Looking for a second home in Portugal? With its sunny climate, affordable real estate, and high quality of life, Portugal has become one of Europe’s most attractive destinations for international buyers. 

Whether you want a coastal retreat, a city apartment, or a countryside escape, owning a second home here offers both lifestyle benefits and long-term investment security. 

In this guide, we’ll explore the costs, taxes, legal steps, and best locations to help you make the right choice in 2026.

Why Foreign Buyers Choose Portugal for a Second Home?

The global landscape plays a major role in shaping second-home demand in Portugal, with each nationality responding to its own economic and political climate.

Americans

Many Americans are moving to Portugal—especially Californians— as they look for a lifestyle that echoes what they value back home: a gentle climate, coastal living, and vibrant culture. Portugal delivers a similar feel, but with the added benefit of a strong dollar making property purchases far more accessible. This exchange-rate advantage has opened the door for more Americans to invest in Portuguese homes.

Brazilians

Portugal and Brazil share deep cultural and historical ties, which naturally encourages Brazilian buyers to look toward Portugal in times of uncertainty. Following recent elections in Brazil, many investors sought stability abroad. Portugal’s steady market and welcoming environment make it a logical choice. The weaker Brazilian Real has also increased interest, as it strengthens the investment appeal of Portuguese real estate.

UK Citizens

Post-Brexit instability has pushed many UK residents are moving to Portugal as a secure alternative within the European Union. Portugal’s political and economic steadiness provides reassurance and continuity at a time when British buyers are navigating new uncertainties.

Canadians

Canada’s rising property prices and cost-of-living pressures have encouraged many Canadians to move to Portugal. Country offers a rare mix of affordability, quality of life, and a real estate market where homeownership consistently exceeds 70%. With few restrictions and a significantly lower cost base, Portugal has become an attractive option for Canadians seeking value.

EU Citizens

Across Europe, Portugal stands out for its stability and safety. As the Russia-Ukraine conflict reshapes regional priorities, many Europeans see Portugal as a peaceful refuge. Its secure legal framework, steady governance, and geographic distance from areas of tension make it an appealing choice for second-home buyers from within the EU.

Best Countries to Buy a Second Home

A 2022 study examining cost of living, leisure options, and property price trends across 34 OECD countries ranked Portugal as the top destination for purchasing a second home, awarding it an impressive score of 7.27 out of 10. Portugal outperformed countries such as Hungary, Turkey, the Czech Republic, and Estonia. At the bottom of the ranking were Israel, Switzerland, and Norway, considered the least attractive markets for second-home buyers.

The same study highlighted a 67% rise in property prices in Portugal over the past decade, along with a 21% increase in rental rates. These figures reflect both the strong demand for Portuguese real estate and the long-term value it continues to offer. For investors, this upward trajectory reinforces Portugal’s position as a compelling and resilient market for second-home investment.

Benefits of Buying a Second Home in Portugal

Buying a second home in Portugal combines lifestyle appeal with strong investment prospects. The country’s mild Mediterranean climate, with more than 300 sunny days a year, makes it perfect for year-round use—whether enjoying warm winters in the Algarve or relaxed summer stays along the coast.

Portugal also offers a relatively affordable cost of living. Groceries, healthcare, and dining out are often cheaper than in many Western European countries, allowing for longer, more comfortable stays.

The Portuguese real estate market has shown steady growth in well-known areas such as Lisbon, Porto, and the Algarve, giving buyers confidence in long-term value. For those interested in rental income, Portugal’s thriving tourism industry supports solid demand in both city and coastal regions.

Its location adds further convenience. With major international airports and short flights to many European capitals, Portugal serves as an easy and well-connected base for frequent travel.

Can Foreigners Buy a Second Home in Portugal?

Yes — foreigners can easily buy a second home in Portugal. There are no restrictions on foreign property ownership, and buyers from the USA, UK, Canada, Brazil, South Africa, and across Europe enjoy the same rights as Portuguese citizens.

The process is straightforward: you obtain a fiscal number (NIF), arrange a Portuguese bank account if needed, and complete the purchase with a notary. Many owners use their property for holidays while renting it out the rest of the year, taking advantage of Portugal’s strong demand in both city and coastal areas.

Portugal’s stability, clear legal system, and welcoming approach make it one of the most accessible countries in Europe for second-home buyers.

Buying a Second Home in Portugal as a Foreigner

Foreigners are allowed to buy property in Portugal, and the process is relatively straightforward. However, there are some regulations and requirements that you should be aware of before you begin the process. Here are some key points to keep in mind when buying a property in Portugal as a foreigner:

Tax Number (NIF) in Portugal

As a foreigner, you’ll need to obtain a Portuguese tax identification number (NIF) in order to buy a property in Portugal. This can be obtained from the Portuguese tax office (Finanças).

Portuguese Bank account

You’ll need to have a Portuguese bank account in order to purchase a property in Portugal. This is where you’ll transfer the funds for the purchase, pay the taxes and fees, and receive any rental income.

Legal representation

It’s highly recommended to work with a Portuguese lawyer who is experienced in real estate transactions. They can help you navigate the legal aspects of the purchase and ensure that everything is in order.

Home insurance

Known as property insurance, its mandatory in Portugal and provides coverage for damage to your property and personal belongings, as well as liability coverage if someone is injured on your property. 

Comporta

Property Taxes in Portugal

When buying a second home in Portugal you need to pay the following property taxes:

Property transfer tax (IMT)

IMT tax is base on the purchase price of the property and can range from 0% to 8% for residential properties. There are 3 main criteria’s that has influence the IMT calculation: a) Urban property vs. rural property, b) Property is in Mainland vs. islands (Madeira or Azores) and c) Primary residency vs secondary home.

Stamp duty

Stamp duty is charge for all documents and arrangements in respect of real estate, including deeds, contracts and mortgages. This tax is base on the purchase price of the property and is typically 0.8% for residential properties.

Annual property taxes (IMI)

IMI is an annual tax based on the tax value of the property. The tax rate ranges from 0.3% to 0.8% for urban properties and 0.8% for rustic properties.

Tax on rental income

If you rent out the property in Portugal, you’ll need to pay income tax on the rental income generated. There is a flat tax rate of 28%. Common deductible expenses include property management fees, repairs and maintenance costs, insurance premiums, local property taxes (IMI), financing costs such as loan interest, and other relevant expenses like advertising and professional fees.

Where to Buy a Second home in Portugal?

Lisbon

 Lisbon is the capital of Portugal and is known for its historic architecture, cultural attractions, and lively nightlife. The city has a diverse range of neighborhoods, each with its own character and atmosphere. Property prices in Lisbon are generally higher than in other parts of Portugal, particularly in popular areas such as Chiado, Baixa, and Bairro Alto.

Porto

Porto is Portugal’s second-largest city and is known for its port wine, charming riverside district, and historic buildings. The city has a more laid-back atmosphere than Lisbon and is popular with expats looking for a slower pace of life. Property prices in Porto are generally lower than in Lisbon but have been rising in recent years.

Algarve

The Algarve is a popular tourist destination in the south of Portugal, known for its sandy beaches, golf courses, and warm climate. The region is particularly popular with retirees and second-home buyers. Property prices in the Algarve can vary widely depending on the location, with some of the most sought-after areas being Vilamoura, Albufeira, and Lagos.

Silver Coast

The Silver Coast is a region of Portugal located north of Lisbon and stretches from the Atlantic Ocean to the hills of the interior. The area is known for its rugg coastline, traditional fishing villages, and historic towns. Buying a home in the Silver Coast is generally cheaper comparing to Lisbon and the Algarve, but there are still some areas that are popular with expats, such as the town of Obidos and the beach resort of Sao Martinho do Porto.

Madeira

Madeira is known for its stunning natural beauty, with lush forests, rugged mountains, and crystal-clear waters. This makes it an ideal location for those who love the outdoors and want to enjoy a relaxing, natural lifestyle. Madeira consistently ranks high in quality-of-life indices, which make the island a popular tourist destination, with millions of visitors each year. 

For more videos about investing or moving to Portugal, explore our YouTube channel here: YouTube Channel Portugal Residency Advisors®.

Celebrities Who Chose Portugal to Buy a Second Home

Several well-known celebrities have chosen Portugal as their second home. John Malkovich and Bonnie Tyler were among the early names drawn to the country’s landscapes and timeless charm. In recent years, Portugal has continued to attract international stars such as Michael Fassbender and Monica Bellucci, who appreciate its cultural richness, natural beauty, and relaxed lifestyle.

Madonna also made headlines when she decided to live in Portugal, further highlighting the country’s growing appeal among global figures. Designers and athletes like Christian Louboutin and Eric Cantona have followed suit, spending much of their time in Portugal and enjoying its unique balance of modern comfort and traditional character.

Why Work With Us

Local Expertise

We know Portugal. Due to our extensive local knowledge, we believe that concentrating our services in a single country destination is the best way to give you the most thorough and useful information. 

Holistic Approach

One single channel of communication for the entire process. We provide you with a comprehensive service that covers all aspects of your move, from identifying the ideal residency visa to finding your new home or helping you to settle. 

Transparent Service

We recommend what’s best for you based on an extensive process experience that saves time and money to clients. Our pricing is clear and competitive, and we don’t sell services that make us more money.

Simple Process

Technology plays a very important role in our company. We minimize our clients’ involvement in paperwork. We are customers ourselves and we know how to serve you.

Frequently Asked Questions

Yes. Foreigners, including non-EU citizens, can freely purchase second homes in Portugal with no ownership restrictions.

Yes. Portugal offers a sunny climate, affordable living, a stable property market, and excellent rental potential, making it ideal for both lifestyle and investment.

Prices vary by region. Lisbon and the Algarve are more expensive, while areas like the Silver Coast and inland towns offer more affordable options.

Yes. Many owners rent their second homes to tourists. To do so legally, you’ll need to apply for an Alojamento Local (AL) license.

Buyers pay IMT (property transfer tax), stamp duty, and notary/registration fees. Ongoing taxes include IMI (annual property tax).

No. Residency is not required to buy property. However, if you plan to live in Portugal long-term, you’ll need to apply for the appropriate visa.

Yes. Foreign buyers can secure mortgages in Portugal, but banks often require a 20–30% deposit.

Yes. Portugal’s stable economy, steady property value growth, and strong tourism market make second homes a secure long-term investment.

Portugal is known for its safety and political stability, making it a secure destination for second home buyers.

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