What is NHR 2.0 in Portugal?

NHR 2.0 (Non-Habitual Resident, 2024 version) is a tax regime reserved for new Portuguese tax residents carrying out a qualified activity (research, tech, healthcare, higher education). It allows a 20% tax rate on qualified Portuguese income for 10 years, and a partial exemption on certain foreign income.

Is the Portugal Golden Visa still available in 2026?

Direct property purchase has no longer been eligible since October 2023. But the Golden Visa remains open via qualified investment funds (from €500,000), job creation or cultural patronage. It gives access to residency and then Portuguese citizenship after 5 years.

What are the acquisition costs of a property in Portugal?

Allow around 7 to 10% of the price: IMT (transfer tax, 0 to 7.5% progressive scale), Imposto do Selo (0.8%), notary and registration fees (~1%), lawyer's fees (1 to 1.5%), NIF and bank fees.

Can a non-resident obtain a Portuguese mortgage?

Yes. Portuguese banks (Millennium BCP, Novo Banco, Santander Totta) lend up to 70% of the value to non-residents, over 25 to 30 years, at generally competitive rates. A file with stable income is well received.

Investment

Investing in the Algarve — Taxation, NHR 2.0 and Golden Visa in 2026.

The Algarve remains one of Europe's most attractive regions for property investment: gentle taxation, record tourist rental demand, still-competitive prices and a stable legal framework for foreign investors.

+7.2% property price growth in the Algarve in 2025 (INE Portugal), average gross rental yield of 6 to 9% in short-let, IMI among the lowest in Europe. Here is why French, Belgian and Swiss investors keep choosing Portugal.

Why invest in the Algarve in 2026?

Still-accessible prices: €3,500 to €6,000/m² on the prime coast, versus €12,000 to €25,000 on the French Riviera.
Record rental demand: over 5 million tourists a year, a season stretching from April to October.
Safety and stability: Portugal ranked 7th safest country in the world (Global Peace Index 2025).
Gentle taxation: IMI at 0.3–0.45%/year, no wealth tax, favourable capital-gains treatment when reinvesting.
European framework: euro, EU law, no restrictions for European nationals.

Portuguese taxation 2026 for a foreign investor

Purchase taxes

IMT (transfer tax): progressive scale from 0 to 7.5% depending on price and use.
Imposto do Selo (stamp duty): 0.8% of the price.
Notary + registration: ~1%.
Lawyer: 1 to 1.5%.

Annual taxes

IMI (property tax): 0.3 to 0.45% of the cadastral value (often well below the purchase price).
AIMI for holdings > €600k: 0.4 to 1%.

Taxation of rental income

Rental income taxed at a flat 25% (simplified 2025 scale), or included in the progressive scale if Portuguese tax resident under NHR 2.0.

The NHR 2.0 regime (2024–)

The new NHR 2.0 regime, in force since 2024, reserves its benefit for new tax residents carrying out a qualified activity (research, innovation, healthcare, tech, higher education, certified start-ups). It offers:

Taxation at 20% for 10 years on qualified Portuguese income.
Partial exemption on certain foreign income (dividends, royalties).
No inheritance tax in direct line.

Portugal Golden Visa — 2026 status

Direct property is no longer eligible since October 2023. Still eligible:

Qualified investment funds — from €500,000.
Job creation — minimum 10 local jobs.
Cultural patronage — from €250,000.
Scientific research — from €500,000.

The Golden Visa gives access to Portuguese residency (7 days a year in the country is enough) and then citizenship after 5 years.

Next step

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Rental yield in the Algarve

In short-term rental (Airbnb, Booking), the average gross yields observed in 2025:

Albufeira, Lagos, Carvoeiro: 7 to 9% gross / 4 to 6% net.
Vilamoura, Vale do Lobo: 5 to 7% gross, but strong capital appreciation.
Tavira, hinterland: 4 to 6% gross, shorter season.

Note: since 2024, Alojamento Local licences are capped in certain parishes. Always check AL licence availability before buying — it is one of our systematic due-diligence points.

Portuguese bank financing

The main banks (Millennium BCP, Novo Banco, Santander Totta, Bankinter) lend to European non-residents:

LTV up to 70% (sometimes 80% for residents).
Term: 25 to 30 years.
Rate: Euribor + 1 to 2%.
Borrower insurance mandatory.