In recent years, the property market in Portugal has been one of the most dynamic and attractive sectors for domestic and foreign investors. The combination of a stable climate, high quality of life, security and continuous property appreciation makes the country a favoured destination for those wishing to invest in real estate assets.

However, to ensure a safe and profitable investment, it is essential to know the key factors of the market, from the best locations to the associated costs and opportunities for appreciation. This guide presents the main aspects you should consider before investing in property in Portugal.

1. Why Invest in Property in Portugal?

Portugal has consistently been ranked as one of the best countries to invest in property, due to factors such as:

            - Resilient and growing market - Despite economic fluctuations, the Portuguese property sector is on an upward trajectory.

            - High rental demand - In cities like Lisbon and Porto, demand for housing continues to outstrip supply, guaranteeing good occupancy rates for investors.

            - Infrastructure and quality of life - The country offers a quality healthcare system, safety, accessibility and a vast cultural offer.

            - Attractiveness for foreign investors - The sector continues to attract international investment, especially in urban regeneration projects and luxury properties.

With these advantages, Portugal remains a safe bet for investors looking for long-term appreciation and consistent returns.

2. Types of Property Investment

Before going ahead with the purchase of a property, it is essential to define the purpose of the investment. Some of the most common options include:

a) Purchase for Long-Term Rental

            - Stable and predictable profitability.

            - High demand in cities such as Lisbon, Porto and Faro.

            - Tax advantage for landlords offering long-term contracts.

b) Rental for Tourism and Short-Term Rental

            - Possibility of higher yields than traditional rentals.

            - Greater need for active property management.

            - Variable regulations depending on the municipality (AL licensing).

c) Buying for Valuation and Resale

            - Interesting strategy in areas undergoing redevelopment or with new urban developments.

            - Higher return in the medium to long term.

            - Depends on a good analysis of the market and the location's potential for appreciation.

Regardless of the strategy chosen, the choice of location and type of property are fundamental to ensuring a successful investment.

3. Strategic investment locations

Portugal's main cities and regions have different investment profiles, with some of the most attractive areas being:

Lisbon - Urban Centre and Emerging Areas

Lisbon continues to be the main hub for property investment in Portugal. In addition to the consolidated premium areas such as Avenida da Liberdade, Chiado and Príncipe Real, new areas have been standing out for their potential to increase in value.

Penha de França is an example of an area in full transformation, with strong residential demand and new urban regeneration projects. Penha Living Closer, by Addsolid, is an excellent example of a development that combines tradition and modernity, with a rehabilitated building that preserves the identity of the neighbourhood while offering modern typologies and unobstructed views over the river.

Porto - A Solid Investment Alternative

The country's second largest city has maintained steady growth in the property sector, with high rental demand and new opportunities in the Baixa, Boavista and Matosinhos areas.

Algarve - Tourist Profitability

The Algarve continues to be a destination of choice for investors looking for short-term rental properties, with high demand from international tourism.

Setúbal - Quality of Life and Development Potential

Setúbal has established itself as one of the most interesting emerging markets, combining proximity to Lisbon, quality of life and property growth. Jardins de Santiago, by Addsolid, exemplifies this commitment, offering a sophisticated residential concept in full connection with nature and the beaches of Arrábida.

4. Investment Costs and Taxes

When investing in property in Portugal, it is essential to consider the costs and taxes involved in the process of acquiring and maintaining the property:

            - IMT (Municipal Property Transfer Tax) - Paid at the time of purchase, varies according to the value of the property.

            - IS (Stamp Duty) - Normally 0.8% of the purchase price.

            - IMI (Municipal Property Tax) - Annual rate that can vary between 0.3% and 0.45%.

            - Maintenance and condominium costs - These depend on the type of property and location.

            - Tax regime for foreign investors - Programmes such as the Non-Habitual Resident Status (NHR) offer tax benefits to those who decide to invest and reside in the country.

5. Addsolid Projects: Investment Alternatives in Lisbon and Setúbal

Addsolid has been developing distinctive developments that combine sustainable development, sophistication and energy efficiency, making them excellent investment opportunities.

Penha Living Closer - Rehabilitation and Development in Lisbon

Located in Penha de França, Penha Living Closer is a perfect example of property investment in Lisbon. With 5 floors and types ranging from studio to three-bedroom, this project combines the preservation of architectural heritage with modernity and comfort, guaranteeing a high potential for appreciation.

Find out more about Penha Living Closer → [link to website]

Jardins de Santiago - Quality of Life and Growth in Setúbal

For those looking for a solid investment outside the capital, Jardins de Santiago offers an excellent relationship between quality of life and property appreciation. This development of 12 villas is located in one of the region's most promising areas, benefiting from its proximity to the Arrábida Natural Park and the growth of the residential market in Setúbal.

Get to know Jardins de Santiago → [link to website]

Portugal continues to be an attractive destination for property investment, offering a stable market, high demand and excellent opportunities for appreciation. By choosing the right location and type of property, you can guarantee a profitable and secure investment.

Addsolid's developments reflect the main trends in the sector, combining quality, innovation and a strong commitment to urban regeneration and sustainability.

If you're looking for a distinctive investment opportunity, take a look at our projects and discover how you can guarantee a property of excellence.

Would you like more information? Get in touch with us.