International interest in Portugal’s property market remains strong, even as actual home purchases by foreign buyers continue to decline. New data from idealista shows that buyers from the United States and United Kingdom are leading overseas searches for homes across the country.
Although non-resident property purchases dropped for the third consecutive year—with 8,471 homes bought in 2025, down 13.3%—Portugal is still viewed as a safe haven for living and investment. Ongoing global uncertainty, including geopolitical tensions, has reinforced its appeal among international buyers.
Policy changes have played a major role in slowing transactions. The government ended real estate-linked golden visas and introduced stricter tax regimes, alongside new immigration rules under Prime Minister Luís Montenegro. These measures have made it less attractive for some foreign investors to finalize purchases.
Despite this, demand from abroad remains high. In early 2026, international searches accounted for a significant share of total property interest in major cities. The strongest demand was seen in Funchal and Ponta Delgada, where foreign users made up 30% and 27% of property searches, respectively.
Other cities such as Faro, Viana do Castelo, and Bragança also recorded strong international interest, with around one in five property searches coming from abroad. In major urban hubs like Lisbon and Porto, foreign demand represented 13% and 15% of total searches.
When it comes to origin, the US and UK dominate. American buyers led searches in cities including Lisbon, Braga, and Coimbra, while British interest was strongest in locations like Faro, Setúbal, and Funchal. Other countries also play a role—France leads in several northern regions, while Spain dominates interest in Porto.
Overall, while regulatory changes have reduced foreign purchases, Portugal continues to attract strong global attention. The data suggests that international buyers remain highly interested, even if fewer are completing transactions under the new rules.
