Foreigners spend 39% more on property

Foreigners also bought houses 6.8% cheaper compared to a year ago, according to data from the National Statistics Institute (INE). However, these international citizens continue to buy houses that are 39% more expensive than Portuguese citizens.

The drop in house sales is a trend that continued in Portugal at the beginning of this year, despite interest rates and inflation being much lower. INE reported, in mid-June, that the drop in house sales was more significant among foreign buyers (-17.1%) than among Portuguese buyers (-3.1%), as reported idealista. Explaining this retraction in the international market could be the end of tax benefits that directly or indirectly influence the purchase of housing by foreigners.

Now, the Portuguese statistics office revealed that “in the first quarter of 2024, the median value of family accommodation transacted in Portugal involving buyers with tax domicile abroad was 2,248 euros/m2, 6.8% less than the same quarter last year”.