Is it wise to buy property in Portugal?
James Williams
Published Apr 10, 2026
Buying a property to rent in Portugal could be an excellent financial investment. It’s worth it now because there’s more demand for accommodation than is currently available, especially in Lisbon and Porto. Also, rental yields during peak tourism season make property rental there a viable investment.
Is it hard to buy a house in Portugal?
Step by Step: How to buy property in Portugal Buying a house can be difficult, whether in your home country or abroad. The good news is that the process involved in buying a house in Portugal does not entail too much paperwork and there are no restrictions on foreign ownership in Portugal.
What is the process of buying a house in Portugal?
To purchase a property in Portugal, whether as a resident or non-resident, you will need a Portuguese tax (fiscal) number número de contribuinte which can be obtained at the local tax office Finanças while you wait. You will need to provide proof of your identity as well as proof of address to apply for one.
Is now a good time to buy a house in Portugal?
Despite fast-rising home prices, statistics show that Portugal continues to be one of the best countries in the Euro Zone to invest in. The biggest price increases were in the centre of Lisbon and Oporto but even in these two places, prices are still well below the averages of other European cities.
Are real estate prices dropping in Portugal?
The price of houses for rent has been falling in Portugal during the pandemic, with a 3% drop in average national terms over the last year.
What is the cheapest place to live in Portugal?
What are the Cheapest Cities to Live in Portugal?
| City | Estimated Cost of Living (Monthly in Euros) |
|---|---|
| Lisbon | 850-1350 |
| Porto | 800-1150 |
| Faro | 800-1100 |
| Setubal | 800-1050 |
Why is property so expensive in Portugal?
Portugal is western Europe’s most dynamic property market thanks to tax incentives for foreign buyers and a so-called golden visa program, which offers residence permits in return for a minimum 500,000-euro ($550,000) investment.
What are property prices like in Portugal?
The median price of houses in Portugal rose again at the end of 2020 to 1,168 euros per m2, a figure that represents a reduction compared to the previous quarter (-1.6%) but an increase compared to the same period in 2019 (+7.6%).
