Portugal remains at historically high price levels, but the market is slowing its pace and correcting in certain locations. The year 2026 begins with the Portuguese real estate market still at historically elevated levels. However, it is no longer accurate to describe it as a uniformly “booming” market. National indices continue to reach new highs, yet behind the averages lie areas where prices have stabilized — and others where corrections are already underway.

Portuguese tax legislation provides a specific framework that may allow for a capital gains tax exemption on the sale of property by homeowners aged 65 or over, or who are retired, provided certain legal conditions are met.

The Portuguese real estate market continues on a growth trajectory in 2025, with a range of trends impacting both the overall housing market and the luxury segment. Rising demand and new economic dynamics position Portugal as a prime destination for both national and international investors. Let’s explore the expectations for both segments and what they mean for those looking to invest or purchase property.

Decree-Law Allows Construction on Rustic Land and Takes Effect in February The decree-law establishing an exceptional regime for construction on rustic land was published in the Diário da República on December 30, 2024, and is set to come into effect within one month.

Starting from August 1st, all young people up to 35 years old can benefit from a significant measure when acquiring their first permanent residence. To be eligible, young people must not have been considered dependents for IRS purposes in the year of the house purchase. Here are the answers to the most frequently asked questions about this measure: