Why investors are turning to Portugal in 2025
Portugal offers an irresistible blend of affordability, stunning natural beauty and exceptional safety, making it a top choice for investors. We take a look at what makes this European country so attractive.
Mikayla Morkel-Brink ● Mar 5, 2025
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As we move into 2025, Portugal has emerged as one of Europe’s most sought-after destinations for investors, offering a unique blend of growth opportunities and an exceptional lifestyle. Whether you're relocating, retiring or seeking your next investment opportunity, Portugal delivers a perfect combination of affordability, natural beauty, safety and a welcoming atmosphere.
Six great reasons to invest in Portugal in 2025
Here’s why Portugal has become the ideal choice for both investment and lifestyle in 2025.
1. A cost-effective lifestyle
The basic cost of living in Portugal is about 36% lower than in the US and considerably lower compared to other European countries such as the UK, Spain, Germany and Italy to name a few. On average, property prices are lower, however the house price growth in Portugal is almost three times higher than the EU average making the country a very attractive investment for the future. Despite its affordability, Portugal offers a lifestyle that rivals more expensive European destinations.
2. Mild climate and scenic beauty
One of the key factors that attracts investors to Portugal is its mild climate and natural beauty. With pleasant weather year-round, the country offers a hospitable environment for both personal and professional life, making it an ideal destination for those seeking a balance between work and leisure. From the golden beaches of the Algarve to the vibrant city of Porto, and the urban charm of Lisbon, Portugal’s diverse landscapes and cities provide a high quality of life as well as an appealing backdrop for businesses and individuals looking for long-term stability and growth opportunities.
3. Safe and friendly
Portugal is ranked as the seventh safest country in the world and one of the safest in Europe, with low crime rates and a friendly atmosphere. Whether you’re a retiree, or a family looking for a new home, you’ll feel at ease in this peaceful environment. For investors, this level of safety is crucial in both personal and business matters, making it a desirable place to invest.
4. Well-respected healthcare system
Ranked 22nd globally in the 2024 Health Care Index, Portugal boasts one of the best healthcare systems in the world. The National Health Service (SNS) offers universal coverage, with essential services free of charge and non-essential treatments requiring a small co-payment. This high-quality healthcare is a key draw for both investors and retirees, providing peace of mind for those looking to relocate.
5. Simple visa and residency requirements
Portugal makes it relatively easy for investors and retirees to settle in the country. There are several visa options available:
Golden visa
Portugal’s Golden Visa programme is popular among non-EU investors. It allows you to gain residency by investing €500,000 in a qualifying investment fund. You can qualify for permanent residency and apply for citizenship after five years. Portuguese citizenship gives you the right to live, work and study in the EU making this the perfect solution if you are not yet ready to relocate. Portugal does not impose restrictions on dual citizenship.
D7 Retirement visa
For retirees, Portugal offers a special visa for those wishing to spend their golden years in the country. The D7 visa is perfect for individuals with passive income (such as pensions or rental income), allowing them to live in Portugal without needing to work.
6. Choosing the perfect location
The Portuguese real estate market is expected to grow in 2025, with Lisbon, Cascais and Porto leading as the main investment destinations. The popular Algarve region and emerging areas like Northern Portugal are also attracting investor attention due to tourism and competitive prices per square metre.
The Greater Lisbon Area
The capital city is vibrant, with a bustling economy, excellent cultural offerings and modern amenities. It’s perfect for those looking for city life with a blend of tradition and modernity. Lisbon's ongoing renovation projects and new developments are tailored to meet the expectations of international investors, solidifying the city’s status as a top destination for real estate investments.
The Algarve
Known for its stunning beaches, this region is particularly popular among retirees. It offers a slower pace of life, beautiful scenery and plenty of outdoor activities.
Porto
For those who prefer a more laid-back city with historic charm, Porto is a great option. It combines rich culture, gastronomy and scenic views along the Douro River.
Whether you're considering Portugal as a retirement destination or seeking investment opportunities in a thriving market, the country's combination of affordable living and high quality of life makes it one of the top real estate destinations in 2025.