Investing in estate holds importance for individuals, like you as it has been considered a reliable means to attain financial success by enabling the accumulation of wealth and passive income while providing a sense of stability and security in the long run. Lets explore the realm of real estate investment as we uncover and debunk ten myths in the field.
10 Myths About the Portugal Real Estate
Myth | Reality | |
1. Real Estate is a Passive Investment | Buying property in Portugal means easy passive income from rentals. | Managing local rentals involves licensing (e.g., AL licenses), guest turnover, and local service providers — many investors use property managers. |
2. Leverage Always Works in Your Favor | Using bank financing in Portugal always multiplies profits. | Portuguese banks offer leverage, but high interest rates and fluctuating property values can increase risk — due diligence is key. |
3. Location Doesn’t Matter if the Price is Right | Any cheap property in Portugal is a good investment. | Lisbon, Porto, Algarve, and Cascais hold long-term value. Remote areas may not grow or rent well — location is crucial. |
4. Real Estate is Always a Safe Investment | Portugal real estate never loses value. | While stable overall, local markets can fluctuate — overpaying in saturated areas or investing in regions with declining demand can pose risks. |
5. Real Estate is a Quick Way to Get Rich | A few months in Portugal’s market and you’ll profit fast. | It’s a long-term play — from licensing to renovation and rental permits, returns take time to materialize. |
6. Owning is Always Better Than Renting | Buying is always smarter than renting in Portugal. | For expats or temporary residents, renting can offer more flexibility — especially while exploring different regions or awaiting approvals. |
7. Real Estate is a Safe Haven in Downturns | Portugal real estate is always protected during global crises. | Some markets (like tourism-heavy zones) dip in crises. Diversifying between urban and lifestyle areas can help balance performance. |
8. Investment is Only for the Wealthy | You need big capital to invest in Portugal. | With options like Golden Visa RE funds, REITs, or even fractional/co-ownership models, mid-level investors also have entry points. |
9. Bigger Property Means Better Investment | Large villas or buildings in Portugal always offer the best returns. | Compact apartments in Lisbon, student housing in Coimbra, or short-term flats in Porto can be more profitable and easier to manage. |
10. Agents Always Have Your Best Interests in Mind | Local agents will always guide you to the best deal. | Not all agents are neutral — some push listings with higher commissions. Work with buyer’s agents or independent consultants when possible. |
Can foreigners buy property in Portugal?
Yes, foreigners can buy property in Portugal. The country imposes no restrictions on non-residents purchasing real estate, allowing individuals from around the world to invest in various types of properties, including residential homes, commercial spaces, and land.
To proceed with a property purchase, you’ll need a Portuguese tax identification number, known as a Número de Identificação Fiscal (NIF). This can be obtained at any local tax office or through a legal representative. Additionally, engaging a notary to witness the sales contract is a standard part of the process.
While Portugal previously offered the Golden Visa program, which granted residency to foreign investors purchasing property above a certain value, this option was discontinued in October 2023. However, Portugal continues to welcome foreign investment in its real estate market, and property ownership does not require residency.
Portugal Real Estate for Expats
Portugal is a top choice for expats thanks to its lifestyle, climate, and solid property market. While real estate can offer good returns, it’s not as passive as many think. Managing rentals involves local regulations, AL licenses, and regular upkeep. Most expats either hire property managers or get directly involved to make it work smoothly.
Location is key — not just price. Popular areas like Lisbon, Porto, Cascais, and the Algarve offer better long-term value and rental potential. Cheaper, rural areas may not bring the same growth or demand. And while the market is relatively stable, it’s not risk-free. Returns take time, and success comes from careful planning and understanding local dynamics.
You also don’t need to be wealthy to invest. Options like REITs, Golden Visa funds, or small urban apartments offer accessible entry points. The key is to align your investment with your goals, do your research, and work with trusted local professionals. With the right strategy, Portugal offers strong long-term potential for expats.
Property Prices in Portugal
The Portuguese real estate market in 2025 offers a strong mix of high-value locations and solid rental yields, appealing to both buyers and investors.
Lisbon and the Algarve continue to lead with premium property prices, while regions like the Center, North, and Azores offer more affordable options with better rental return potential.
For those focused on rental income, the best opportunities often lie in areas with lower purchase prices but strong demand from tenants.
As of 2025, the average asking price across Portugal is around €2,735 per square meter. Here’s how it breaks down by region:
- Lisbon Metro Area: €3,799/m² – the most expensive, driven by high demand.
- Algarve: €3,513/m² – popular for its coastline and international appeal.
- Madeira: €3,161/m² – also on the higher end.
- North: €2,301/m² – more affordable, with growing interest.
- Alentejo: €1,591/m²
- Center: €1,490/m²
- Azores: €1,598/m² – some of the lowest prices with good potential.
Why invest with Portugal Residency Advisors
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
We offer a streamlined communication channel for the entire process, delivering a comprehensive service that encompasses all facets of your real estate investment journey, including property search, negotiation, legal matters, due diligence, and property management.
Independent Service
As an independent buying agent, we have the flexibility to collaborate with any agent, seller, promoter, or developer, providing you access to all available options in the real estate market. This enables us to objectively analyze every opportunity and find the right property for you at the best price, free from complications.
Simple Process
Technology plays a significant role in our company, allowing us to provide you detailed property market information and minimize our clients’ involvement in paperwork. As customers ourselves, we understand how to best serve your needs.
