Portugal

Portugal remains one of Europe’s most attractive property markets for UK investors seeking strong yields, lifestyle value, and a pathway to EU residency. The Algarve’s “Golden Triangle” — Quinta do Lago, Vale do Lobo, and Vilamoura — continues to command premium rental rates, with holiday lets achieving 5–8% net yields and summer occupancy rates pushing seasonal returns above 10%.

Lisbon has emerged as a major European tech hub, driving demand for quality rental stock and pushing average prices to €5,720/m². Porto offers a compelling mid-market alternative at €3,768/m², with gross yields of 5–7% and a rapidly growing tourism sector.

While the traditional property-based Golden Visa closed in 2023, alternative investment routes remain. CMVM-regulated fund investments (€500,000 minimum) now account for over 78% of applications. The D7 Visa provides a separate residency pathway for those with passive income, making Portugal accessible even without a large capital commitment.

The replacement ‘NHR 2.0’ tax programme targets skilled professionals and entrepreneurs, offering 0% capital gains tax on non-Portuguese-derived assets. Combined with the Euro exchange rate advantage for GBP investors, Portugal offers a tax-efficient base for building an international property portfolio.