>Many foreigners are choosing to buy or rent houses in Portugal, seeking an improved quality of life or investment opportunities. According to recent data from idealista/data, interest from individuals residing outside of Europe remains strong.
Demand for housing in Portugal from non-EU citizens continues to exceed that from EU citizens, both for purchases and rentals, with rental demand being particularly notable. Towards the end of 2024, interest from non-EU citizens slightly increased for both buying (54%) and renting (63.8%) compared to total international demand, though it hasn’t reached the levels seen before changes to tax incentives occurred.
A new ordinance regulating the Tax Incentive for Scientific Research and Innovation (IFICI+), replacing the previous NR regime, was published in late 2024.
Foreign buyers, particularly those from Brazil and North America, are driving demand in 15 major Portuguese cities. Ponta Delgada (Azores) sees a significant portion (70%) of foreign buyers coming from outside Europe, with similar high proportions in Braga, Coimbra, and Viseu. Lisbon (60.2%) and Porto (60.4%) also have a majority of international buyers from outside the EU. In contrast, residents of EU countries showed the most interest in purchasing properties in Faro, Portalegre, Guarda, Viana do Castelo, and Bragança.
Demand for houses to rent by non-EU citizens also outpaces that of EU citizens in most district capitals. Viseu (80.2%), Braga (78.2%), and Leiria (75.1%) show the highest demand from non-EU renters, followed by Porto (65.7%), Lisbon (59.8%), and Faro (56.3%). Funchal (Madeira) is the only exception, with EU residents showing slightly higher interest.
Rental demand from non-EU citizens increased in 11 municipalities over the past year, with Portalegre, Faro, and Funchal experiencing the largest increases. Demand stabilized in Aveiro and decreased in eight municipalities.
