Portugal offers a stable, welcoming climate for international investors, with a straightforward property purchase process. With a thriving economy that has been outpacing the euro area average since 2022, according to the OECD’s 2026 Economic Survey, the country is attracting significant interest from those with a keen eye for real estate investment.
Over the past few years, Portugal has ticked all the right boxes in terms of its economic performance. The OECD reports that Portugal has run primary budget surpluses since 2022. The Economist named it 2025’s Economy of the Year. And, significantly, S&P upgraded Portugal from A to A+ in August 2025. S&P cited Portugal’s economic resilience, declining external liabilities and solid tourism performance, along with expectations of continued debt reduction, when announcing the upgrade. Portugal’s debt-to-GDP ratio reduction has been one of the most impressive in Europe since the pandemic, going from over 134% at that time to a projection of below 90% this year.
Given the country’s economic credentials and its stable long-term inflow of both tourists and business travellers, Portugal is naturally cropping up on the radar of global property investors. For those considering making a purchase there, Alda Filipe, Regional Director and Partner at Kronos Homes, has shared her top tips for investing in property in Portugal:
1. Decide on the type of investment
Portugal’s diverse real estate market serves a wide range of investors, from those seeking purely financial returns to those looking for a property they can use part-time and gain income from at other times.
The market for the latter has evolved significantly in recent years, exemplified by Lisbon’s €150 million mixed use MIMA project, located just minutes from both the city centre and its international airport. Part of that development is MIMA Living – Lisbon’s first residential tourism project, where a dynamic hospitality offering sees buyers able to use their apartments part of the time and rent them out via a professional management company the rest of the time.
Portugal’s Algarve also offers a range of properties well-suited to investors keen to combine rental income with personal usage. The region’s prestigious Vale do Lobo resort is a prime example of how successfully this can work.
2. Consider your property management needs
With Portugal attracting both short-term visitors and those staying for longer, investors can choose whether to enjoy the stability of a long-term rental or the potentially higher income of a short-term rental (but with greater management overhead).
In both cases, investors need to understand what they’re buying when it comes to property management services. Management company offerings vary widely, from simple key holding and linen changing services to those that advertise the property, manage security, organise local tourism licensing and provide proactive support with maintenance. Those seeking a fully hands-off investment will want to opt for the latter, so will need to price in the cost of that.
One popular option for a hassle-free investment is a branded residence. These blend the luxury amenities and hallmark service of a brand such as Marriott with an outstanding location in a sought-after area. The Marriott Residences Algarve Salgados are a prime example, offering elegant, hotel-inspired interiors and exceptional on-site facilities, including swimming pools, fitness and wellness centres, restaurants, spas, an 18-hole golf course and concierge services. Available for both permanent residence and for use as second homes, the properties overlook the beautiful Salgados Golf Course, with the Salgados Lagoon Nature Reserve and Salgados beach also on the doorstep.
3. Look carefully at location
Investors need to consider not only a property’s proximity to beaches, golf courses and/or city life but also how easily accessible it is to tourists. A property close to an international airport is an obvious win. So is an area with multiple demand drivers. Urban locations such as Lisbon and Porto, for example, don’t rely solely on tourism but have thriving business communities that attract hordes of visitors throughout the year.
That said, tourist areas that have proven popular over the long term are also a solid choice. An example is Carvoeiro in the Algarve, where the luxurious Monte Santo resort sits just 25 minutes from Faro International Airport, offering direct connections to the US and much of Europe. Key-ready homes there include fully furnished apartments and villas, with prices starting from €279,000. The local area is a mecca for international visitors, thanks to stunning natural landmarks such as the Benagil Cave and the authentic charm of Carvoeiro itself. Monte Santo adds to the offering with super resort facilities including a multi-sports court, spa and wellness centre, children’s area, clubhouse and well-regarded restaurant.
4. Review buying and currency conversion costs
Buying an investment property in Portugal means paying property transfer tax, stamp duty, legal fees and registration fees, so investors should calculate the full costs of buying before committing to a purchase. Those funding the purchase in a different currency, may find it beneficial to work with an FX company to lock in their rate and avoid any sudden currency market shifts.
5. Don’t lose sight of the big picture
Property investment isn’t just about rental yield or appreciation – it’s about balancing both. Investing in property in Portugal requires focusing on the big picture of how these work in tandem.
One investment opportunity that carefully balances both is The Residences Vale do Lobo, a collection of 44 sophisticated apartments, linked villas and townhouses set in a coveted position within the resort. Properties in Vale do Lobo have shown consistent appreciation in value, making The Residences a smart choice for long-term capital growth, while strong demand for high-end accommodation in the Algarve supports attractive rental yields (Vale do Lobo offers a full rental management programme).
For more information, call (+ 351) 289 353 499 or visit www.kronoshomes.com.
