Why Portugal’s new-build property market remains one of Europe’s greatest opportunities for estate agents
Portugal sold more homes in 2025 than ever before, at the highest prices in its history. According to Statistics Portugal (INE), a record 169,812 sales were completed, and prices rose by an annual average of 17.6%. In the second quarter of 2026, the year-on-year increase was still
Portugal sold more homes in 2025 than ever before, at the highest prices in its history. According to Statistics Portugal (INE), a record 169,812 sales were completed, and prices rose by an annual average of 17.6%. In the second quarter of 2026, the year-on-year increase was still 16.5%.
At the same time, 2026 has changed the rules for international buyers. Since 25 May, anyone buying a home without being tax-resident has paid a flat IMT rate of 7.5%, subject to exceptions. The profile of foreign buyers had already shifted: more are settling in the country, while fewer are buying from abroad.
For estate agents, the message is clear. Portugal remains a market with a shortage of new homes, international demand and high transaction values, but agents need to know which buyers to target and how to explain the new tax rules. This analysis brings together official data, key locations, the legal framework following the end of NHR and the property-based Golden Visa, and how to access Portuguese new-build property from any country today.
Portugal’s new-build property market in figures (2025–2026)
Eleven official indicators to understand the current state of the market.
| Indicator | Figure | Source |
|---|---|---|
| Homes sold in 2025 | 169,812, the highest figure in the series | INE (via idealista.pt) |
| Average price increase in 2025 | +17.6%, the largest since 2009 | INE (via idealista.pt) |
| Year-on-year price increase, Q2 2026 | +16.5% | INE (via ComparaJá) |
| Median sale price, Q2 2026 | €2,445/m² (+18.4%) | INE (via Sábado) |
| New homes sold in 2025 | 33,567 (+5.3%), worth €10.7 billion (+13%) | INE (via idealista.pt) |
| Median price of new homes in Lisbon, Q2 2026 | €6,434/m², compared with €5,030/m² for existing homes | INE (via Forbes Portugal) |
| Purchases by foreign nationals in 2025 | 41,086 (+6.6%) | INE (via The Portugal News) |
| Purchases by non-tax-residents in 2025 | 8,471 (-13.3%), worth €3.4 billion | INE (via Barlavento) |
| Average price paid in 2025 | €234,120 (resident in Portugal), €335,640 (resident in the EU), €470,277 (rest of the world) | INE (via idealista.pt) |
| Estimated housing shortfall | ~300,000 homes | Bank of Spain, Annual Report 2025 (via Euronews) |
| Non-resident tourists in 2025 | 29.9 million (+3.3%); Spain accounts for 23.8% | INE (via ECO) |
Record prices and a shortage of new homes
New homes in Portugal are scarce and command a premium. Between July 2025 and June 2026, the median price of new homes exceeded that of existing homes in 22 of the 24 municipalities with more than 100,000 inhabitants (INE, via Sábado). In Lisbon, the difference reaches €1,404/m².
The underlying cause is structural. The Bank of Spain places Spain and Portugal among the European economies where new housing output has grown least relative to the increase in the number of households, with an estimated shortfall of around 300,000 homes in Portugal (Euronews).
Sales values are growing faster than transaction volumes
In 2025, 33,567 new homes were sold, 5.3% more than in 2024, for a total of €10.7 billion, up 13% (idealista.pt). In 2026, transaction volumes have moderated while prices continue to rise: the market is becoming more selective, not weaker.
The Government’s response: 6% VAT on construction
Decree-Law 97/2026, published on 20 May, reduces VAT from 23% to 6% on the construction and renovation of homes intended as permanent residences with a sale price of up to €660,982, or for letting at rents of up to €2,300 per month (Doutor Finanças). It applies to projects started between 25 September 2025 and 31 December 2029.
For agents, the measure points to more mid-priced developments in the coming years, designed for people who live in Portugal or plan to settle there.
Foreign buyers in Portugal: those settling in the country are gaining ground
Foreign nationals bought 41,086 homes in Portugal in 2025, 6.6% more than in 2024, but the growth was driven by those already living in the country. Of those purchases, 34,834 were made by foreign nationals with a tax address in Portugal (+11.4%), while purchases from abroad fell for the third consecutive year (The Portugal News).
Who is buying
- Brazilians are the most active foreign nationality, with 9,808 purchases in 2025 (+27.5%).
- British and American buyers pay the most: an average of €512,585 and €479,403 respectively, more than 120% above Portuguese buyers.
- Buyers tax-resident outside Portugal: 8,471 transactions in 2025 (-13.3%), with 4,416 from the EU and 4,055 from outside it (idealista.pt).
Transaction value is the key commercial attraction: EU residents paid an average of €335,640 and those from the rest of the world €470,277, compared with €234,120 for residents in Portugal. Each international transaction is worth considerably more to the agency.
Tourism as a gateway
Portugal welcomed 29.9 million non-resident tourists in 2025, with Spain as the leading source market (23.8%) and arrivals from the United States growing by 6.9% (ECO, The Portugal News). Overnight stays by non-residents are concentrated in the Algarve (28.1%) and Greater Lisbon (28.0%) (Postal).
For a Spanish agency, the tourism figures have a direct implication: its own clients already travel to Portugal and know the destination.
Key locations for new-build property in Portugal
Lisbon and its metropolitan area set the price ceiling, the Algarve attracts the bulk of holiday-home demand, and the central coastal belt is seeing the strongest capital appreciation. In the second quarter of 2026, the largest year-on-year increases were recorded in Médio Tejo (25.4%), Oeste (24.0%) and the Setúbal Peninsula (22.2%), according to INE (Sábado).
| Area | Key figure | Buyer profile |
|---|---|---|
| Lisbon | New homes at €6,434/m² (median, Q2 2026) | Affluent international buyers and relocating professionals |
| Cascais and Oeiras | Cascais: €5,260/m² for new homes | International families and buyers of luxury primary residences |
| Porto and Matosinhos | Matosinhos recorded one of the sharpest accelerations in price growth during the quarter | Investors seeking a lower entry price than Lisbon |
| Algarve | 28.1% of overnight stays by non-residents | European second-home buyers, golfers and retirees from northern Europe |
| Silver Coast (Oeste region) | +24.0% year on year | Buyers seeking more affordable coastal property close to Lisbon |
| Setúbal Peninsula | +22.2% year on year | Premium second-home buyers and remote workers |
| Madeira | 2.5 million guests in 2025 (+8.9%) | International residents and holiday-let investors |
Sources: INE, local-level price statistics for Q2 2026 (via Forbes Portugal and Sábado); INE, tourism 2025; DREM Madeira.
The legal and tax framework after the end of NHR and the Golden Visa changes
Foreign nationals can buy homes in Portugal without restrictions based on nationality, but since 2026 the tax treatment has depended heavily on where they are tax-resident. Purchases of homes, whether new or existing, are subject to IMT and Imposto do Selo (stamp duty), not VAT.
The 7.5% IMT rate for non-residents
Since 25 May 2026, home purchases by buyers who are not tax-resident in Portugal have been subject to a flat IMT rate of 7.5%, without the reductions available under the progressive scale (Ordem dos Contabilistas Certificados). The criterion is tax residence, not nationality: it also affects Portuguese nationals living abroad (DECO Proteste).
There are two key exceptions that agents should understand because they change the sales conversation (Doutor Finanças):
1. Buyers who become tax-resident in Portugal within two years of the purchase.
2. Non-residents who let the property for residential use at a moderate rent (up to €2,300 per month), with the tenancy starting within six months and the property let for at least 36 months during the first five years.
In other words, the measure penalises empty homes, not international buyers who settle in Portugal or let their properties on a long-term basis. For very high-priced homes, the difference also narrows, because the general scale already reaches 7.5% in the upper bands.
Golden Visa, NHR and IFICI: what remains in 2026
| Scheme | Status in 2026 |
|---|---|
| Golden Visa through a home purchase | Abolished since October 2023 (Law 56/2023, Mais Habitação) |
| Golden Visa through investment in funds | Still available, from €500,000 in CMVM-regulated funds |
| Non-Habitual Resident (NHR) regime | Closed to new applicants since 2024 |
| IFICI (known as NHR 2.0) | A 20% tax rate for 10 years for qualified professions in research, innovation and technology |
Sources: CRN Contabilidade, Armenian Lawyer.
This is general information and should be reviewed by a lawyer or tax adviser in Portugal before each transaction.
Risks in the Portuguese market and how to manage them
The Portuguese market requires more advice than it did three years ago, which gives professional agents an advantage over occasional intermediaries.
| Risk | How to manage it |
|---|---|
| 7.5% IMT for non-residents | Establish from the outset whether the buyer intends to live in Portugal or let the property long-term, and calculate the tax with an adviser before reservation |
| Prices at record highs and transaction volumes falling | Broaden the search to areas with growth potential, such as the Oeste region or the Setúbal Peninsula, and focus on average transaction value |
| Residency processing times for foreign nationals | Warn buyers that AIMA procedures can take months and coordinate the purchase with the visa timetable |
| Local accommodation regulations | Check municipal rules before selling a property as a holiday-let investment |
| Few developments available in each area | Work with an aggregated catalogue from several developers rather than relying on just one |
| Construction delays | Prioritise developers with confirmed licences and a track record of delivering projects |
The new IMT also has a positive side for those who know how to use it: it steers the market towards buyers settling in the country and residential letting investors, two profiles that are more stable than speculative buyers.
How to access Portuguese new-build property as an agent: Habihub
In a market where new supply is limited and spread across many developers, agents who can see every property on one screen sell sooner. That is the approach behind Habihub, the international new-build MLS that brings Spain, Portugal and Georgia together in a single catalogue.
The Portugal catalogue
According to the platform’s publicly available data in November 2026, the new-build property catalogue for Portugal contains 1,051 homes across 84 active developments from 33 developers, in Lisbon, Porto and the Algarve. Only developers with confirmed licences and projects ready to be marketed are included.
Each development includes prices and availability synchronised with the developer, commission visible before you offer the property, photographs, floor plans and brochures without watermarks, and an XML feed for the agency’s website and CRM.
Two ways to sell property in Portugal
| Agency in Portugal | Agency outside Portugal | |
|---|---|---|
| Catalogue access | Full access, with up-to-date information for its area | The same catalogue, with materials for remote presentations |
| Who handles viewings and completion | The agency itself | A trusted local agent in Portugal |
| Commission | 100% for the agency, selling directly with the developer | Up to 45% for the agency referring the buyer |
| Buyers from other countries | After 12 months on the platform, through the Sales Service | Can refer buyers from day one |
For a Spanish agency, Portugal is the most natural additional market: its clients already travel there, cultural proximity makes selling easier, and it can be added through the same dashboard for €40 per month as an additional market, with no minimum contract term (Pricing). With the Sales Service, the local agent handles the viewing, legal matters and signing.
Any agency can request a 30-minute demo to view the Portuguese catalogue with real property listings.
Sources
- INE · Housing market 2025: sales, prices and new-build property (via idealista.pt)
- INE · Buyers with a tax address outside Portugal in 2025 (via idealista.pt)
- INE · Purchases by foreign nationals in 2025 (via The Portugal News)
- INE · Annual data for 2025 (via Barlavento)
- INE · House Price Index, Q2 2026 (via ComparaJá)
- INE · Local-level prices, Q2 2026 (via Sábado)
- INE · New-home prices by municipality, Q2 2026 (via Forbes Portugal)
- INE · Tourism Statistics 2025 (via ECO)
- Decree-Law 97/2026 · Summary of tax measures (Doutor Finanças)
- Ordem dos Contabilistas Certificados · 7.5% IMT for non-residents
- DECO Proteste · Who pays the higher IMT rate
- Bank of Spain, Annual Report 2025 · Housing shortfall in Portugal (via Euronews)
- CRN Contabilidade · Golden Visa 2026
- Habihub · Portugal market, Sales Service and Pricing
Explore the Portugal market, check Habihub’s pricing and discover how to sell international new-build property in 2026.
Frequently asked questions
How much have house prices risen in Portugal?
By an average of 17.6% in 2025, the largest increase since 2009, and by 16.5% year on year in the second quarter of 2026, according to INE. The median sale price reached €2,445/m².
What is the 7.5% IMT for non-residents?
It is the flat rate of Municipal Property Transfer Tax paid, since 25 May 2026, by homebuyers who are not tax-resident in Portugal. It does not apply if the buyer becomes tax-resident within the following two years or lets the property at a moderate rent for at least 36 months.
What taxes does a foreign buyer pay when buying new-build property in Portugal?
IMT, under the general scale or at the flat rate of 7.5% if they are not tax-resident, plus Imposto do Selo (stamp duty) at 0.8%. They then pay municipal IMI annually. Home purchases are not subject to VAT.
Can you obtain a Golden Visa by buying a home in Portugal?
No. The property route was abolished in October 2023. Today, the Golden Visa is obtained primarily by investing €500,000 in CMVM-regulated funds.
Does the Non-Habitual Resident (NHR) regime still exist?
Not for new applicants since 2024. It was replaced by IFICI, a regime offering a 20% tax rate for ten years, reserved for qualified professions in research, innovation and technology.
Who buys homes in Portugal?
In 2025, foreign nationals bought 41,086 homes, with Brazilians the most active nationality. British and American buyers pay the highest average prices, exceeding €479,000.
How can a Spanish agency sell new-build property in Portugal?
Through a new-build MLS such as Habihub, which provides access to the Portuguese catalogue with up-to-date availability and materials without watermarks. With the Sales Service, a local agent in Portugal handles the viewing, legal matters and completion, while the agency referring the client receives up to 45% of the commission.
