Engel & Völkers
  • 3 min read

Portugal – One of the best Buy-to-Let investment destinations in Europe

Photo shows a key holder as a black house with a golden key, coins and cash

Portugal has steadily climbed the ranks as one of the top destinations in Europe for buy-to-let property investment. With its robust tourism industry, favourable tax policies, and high rental yields, the country offers a compelling opportunity for investors looking to maximise their returns. Here’s why Portugal stands out as an excellent choice for buy-to-let investments.

Table of Content

  1. Strong tourism market

  2. Affordable property pricesundefined

  3. Favourable tax incentives

  4. Growing expat and digital nomad community

  5. Diverse investment opportunitiesundefined

  6. Conclusion

Strong tourism market


Portugal, particularly cities like Lisbon, Porto, and the Algarve region, enjoys a thriving tourism sector, with millions of visitors flocking to the country every year. The demand for vacation rentals remains strong, ensuring a steady flow of tenants. This constant influx of tourists provides investors with a reliable source of rental income, making Portugal a highly desirable market for buy-to-let ventures.

Affordable property prices

Despite rising property values, Portugal remains relatively affordable compared to other Western European countries. Investors can find properties at competitive prices, particularly in emerging neighbourhoods and regions beyond the main urban centres. This affordability allows for greater investment flexibility and the potential for capital appreciation, making it a prime location for both new and experienced investors.

Favourable tax incentives


Portugal offers several tax benefits for property investors. The Non-Habitual Resident (NHR) regime provides tax advantages for foreign investors, while the Golden Visa programme allows non-EU citizens to gain residency through property investment. Additionally, rental income taxation is relatively low compared to other European countries, making it an attractive option for landlords seeking to maximise profitability.

Growing expat and digital nomad community


Portugal has become a hub for expatriates and digital nomads, further driving demand for long-term rentals. The country's high quality of life, affordable cost of living, and excellent infrastructure have made it a desirable location for remote workers. This trend has boosted the long-term rental market, ensuring consistent occupancy rates, and offers investors the chance to capitalise on a growing rental demand.

PROPERTIES IN LAGOS

Engel & Völkers Lagos

Stunnig Design in Prime location facing the Sea

Meia Praia, Lagos, Odiáxere, Faro District, Portugal

Stunnig Design in Prime location facing the Sea

€4,125,000

  • 4 Bedrooms
  • 5 Bathrooms
  • ~523 m² Total surface
  • ~2,755 m² Plot surface
Pure living in Praia da Luz
Development

Luz, Faro District, Portugal

Pure living in Praia da Luz

Price starting from

€3,500,000

  • from ~338 m² Living area
  • from ~449 m² Total surface
  • 8 Units
Investment Oportunity

Luz, Faro District, Portugal

Investment Oportunity

Price on request

  • ~56,620 m² Plot surface

Diverse investment opportunities

From city apartments to coastal villas and countryside retreats, Portugal offers diverse real estate investment opportunities. Investors can choose between short-term holiday lets, long-term rentals, or a mix of both, depending on their financial goals and target market. This wide range of options ensures that investors can find opportunities that align with their personal preferences and investment strategy.

Find your dream property

Conclusion


With its combination of strong tourism demand, affordable property prices, and investor-friendly policies, Portugal is one of the best places in Europe for buy-to-let investments. Whether you’re looking for short-term rental income or long-term capital appreciation, Portugal presents a profitable and sustainable investment opportunity. Now is the perfect time to explore the Portuguese real estate market and capitalise on its potential.

You may also be interested in

Stay informed

Sign up for our regular newsletter with exclusive properties, inspiration, market reports, and the latest news.

I consent to the processing of my data for the purpose of regularly receiving newsletters from Engel & Völkers licensing partner.

You can find out which data Engel & Völkers licensing partner stores in detail and what rights you have in this context here. You can revoke your consent for the future at any time here.

Contact provider

Engel & Völkers Lagos

Page content provided by: SOPC 3 - Actividades Imobiliárias, Lda.

License partner of Engel & Völkers Residential GmbH

+351 282 249 517