Portugal continues to entice international buyers, even with the conclusion of most incentives, including tax advantages and property-based golden visas. What’s the enduring magnetism of Portugal for international retirees and holiday homebuyers? And what types of properties are they seeking, and where?
Engage in conversation with real estate professionals in Lisbon, Porto, and the Algarve, and the influx of Americans will inevitably surface. Buoyed by a strengthening dollar and perhaps motivated by a politically turbulent period in the US, the termination of the golden visa’s property element hasn’t deterred them.

The Algarve, still the top choice for international buyers
Beyond Americans, Portugal – now affectionately known as the ‘California of Europe’ – continues to capture the attention of international buyers. They consistently applaud the lifestyle and practical benefits of residing here, ranking them among the best in Europe. Discover why relocating to Portugal remains an ideal choice in 2024 and beyond…
Accessible Residency Rates
Portugal distinguishes itself as one of Europe’s most budget-friendly lifestyle destinations regarding the income required for residency. The non-lucrative D7 visa, designed for applicants from outside the EU who aren’t seeking employment, requires evidence of passive income equivalent to Portugal’s minimum wage.
In 2024, that translates to just €956 monthly (€820 calculated over 14 months). A spouse requires an additional 50%. Comparable non-lucrative visas in Spain and Italy demand significantly higher monthly incomes.
Alternatively, the D2 visa facilitates operating a business in Portugal, while the D3 caters to skilled professionals. And since October 2022, the Digital Nomad visa empowers expats to work remotely, fulfilling contracts or trading outside of Portugal!
Importantly, acquiring residency through any of these visas grants borderless travel within almost all European countries (within the Schengen Area), a notable advantage for Brits and other non-EU citizens.
Golden Visa – Still a Valuable Option?
Following eleven years of its golden visa program, designed as a flexible investment avenue for affluent non-EU citizens, a pivotal change occurred in October 2023. Applying through property purchase no longer qualifies applicants for the visa nor provides Portuguese residency status for the entire family – a path previously chosen by 65% of applicants.
However, the golden visa offers alternative investment pathways, so it remains attractive. Options include donations to approved cultural projects or investments in research initiatives led by public or private scientific institutions. Entrepreneurs can establish a company employing at least 10 locals (or eight in low-density areas) or invest in government-supported private equity or venture capital funds.
Introducing a New Tax Incentive
The Portuguese government’s decision to phase out the tax regime offering a flat 10% rate on foreign-sourced pension income for 10 years is another financial consideration for foreigners.
Reassuringly, a successor to the NHR regime, the Fiscal Incentive for Scientific Research and Innovation (IFICI) Program, is emerging. It is designed to benefit high-value professionals and entrepreneurial leaders of start-ups. Approved applicants can enjoy a 20% flat tax rate on employment and self-employment income, coupled with appealing exemptions on foreign-sourced income.
Even absent these targeted tax benefits, Portugal isn’t a high-tax nation, and there are strategies for minimizing taxes on pensions – consulting with an international financial expert is the key.
Affordable Living, Low Crime Rates
Portugal boasts world-class leisure resorts, especially in the Algarve, home to renowned destinations like Quinta do Lago, Vale do Lobo, and Vilamoura. While properties and amenities in these locations have a higher cost, Portugal, outside these exclusive enclaves, provides a notably affordable lifestyle compared to other comparable expat destinations.
This affordability is underscored by opting to shop and dine where the locals do. The 2024 Cost of Living Overseas Index by Property Guides ranks Portugal as the third most affordable country among 13 sought-after expat destinations and calculates a £510 savings on monthly expenses compared to the UK.
Property Guides’ reader surveys reveal that Portugal’s low crime rate coupled with welcoming locals are significant attractions. This rings especially true for US and Canadian buyers, accounting for approximately 10% of responders. These are points emphasized most often when readers shared what draws them to Portugal.
They will be reassured knowing that Portugal ranks as the 7th safest and most peaceful country worldwide and the 5th safest in Europe, according to the Global Peace Index (Institute for Economics and Peace) this year.
Praise for Healthcare
For foreigners originating from countries with limited or nonexistent healthcare options where costly medical insurance is imperative, Portugal’s high-quality state healthcare serves as a blessing. This is especially compelling for Americans, for whom medical insurance is a significant recurring expense.
Over the last decade, annual premiums within the US have outpaced overall consumer prices, according to health system data. Conversely, once a foreign national registers as a Portuguese resident and obtains a tax number, they are able to access to the Portuguese state health service (SNS), which they can enhance through affordable private medical insurance choices.
Numbeo’s 2024 Health Care Index places Portugal 19th worldwide regarding the excellence of its healthcare system, rising from 25th in 2023. Expats can expect high-quality at a range of clinical and wellbeing needs, with access to free state programs and private options.
Market Trends Upward
Multiple reports point to present as an opportune moment to invest in Portuguese property. The housing market demonstrates momentum in 2024, with noted Portuguese property analysts, Confidencial Imobiliário, report a 4.9% increase in transactional activity in the second quarter of 2024 compared to the previous quarter.
The Royal Institute of Chartered Surveyors (RICS) also cites that the Portuguese market is primed for advancement, with Senior Economist Tarrant Parsons commenting: “Strong economic growth forecasts, underpinned by rising disposable incomes and improving consumer and business confidence, should start influencing the housing market in the months ahead.” Constrained supply might catalyze housing prices, according to the latest Confidencial Imobiliário research.
Current observations among Portuguese agencies indicate strong American demand. One agency indicates that US buyers of luxury properties in the in the Algarve have shifted from a pre-pandemic market share of only one percent to a “substantial percentage.” Estimates indicate Americans constitute 10% of all foreign buyers.
What and Where are We Buying?
Property Guides’ surveys highlight noteworthy divergence between US and UK buyers, with North Americans pursuing more upscale properties than their UK and Irish counterparts. Only 37% of British buyers had a property budget surpassing €300,000, compared to nearly 60% of Americans.
Location preferences also vary. While the Algarve prevails as the most popular choice overall, American buyers favor Lisbon, Porto and the Silver Coast between these cities, while the Brits gravitate toward inland regions. Given the urban preference, it’s not surprising that garden and swimming pool access are lower priorities for American buyers.