Why Do Americans Like to Buy Homes in Portugal?
Portugal’s New Transatlantic Neighbours
A fast-growing wave of U.S. investors is reshaping the country’s housing market and forcing a rethink of immigration policy. A fast-growing wave of U.S. investors is reshaping the country’s housing market and forcing a rethink of immigration policy.
Portugal climbs the American shortlist
Few European nations have risen through the ranks of American relocation wish lists as quickly as Portugal. Data from national registries and brokerage networks show that buyers carrying a U.S. passport accounted for roughly fifty-eight per cent of all foreign property purchases handled by one major agency in the first quarter of 2025, up ten percentage points from last year and well ahead of the long-dominant British and French contingents. Although overseas buyers still represent only about twelve per cent of total transactions nationwide, Americans are the fastest-expanding slice of that group, growing at an average of eight per cent a year since before the pandemic.
Lifestyle, politics and a post-pandemic reset
Several forces have converged to push U.S. families toward the Iberian republic. The pandemic encouraged a sweeping rethink of work patterns and quality-of-life priorities, while bruising political cycles at home nudged many to seek a calmer social climate abroad. Portugal’s universal healthcare system, comparatively modest living costs and reputation for safety provide a ready answer. English is widely spoken in urban hubs, easing day-to-day integration, and the country’s climate feels familiar to Californians who make up a sizeable share of new arrivals.
Hotspots from Lisbon to the Algarve
Lisbon and its Estoril-Cascais coastal corridor remain the prime targets, prized for international schools, start-up culture and quick beach access. Porto, with a UNESCO-listed centre and a growing tech scene, follows closely. The Algarve, long beloved by northern Europeans, is now firmly on the American radar as well; United Airlines’ seasonal non-stop between New York and Faro has trimmed travel times and sparked a spike in viewing appointments along the region’s golf courses and marinas.
A fresh wish list shapes new construction
U.S. buyers typically look for airy interiors, flexible home-office space and backyards fit for California-style entertaining—features rarer in Portugal’s pre-war housing stock. Developers have responded by launching projects with larger floorplans, energy-efficient systems and shared amenities such as co-working lounges. Prime asking prices have reacted accordingly: residential square-metre values now hover near €5,000 in Lisbon and €3,300 in Porto, with trophy properties in both cities pushing well past those averages, according to the Association of Real-Estate Professionals (APEMIP).
Golden Visa: from bricks to innovation
Until October 2023, many newcomers combined a home purchase with a so-called Golden Visa, a residency permit once obtainable through real-estate investment. That door is now closed as part of a broader effort to cool the housing market, but the programme lives on in other guises. Eligible routes include half-million-euro stakes in venture-capital or private-equity funds, €500,000 contributions to scientific research, or job-creation projects that hire at least ten people. Government officials argue the shift redirects foreign capital toward productive sectors while relieving pressure on housing supply. Early figures suggest the message landed: non-property options already make up roughly two-thirds of Golden Visa inflows.
A market under strain—and opportunity
Portugal added only about eleven thousand new dwellings a year in the decade to 2021, far short of demand from both locals and expatriates. The resulting squeeze has driven double-digit annual price growth even outside tourist hotspots. APEMIP emphasises that trimming prices by ten per cent would still leave most Portuguese families priced out, underscoring the structural nature of the shortage. Policymakers hope a pipeline of new rental incentives, faster planning approvals and targeted infrastructure—such as the long-discussed Los Angeles–Lisbon direct flight—will spread demand more evenly across the country.
What prospective movers should know
Would-be residents now rely more heavily on work-based permits, the D7 passive-income visa and the new digital-nomad category that allows remote workers earning at least four times Portugal’s minimum wage to stay for up to five years. Securing professional advice early is essential: Golden Visa regulations have tightened, mortgage terms differ markedly from U.S. norms, and each municipality sets its own property tax rates and short-term rental rules.
The outlook
With global uncertainty showing little sign of easing, Portugal’s mix of political stability, mild weather and border-hopping access to the rest of Europe continues to resonate with Americans seeking both refuge and return on investment. If the country can expand housing supply without eroding the very qualities drawing newcomers in the first place, the current wave could mature into a long-term transatlantic partnership rather than a passing fad.