Portugal’s Strengths: When a Top-4 Passport Mirrors a Country Built for Long-Term Life & Investment

Portugal has just been highlighted for something that goes far beyond travel convenience: its passport is now ranked among the world’s strongest: 4th globally in the Henley Passport Index, with visa-free or visa-on-arrival access to 188 destinations.

But the real story is what this ranking signals: international trust, stability, and a country that has become a serious base for families, entrepreneurs, and long-term investors.

Portugal’s passport ranking reflects more than travel convenience, it signals long-term stability and international confidence in the country.

1) Key points to understand:

• Portuguese nationality by naturalisation was historically accessible after 5 years of legal residence.

• Recent reforms announced in 2025 indicate longer timelines may apply, generally discussed as:

– 7 years for EU citizens and nationals from Portuguese-speaking countries

– Up to 10 years for other foreign nationals

• EU citizens obtain the right to permanent residence after 5 consecutive years of legal residence.

• Typical naturalisation requirements include:

– Proven legal residence for the required period

– Basic Portuguese language level (commonly A2)

– Clean criminal record

• A 2024 administrative change allows residence time to potentially be counted from the date of residence application submission, rather than only from permit approval.

Nationality rules may evolve depending on legal reforms and transitional provisions. Individual situations should always be confirmed with an immigration lawyer or the relevant Portuguese authorities (IRN / AIMA).

2) A country that the world chooses, at scale

Portugal isn’t “up-and-coming” anymore. It is selected, repeatedly, by millions.

• In 2025, Portugal recorded approximately 33 million guests in tourist accommodation, continuing its record growth trajectory.

• International guests represented over 20 million visitors, confirming Portugal’s strong global appeal.

• Official statistics estimate more than 30 million non-resident tourist arrivals in 2025, reflecting continued growth compared to 2024.

This matters for investment because tourism is not only leisure demand, it supports:

• hospitality & branded residences

• retail and F&B

• services, wellness, and experience-led concepts

• year-round short stays and long-stay relocation

3) Connectivity: Portugal is small, but globally connected

Portugal’s competitiveness is also a connectivity story — essential for international residents and business owners.

• Lisbon Airport handled approximately 36.1 million passengers in 2025, confirming its role as the country’s main international gateway and one of Southern Europe’s fastest-growing hubs

• Portugal’s airports reached a record 72.5 million passengers in 2025, highlighting sustained growth in international mobility and tourism demand

• Lisbon continues to offer scheduled passenger traffic to around 150 destinations, reinforcing its position as a major European entry point

• Porto Airport continues to serve more than 100 destinations, reflecting the country’s expanding international connectivity

For investors, this is what enables:

• easy multi-base living (Portugal + London / Paris / Geneva / NYC)

• strong demand for premium rentals

• commercial resilience (events, conferences, corporate mobility)

4) Safety & stability: a key relocation driver

Portugal consistently ranks among the world’s safest countries.

• Portugal ranked 7th globally in the Global Peace Index (GPI) 2025, maintaining its position among the safest countries worldwide.

Safety is not just a lifestyle point: it is a major factor in family relocation decisions, school choices, and long-term residential demand.

5) International awards: Portugal’s brand is winning, repeatedly

Awards don’t replace fundamentals, but they confirm how the market perceives the country.

• Portugal was voted Europe’s Leading Destination 2025 at the World Travel Awards.

• Porto was recognised as Europe’s Leading City Destination 2025 (WTA).

• Tourism of Portugal notes that the Algarve won World’s Leading Beach Destination again at the

World Travel Awards (including 2024 and 2025 mentions in their communications).

These awards support the reality that Portugal is not a niche choice, it’s mainstream at the high end.

6) What this means for real estate: residential and commercial

Portugal’s strengths converge into one outcome: sustained, international demand.

• Residential: primary residences, second homes, relocation projects, family properties, “lifestyle upgrade” moves.

• Commercial: hospitality, serviced apartments, retail, restaurants, wellness, offices and mixed-use concepts aligned with the country’s growth.At Bonte Filipidis, our value is not just access to listings. It’s local intelligence, positioning, and helping clients match a property decision with:

• legal and residency realities

• long-term value drivers

• lifestyle vs. yield tradeoffs

• and the real on-the-ground dynamics of each micro-market

7) Prime residential market: long-term value supported by international demand

The strength of Portugal’s fundamentals is reflected directly in the performance of its prime residential market, particularly in Lisbon.

Prime residential values in Lisbon have increased approximately 25–35% over the past five years, with the most sought-after areas, including Avenida da Liberdade, Lapa, and Príncipe Real, now achieving between €9,000 and €15,000 per m², while remaining below pricing levels seen in comparable European capitals such as Paris or London.

International buyers continue to play a central role in market dynamics, representing an estimated 65–75% of transactions in the prime segment. Combined with structurally limited new supply in premium locations, this sustained global demand contributes to long-term value stability and market resilience.

Portugal also remains one of Europe’s leading destinations for international relocation, supporting consistent demand for high-quality residential property. In Lisbon, gross rental yields in the premium residential segment typically range between 3% and 5%, with strong occupancy levels driven by lifestyle migration, corporate relocation, and long-stay international residents.

These fundamentals reinforce Portugal’s positioning not only as a lifestyle destination, but as a market where residential property continues to align quality of life with long-term investment logic.

Because in 2026, the question isn’t “why Portugal?” It’s “where, how, and with whom do you invest in Portugal, so the move makes sense for the next 10 years?”

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