Foreign investors committed €3.9bn to Portugal’s property market in 2025, marking a 10% increase from the previous year and setting a new record for international investment in the sector, according to the Bank of Portugal. The figures highlight the continued importance of property assets in attracting cross-border capital despite policy changes affecting investment incentives.
The inflow comes after the Portuguese government ended the golden visa scheme for property purchases at the end of 2023, a programme that had previously drawn significant foreign capital into the market. Nevertheless, international demand has remained strong. Property investment accounted for 45.9% of all foreign direct investment entering Portugal in 2025, the highest share ever recorded. Ten years earlier, property represented just 19.3% of total FDI, illustrating the sector’s growing weight within the country’s investment landscape.
European countries dominated the investor base. Luxembourg provided the largest inflow with €1.1bn invested, followed by the United Kingdom with €900m and Germany with €800m. The data also reflects the role of intermediary investment hubs, with jurisdictions such as the Netherlands, Luxembourg and Spain often used as conduits for capital originating from countries including France, the United States and the United Kingdom. As a result, the ultimate sources of investment may extend beyond those identified in official statistics.
Foreign investment remains heavily concentrated in a small number of Portuguese regions. Greater Lisbon holds the largest share, with €113.2bn in foreign investment stock. Northern Portugal follows with €37.2bn, while the Algarve accounts for €21.7bn. Together these three regions represent more than 80% of total foreign investment in the country, reinforcing their central position in Portugal’s international investment structure.
Overall foreign direct investment into Portugal declined significantly in 2025, falling by 34.9% to €8.51bn. Against that backdrop, the continued expansion of property inflows increased the sector’s share of total foreign capital. The stock of foreign investment in Portugal reached €213.7bn, equivalent to around 70% of national GDP, underlining the scale of international ownership across the country’s assets.
