Portugal Acts as a Luxury and Eco-Tourism Magnet Amid Spain’s Crackdown

As Spain tightens its grip on holiday rentals and faces mounting anti-tourism protests, Portugal is experiencing an unprecedented tourism boom.

As a result, it’s now positioning itself as Europe’s new luxury and eco-tourism hotspot.

Spain’s Crackdown Pushes Tourists to Portugal

Spain’s new regulations—such as Malaga’s three-year freeze on new short-term rental registrations and similar bans in cities like Madrid and Seville—are responses to overtourism, rising rents, and resulting local frustrations.

These measures, while aimed at protecting residents, have made Spain less attractive to international travellers seeking flexibility and hospitality.

Portugal’s Tourism Hits New Heights

In contrast, Portugal’s open-arms approach is paying dividends.

In August 2024, the country welcomed a record 3.8 million visitors, a 5.9% increase from the previous year. In January to March of 2025, 5.7 million visitors were registered; a year-on-year increase of 2.3%.

The government’s strategic promotion—like additional direct flights from the US and tailored hotel upgrades—has fuelled a 33% surge in American overnight stays, generating €2.5 billion in revenue.

Tourism now contributes 16.5% to Portugal’s GDP, with tourism-linked consumption reaching nearly €44 billion in 2023. This influx is boosting the economy and driving up demand for luxury and sustainable tourism experiences.

Luxury and Eco-Tourism Investments Surge

Portugal’s luxury and eco-tourism sectors are seeing a wave of new investment, particularly from international funds and high-net-worth individuals attracted by the country’s stability, lifestyle, and Golden Visa residency-by-investment programme.

Explains Paul Stannard, founder of Portugal Pathways and the Portugal Investment Owners Club: “Portugal has created a unique environment for like-minded people to create sustainable investments in key sectors of its economic strength.

“We’re seeing a surge in luxury and eco-tourism investments, as global investors recognise the country’s commitment to quality, sustainability, and innovation.

“This is driving record growth in hospitality and creating new standards for the industry.”

Golden Visa: Gateway to Investment and Residency

Portugal’s Golden Visa programme, now focused on approved alternative investment funds rather than direct real estate, is a major driver behind this investment surge. By investing €500,000 in approved funds, investors gain residency, access to the Schengen Area, and a pathway to EU citizenship.

Paul Sheedy is a special advisor at the Portugal Future Fund, an alternative investment fund approved for Portugal’s Golden Visa residency by investment programme.

He says: “A blended approach to investment—spanning sectors such as luxury hospitality and tourism, renewable energy, media and international events, healthcare, and technology—not only aligns with Portugal’s economic strengths but also offers investors robust, diversified returns.

“The Portugal Future Fund, approved for Golden Visa residency-by-investment, is seeing heightened interest from those seeking both financial and lifestyle benefits.

In order to maintain residency, Golden Visa holders need to spend just seven days per year in Portugal and are eligible for permanent dual citizenship and an EU passport after just five years.

Portugal’s Tourism Sector - Looking Ahead

Portugal’s strategic focus on sustainable tourism, luxury experiences, and investor-friendly policies is cementing its status as Europe’s premier destination for both travellers and investors.

As Spain wrestles with overtourism, Portugal’s welcoming stance and robust investment climate are setting new benchmarks for the future of tourism in Europe.

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Portugal Pathways' expert team can support you with your Golden Visa application. Contact us today!

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Portugal Pathways is hosting a webinar: 'Securing EU Residency Through Portugal's Golden Visa', in which we will explore the Golden Visa itself, its benefits, and the application process - register now!

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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 luxury property, wealth management, and tax optimisation, including post-NHR tax regime planning, as well as private healthcare, IFICI tax incentive applications, money transfers and bespoke relocation solutions to enhance life and investments in Portugal.

About Portugal Future Fund

The Portugal Future Fund strategically invests in key sectors, driving growth and innovation across Portugal. Approved for Portugal’s Golden Visa residency-by-investment, it offers a unique opportunity for impactful and rewarding participation.

About Portugal Investment Owners Club

The Portugal Investment Owners Club, or P Club for short, is a unique investor membership community designed for discerning individuals, families, and organisations committed to exploring and capitalising on life in Portugal and enjoying money-can't-buy experiences and exclusive events.

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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.

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