Fewer foreigners buying houses in Portugal

Home purchases by foreigners accounted for 5.1% of the total in the first quarter of this year, the lowest relative weight since the second quarter of 2021.

According to data released this Monday by the National Statistics Institute (INE), from January to March, 5.1% of homes transacted in Portugal (2,098) involved buyers with tax residence outside the country.

The European Union (EU) category represented 2.7% and the remaining countries 2.4%.

“The relative weight of purchases by buyers with tax residence outside the national territory was the lowest since the second quarter of 2021”, highlights the Housing Price Index (IPHab) of the National Institute of Statistics (INE).

On the contrary, homes purchased by buyers with tax residence in Portugal increased by 26.6% compared to the previous year, to 39,260 units.

According to the INE, “different dynamics” were recorded in transactions by buyers with tax residence outside Portugal. House purchases by buyers with tax residence in the EU grew by 12.1% year-on-year, to a total of 1,109 units.

The “remaining countries” tax residence category totaled 989 transactions, an annual reduction of 8.3% and the fifth consecutive drop.

In total, 41,358 homes were transacted in the first quarter, a year-on-year growth of 25%. In terms of value, registered transactions amounted to 9.6 billion euros, 42.9% more than in the same period in 2024.