In the last year alone, U.S. citizens purchased an estimated 9,000 to 10,000 properties in Portugal, making up nearly half of all foreign real estate transactions in that year.
They now make up a growing percentage of buyers in key property hotspots such as Lisbon, Porto, and the Algarve, markets that were previously dominated by European purchasers.
U.S. residents accounted for over 58% of international buyers in Portugal in the first quarter of 2025.
These figures tell only part of the story. The number of Americans living in Portugal jumped from around 14,129 to 19,258 in just one year, according to AIMA, a 36% increase that reflects deeper currents beyond mere investment statistics.
Yet for many American buyers, the question is not whether to buy in Portugal; it is how to do so with financial and tax efficiency that withstands scrutiny on both sides of the Atlantic.
Lisbon’s Príncipe Real, a neighbourhood where foreign buyers now comprise roughly 10–15% of transactions. However, most Americans are most often buying part-time homes that double as long-term investments, rather than full-time residences.
“The strategic logic is compelling,” says Paul Stannard, Chairman and Founder at Portugal Pathways and Portugal Investment Owners Club. “Portugal continues to offer property prices lower than many major U.S. cities, travel connections are expanding, and luxury new homes in key hotspots are in record demand.”
American buyers have gravitated toward three distinct financing strategies, each with trade-offs that test buyers’ tolerance for risk, cost, and complexity.
One option is a local Portuguese mortgage. In concept, it offers the lowest interest rates in the eurozone and aligns borrowing with the asset’s currency. In practice, however, many U.S. citizens find themselves stalled in red tape.
European banks, wary of complex IRS compliance requirements for American clients, often refuse to lend to U.S. buyers or demand extensive documentation and down payments of 30–40%. Moreover, approval cycles stretching three to four months can be fatal in a market where cash offers win deals.
The second route is more familiar to Americans, tapping domestic equity through mechanisms like HELOCs (home equity lines of credit) to generate liquid cash for a purchase.
That converts buyers into de facto cash buyers abroad, an advantage in competitive bidding. The cost, however, can be steep, as U.S. credit rates tend to exceed European mortgage benchmarks.
The third, increasingly sophisticated path is the asset-backed mortgage, a financial structure that marries a Portuguese mortgage with a pledged U.S. investment portfolio. By combining real estate collateral with liquid assets held abroad, lenders may extend financing up to 100% of the purchase price without forcing the buyer to liquidate investments.
This preserves capital growth and avoids triggering capital gains events. While not offered by high-street banks, this structure is gaining traction among private banking networks that bridge jurisdictions and custody requirements.
For many buyers, the property purchase is just one chapter of a larger transition, often encompassing tax strategy, visa pathways, and long-term residency planning.
“Our clients are not just purchasing property in Portugal,” Paul Stannard explained. “They are structuring their investments to maximise financial efficiency, preserve capital, and maintain flexibility across Europe. How they finance and position these assets directly impacts their long-term returns and strategic options within the EU.”
This broader lens matters in a world where Americans owning property abroad must reckon with tax frameworks on both continents, reporting requirements, and the evolving particulars of Portugal’s residency programs.
Americans are now among the leading foreign buyers of property in Portugal, a position that reflects not only lifestyle preferences and remote work flexibility but calculated financial and strategic planning.
To explore luxury new homes with tailored support, contact Portugal Pathways today.
About Portugal Pathways
Portugal Pathways has supported hundreds of Golden Visa residency-by-investment applications and provides expert guidance through its professional supply chain network on estate planning, wealth management, Golden Visa and tax optimisation, including post-NHR / IFICI tax regime planning, as well as private healthcare, money transfers and bespoke relocation and luxury real estate solutions to enhance life and investment in Portugal
Disclaimer: The information on the Portugal Pathways and Portugal Investment Owners Club (P Club for short) websites and in email communications is for general informational purposes only and should not be construed as legal, tax, or financial advice. You should consult and check with a qualified professional advisor before relying on any information provided on this website or in email communications. As it relates to investments in Golden Visas or other wealth management solutions offered by regulated and professional advisors, it is important to note that past performance is no guarantee of future returns. Private equities can be highly illiquid and come with risk and should always be under professional independent advice. Golden Visa investments need to be held for 6 to 7 years to allow for permanent citizenship/passport in the EU.
Secure EU Residency Through Portugal’s Golden Visa By Investment
Gain visa-free travel, family inclusion, and a secure path to EU citizenship
Maximise your wealth, tax status, property & life in Portugal
Talk to our expert team, so that we can offer personalised support to meet your specific needs.
