Property in Portugal: why to invest and how to choose the best option

Buying a flat in Portugal means taking a step towards life in one of the most colourful and welcoming countries in Europe. Portugal beckons with its mild climate, rich history, delicious food and magnificent nature. From picturesque mountain landscapes to the lively urban rhythm of Lisbon and the quiet corners of the Algarve, there is something for everyone.

Peculiarities of the property market in Portugal: why here?

The Portuguese property market continues to gain momentum, and for good reason. Firstly, the country offers one of the most favourable rental income schemes in the world. The average growth in property values here is 3-4% per year, which makes Portugal attractive to those looking for a reliable way to invest their capital. Tax incentives for new owners and the possibility of a Golden Visa for investors are also key advantages.

Step-by-step instruction: how to buy a flat in Portugal

The first step in buying a property in Portugal is to determine your goals and budget. Decide whether you need the property for permanent residence, seasonal holidays or rental income. For example, flats in Lisbon cost from 3 500 euros per square metre, while in the Algarve – from 2 500 euros per square metre. These prices allow everyone to choose the right option. The best places to rent are in popular tourist areas, such as Lisbon and the Algarve, where renting can bring an income of up to 10-12% per year.

Selection of region and type of facility

Portugal offers different housing options depending on preferences. Lisbon offers the most rental investment opportunities, while Porto is suitable for those who value a quiet lifestyle. It is important to take into account that the cost of metres also depends on the infrastructure: for example, apartments with an ocean view will be more expensive in the Algarve. It is also worth paying attention to the proximity to transport, schools, hospitals and other infrastructure, which significantly increases the value of the property.

Working with an agent

Look for a professional who knows the market. Hiring an experienced agent is an important step as the agent will help you avoid pitfalls and suggest the best properties to suit your budget. Portuguese professionals usually charge a commission of 3-5% of the transaction value. Agents can also help with document verification and legal clearance of the property, which is critical to avoid fraud.

Document preparation

In order to buy a flat in Portugal, you will need to obtain a taxpayer identification number – NIF. You will also need documents proving your financial solvency, such as a certificate of income. The NIF can be issued at the local tax office or through the consulate. It is also necessary to provide bank statements confirming the availability of funds for the purchase, and a certificate of absence of debts. All documents must be translated into Portuguese and notarised.

Closing the deal

At the first stage, a preliminary contract – Contrato-Promessa de Compra e Venda (CPCV) – is concluded, in which all the terms and conditions of the transaction are stipulated. The deposit is usually 10-15% of the value. The notary then draws up the final contract of sale, which guarantees the legality and transparency of the procedure. Notary costs are about 1-2% of the property value. It is also necessary to pay property transfer tax (IMT), the rate of which varies from 1% to 8% depending on the value of the property.

Secondary housing or new buildings

What to choose:

1. Secondary housing in Portugal is usually located in historic neighbourhoods and offers a unique atmosphere. However, it is important to bear in mind that renovating such properties can be a significant expense. For example, the average cost of renovation is 500-1,000 euros per square metre, depending on the condition of the building and the materials chosen. In addition, such flats often require modernisation of water supply and heating systems.

2. New buildings are an opportunity to live in modern and energy efficient housing. The cost of new buildings in Lisbon starts from €3,500 per sq.m., and buyers can often take advantage of convenient instalment schemes from the developer. There are also swimming pools, car parks and gated communities to add to the level of comfort.

Mortgage in Portugal: what do foreigners need to know?

Portuguese banks are open to co-operation with foreign buyers, and a mortgage for a flat in Portugal is available even for non-residents. Banks require a down payment of 20-30% of the cost of housing, and the average rate is 2.5-3.5% per annum. The maximum loan term is usually 30 years, but it may depend on the age of the borrower.

The stages of obtaining a mortgage:

1. Pre-approval. Before you start looking for a flat, get bank approval for a mortgage. This will make the buying process much easier and help you plan your budget more accurately.
2. Documents. You will need bank statements, proof of income for the last two years, as well as NIF and pre-sale agreement. You will also need a property valuation, which will be carried out by a licensed valuer.
3. Mortgage formalisation. The bank will carry out an appraisal of the selected property to ensure that it is of market value, after which a mortgage agreement will be drawn up. Please note that the bank may require additional insurance policies such as life and property insurance.

Lisbon, Porto and the Algarve

Where is the best place to buy a flat in Portugal?

1. Lisbon. It is the capital and cultural centre of the country. Buying a flat in Lisbon means getting access to all the benefits of civilisation: universities, hospitals, business centres and excellent transport infrastructure. The neighbourhoods of Alfama and Bairro Alto are particularly popular, as they retain the traditional atmosphere of the city and offer many opportunities for renting out accommodation to tourists.

2. Porto. The city is known for its wine production and historical atmosphere. Here you can find more affordable housing options – an average of €2,500 per square metre. Porto is also famous for its unique views of the Douro River and its bridges, which create a special atmosphere. Neighbourhoods such as Foz do Douro are popular with those who want to live closer to nature and the ocean.

3. Algarve. The best choice for those who want to live by the sea. Properties are often purchased here for holidays, as well as for investment purposes to rent to tourists. Prices for flats start from 2,000 euros per square metre and the climate and nature make the Algarve an ideal place to live. Albufeira and Lagos offer plenty of options with ocean views and access to beaches.

Conclusion

Buying a flat in Portugal means choosing a country where quality of life, comfort and tradition are valued. Favourable conditions for foreign investors, affordable mortgage programmes, stable growth in property prices and a high level of security – all this makes Portugal an excellent choice for those looking for a second home or a reliable investment.

In addition, obtaining a Golden Visa grants the right to reside in the country, which is particularly attractive for those who want to ensure that they and their family have access to a high level of education and medical care. Portugal combines European stability with a unique lifestyle where everyone can find their place in the sun.

A morning cup of coffee in Lisbon could be the start of your journey to a European passport – a document that opens visa-free entry to 191 countries and grants you the rights of a citizen of a stable southern European democracy. The question of how to obtain Portuguese citizenship in 2025 is no longer a secret for the chosen few, but a clear plan of action, where each method is detailed: grounds, deadlines, financial costs and requirements – all like a navigator.

Naturalisation: a journey through time and attachment

Residence without gaps is a basic prerequisite. From 2024, the six-year rule applies: an applicant who has lived in the country for this period legally becomes eligible to apply. How to obtain Portuguese citizenship through naturalisation is one of the most popular scenarios.

Requirements:

• legal residence under the Portuguese residence permit for at least 6 years;
• A2 level language skills (CAPLE certificate);
• no criminal record;
• Evidence of integration (taxes, housing, employment).

In 2023, more than 32,000 applicants passed through citizenship by naturalisation. Natives of Brazil, Angola and Ukraine dominate. Refusals are formed mainly due to errors in documents and fictitious integration. The IRN – Instituto dos Registos e Notariado – accepts applications.

How to obtain Portuguese citizenship through marriage

Citizenship through marriage is not automatic. Marriage grants the right to apply after 3 years of living together. The marriage must be registered in Portugal. From 2022, there are more frequent checks on the reality of the relationship: interviews, cohabitation, finances. The scenario works also for same-sex unions.

Filing takes place at the same IRN authority. How to obtain Portuguese citizenship through marriage – more often used by immigrants from countries with a Portuguese-speaking base (Brazil, Cape Verde). The decision is made within 12-18 months.

Investments: money decides, but does not exempt from mandatory steps

Obtaining Portuguese citizenship status through financial investment is not automatic. The Golden Visa programme grants a residence permit and opens the possibility for naturalisation on a general basis. From 2024, investments in real estate are no longer accepted. Investments are directed to venture capital funds, scientific research and cultural projects.

In order to obtain civil status, investments are required. For example, €500,000 in a venture capital fund registered in Portugal. €250,000 in cultural projects or €500,000 in research programmes.

The process of obtaining citizenship under this scheme requires a strategic approach. Physical presence in the country is not necessary – spending 7 days a year is enough. Without proper taxation and legalisation of assets, approval cannot be obtained.

By origin and birth: blood, earth, evidence

Birth on the territory of Portugal gives a child a chance for civil status if at least one parent has lived in the country for at least 1 year. The 2020 law has greatly simplified access for children of migrants. Children born abroad are also granted citizenship status by descent.

Confirmation of the fact of origin requires archival work. Church parish documents, consular records, notarial records are often used. How to obtain Portuguese citizenship in this case is not a quick task, but with a high probability of a positive decision.

Documents, costs and pitfalls

Each script is accompanied by its own set of papers, but each one is mandatory:

• valid passport and Portuguese passport if available;
• proof of income;
• certificate of absence of criminal record (with apostille);
• proof of legal residence;
• language certificate (in case of naturalisation).

The cost of filing is between €250 and €500, depending on the basis. Translation and notary costs are separate. Accompaniment through lawyers increases the budget by €1500-3000. Filing is possible online (via the Justiça portal) or at consulates.

Nationality and dual nationality

Dual citizenship in Portugal officially allows for dual citizenship without restrictions. The law does not require renunciation of the original passport. But not all countries recognise this approach. Russia, India and China are frequent examples of conflicts of jurisdiction. The applicant has to take into account the legislation of both countries: declare the fact of second citizenship, pay taxes, take into account military duty.

How to obtain Portuguese citizenship, keeping the previous one, is a standard practice in the EU. Most migrants keep their first passport. In the country it does not affect the legal status or participation in elections.

What is checked before documents are issued

Before granting Portuguese citizenship, the authorised authorities examine the applicant’s file. The main emphasis is on the continuity of residence and the legality of income. At the slightest breach of residency or tax transparency, the application is suspended. As of 2023, IRN has strengthened the verification of sources of funds. Special attention is paid to:

• no sham marriages;
• visa compliance;
• to pay your taxes on time;
• continuity of residence (breaks of more than 6 months without valid reasons block the procedure).

How to get Portuguese citizenship without rejection of the application means passing the test without any white spots in the dossier.

Portugal passport: opportunities without borders

The Portuguese citizen document opens entry to 191 countries. For example: USA, Japan, Canada and the UK without a visa. Gives full access to free movement, work, education and health care in EU countries. In the Henley & Partners 2025 world ranking, the Portuguese passport was ranked as the 4th most visa-free destination.

Obtaining a Portuguese passport is the final stage of the procedure. IRN issues the document once the decision to grant citizenship has been made. The normal waiting period is up to 6 weeks. Filing is done at SEF authorities or consulates.

Figures and statistics: who and how gets a Portuguese passport

According to the Ministry of Justice, 64,040 people will be granted Portuguese citizenship in 2024. The top five countries are Brazil, India, Ukraine, Cape Verde and Angola. The number of applications from Asians and Middle Easterners has increased – especially among investors and professionals.

How to get Portuguese citizenship faster? Applicants with a connection to CPLP (Commonwealth of Portuguese-speaking Countries) use it most often. For them, a simplified regime is applied, which excludes language skills and gives priority in consideration.

How to obtain Portuguese citizenship: conclusions

It is possible to obtain a passport as a Portuguese citizen in 2025 if you follow the rules and act without mistakes. The country offers several ways: through naturalisation, marriage, investment or descent. The main thing is to prove legal residence, integration and clean dossier.

Most refusals are due to formalities: incomplete package of documents, violation of deadlines, dubious income. Those who prepare in advance and act competently get the desired visa without delays.