Why buy a property in Portugal?

What are the main nationalities buying in Portugal?

There are several nationalities making the decision to buy in Portugal. Both EU and non-EU nationalities. These include:

USA: Since a few years there is strong demand for Algarve property from North Americans. Americans, especially Californians, are looking for a lifestyle similar to their own, with the sea nearby, the beach and amazing surf spots, but in a “safer” environment. Buying in Portugal appears to be an ideal option for North Americans. Because Americans are generally used to live in bigger properties, the hills around Loulé, Villa neighborhoods in Vilamoura and the impressive villas close to the Marina in Albufeira offer great property opportunities.

Brazil: a big wave of Brazilian investment in Portugal was also felt in 2022. It began shortly before the Brazilian elections and intensified after the second round. Due to the devaluation of the real, these buyers were looking to invest in a second home in another country. Portugal, with its many direct airlines to Brazil and its common language, Portuguese, was the country of choice.

Eastern Europe: against a backdrop of war between Russia and Ukraine, Portugal is a country that, thanks to its geographical position far removed from the conflict and its stable political and social structure, is very popular. Nationalities such as Danes, Swedes, Russians and Ukrainians see Portugal as a “safe haven”.

United Kingdom: the British have always invested heavily in Portugal, even with Brexit.

What factors encourage foreigners to buy in Portugal?

There are various factors that make Portugal the ideal country to invest in real estate, such as the cost of living, rising property values, the number of restaurants… Let’s take a closer look at some of these criteria:

Average cost of living: €650/month per person in 2024

Safety: Portugal is considered the 6th safest country in the world. Portugal is a stable, non-violent country: no racial tensions, no religious or political conflicts or extremism.

Quality of life: Good value for money compared with other European and world countries. Bear in mind that the minimum wage in Portugal was €822 gross for a 40-hour week paid over 14 months (source: Eurostat). This makes the quality of life very attractive, especially if you work for a foreign company and earn a foreign salary while living in Portugal.

Value-for-money homes to buy: Despite the enormous price rises of recent years – a 60% increase in 10 years for house purchases and a 20% increase for rents – Portugal, compared to other major international capitals, continues to offer lower prices per square meter than neighboring European countries.

Ideal climate: The Algarve’s year-round mild temperatures is unmatched in Europe!

Quality gastronomy: Without going into too much detail on the subject, the gastronomy in Portugal is delicious and inexpensive. The Portuguese cuisine is known for honest and pure food, served with a smile accompanied by affordable good wine!