The Portuguese property market shows marked differences between domestic and foreign buyers — differences that have a direct impact on their choices, priorities and approaches to buying a home.

According to recent data from the National Statistics Institute, foreigners from the European Union pay, on average, around €310,000, while buyers from outside the EU pay around €451,000, almost double the median amount paid by Portuguese buyers (€225,000). This difference reflects the disparity in economic power, but also reveals the distinctions in motivations between these two buyer profiles.

Motivation and purpose

For Portuguese people, buying a house often means settling down, starting a family and putting down roots. That is why they look for functional properties with a good price per square metre — preferably two or three-bedroom flats in areas with nearby schools and easy access. The purchase is guided by long-term goals, stability and effective use. Foreigners, on the other hand, are often motivated by multiple purposes: investment, second home, or even moving to Portugal thanks to schemes such as NHR 2.0. Interest extends to one- and two-bedroom apartments in urban centres — with rental potential — or luxury seaside villas, which offer both income and lifestyle.

Location and type

Portuguese buyers tend to focus on functional areas — medium-sized cities, family neighbourhoods or areas with good transport links. In contrast, many foreigners prefer Lisbon, Porto or coastal regions such as the Algarve and Costa da Prata, places renowned for their safety, climate, leisure activities and quality of life. In addition, there is a growing preference for properties with “storytelling”: historic houses, renovated buildings, or eco-friendly projects, which attract not only people but also international investors who are attentive to sustainability trends.

Purchase process and bureaucracy

For domestic buyers, the process is often faster and simpler, with less need for external advice. Foreign buyers, on the other hand, depend on legal support to obtain a tax identification number, open a bank account and understand taxes such as IMT, IMI and AIMI — which do not differ by nationality but have a high impact, especially on higher-value properties. With the removal of real estate investment as a route to a Golden Visa in 2023, the immigration process for some foreigners now favours D7 and D2 visas — which changes not only the profile of the buyer, but also expectations regarding negotiation and length of stay.

Negotiation style and relationship with the property

Culturally, the Portuguese approach purchasing with evaluations focused on habitability, tradition, and long-term investment. Foreigners, on the other hand, tend to use consultants or buyer's agents, valuing the niche market, potential profitability, and even the exclusivity of the investment. These international buyers look for properties that are ready for immediate occupancy, preferably with turnkey solutions, while nationals may accept greater flexibility, such as renovation work.

Conclusion

The differences between Portuguese and foreign buyers of real estate encompass motivations, location, processes, and negotiation styles — differences that also reflect the cultural and economic diversity of the country in 2025. Understanding these contrasts is essential for real estate agents, sellers, and even buyers, as it allows for the creation of personalised strategies and makes the process more effective.

At Future Procedure, we welcome all buyer profiles — whether local or international — with attention to their needs, expectations, and cultural sensitivities. Whether you are thinking of investing, moving house, or getting to know Portugal from a different perspective, we are here to support you with experience and proximity.