Investing in Portugal: Your Dream Home Awaits
Portugal is a top destination for Americans seeking investment properties, vacation homes, or a place to retire. It offers an exceptional quality of life, with affordable living, excellent healthcare, and a mild climate year-round. From the cobblestone charm of Lisbon to the stunning beaches of the Algarve, Portugal blends rich history with modern comfort. With a lower cost of living than most U.S. cities, it’s an ideal spot to live well while investing wisely.
Why Portugal? The Allure
Cost of Living
- Approximately 30% lower than in the US, easing your budget.
Safety
- Ranked 6th safest country worldwide per Global Peace Index 2023.
Strategic Gateway
- Full access to the Schengen Zone by spending as little as 7 days per year in Portugal
Climate
- Mild Mediterranean weather with over 300 days of sunshine annually.
Healthcare
- Universal healthcare ranked 17th globally by WHO, accessible and quality care.
Real Estate Market Overview
Portugal Average Prices
- National Average: $193 per sq ft for houses, $364 per sq ft for apartments.
- Lisbon: $353 per sq ft for houses, $527 per sq ft for apartments with an average price between $450k-$680k.
- Porto District: $209 per sq ft for houses, $375 per sq ft for apartments.
- Algarve: $385 per sq ft for houses, $393 per sq ft for apartments. Costal villas average $580k-$680K, with luxury villas averaging just over $1.1M.
Nashville, TN Comparison
- Median Home Price: ~$530,000
- Price per sq ft: ~$308
Closing Costs & Taxes
Portugal
- Property Transfer Tax (IMT): up to 8%
- Stamp Duty: 0.8%
- Notary & Registration Fees: $910-1,365
- Annual Property Tax (IMI): 0.3%-0.8%
Nashville
- Transfer tax: $0.37 per $100 of property value
- Closing costs: 2%-5% of sales price
- Nashville property tax average: 0.74%
Investment Hotspots
Lisbon
Why: Capital city with strong rental demand from tourists, students, and expatriates.
Trends: Steady property appreciation, thriving tech and startup scene, growing luxury market
Typical Buyer: Investors seeking high rental yields or long-term value growth
Algarve
- Why: Internationally famous beach region popular with retirees, vacationers, and seasonal renters
- Trends: High short-term rental income potential, especially in hotspots like Lagos, Albufeira, and Vilamoura
- Typical Buyer: Vacation home seekers, short-term rental investors, or retirees planning ahead
Visas and Residency Options
Golden Visa (Investment Residency)
Investment: $567,000+ in approved funds (real estate no longer qualifies)
Stay Requirement: 7 days/year
Citizenship Path: Eligible after 5 years
Best For: High-net-worth investors
D7 Visa (Passive Income)
Income: $990/month from passive sources
Savings: $11,850+
Stay Requirement: 16 months in first 2 years
Best For: Retirees and full-time residency
Digital Nomad Visa (Remote Work Residency)
Income: $3,950/month from remote work (salary, freelance, or self-employment)
Savings: $11,850+
Stay Requirement: Initial 4-month visa, then 2-year renewable permit
Best For: Remote workers and digital entrepreneurs wanting to live and work in Portugal
Information deemed reliable, but not guaranteed. Not intended to solicit sellers or buyers under written contract with another REALTOR®.
Steve Luther
Chief Troublemaker
CHORD Real Estate, LLC
Independently owned and operated.
Independently owned and operated.
Ashley Luther
COO/Managing Broker
CHORD Real Estate, LLC
Independently owned and operated.
Independently owned and operated.
713 18th Ave S, Nashville, TN 37203