Cities in Portugal for buying affordable housing: where to move with minimal expenses?

Portugal continues to attract many people with its mild climate, rich culture, and growing economic opportunities. For many who choose this country to live in, obtaining Portuguese citizenship through naturalization becomes an important step, opening doors to new perspectives and full participation in public life. However, like in any other EU country, the process has its own peculiarities and strict requirements. In this article, we will examine in detail how everything is arranged, what conditions need to be met, and what stages need to be completed on the path to obtaining the desired passport.

On what grounds is citizenship granted through naturalization in Portugal

Obtaining citizenship through naturalization in Portugal is strictly regulated according to the criteria approved by Law No. 37/81. The basic conditions include residing in the country for a minimum of five years. This period is shortened in case of marriage to a citizen of the republic or origin from Portuguese-speaking countries.

But not only the years matter, also taken into account are:

• having a legal domicile (official address);
• lack of criminal record;
• confirmed income;
• stable employment or means to support oneself;
• level of integration into society.

The law excludes the possibility of “buying” status through formalities. Each applicant must demonstrate real involvement in the country’s life.

Path to citizenship: what is needed for integration

Portugal requires confirmation of integration through language proficiency, knowledge of history, and traditions. The candidate takes the CIPLE exam (A2 level), where the focus is not on philological sophistication, but on the ability to understand, speak, and write at a basic level.

Participation in daily life remains mandatory — renting a house, paying utility bills, medical services, and even activity in the tax system. Genuine immigration means not only relocation but also participation in society’s life.

Procedure for obtaining citizenship

Portuguese registration authorities operate in a digital rhythm. Online appointments, electronic submission of applications, checking the status of applications on the IRN platform — standard.

How to obtain citizenship through naturalization:

1. Collect certificates of residence, income, lack of criminal record.
2. Confirmation of residency (having a residence permit or permanent residency).
3. Payment of a fee of 250 euros.
4. Successful completion of the language exam.
5. Completion of the process by swearing allegiance to the Republic.

The application processing time is from 6 to 18 months depending on the region and workload of the IRN.

When citizenship through naturalization is not available?

Naturalization is only allowed for those who fully meet the requirements — without compromises or shortcuts. Violation of even one of the criteria jeopardizes the entire process of acquiring national status.

Government authorities refuse to grant citizenship if the applicant:

• provides false information;
• does not actually reside in the country;
• has criminal episodes in their history;
• demonstrates insufficient language proficiency.

In case of refusal, reapplication is possible, but only after addressing the reasons that led to the negative decision. It is a process where reputation plays a role as a currency of trust.

Key points to know about obtaining citizenship through naturalization in Portugal: summary

Citizenship begins not with a passport, but with compliance with clear legal requirements. In Portugal, these conditions are not a formality but a real filter that only prepared and involved individuals pass through.

To become a citizen through naturalization, one must consider the following factors:

1. Having a legal domicile for at least 5 years.
2. Legal residency — temporary or permanent.
3. Confirmed stable income or employment contract.
4. Lack of a criminal past.
5. Confirmation of Portuguese language proficiency at A2 level.
6. Involvement in the public and tax system.
7. Successful completion of the language exam and oath.
8. Respect for the country’s laws and adherence to its constitutional principles.

These criteria form not a bureaucratic list but a profile of a person ready to fully become part of Portuguese society. Only real compliance with all points guarantees progress towards citizenship through naturalization in Portugal.

Citizenship through naturalization in Portugal: simplifications and exceptions

Some categories of foreigners obtain status through a simplified procedure. Among them are:

• individuals born in the republic to foreign parents with legal status;
• spouses and partners of Portuguese citizens (after 3 years of cohabitation);
• citizens of Portuguese-speaking countries (Brazil, Mozambique, Angola, etc.);
• refugees who have obtained status in the republic.

In specific cases, the residency period is shortened, and the exam is replaced by alternative proofs of integration.

Risks and mistakes in document submission

Mistakes in submission are a common reason for refusals. The following errors are encountered in practice:

• lack of confirmed income;
• incomplete document package;
• ignoring the exam;
• applying with a residence permit instead of permanent residency;
• violating the minimum residency period.

To avoid risks, the applicant checks compliance with citizenship acquisition conditions in advance and prepares documents according to the IRN regulations.

Alternative to citizenship through naturalization: real estate investments

For those not willing to wait 5 years, there is a faster way. The real estate investment program allows eligibility for citizenship through naturalization in Portugal already after 5 years of obtaining the “golden visa” issued for investments starting from 500,000 euros (or from 350,000 euros for restoration projects).

Key advantages of the scheme:

• no requirement for permanent residency (7 days a year is sufficient);
• flexibility in asset management;
• opportunity to obtain a passport, opening visa-free doors to 191 countries.

This program combines legality, strategy, and acceleration of the process without strict integration conditions. Thanks to real estate investments, obtaining citizenship becomes accessible even with minimal physical presence in the country.

Conclusion

Citizenship through naturalization in Portugal does not offer easy paths but is built on clear, legal, and achievable grounds. This path is suitable for those who have not just moved but have rooted themselves. For those choosing the path through real estate investments, a faster route opens up.

The real estate market is surrounded by an aura of stability, reliability, and passive income. However, most perceptions of it are based not on facts, but on entrenched misconceptions. It is precisely the myths about real estate investments that lead to erroneous decisions, unprofitable investments, and incorrect strategies.

Without deep analysis and accurate calculations, even an investment in an elite property in the city center can lead not to profit, but to a prolonged financial loss. Understanding the mechanics of the market, location specifics, legal burdens, and real profitability distinguishes an investor from an adventurer.

Overrated Trap of Tranquility: Popular Myth about Real Estate Investments

Myths about real estate investments often start with the idea of complete investment safety. The common belief that “properties always appreciate” ignores real economic cycles, demand downturns, and devaluation risks. For example, in 2015, the Moscow housing market saw a 18% drop in average square meter prices due to a currency crisis and buyer exodus. Owners of “reliable” apartments in older buildings faced illiquidity and had to offer up to a 25% discount for quick sales.

In addition, the payback period is often stretched. For instance, a one-bedroom apartment near the “Aviamotornaya” metro station, rented out for 50,000 rubles per month, on average pays off in 20 years with a price of 12 million rubles, considering annual taxes, utility bills, costs for cosmetic repairs, and tenant vacancies. The illusion of “peaceful income” shatters when calculating the real profitability.

“Rent Guarantees Passive Income”: Instead of Dividends, Constant Management

The second most common myth about real estate investments is the belief in the “passivity” of rental income. In practice, owning a property requires constant attention: tenant selection, contract formalities, property condition monitoring, addressing technical issues, and tax obligations.

The average occupancy rate for short-term rentals in Sochi is 72% according to Daily Rent service data for 2024. Up to 30% of the profit is spent on maintenance: cleaning, administration, equipment replacement. Long-term rentals bring other challenges: payment delays, problematic tenants, contract terminations. Property management companies charge 10 to 20% of the turnover, further reducing profitability.

“Early Stage Purchase Is Always Profitable”: Risk of Unfinished Construction and Depreciation

Myths about real estate investments include a blind faith in profits from buying at the excavation stage. However, the Ministry of Construction statistics for 2023 recorded 174 problematic projects in Russia, affecting over 85,000 deceived co-investors. Unforeseen delays in project completion, design deterioration, contractor changes are common realities in the new construction market.

Even with successful project completion, the final value may not meet expectations. For example, in New Moscow, apartments in the “Rasskazovo” complex cost 6.5 million rubles during construction, but after completion, the average price dropped to 6.2 million rubles due to oversupply in the economy-class segment. The market does not always confirm the expected margin of 20–30%.

“Real Estate Always Appreciates”: Cyclical Nature and Local Failures

The common misconception of “eternal growth” in housing prices contradicts years of market observations. Myths about real estate investments distort the market as a constant expansion. In 2008, amidst the crisis, property prices in Moscow dropped over 40% in dollar terms. The decline lasted until 2010, and it took 5 years for prices to return to pre-crisis levels.

Local failures are also not uncommon. For instance, in 2022, new developments in the Academic microdistrict of Yekaterinburg saw a price decrease of 11% in six months due to an excess of square meters. Choosing an unsuitable location or housing category can easily turn an investment into a long-term illiquid burden.

“Property in Resort Areas Is a Gold Mine”: Oversupply and Seasonal Risks

Myths about real estate investments in seaside resorts create an image of perpetual rental income. However, locations like Anapa or Gelendzhik are already saturated with offerings: according to CIAN data, in 2024, the number of summer rental property listings increased by 38%, while demand only rose by 11%. The result is vacancies, price reductions, and undercutting by private landlords.

Moreover, seasonality sharply limits annual income. A 9 million ruble apartment in Lazarevskoye brings an average of 450,000 rubles over three summer months, but remains vacant for the other 9 months. Factoring in all expenses, the annual yield is below 5%, comparable to a deposit in a major bank but requiring significantly more time and resources.

“Commercial Real Estate Yields More”: Rate Not Always Justified

The common claim of stable office, street retail, and warehouse profitability overlooks high entry barriers and management complexities. Myths about real estate investments overestimate the B2B segment. Buying a 60 m² space in central Kazan requires at least 14 million rubles, and with a rent rate of 120,000 rubles per month, the payback period exceeds 12 years with ideal occupancy.

In addition, the owner faces costs for tenant-fit-out, increased wear and tear, building maintenance fees, HOA charges, advertising, and legal transaction support. In case of reduced foot traffic or tenant closure, the space may remain vacant for up to 9 months, especially in crisis conditions.

Debunking Myths about Real Estate Investments

Reasons why misconceptions fail:

1. Ignoring taxation: property tax, personal income tax, land tax reduce net income.
2. Hidden expenses: repairs, furniture, appliances, insurance, intermediary services require regular investments.
3. Downtime between tenants: loss of income and additional expenses for interior updates.
4. Currency fluctuations: reduced purchasing power, material cost increases, demand drops.
5. Psychological pressure: expectation of price growth, fear of missed opportunities, market news dependency.
6. Lack of experience: incorrect property evaluation, poor location choice, mistakes in contracts and calculations.
7. Legal risks: encumbrances, inaccurate documents, neighbor disputes, developer bankruptcies.

Conclusion

Myths about real estate investments lose their power when confronted with specific figures, payback periods, and property operation conditions. A successful strategy always relies on detailed analysis, sober location assessment, comparison of alternative investment formats, and meticulous planning. Residential and commercial real estate can yield stable income only with sound management, risk understanding, and readiness for market instability.