Buying a house in Portugal is getting more expensive due to government changes.

Wealthy expats are causing real estate prices to rise. "We already have clients who are considering reconsidering their plans," Alex Ingrim, private wealth manager and senior investment analyst at Chase Buchanan, told Business Insider. "I think it's made a lot of people think about their reasons for moving to Portugal if it's not going to be as easy as they first thought. "

The good news is that Americans and other foreigners already living in Portugal will retain their tax benefits for a 10-year period. Portugal has announced that it will end its tax program for new entrants starting in 2024.

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By 2022, there were about 10,000 Americans living in Portugal. As The New York Times notes, this increase''is up as much as 239 percent from 2017.

According to the latest Property-Market Index report, housing costs across the country have risen by 6.5 percent in the last year due to the country's inability to meet demand. Especially in the Algarve region, prices rose by 15 percent over the same period, while cities such as Lisbon saw similar increases. In Quinta do Lago, a golf community on the Algarve coast, prices have risen by more than 28 percent since 2020, and the research firm estimated they will increase by 19 percent by 2025.

"It makes people think and say, 'OK, Portugal was the easy answer and now there are no other easy options.' France, Italy or Spain could be back in consideration,'" Ingrim told Insider.