Non-EU Buyers Drive 2025 Demand for Property for Sale in Lagos Portugal

In 2025, Portugal continues to attract strong interest from international home buyers, but with a notable shift. According to recent data published by Idealista, non-EU citizens now represent the majority of demand in the country’s property market, accounting for 54% of all interest in property purchases and 63% in rentals. While Lisbon and Porto remain key urban hotspots, areas like Faro and the Western Algarve, including Lagos, are also drawing increased attention.

What’s Driving Non-EU Demand?

This surge in interest from non-EU nationals, particularly from Brazil and the United States, reflects broader global trends. While Portugal's traditional tax incentives have evolved, the country remains attractive for its safety, quality of life, and relatively affordable property prices compared to other Western European destinations.

Even though Portugal has phased out the Golden Visa for real estate and altered the Non-Habitual Resident (NHR) regime, the replacement initiative IFICI+ (Tax Incentive for Scientific Research and Innovation) continues to attract professionals and entrepreneurs seeking long-term relocation.

Policy Changes and Market Adaptation

The IFICI+ regime, updated as recently as March 2025, includes a revised list of qualifying professions and a streamlined application process. However, the short application windows have created some confusion and urgency among interested non-EU residents. Despite these shifts, the data shows non-EU interest remains strong, particularly in key Portuguese regions.

Portugal’s new IFICI+ tax regime (replacing the NHR program) was updated in March 2025 and targets non-EU professionals in innovation, science, health, ICT, and executive roles. It offers a 20% flat income tax on Portuguese-sourced income for 10 years and exemptions on certain foreign income (dividends, interest, capital gains) under specific conditions.

To qualify, applicants must:

- Become tax residents after Jan 1, 2024.

- Not have been residents in Portugal in the last 5 years.

- Hold at least a Level 6 (Bachelor's) degree with 3 years’ experience, or a PhD.

- Work in or with certified entities (e.g., exporters, R&D firms, universities).

Though the application process is more streamlined, it remains complex, with tight deadlines (March 31, 2025, for 2024 residents). Still, interest is strong, particularly in Lisbon, Porto, and the Algarve.

Connecting to the Algarve Market

For estate agents in Lagos and the wider Western Algarve, this trend provides a clear opportunity. As capital investment in Portuguese startups has slowed significantly, a drop of nearly 50% according to Dealroom data, real estate continues to serve as a more tangible and stable investment for international buyers.

While venture capital activity may face uncertainty amid macroeconomic shifts and geopolitical tensions, Algarve property remains a consistent performer. The lifestyle, climate, and rental potential of Algarve continue to appeal to non-EU buyers looking for security and lifestyle-based investments.

What It Means for Real Estate in Algarve

For buyers searching for homes in Algarve Portugal, particularly in sought-after areas like Lagos, the rising international interest supports ongoing growth. Investors are recognising the long-term value in Portugal real estate, especially as alternative investment routes face greater volatility.

At a time when venture capital may be losing traction, real estate in the Algarve provides a solid foundation for personal use, relocation, or rental income. Non-EU interest is a shift in the global perception of Portugal as a premium, stable destination.

Final Thoughts

If you’re an investor from the United States, Brazil, or elsewhere outside the EU, the Algarve real estate market remains one of the most promising destinations in Europe.

At B&P Real Estate, our team of expert estate agents in Lagos, Portugal are here to help you navigate this evolving landscape. We offer a curated selection of Algarve property and personalised service tailored to your needs.

Explore our expansive range of property for sale in Lagos Portugal and discover why so many non-EU buyers are turning to the region for lifestyle and security.