Foreign citizens account for 18% of Housing Loans granted in Portugal

According to the Bank of Portugal (BdP), one in five new loans was granted to foreign citizens, whether residents or non-residents in Portugal.

The share of foreign citizens (residents and non-residents) in the total stock of real estate credit increased from 6.9% in December 2022 to 8.2% in June 2024.

These figures, reflecting the analysis conducted during 2023 and the first half of 2024, show that « foreigners purchase more expensive homes at a time when there are persistent signs of overvaluation in the residential market. »

According to Clara Raposo, Deputy Governor of the BdP, this growing trend is driven by an increase in the foreign population and the housing demand from non-residents.

Regarding households, this growth reveals a shift in demand patterns, particularly for primary and permanent housing by active, younger foreign citizens.

« The foreign population residing in Portugal has grown significantly, offsetting negative natural population balances and contributing to the increase in the total population, which impacts housing prices, » commented the BdP.

In recent years, demand from foreigners with higher purchasing power has been boosted by measures such as the Golden Visa program and the Non-Habitual Residents regime.

The average price of a home purchased by a non-resident buyer (€345,000) remained higher than the average price paid by residents (€198,000).

Among non-residents, there are also differences in average acquisition values: buyers with tax residence in the European Union paid an average of €280,000, while those from other countries spent €408,000.