Portugal continues to consolidate its position as one of Europe's most attractive real estate destinations in 2025. In an international context marked by instability and growing demand for quality of life, the country stands out for its balance between security, mild climate, vibrant culture and a real estate offering that combines tradition and modernity.
The Portuguese economy has maintained sustainable growth — 1.9% in the first half of 2025, according to data from the European Commission — sustained by exports, tourism and a dynamic real estate sector. Foreign investor confidence remains high, fuelled by a positive international image and tax reforms which, although more discerning, continue to benefit certain resident profiles.
With the end of the Non-Habitual Resident (NHR) status, the NHR 2.0/IFICI programme was introduced in 2024, which, in 2025, is already showing clear results in attracting skilled professionals and investors in high value-added areas. Although the new conditions are more restrictive, they continue to offer significant tax advantages, such as a flat rate of 20% on certain income, which keeps Portugal competitive with other European countries.
In geographical terms, Lisbon remains at the top of the list, especially for investments in the luxury segment. However, cities such as Leiria, Braga and regions such as the Silver Coast and the West are gaining increasing prominence — offering accessibility, authenticity and an unparalleled quality of life, with less urban pressure and more competitive prices. Places such as Caldas da Rainha, Óbidos and Peniche have become solid alternatives for those looking for residential properties, holiday homes or income opportunities.
The most popular types of properties in 2025 range from one- and two-bedroom urban apartments, ideal for renting, to luxury villas in resorts or coastal areas. The growing appreciation of sustainability has also driven interest in urban regeneration projects and energy-efficient properties. At the same time, the commercial space and student housing segment has been attracting large international funds.
Nevertheless, real estate investment in Portugal is not immune to challenges. The end of property eligibility for Golden Visas, starting in 2024, has reduced some of the demand for this channel. On the other hand, restrictions on local accommodation in certain areas and taxes on high-value properties (such as AIMI) place greater demands on profitability analysis.
Despite this, projections remain optimistic. The market should continue to appreciate, albeit at a more moderate pace, and data indicates that Portugal continues to be seen as a safe haven for investing, living, or diversifying assets.
Investing in well-located properties, with high-quality construction, integration with the surrounding environment and adaptability to different uses, remains the best strategy. For those seeking not only financial returns but also a life project, Portugal remains on the radar — and, in many cases, in the hearts — of thousands of global investors.
The decision to invest in Portugal can be a life-changing step — and choosing wisely makes all the difference.
At Future Procedure, we support each client with vision, knowledge and proximity. Contact us to find out how to invest safely, strategically and purposefully.
