Portugal continues to attract strong interest from international buyers despite changes to the Golden Visa programme. While the removal of residential property as a qualifying investment altered some buyer strategies, it did not reduce the overall appeal of Portuguese real estate. In fact, demand in many regions remains steady, particularly in coastal markets such as the Algarve.
For buyers considering Lagos Algarve real estate, the fundamentals remain unchanged. Lifestyle quality, stable pricing, limited supply and long-term demand continue to support interest from overseas buyers looking for homes, rental investments or future relocation options.
This article explains why Portugal remains attractive to foreign buyers, how Golden Visa changes have shifted behaviour, the introduction of the new Solidarity Visa (Golden Visa 2.0), and what this means for buyers exploring property for sale in Algarve Portugal.
Understanding the Golden Visa Changes
Portugal revised its Golden Visa rules to remove standard residential real estate as a qualifying investment. This change mainly affected buyers whose primary motivation was residency through investment rather than lifestyle or long-term ownership.
However, it is important to note that the Golden Visa was never the sole driver of foreign demand. Many international buyers were already purchasing property for reasons unrelated to residency schemes.
These reasons include:
- Lifestyle relocation
- Second home ownership
- Rental income
- Long-term capital preservation
As a result, interest in Algarve homes for sale and coastal properties has remained stable even after the policy update.
Golden Visa 2.0 – The New Solidarity Visa
Portugal now has a new residency-by-investment pathway commonly referred to as Golden Visa 2.0, officially known as the Solidarity Visa.
Unlike the former Golden Visa, which allowed residential property investments from €500,000 without social criteria, the Solidarity Visa is focused on affordable and social housing development.
Key Features of the Solidarity Visa
- Residency through investment in affordable housing projects
- Mandatory social impact, with funds directed to accessible rental housing
- Similar benefits to the previous Golden Visa, including:
- Residence permits and renewals
- Eligibility to apply for Portuguese nationality after five years
This means that investing in qualifying affordable housing projects can once again lead to residency in Portugal, provided the project meets specific criteria relating to value, location and type of development.
For investors, this represents an opportunity to combine financial returns with social contribution. For Portugal, it supports housing supply while keeping the country attractive to international capital.
The Algarve’s Ongoing Appeal
The Algarve remains Portugal’s most internationally recognised property region. Buyers continue to favour it due to:
- Strong tourism demand
- Well-developed infrastructure
- Established expatriate communities
- Limited scope for overdevelopment
This supports demand across all segments, including villas for sale in Algarve Portugal, apartments and townhouses.
Unlike emerging markets, the Algarve benefits from long-term planning controls that help protect property values.
Lagos as a Case Study
Lagos clearly demonstrates why foreign demand remains resilient. Even after Golden Visa changes, interest in Portugal real estate has remained strong due to:
- A genuine year-round lifestyle
- A historic centre with limited new supply
- Strong rental demand from both tourists and long-stay visitors
Buyers exploring property for sale in Algarve often prioritise Lagos because it offers balance rather than reliance on any single buyer group.
Shift in Buyer Profiles
While Golden Visa-driven buyers have declined, other buyer types have increased:
- Lifestyle buyers planning medium to long-term relocation
- Remote workers seeking a stable European base
- Retirees prioritising healthcare and safety
- Investors targeting rental income rather than residency benefits
This shift continues to support steady demand for Algarve homes for sale, particularly energy-efficient, well-located properties with practical layouts.
Rental Market Stability
The Algarve’s rental market remains a key driver for foreign buyers. Year-round tourism combined with growing winter demand supports occupancy beyond peak summer months.
This strengthens the investment case for property in Portugal, particularly in towns like Lagos with established rental infrastructure. Golden Visa changes have had little impact on rental demand.
Legal Certainty and Buyer Confidence
Portugal continues to offer strong legal certainty for foreign buyers. There are no restrictions on foreign ownership, and property rights remain secure.
This clarity makes Portugal particularly attractive when compared to other Mediterranean markets with more complex ownership structures.
Planning Controls and Supply Limits
Controlled development remains one of Portugal’s key strengths. Environmental and planning restrictions limit large-scale construction in many coastal areas.
This protects scarcity and long-term value across Algarve real estate, especially in established towns like Lagos.
Comparing Portugal to Other Markets
Compared to Spain, France and Italy, Portugal continues to offer:
- Lower entry prices in many regions
- Simpler ownership rules
- Competitive running costs
- Strong rental yields in coastal locations
These fundamentals remain compelling even without traditional residency incentives.
What Foreign Buyers Should Consider Now
Foreign buyers considering Portugal should focus on:
- Long-term usability rather than incentives alone
- Location quality and infrastructure
- Energy efficiency and future compliance
- Rental potential where relevant
How We Inspired Accounting Help
As specialists in accounting, insurance and mortgage solutions in Lagos, Algarve, Inspired Accounting supports international buyers and investors at every stage, including:
- Structuring investments to meet Solidarity Visa criteria
- Navigating mortgage and financing options
- Ensuring tax efficiency and insurance compliance
Long-Term Outlook
Portugal’s appeal is unlikely to diminish in the coming years. While policy adjustments may continue, lifestyle-driven demand remains robust.
The Algarve, and Lagos in particular, is expected to remain a core destination for international buyers seeking security, climate and value.
Conclusion
Despite changes to the Golden Visa programme, Portugal remains highly attractive to foreign buyers.
Demand has evolved rather than disappeared, with greater emphasis on lifestyle, long-term ownership, rental performance and now socially responsible investment through the Solidarity Visa.
Frequently Asked Questions
Has the Golden Visa ended completely?
No. The programme still exists, but standard residential property no longer qualifies. A new pathway now exists through the Solidarity Visa.
What is the Solidarity Visa?
It is a residency-by-investment programme focused on affordable and social housing projects that meet defined criteria.
Can foreigners still buy property freely?
Yes. There are no restrictions on foreign ownership in Portugal.
Has demand dropped in the Algarve?
No. Demand has shifted toward lifestyle, rental and long-term buyers.
Are apartments still a good option?
Yes. Apartments remain popular due to rental flexibility and ease of ownership.
Is Lagos still attractive to foreign buyers?
Yes. Lagos remains one of the Algarve’s most resilient and balanced property markets.
