Foreigners Spend 39% More on Real Estate in Portugal Despite Recent Decline

Discover why foreigners are still investing in Portuguese property, even after the end of key residency and visa programs.

The home buying in Portugal by foreigners saw a decline at the beginning of 2024, coinciding with the end of the Non-Habitual Residents (RNH) regime under the old terms and the program of golden visa for real estate investors. According to data from the National Statistics Institute (INE), foreigners also bought houses 6.8% cheaper compared to a year ago. Despite this decrease in prices, international citizens continue to purchase houses that are 39% more expensive than those bought by Portuguese citizens.

The trend of decreasing house sales in Portugal at the beginning of this year continued, even though interest rates and inflation were much lower. INE reported in mid-June that the drop in house sales was more significant among foreign buyers (-17.1%) than among Portuguese buyers (-3.1%), as reported by idealista. This decline in the international market could be attributed to the end of tax benefits that directly or indirectly influence the home buying in Portugal by foreigners.

The Portuguese statistics office revealed that "in the first quarter of 2024, the median value of family accommodation transacted in Portugal involving buyers with tax domicile abroad was 2,248 euros/m2, 6.8% less than the same quarter last year."

The decrease in home buying in Portugal by foreigners in 2024 reflects the impact of changes in tax benefits and the end of certain programs. This decline highlights the importance of understanding the various factors that influence the real estate market in the country.