Lifestyle Investment in Portugal 2025: Living, Retiring & Owning a Holiday Home

2️⃣ Residency & relocation options

Although the Golden Visa property route ended in 2023, Portugal remains one of Europe’s most open countries for relocation:

• Digital Nomad Visa – for remote workers earning €3,280 / month +, renewable up to two years.
• D7 Visa – for retirees or anyone with stable passive income (pensions, dividends, rental).
• Startup & Tech Visas – for entrepreneurs and investors in innovation sectors.
• Non-Habitual Resident (NHR) regime – still available under transitional rules, granting 10 years of favourable taxation.

> “We’ve seen a surge in people moving for lifestyle first, visa second,” Herriman notes.
“Portugal’s process is predictable, English-friendly, and designed for long-term settlement.”

3️⃣ Cost of living & quality of life

Despite rising prices, Portugal remains cheaper than most Western-European peers:

• Monthly costs (outside Lisbon): ~ €1,600 for a couple including rent.
• Lisbon city centre: ~ €2,400 per month.
• Healthcare: public system ranks 12th in Europe (WHO Index 2025).
• Transport: modern metro + rail links to Spain and the rest of the EU.
• Climate: mild Atlantic winters, warm Mediterranean summers.

Add strong English proficiency and generous expat tax allowances, and Portugal delivers one of Europe’s easiest lifestyle transitions.

4️⃣ Owning a holiday home

Portugal’s holiday-home ownership remains buoyant:

Average stay of foreign visitors: 7 nights (INE Tourism Data 2025).

• Rental demand: Algarve & Lisbon drive the Airbnb market, but smaller coastal towns now trending as regulations tighten.
• Mortgage LTV: 70–80 % for foreign buyers, rates ≈ 4.5 % (major banks 2025).

Running costs:

• IMI property tax ≈ 0.3–0.45 % of VPT
• Community fees €40–150 / month
• Insurance €200–300 / year

> “We always tell lifestyle clients: buy where you’d actually holiday,” Herriman says. “If you love the place, guests probably will too.”