Portugal
Portuguese property 2026: Lisbon at its peak, the openings and the limits
Portuguese property has risen almost without interruption for a decade, and Lisbon now sits at a historic peak. Foreign nationals still buy freely, without restriction. One point to settle before going further: since October 2023, buying a home no longer confers Golden Visa residency.
Figures updated 08/2026
Market overview
Where prices stand in 2026: asking prices in central Lisbon have reached a record of roughly EUR 6,100/m2, the citywide median sits near EUR 5,300/m2, Cascais around EUR 5,000/m2, and Porto materially lower. Nationally, house prices continue to rise at double-digit rates across many districts, on very limited new supply and sustained demand from international buyers.
Gross rental yields in Lisbon vary by district: 3.8–5% on average, compressed to 3–4% in the high-priced central districts, while the outskirts and Porto reach 5–6.5%. Non-residents pay tax on rental income at a flat 28% under standard leases, with relief available for long-term contracts.
The most consequential legal point: since October 2023, property has ceased to be an eligible investment route for the Golden Visa. Buying in Portugal is now a purely investment decision; for a residence permit, you would need the EUR 500,000 investment fund route or a D7 or D8 visa. In parallel, a proposal to apply a fixed IMT rate to non-resident buyers is under discussion in the direction of higher tax — worth monitoring ahead of any transaction.
Two structures fit: apartments let long term in the regenerating districts of Lisbon and Porto, or holiday homes in the Algarve operated across the tourist season. Note that Alojamento Local short-let licences are being tightened in Lisbon and Porto; if Airbnb operation is part of the plan, the rules of the specific district must be checked before purchase.
Investment case
Why this market
A prolonged shortage of supply, durable international demand
Portugal builds very little relative to need, while the flow of international professionals, digital nomads and returning nationals keeps both rental and purchase demand high. National house prices have risen continuously since 2014, with no sign yet of oversupply.
No restrictions on Vietnamese buyers
You own property in Portugal with the same rights as an EU citizen, requiring only an NIF tax number and a bank account. Transaction costs comprise progressive IMT, 0.8% stamp duty and notary fees, placing Portugal mid-range for Europe.
Genuine use value, not investment value alone
A temperate climate, high levels of safety, reasonable living costs and a large international community mean the property retains real utility: a holiday base, accommodation for a child studying abroad, or a foundation for a residency plan pursued through the fund route.
Legal
What foreign buyers need to know
- Buying a home no longer confers residency: the property route to the Golden Visa was abolished in October 2023. Treat any advertisement bundling 'buy a home and get a Golden Visa' with caution.
- New Alojamento Local short-let licences are restricted across many districts of Lisbon and Porto. Verify the rules of the specific district if buying with Airbnb operation in mind.
- Buyers require an NIF tax number. Non-residents from outside the EU must appoint a tax representative in Portugal.
- A proposed change to IMT for non-resident buyers is under discussion in parliament. Check the policy in force at the time of the transaction.
- Before paying a deposit under a CPCV contract, carry out due diligence on the property register (Certidão Permanente), the use licence (Licença de Utilização) and any obligations to the building's management body.
Linked residency programme
Portugal Golden Visa 2026: fund subscription from €500,000
Answers
Frequently asked questions
Does buying property in Portugal lead to a Golden Visa?
No. Since October 2023, every form of property investment — direct or through a property fund — has ceased to qualify for the Golden Visa. To obtain Portuguese residency through investment, the principal route now is a contribution of EUR 500,000 into a fund licensed by the CMVM. Buying a home remains entirely lawful, but it is a decision separate from residency.
What do Lisbon house prices stand at in 2026, and will they keep rising?
Asking prices in central Lisbon run at roughly EUR 6,000–6,100/m2, a record level; prime apartments in Chiado or on Avenida da Liberdade exceed EUR 8,000/m2; the citywide median is around EUR 5,300/m2. The driver is a prolonged shortage of supply. That said, prices are already high relative to local incomes, so we would advise keeping short-term price expectations conservative and favouring locations with genuine rental demand.
Can a foreign national obtain a Portuguese mortgage?
Yes. Portuguese banks commonly lend to non-residents at 60–70% of the value of the asset, over terms of up to 25–30 years depending on age, subject to evidence of income and credit history. Vietnamese buyers should prepare 30–40% of their own capital, plus transaction costs of roughly 7–8% covering IMT, stamp duty, notary and legal fees.
Is Airbnb letting still possible in Lisbon?
It is materially restricted. New Alojamento Local licences are suspended across many central districts of Lisbon and Porto; an apartment without one cannot lawfully be let short term. Two alternatives: medium-term lets of 1–12 months to international professionals, or long-term lets, which attract tax relief. Checking the licence status of each individual property before purchase is essential.
What tax applies to letting and to selling a property in Portugal?
Non-residents pay 28% on rental profit, with eligible expenses deductible, and long-term leases may attract a reduced rate. On sale, non-resident capital gains are now assessed on a basis similar to residents, on 50% of the gain under the progressive scale. Portuguese tax rules change fairly often, so confirm the position with a tax specialist at the time of the transaction.
Market information is provided for reference as at the date shown and does not constitute investment advice. Property values may rise or fall. Contact VNIS Investment for advice matched to your objectives and financial capacity.
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