedroom apartment in Portugal

€3.4 million

Penthouse in the centre of Lisbon, on the banks of the Tagus river

€1.25 million

Apartment in the historic centre of Porto

€450,000

Apartment in Aveiro, the Central Region

Investment real estate in Portugal

https://immigrantinvest.com/wp-content/uploads/2023/09/1-6.jpg

location icon Portugal, Santarem

€350,000+

Share in luxury 5-star boutique hotel not far from Lisbon

https://immigrantinvest.com/wp-content/uploads/2023/06/14-5.jpg

location icon Portugal, Sagres

€30,000,000+

4-star hotel with guaranteed income, Lagos

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location icon Portugal, Cascais

€645,000 — €675,000

Apartments in a 5-star resort complex managed by Sheraton

80 m² — 103 m²

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Portugal residence permit or citizenship by real estate investment

Golden Visa investors. Portugal has a state program for obtaining a residence permit for investors, the Golden Residence Permit Program.

The purchase of real estate as one of the options for obtaining a residence permit has been cancelled. Now, investors have the option of purchasing shares of investment funds, starting a business, and investing in science and culture with an investment threshold of €250,000.

Property terms for other residency applicants. Purchase or rent of real estate is a mandatory condition for obtaining a residence permit in Portugal for digital nomads and financially independent individuals.

The Portugal D7 Visa allows financially independent individuals to obtain a residence permit in Portugal if they confirm passive income outside the country in the amount of €820 per month.

The Portugal Digital Nomad Visa is available to freelancers, employees, and sole proprietors with an income of €3,280 per month.

Minimum real estate investment amount in Portugal

Unlimited

Property for the applicant’s personal living

To obtain a Digital Nomad visa or D7 Visa, one must provide a real estate purchase or lease agreement.

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Taxes and associated costs

Taxes

The annual property tax in Portugal is 0.3—0.8% of the cadastral property value. The tax rate depends on the property type (an apartment or a house), location and age. The tax amount is set annually by the municipality.

Of the cadastral value — the annual property tax

Urban real estate owners pay an additional AIMI tax — a municipal property tax. AIMI is from 0,7%.

If the cadastral value of the residential real estate is more than €600,000, the owner pays an additional wealth tax:

0,7% of the amount exceeding €600,000 for the part of the value
€600,000 to 1,000,000;
1% of the amount exceeding €1,000,000 for the part of the value over €1,000,000.

If the owner rents out the property, they pay a tax of 25% on rental income.

€2,800

Average annual expenses on maintenance of a three-bedroom apartment

Utilities. Water and electricity are paid according to meters. The tariff depends on the consumption volume: the less you consume, the lower the tariff. There is no central heating in Portugal. Houses with gas heating are rare. Water in houses is heated in electric or gas boilers.

Air conditioners and electric heaters for heating are rarely used due to high electricity bills: additional costs are from €100 per month with an average electricity cost of €50 per month. Private houses are often heated with wood-burning fireplaces.

They cook on gas in Portugal. There are central gas networks only in large cities. Where there is no gas supply network, gas is either bought

in balloons, usually for villas, or pumped into special tanks for condominium apartment buildings.

A balloon of gas costs €50 and lasts a month for a family of four. In other cases, gas is paid according to the meter.

Owners of real estate in multi-apartment condominium buildings pay extra for maintenance: for the elevator, cleaning, repairs, security, and swimming pools. The price range is €25 to 200 per month.

Utilities

Electricity, water, garbage collection

€120—150 per month

Maintenance of the building — elevator, cleaning, repairs, and security

€60—90 per month

Countries to buy a property and get residency or citizenship

We offer proven properties that comply with the conditions of government programs for investors. You can buy real estate and obtain a residence permit or citizenship.

Country

Property investments

Status

Obtaining time

Malta12 properties

€300,000+

Permanent residency

6+ months

Show 12 properties

€300,000+Permanent residency6+ months

Grenada19 properties

$270,000+

Citizenship

8+ months

Show 19 properties

$270,000+Citizenship8+ months

UAE113 properties

AED 750,000+

Residence permit

2+ months

Show 113 properties

AED 750,000+Residence permit2+ months

Spain36 properties

€500,000+

Residence permit

5+ months

Show 36 properties

€500,000+Residence permit5+ months

Portugal68 properties

Not limited

Residency after D Visas

6+ months

Show 68 properties

Not limitedResidency after D Visas6+ months

Show all countries

40+ guides with European countries

Find out how much it costs to buy and rent real estate in each country, what the market dynamics are and what taxes you need to pay when buying and selling.

Real estate investment in Turkey

Foreigners in Turkey can buy and sell housing and commercial real estate and rent it out.

$777

Average price per 1 m²

$400,000+

Real estate investment for citizenship

Learn more

Real estate investment in Spain

The sale of real estate to foreign investors is not limited in Spain: one can buy and sell housing and commercial real estate or rent it...

€3,300

Average price per 1 m²

€500,000+

Real estate investment for residency

Learn more

Real estate investment in Serbia

Foreigners can buy and sell properties in Serbia. The lease is possible on the principle of reciprocity. If Serbian citizens are allowed...

€2,900

Average price per 1 m²

2.5%

Average price growth per quarter

Learn more

Real estate investment in North Macedonia

Foreigners can buy and sell properties with the approval of the Ministry of Justice.

€985

Average price per 1 m²

1,4%

Average price growth per quarter

Learn more

Real estate investment in Monaco

Foreigners can freely buy, lease, and sell real estate in Monaco, except for properties near the residence of the Prince of Monaco.

€75,200

Average price per 1 m²

1.6%

Average price growth per quarter

Learn more

Real estate investment in Lithuania

Foreigners can freely buy, sell and rent out real estate in Lithuania.

€3,700

Average price per 1 m²

2.5%

Average price growth per quarter

Learn more

Material prepared by Igor Buglo, Head of the Maltese office, MBA

Updated:

06 September, 2024

Frequently asked questions

How much is property tax in Portugal?
Buyers of property in Portugal pay a one-time transfer tax of 0—7.5%. The rate depends on the transaction amount, the property location, and its purpose.
Property owners in Portugal pay the annual property tax of 0.3—0.8% of the cadastral property value. If that value exceeds €600,000, they pay an additional 0.7 or 1% tax. Urban real estate owners pay an additional AIMI tax starting at 0,7%. Landlords pay a 25% tax on rental income.
Sellers of property pay the 28% capital gains tax and the 0,4% sales tax.
Can a foreigner buy property in Portugal?
Yes, foreigners can buy property in Portugal without restrictions. Portugal has no limitations on property ownership for non-residents, and foreigners can purchase, sell, and rent properties just like Portuguese citizens.
What are the pitfalls of buying property in Portugal?
When buying property in Portugal, some pitfalls to consider include:
High transaction Costs. Legal fees, taxes, and agent commissions can add up significantly, sometimes as much as 10% of the property’s value.
Complex bureaucracy. The process can be slow and complex, with various bureaucratic hurdles such as obtaining a tax number (NIF) and dealing with language barriers.
How long can I stay in Portugal if I buy a house?
If you buy a house in Portugal, the length of time you can stay depends on your visa or residency status. If you are from an EU/EEA country, you can stay without restrictions.
Without a residency permit, non-EU citizens can stay up to 90 days in a 180-day period under the Schengen visa rules.

Real estate investment in Portugal

How the residential property price index is growing in Portugal

Cost of a 3-bedroom apartment in Portugal

Investment real estate in Portugal

Individual selection of investment properties

Portugal residence permit or citizenship by real estate investment

Minimum real estate investment amount in Portugal

Discover real estate market trends in 41 European countries

Taxes and associated costs

Expenses when buying a new home to live in mainland Portugal

Taxes

Selling expenses

Countries to buy a property and get residency or citizenship

40+ guides with European countries

Frequently asked questions