Buying a house in Portugal: foreigners spend 95% more than residents.

Over the past 10 years, there has been a "significant increase" in the participation of non-resident buyers in the Portuguese housing market. They not only account for 11.7% of the total value of real estate transactions over the four quarters ending in June, but they also purchase homes at significantly higher prices than residents of Portugal. The Bank of Portugal (BdP) even claims that the average cost of purchasing a home by foreign buyers is 95% higher than the amount paid by residents in the country.

Report on Financial Stability

In the financial stability report from November 2022, the regulator under the leadership of Mario Centeno highlights the role of foreigners in the "dynamics" of the Portuguese housing market over the past decade. It concludes that "after a slight decline due to the pandemic, real estate transactions involving buyers with tax residency outside of Portugal have significantly increased again, with most contributions coming from buyers with tax residency outside the European Union (EU)," according to the document published at the end of November.

Statistics

Specifically, non-resident buyers in Portugal account for 11.7% of the total value of housing transactions in the country for the four quarters ending in June.

Moreover, foreigners buy homes in Portugal at much higher prices than residents. The average transaction value for foreign buyers is 95% higher than that of residents, according to the report. And who is buying the more expensive homes, residents from other EU countries or those from outside European borders? According to data just published by BdP, those who spend more on housing in Portugal are not living in Europe.

• Buyers with tax residency in other EU countries:The average transaction price for housing was 265 thousand euros, which is 55% higher than for buyers with tax residency in Portugal;
• Buyers with tax residency outside the EU:The average deal value was 414 thousand euros, which is 143% higher than the average deal value for buyers residing in Portugal.

“Available information for properties made in ra...”