Do you wanna know about Second Home in Portugal? Here we can help you by the information.

Investing in a second home is a life-changing decision that can offer a multitude of benefits. Whether you envision it as your peaceful sanctuary, a vacation retreat, or a savvy investment opportunity through rental income. Also the choice to purchase a second property requires careful consideration of various factors. From location and market stability to lifestyle preferences and financial planning, each element plays a crucial role in making the right decision.

When it comes to finding the perfect destination for your second home, Portugal stands out as an exceptional choice. In this article, we will explore why Portugal is the best country to purchase a second home. Also examining the key factors that make this European gem a prime destination for both living and investing. 

How the international context influences second home buyers?

The international context has a profound impact on second home purchases in Portugal, with specific factors influencing buyers from different countries:


Californians, in particular, are increasingly gravitating toward Portugal as they seek to replicate the lifestyle they have cherish in the Golden State. The enduring appeal of the California way of life, with its mild climate. And also beautiful coastlines, and diverse cultural offerings, finds a parallel in Portugal’s Mediterranean charm. 

What amplifies this trend is the current robust performance of the U.S. dollar against the euro. This currency dynamic not only solidifies the appeal of Portugal but also heightens its affordability. American buyers find Portuguese real estate investments more accessible than ever, making it an attractive destination for second home seekers.


The historical connections between Portugal and Brazil have forged strong cultural and economic bonds. These ties have been pivotal in generating a surge of Brazilian interest in Portuguese real estate. 

This trend gather momentum, particularly after recent elections in Brazil, which brought political and economic uncertainties to the forefront. To hedge against these uncertainties and capitalize on Portugal’s market stability. And many Brazilians have turn to Portugal as a safe and promising investment destination. The depreciation of the Brazilian Real has further incentivize this flow of capital. And as it enhances the purchasing power of Brazilian investors in the Portuguese real estate market.

United Kingdom

The aftermath of Brexit, with its consequential governmental instability. And the uncertainties surrounding the UK’s exit from the European Union, has steer many UK residents toward Portugal. Portugal’s European Union membership serves as a compelling alternative in these uncertain times. British buyers seek refuge in Portugal’s stable political and economic environment, which provides a sense of security and continuity that counters the disruptions caused by Brexit.

South Africa

The depreciation of the South African Rand (ZAR) over the past year has set in motion a wave of interest among South African investors looking to explore opportunities in the Portuguese real estate market. The allure of Portugal, with its Mediterranean climate, stunning landscapes, and thriving tourism sector, has always been a factor. 

However, the favorable currency exchange rates further enhance the attractiveness of Portugal as an investment destination. South African buyers find their capital goes a long way in the Portuguese real estate market, making it a compelling proposition.


Canadians are increasingly drawn to Portugal due to its attractive combination of affordable housing and a low cost of living. Moreover, Portugal’s remarkable home ownership rates, consistently above 70%, indicate not only a practical choice for investment but also a reflection of the stability and confidence in the Portuguese real estate market. 

The absence of significant restrictions in Portugal allows Canadians to navigate around their own housing market bubble, leading them to explore Portuguese real estate as a means of saving on property costs.


In the broader European context, Portugal stands out as a stable and secure destination. Amid the turmoil of the Russia-Ukraine conflict, Portugal’s geographic position in Europe becomes strategically advantageous. Its political and social stability provides a safe haven for those seeking refuge from regional uncertainties. 

The appeal of Portugal is further underscored by its peaceful atmosphere and a reliable legal and regulatory framework, making it an attractive prospect for those within the European continent.

international context for second home buyers

The best countries to buy a second home

According to a 2022 study that examinee the cost of living, available leisure activities, and property price trends for buying and renting homes across 34 OECD countries, Portugal emerged as the premier choice for acquiring a second home, securing an impressive rating of 7.27 out of 10.

Portugal outperform countries like Hungary, Turkey, the Czech Republic, and Estonia. On the other end of the spectrum, at the bottom of the rankings, you find Israel, Switzerland, and Norway, which were identified as the least favorable countries for purchasing a second home.

Regarding the average home purchase costs, the study also reveals that property prices in Portugal have surged by 67% in a decade, with rental rates increasing by 21%. This underscores the substantial investment potential associated with acquiring a second home in Portugal.

Why Portugal is a safe haven for second home buyers?

Buying a second home in Portugal comes with a host of advantages, making it an attractive choice for both lifestyle and investment purposes. Here are some of the key advantages:

Favorable Climate: Portugal enjoys a mild Mediterranean climate with over 300 days of sunshine a year in many regions. This climate is ideal for year-round living or for enjoying extend vacations.

Rich Cultural Heritage: Portugal is known for its rich history and cultural traditions. From historic cities like Lisbon and Porto to charming villages, you’ll have the opportunity to immerse yourself in a unique cultural experience.

Friendly Locals and English Proficiency: The Portuguese are renown for their warm hospitality and friendliness. Moreover, many locals speak English, making it easier for foreigners to communicate and integrate into the community.

Affordable Cost of Living: Portugal offers a relatively affordable cost of living compared to many other European countries. This includes reasonable property prices, healthcare, and dining out.

Other Benefits

Stable Real Estate Market: The Portuguese real estate market is known for its stability and resilience. Property values have steadily increased in popular regions like the Algarve, Lisbon, and Porto, making it an attractive choice for long-term investment.

Strong Rental Income Potential: If you’re considering your second home as an investment, Portugal offers strong rental income potential, particularly in tourist hotspots. The country’s thriving tourism industry ensures a steady stream of potential renters.

Proximity to Europe and the World: Portugal’s strategic location on the Iberian Peninsula provides easy access to the rest of Europe and the world. Several international airports make travel convenient, and you can explore numerous European destinations with short flights.

Favorable Tax Regime: Portugal offers several tax incentives for expatriates, including the Non-Habitual Resident (NHR) tax regime, which can provide significant tax advantages to new residents.

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Can foreigners buy a second home in Portugal?

Yes, foreigners can buy property in Portugal, and there are generally no significant restrictions on property ownership. Whether you are a citizen of a European Union (EU) country or a non-EU country, you can purchase property in Portugal. It’s important to note that owning property in Portugal is separate from obtaining residency status, and non-EU nationals do not necessarily need a residency visa to buy a second home in Portugal. 

However, Portugal does offer residency and citizenship programs, like the Golden Visa, which provide opportunities for non-EU citizens to obtain Portuguese residency or citizenship through investment funds.

Buying a second home in Portugal as a foreigner

Foreigners are allowed to buy property in Portugal, and the process is relatively straightforward. However, there are some regulations and requirements that you should be aware of before you begin the process. Here are some key points to keep in mind when buying a property in Portugal as a foreigner:

Tax Number (NIF) in Portugal

As a foreigner, you’ll need to obtain a Portuguese tax identification number (NIF) in order to buy a property in Portugal. This can be obtained from the Portuguese tax office (Finanças).

Portuguese Bank account

You’ll need to have a Portuguese bank account in order to purchase a property in Portugal. This is where you’ll transfer the funds for the purchase, pay the taxes and fees, and receive any rental income.

Legal representation

It’s highly recommended to work with a Portuguese lawyer who is experienced in real estate transactions. They can help you navigate the legal aspects of the purchase and ensure that everything is in order.

Home insurance

Known as property insurance, its mandatory in Portugal and provides coverage for damage to your property and personal belongings, as well as liability coverage if someone is injured on your property. 

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Property Taxation in Portugal

When buying a second home in Portugal you need to pay the following taxes 

Property transfer tax (IMT): IMT tax is base on the purchase price of the property and can range from 0% to 8% for residential properties. There are 3 main criteria’s that has influence the IMT calculation: a) Urban property vs. rural property, b) Property is in Mainland vs. islands (Madeira or Azores) and c) Primary residency vs secondary home.

You can use this IMT tax Calculator.

Stamp duty: Stamp duty is charge for all documents and arrangements in respect of real estate, including deeds, contracts and mortgages. This tax is base on the purchase price of the property and is typically 0.8% for residential properties.

Annual property taxes (IMI): IMI is an annual tax based on the tax value of the property. The tax rate ranges from 0.3% to 0.8% for urban properties and 0.8% for rustic properties.

You can IMI tax details cost using IMI Calculator.

Tax on rental income generated by the property: If you rent out the property, you’ll need to pay income tax on the rental income generated. There is a flat tax rate of 28%. Common deductible expenses include property management fees, repairs and maintenance costs, insurance premiums, local property taxes (IMI), financing costs such as loan interest, and other relevant expenses like advertising and professional fees.

Watch Our Video on Property Buying Taxes

For more videos about investing or moving to Portugal, explore our YouTube channel here: YouTube Channel Portugal Residency Advisors.

Where to buy a second home in Portugal?


Lisbon is the capital of Portugal and is known for its historic architecture, cultural attractions, and lively nightlife. The city has a diverse range of neighborhoods, each with its own character and atmosphere. Property prices in Lisbon are generally higher than in other parts of Portugal, particularly in popular areas such as Chiado, Baixa, and Bairro Alto.


Porto is Portugal’s second-largest city and is known for its port wine, charming riverside district, and historic buildings. The city has a more laid-back atmosphere than Lisbon and is popular with expats looking for a slower pace of life. Property prices in Porto are generally lower than in Lisbon but have been rising in recent years.


The Algarve is a popular tourist destination in the south of Portugal, known for its sandy beaches, golf courses, and warm climate. The region is particularly popular with retirees and second-home buyers. Property prices in the Algarve can vary widely depending on the location, with some of the most sought-after areas being Vilamoura, Albufeira, and Lagos.

Silver Coast

The Silver Coast is a region of Portugal located north of Lisbon and stretches from the Atlantic Ocean to the hills of the interior. The area is known for its rugg coastline, traditional fishing villages, and historic towns. Buying a home in the Silver Coast is generally cheaper comparing to Lisbon and the Algarve, but there are still some areas that are popular with expats, such as the town of Obidos and the beach resort of Sao Martinho do Porto.


Madeira is known for its stunning natural beauty, with lush forests, rugged mountains, and crystal-clear waters. This makes it an ideal location for those who love the outdoors and want to enjoy a relaxing, natural lifestyle. Madeira consistently ranks high in quality-of-life indices, which make the island a popular tourist destination, with millions of visitors each year. 

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Celebrities who chose Portugal to buy a second home

Several notable celebrities have been drawn to the allure of Portugal, making it their choice for a second home. Among them, John Malkovich and Bonnie Tyler stand as early adopters of Portugal’s charm. With both celebrities having purchased second homes in Portugal many years ago, they recognizes the timeless appeal of the country’s landscapes and culture.

In more recent years, the country has continued to attract international stars. Michael Fassbender and Monica Bellucci are among the celebrities who have opted for a second home in Portugal. Their decision reflects the country’s contemporary appeal, offering a blend of cultural richness, natural beauty, and a relaxed lifestyle.

In a noteworthy move, even the iconic Madonna decides to call Portugal her home in recent years. Her decision to reside in Portugal further underscores the country’s widespread popularity among the rich and famous. Joining her are luminaries like Christian Louboutin and Eric Cantona. And who now find themselves spending a significant amount of their time in Portugal, drawn to its unique blend of modern comfort and traditional charm.

Why choose us for investing in Portugal?

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. It’s also 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. And 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 detail property market information and minimize our clients’ involvement in paperwork. As customers ourselves, we understand how to best serve your needs.

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Frequently asked questions about Second Home in Portugal

Can foreigners buy second homes in Portugal?

Yes, foreigners, both from EU and non-EU countries, can buy second homes in Portugal. There are generally no significant restrictions for non-residents.

What are the costs associated with buying a second home in Portugal?

Costs include property transfer taxes, notary fees, registration fees, and potentially real estate agent fees. It’s essential to factor in these expenses when budgeting for your purchase.

Are there any tax considerations for second home buyers in Portugal?

Yes, Portugal has property taxes, such as the IMT (Property Transfer Tax) and IMI (Property Tax), which vary depending on the property’s value. Non-residents may also be subject to income tax on rental income.

Can I obtain residency through a second home purchase in Portugal?

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What regions in Portugal are popular for second homes?

Popular regions include the Algarve for its coastal beauty, Lisbon and Porto for urban living, and the Silver Coast and Alentejo for a more tranquil experience.

How does the property rental market in Portugal perform for second home owners?

The Portuguese rental market is strong, especially in tourist areas. Many second home owners rent their properties to generate rental income.

Are there any restrictions on renting out a second home in Portugal?

There are typically no strict restrictions on renting out your second home in Portugal. However, in certain high-density areas, obtaining a license for short-term rentals is not possible.

Can I buy a second home in Portugal with a mortgage?

Yes, foreigners can secure a mortgage in Portugal for a second home purchase. Keep in mind that non-residents may be required to provide a higher down payment compared to national residents.

How do I find a reliable real estate agent in Portugal?

Look for licensed and reputable real estate agents with local expertise. It’s advisable to research and check references to find a trusted agent.

Is Portugal a safe country for second home owners?

Portugal is known for its safety and political stability, making it a secure destination for second home buyers.