Investing in Portugal

Because the options available to you in Portugal – and the costs, outlook and tax rules – might vary a lot from your home country, it’s important to educate yourself on investing in Portugal before you put any money on the line. This guide looks at various Portuguese investment options from property to stocks, pensions, and alternative assets, covering product availability and tax implications.

This guide is for information only and does not constitute advice. Different types of investment are suitable for different individual needs. Get professional advice and support to choose the right investment plan for your unique situation.

Key takeaways: Investing in Portugal

• Portugal has a large economy and many investment opportunities – getting professional advice is key to successfully investing in Portugal or elsewhere
• Portugal has an investment visa – which may be a route to citizenship over the long term – investments of 250,000 EUR or more are needed
• Expats can invest in Portugal in a pension or buying shares – many different options are available depending on individual needs
• Foreigners can buy Portuguese real estate – with no extra rules or restrictions compared to local buyers
• Choose a low cost service to convert and send currencies – providers like Wise have high limits, fees which get lower when you send over 20,000 GBP, and the mid-market exchange rate 

Investment in Portugal

Portugal has a strong economy including robust automotive and electronics sectors and a thriving tourism and services sector. This can make it an attractive place to invest.

The US State Department gives Portugal a positive report in its annual investment outlook document, citing solid GDP growth in 2024, low unemployment at around 6.5% and falling inflation rates. Portugal is also ranked 30 out of 132 in the Global Innovation Index, and 34 of 180 in the Perceptions of Corruption Index, showing that innovation is a strength, and corruption is controlled effectively in the country. These factors are both positive indicators of the health of the country’s economy.

The OECD flagged threats such as an aging population in Portugal in its latest snapshot report – which is an issue across many developed countries. Although Portugal doesn’t have a long standing savings and investment culture, there have been efforts made in recent years to encourage financial literacy and help residents invest effectively – particularly in the face of more and more citizens facing retirement without adequate preparation.

As a result there are many different options if you’re thinking of investing in Portugal, from accounts with local and national banks, through to higher risk assets like stocks and shares.

How much is needed to invest in Portugal to get citizenship?

Portugal has an Immigrant Investor Visa which offers options to get residence by investment. There are different requirements for investment depending on the investment type. At the time of writing this includes:

• Transfer of capital – 500,000 EUR minimum (for investment in non-real estate assets)
• Investment in scientific research – 500,000 EUR minimum
• Investment in arts and cultural heritage – 250,000 EUR minimum
• Investment in new or existing business – 500,000 EUR minimum plus 5 new jobs created
• Investment through job creation – 10 new jobs

This is commonly referred to as the Golden Visa. There are many agents in Portugal who can help you assess your suitability for this visa type and submit an application. Be aware that rules and investment thresholds can change, so you’ll need to check all the latest details before you submit an application.

What to know before investing in Portugal

Seeking professional advice is crucial before making investments, especially for newcomers unfamiliar with local rules and regulations in Portugal. Most banks and financial institutions have investment advisors available by appointment, including some which offer multi-lingual support services that may be handy for expats.

Bear in mind that you don’t have to use the advisors on hand at your bank. Look for financial advisors familiar with the needs of expats who may be able to give an unbiased assessment of your options.

As an expat investor it’s also important to remember that currency fluctuations can impact returns – get hit by a bad rate when repatriating your savings and you could end up with less than you expect in your home currency.

Wise can help investors move money efficiently between countries with mid-market exchange rates and low fees on international transfers.

Savings account investments in Portugal

You’ll find an excellent range of savings accounts available from national and regional banks in Portugal. Options include:

• Instant-access accounts
• Long-term and time deposit accounts
• Special accounts for children
• Savings accounts intended for retirement

Savings accounts made with credit institutions in Portugal are protected by the deposit guarantee scheme up to 100,000 EUR per depositor.

Banks including digital providers like N26 and more traditional banks like Caixa or Millenium BCP may be good options to start your search for the right account for you. You can compare the options for savings accounts on a site like The Banks.

Pension investments in Portugal 

If you’re planning on staying in Portugal for the rest of your life, you’ll need to make provisions for retirement. In most countries globally you’ll come across the three-pillar pension system: state, occupational, and private pensions. These options are also available for Portuguese residents.

State pension

You can request an old age social pension from the Portuguese government if you qualify – although the standard old age pension may also be an option for some with a work history in Portugal. To request a standard pension you must be 66 and have worked for at least 15 years.

Pension amounts vary and are reassessed on a regular basis. You can get a pension forecast based on your own situation online.

Occupational pensions

Occupational pensions are arranged by your employer, and usually require both the employer and employee to make contributions. The format of the pension can change depending on the specific scheme. You may find defined contribution benefits which pay out based on the accumulated fund in the pension at the time of taking an annuity, or defined benefit schemes which pay out based on tenure and other factors.

Private pensions

It’s also possible to arrange a private pension in Portugal with a provider like BBVA, which may be used to supplement any annuity you might have from a state scheme or an occupational pension. 

Here there are many different pension types, so you may need to get advice to ensure you select the best private pension option for your situation.

Property investments in Portugal

You can invest in property in Portugal freely with no specific restrictions on foreigners. 

Generally, Portugal is an attractive place for property investors as market access is quite straightforward. There are huge numbers of agents who are used to working with foreign buyers because real estate investment used to be a popular route to residency in Portugal under visa conditions which have now been withdrawn.

Foreign ownership restrictions and eligibility

Foreigners can freely own property in Portugal with no special conditions or considerations. It’s important to note that real estate investment is no longer enough to get the immigrant investor visa for Portugal. This used to be the case, but the real estate option was withdrawn in 2024.

Market conditions and pricing

The Portuguese real estate market in 2025 is experiencing high growth, around 17% nationally. This hides some regional variation – property prices in Lisbon were up year on year by only about 2%, while Madeira saw growth close to 25%  at the mid part of 2025 for example.

Lisbon’s property prices average out at 5,720 EUR per square meter – this is the highest cost in the country, as is common with capital cities.

Property prices do change a lot, and regional variations can be quite stark. For that reason you’ll need to take some time to learn more about the property market in the area of Portugal you’re considering investing in, so you can spot good deals when they arise.

Buying property in Portugal? If you need to move a large payment overseas, Wise could help, with high transfer limits (usually around 1m GBP or equivalent), transfer fees which get lower when you send over 20,000 GBP, the mid-market exchange rate and a dedicated customer support team for large transfers.

Mortgage options and costs

If you need to pay for your Portuguese property with a mortgage you may find it easiest to work with a broker to secure the best possible mortgage as an expat in Portugal. 

Significant deposits of around 25% to 35% of the property value are often required to secure a mortgage as an expat, with interest rates dependent on the mortgage type, value and duration. Some banks also ask that you show your ties to Portugal to apply for a loan.

Insurance and protection requirements

In many cases, getting some basic life insurance cover is mandatory when taking a mortgage in Portugal, to ensure the loan can be serviced even in the case of death.

If you’re getting a loan and need mortgage protection for Portugal, here are some life insurance companies in Portugal you may want to look into:

• Generali
• Activio Bank

Investment funds in Portugal

A popular option for many people in Portugal is to use investment funds which are often overseen by fund managers who take over the job of picking assets and managing the portfolio for clients. If you invest in a fund your money is used to buy assets like shares, and you can profit from the growth of that asset, or from dividends paid while you own it.

Buying into certain funds may be used as your investment to get a Portugal Golden Visa. However, as only funds which do not invest in any real estate qualify this is an area you’ll need to get advice on when applying for a visa. Ensure the investment fund you select is eligible for the visa application before you pay in.

The Portuguese stock exchange is regulated by The Portuguese Securities Market Commission (CMVM), to keep customers as safe as possible.

Types of investment funds

Common types of investment finds you may see include:

• Exchange-traded funds (ETF) – low-cost, easy to trade funds indexed to stock exchanges
• Equity/stock funds – investing in stocks and shares for long-term growth
• Bond/debt funds – investing in bonds with periodic dividends
• Mixed funds – combination of shares and bonds
• Hedge funds – private funds with higher returns but more expensive and risky

Before you choose the right funds for your needs, take some time comparing fund performance against fees, and seeking professional advice to ensure you buy into the right options for your investment goals.

Investing in stocks and shares in Portugal

The Portuguese stock exchange is the Euronext Lisbon – there are many helpful tools online on the exchange website which allow you to view trends, search for assets and generally get a feel for the market. If you’re looking for a specific index to follow which may help you understand how the market is trading in Portugal, you may find the PSI 20 handy as a benchmark stock market index looking at performance of the top 20 companies on the exchange by market capitalization.

You can invest in stocks through investment funds managed by individuals, or pick stocks yourself by buying individual assets. This is easily done with online and in-app stock trading platforms. Bear in mind that there are risks in stock trading which you should not underestimate. Costs can also creep in when trading, which can undermine any profits you make.

When selecting a platform to start trading in Portugal look carefully at costs including transaction fees, account fees, and taxes.

Offshore investments in Portugal

If you’re not a Portuguese resident but want to invest in Portugal, this is possible, and can be an attractive option for some. There are services offering offshore investment advice and support for Portugal, including the Portuguese Bond which is used by some people as a way of holding assets prior to a move to Portugal for example.

Ethical and sustainable investing in Portugal

As with most countries, there’s growing popularity of ethical investing and ESG (Environmental, Social, Governance) focused investment in Portugal.

If you’re particularly interested in investing in ethical finance opportunities it’s worth talking your views and options through with an investment advisor who can help you target the right assets in Portugal based on your investment needs. There are specific advisory services which specialise in ethical investments which may be able to meet your needs.

Other types of investment in Portugal

Traditional investments in stocks and shares are very popular in Portugal but there are also other options.

Bonds and government securities

Generally government and corporate bonds are viewed as low-risk investments with moderate return rates. Bonds are often used as part of a diversification strategy to ensure your portfolio has a mix of risk within it.

You can track bonds listed on the Lisbon stock exchange online – and get advice from professionals if you’re interested in adding bonds and securities into your portfolio.

Alternative investments

To diversify even further investors may also look at other markets like gold, precious metals, art, wine, and cryptocurrency. Some of these markets are fairly new, which can mean they’re more volatile and not as well regulated as other markets. If you’re considering alternative investments, be wary of scams and do your research carefully before handing over any money.

Life insurance and specialized products

You may find that death benefits paid from an insurance policy upon the death of the holder are exempt from income tax in Portugal, particularly if you’re a close relative of the policy holder. Some life insurance policies in Portugal also include an investment element which you may be able to cash in before the death of the policy holder. Any growth in value may be taxed.

This may mean that using life insurance as an asset for growth – or to pass on to the next generation – could be an option. However, bear in mind that other taxes may still apply, including tax in your home country if you’re an expat in Portugal. Get advice before you invest.

Tax on investments in Portugal

Before you invest in Portugal it’s important to understand the tax implications both in Portugal and in your home country if relevant.

Capital gains and investment income taxation

The capital gains tax on investments in Portugal is 28%. However there are a few useful exceptions to know about.

For example, only 50% of gains from shares in micro and small companies not listed in the stock exchange are taxed.

There are also some discounts on tax payable on investment funds/open collective investment undertakings. These depend on how long you’ve held the asset for, with exemptions as follows:

• 10% where assets were held for more than 2 years and less than 5 years
• 20% where assets were held for more than  5 years and less than 8 years
• 30% where assets were held for more than 8 years

Get advice on taxes when you sell any assets so you know how the rules apply in your own case.

Property and wealth taxes

Property tax in Portugal is usually 0.3% – 0.8% of the property value, paid annually. There’s also a wealth tax of 0.7% – 1.5% on properties which are valued at 600,000 EUR or more.

How to start investing in Portugal

Before you start investing in Portugal you’ll need to make sure you have a good understanding of the local market, as well as general principles for investing as effectively as possible. Here are a few universal investment principles to consider:

• Start with low-risk investments for beginners, to give you a chance to learn more about the investment journey
• Diversify investments to avoid concentration risk, looking at different asset types or geographies for example
• Understand time horizon and risk profile – investing is usually a long term concern, so if you’re looking at quicker returns you will need to choose your products carefully
• Never invest more than you can afford to lose and don’t borrow to invest
• Research thoroughly and avoid “too good to be true” offers – including when you compare the fees of different platforms or brokers
• Consider professional advice for complex investments and as you learn

This guide is for information only and does not constitute advice. Different types of investment are suitable for different individual needs. Get professional advice and support to choose the right investment plan for your unique situation.

Useful resources

• Immigrant Investor Visa – options to get Portuguese residence by investment
• Portuguese government – state pension information 
• The Portuguese Securities Market Commission (CMVM) – regulator of Portugal’s stock exchange and financial sector
• Banco de Portugal – Portugal’s national bank
• Euronext Lisbon – Portuguese stock exchange
• The Banks – Comparison website for EU banks
• Broker Chooser – Comparison website for investment platforms
• PwC – Portugal individual income tax summary

Conclusion

If you’re an expat in Portugal or if you’ve moved there to retire or to live long term, you may be thinking of investing to protect your future financial well being. 

Portugal has a large range of investment opportunities from buying property, investing in shares and other popular assets, or starting a local pension. Get professional advice before you invest in Portugal to make sure your plans match your risk profile and needs. And don’t forget that you’ll also need great low cost ways to convert currencies – like Wise – if you’re sending money to or from Portugal internationally. 

Wise uses the mid-market rate with no markup to worry about, and  fee discounts on high value payments over 20,000 GBP. This helps with keeping costs low and making the process to transfer overseas simple, convenient and cheap.

FAQs

1. How to invest in stocks in Portugal?

Invest in stocks in Portugal through major banks which have investment products and advisory services, or through popular app based investment platforms. Get advice before you invest to make sure your investment portfolio matches your long term needs.

2. Where to invest in Portugal?

Portugal has a full range of investment options from buying property, investing in shares and other popular assets, or starting a local pension.

3. What is the best way to invest money in Portugal?

There’s no single best investment in Portugal – the right options for you depend on your needs and preferences. As an expat your requirements can be quite different to a long term Portuguese resident, so getting specific advice from an investment expert can help you structure your portfolio.

4. Is there a reason to invest in Portugal?

You may want to invest in Portugal if you’re planning on living there or if you want to diversify your portfolio to take in additional geographies. 

5. Is it easy to start investing in Portugal for foreigners?

Portugal has an accessible investment landscape with few barriers to entry for most people. Get some advice to make sure you’re using your money wisely, and look at all possible investment options before you commit.