The Algarve has long been one of the most sought-after locations for holidaymakers looking to grace the region’s fabulous beaches, take in the sublime weather, and savor the delicious gastronomy. However, all good things don’t have to come to an end, which is why more expats than ever before are considering relocating to this gem on Portugal’s southern coast.
With luxury properties galore – particularly in the exclusive Golden Triangle – and an exceptional quality of life guaranteed, the Algarve looks set to stay at the table of the best luxury locations in Europe.
In this article, we’ll delve into this stunning region, providing you with key practical information that you’ll need to be aware of if you are considering moving here before delving into the best locations to buy property in the region.
Why buy property in the Algarve, Portugal?
First things first, why choose the Algarve? Well, if the 300 days of sunshine per year, incredible coastal landforms, and pristine beaches are not enough, the Algarve has excellent international schools, top healthcare options, affordable living costs, and world-class golf courses and watersport opportunities. Should you move to the Algarve, you’ll be able to enjoy a high quality of life where it is possible to enjoy the great outdoors for much of the year, thanks to the region enjoying more than 300 days of sunshine each year.
Algarve Property Investment: Is it a good idea to invest in Algarve property?
For property investors seeking an optimal investment property, you will find several smart investment property options in here. The average rental yield for properties in the Algarve was 5.6 in the third quarter of 2023, indicating the potential for a strong return on your property investment.
Tourism, a cornerstone of Portugal’s economy, continues to increase on an annual basis. Portugal closed 2023 with a record 77 million overnight stays and €25 billion in tourist revenue. This represents a 10 percent and 37 percent growth, respectively, when compared with 2019, according to the National Statistics Institute (INE), the Bank of Portugal, and Turismo de Portugal.
The best year for Portugal’s tourism industry emerged amidst heightened national and international uncertainty, marked by escalating inflation and conflict in Europe. The prospects for 2024 – and beyond- seem promising, poised to either match or even surpass the record-breaking tourist influx experienced in 2023.
The Algarve: A Dream for Luxury Investors
For property investors looking for a taste of luxury, it doesn’t get better than the Algarve. To purchase property here – whether it’s in the famous Golden Triangle, Lagos, or Portimão – is to put your stamp on the Portuguese landscape. Many celebrities have been enthralled by the beauty of the region, including Bonnie Tyler, Sir Cliff Richard, and Eric Cantona. You will find a wide range of incredible properties in the region, many of which have cutting-edge modern designs and thought-provoking architecture, embracing sustainable building practices.
Algarve Property Prices
Buying property in Portugal provides an array of opportunities for investors. When it comes to the south of the country, property prices in Algarve, Portugal, will vary depending on the local market and the property type, size, and location of the property. The average asking price for property in the Algarve was €3,897 in 2023.
Luxury property types and prices will range from €500,000 to €30,000,000, but this price range is highly variable depending on the property you are after. For example, properties in the lower price range will have one to two bedrooms, while properties on the higher scale will come with a whole host of amenities, larger land, private pools, and so on.
If you are looking for more in-depth insights on the property market in Portugal, you can check out our article: 2024: Insights for Buying Property in Portugal.
Regions of the Algarve
The Algarve is one of the most desirable locations to buy property in Portugal. The region divides naturally into three distinct sections: The Eastern Algarve, Central Algarve, and Western Algarve, each characterized by differing prices and landscapes.
The Westen Algarve is renowned for its outrageous landforms, watersport activities, and untamed nature, with towns and cities such as Sagres and Lagos ideal for nature lovers. The Central Algarve is known for its long stretches of white sandy beaches, bustling towns where there is always something going on, and luxury properties. The Eastern Algarve, home to the charming white and blue-washed houses of Tavira, is perhaps the most authentic part of the Algarve, where you’ll find local traditions to be at the heart of local life.
We delve into some of the most charming towns below.
Albufeira
Albufeira is a city of juxtapositions. On the one hand, it is a city that embraces a vibrant nightlife while at the same time prides itself on its rich culture, with its old town a must-visit, with its cobblestone streets and atmosphere.
Advantages
- Strategic location: Perfectly positioned just to the west of Faro, making international travel easy
- Stunning beaches: Beaches such as Praia da Oura and Praia dos Pescadores are some of the best in the Algarve region.
- Excellent amenities: given Albufeira is a tourist hotspot, you’ll find all the amenities you could want, plus excellent restaurants serving up top-quality food.
Disadvantages
- Busy in peak season: Albufeira can get busy with tourists during peak season.
- Limited authenticity: Albufeira is not as authentic as some other areas of the Algarve, such as towns in the Eastern Algarve.
Lagos
Lagos, in the Western Algarve, is simply gorgeous. From its stunning landforms, such as Ponta de Piedade, to the Benagil Caves, you will be swept away by the jaw-dropping nature of the region. Property buyers interested in snapping up property in the beautiful Algarve region should certainly consider Lagos and many properties come with stunning sea views. What could be better than waking up and enjoying your morning coffee with those Atlantic waves rolling in? Or enjoying a red sunset with an ice-cold cerveja (beer) from your balcony? Yes, Lagos is a top location to consider.
Advantages
- Stunning coastline: From the dramatic cliffs of Ponta da Piedade to the golden sands of Meia Praia, Lagos offers breathtaking coastal scenery and numerous beaches to explore.
- Watersports galore: Enjoy a wide range of watersport activities. Sagres, a world-class surf haunt, is also a favorite with keen surfers.
Disadvantages
- Tourist crowds: While not as busy as Albufeira, Lagos can become crowded during peak tourist seasons, potentially affecting the quality of life for residents.
- Property prices: Property prices can be more expensive here than in other parts of the Algarve, given it is a highly desirable location to live in.
Portimão
In between Albufeira and Lagos, you will find Portimão, located in the estuary of the River Arade. Again, Portimão is a favorite with expats and tourists, given its sandy beaches and warm, calm waters, where many spend the day enjoying the relaxed atmosphere.
Advantages
- Marina and waterfront: Portimão boasts a modern marina and a postcard-picture waterfront, perfect for leisurely strolls, dining, or enjoying water-based activities.
- Central location: Situated in the heart of the Western Algarve, Portimão provides easy access to key areas in the Algarve, including beaches, golf courses, watersport activities, and historic towns.
- Endless beaches: The incredible Praia da Rocha beach can be found here, home to various festivals and endless golden sands.
Disadvantages
- Tourist crowds: As with other hotspot locations, it can get busy in summer. However, with this said, if you are looking for peace and quiet for most of the year, Portimão is a peaceful place to live outside of peak tourist season.
Loulé
Loulé is one of the most desirable destinations to live in the Algarve. Close by, you have the Golden Triangle of Vilamoura, Amancil, and the resort complexes of Quinta do Lago and Vale do Lobo, where you will find an array of luxury properties. Very close to Loulé, you have Quarteira on the coast and Salir or Alte in the interior, so you are well located to get to some of the top tourist sites.
Advantages
- Strategic location: Faro airport is very close, perfect for international travelers. You can also easily get around to the key sites in the Algarve region, as you are located in a very central location.
- Cultural hotspot: The Loulé Carnival celebrations are spectacular and are one of the most famous carnivals in the country. You will find Loulé to be rich in culture, with the Loulé castle and a few excellent art galleries, such as Artcatto Gallery.
- Market Town: Loulé boasts a lively market scene, where you can find fresh produce and local crafts and immerse yourself in the authentic Algarve lifestyle.
Disadvantages
Property Prices: Being a popular destination, property prices in Loulé may be higher compared to some neighboring towns.
Vilamoura
One part of the Golden Triangle, Vilamoura is one of the stand-out locations to live in Europe. For lifestyle buyers, you will find incredible properties with unique architecture and modern amenities. Whether you are looking for a modern apartment or a spacious villa, you’ll find several top property investment options here. The incredible marina has been named the International Marina of the Year multiple times by The Yacht Harbour Association (TYHA) and the British Marine Federation.
Advantages
- Thriving international community: The town attracts a diverse expatriate community, providing a cosmopolitan atmosphere and opportunities for networking and socializing.
- Investment potential: Properties in Vilamoura often hold good investment potential due to the high demand from both tourists and expatriates seeking a premium living experience.
- Scenic beauty: From stunning sea views to picturesque golf courses and green spaces, Vilamoura offers residents breathtaking scenery to enjoy.
Disadvantages
- High property prices: Vilamoura’s popularity and exclusivity come with a higher price tag, making it less accessible for budget-conscious buyers.
- Seasonal fluctuations: The town’s economy is heavily reliant on tourism, leading to potential fluctuations in rental income and property values during off-peak seasons.
Why buy property in Tavira, Algarve?
If you have visited Tavira, the following thought has probably graced your mind, wouldn’t this be a wonderful place to live? The white-washed houses with blue façades, countless churches, and the Gilão River flowing through the heart of the little city create a unique ambiance. You’ll find locals chatting on the streets or playing cards in a local café, boutique shops lining the cobbled streets, and fantastic Portuguese food. Tavira, as with much of the Eastern Algarve, is the place to be for those searching for an authentic Portuguese experience.
Advantages
- Natural Beauty: Situated close to the Ria Formosa Natural Park, Tavira boasts stunning natural scenery, including pristine beaches, salt flats, and diverse wildlife, ideal for nature enthusiasts. You can opt to take the little train down to the Praia do Barril or else enjoy a charming walk through nature, where the stunning beach opens up before you when you reach your destination.
- Peaceful Lifestyle: Tavira offers a tranquil environment away from the hustle and bustle of larger tourist resorts, making it suitable for retirees or those seeking a quieter lifestyle.
- Authentic Atmosphere: Unlike some of the more touristy areas of the Algarve, Tavira maintains its authentic Portuguese ambiance, appealing to those seeking a genuine cultural experience
Disadvantages
- Proximity to beaches: While Tavira has beaches that are less busy than in some other parts of the Algarve, they are not too close to the center of the city.
Other areas to consider buying Algarve property
The Algarve is home to a wide selection of stunning towns and cities, and determining where is best for you will depend on your requirements. For example, as we mentioned, the eastern Algarve is the perfect place if you are looking for a more authentic taste of Portugal.
Vila Real de Santa António is a charming town renowned for its rich history dating back to the 18th century. While not a tourist hotspot, the region is beginning to be recognized as an attractive destination for tourists looking for some peace and quiet.
In the Center, other places to consider are Alvor and Carvoeiro, where you are centrally located and will find an array of luxury properties, from modern apartments to more spacious beachfront properties.
And, in the west, Sagres is a top pick, particularly favored by nature and surf lovers. Aljezur, further north is also a top location to consider, with Algarve real estate investments more affordable here too.
Should I buy property in the Algarve or in Lisbon?
Living in Portugal is a dream for many. Both Lisbon and the Algarve are spectacular in their own way and deciding on which one is better suited for you will depend on your personal preferences. For those looking to live in a vibrant capital city where there is always something going on, then Lisbon is the better option. For those searching for a place to enjoy a high quality of life, some of the best beaches Europe has to offer, and a permanently relaxed vibe, then the Algarve could be a safe bet.
The Portuguese real estate market has something for everyone – Porto, the Silver Coast, and the Alentejo region are each beautiful in their own right. It can also be a good option to find a rental property before you buy property to get to know the different areas. Similarly, speaking with a local real estate professional or buyer’s agent can help, as they will be able to discuss your needs to determine which part of Portugal could be best for you.
Practical Information about the Algarve
Algarve real estate has something for everyone, whether you are an experienced investor, a family moving with children, or a young professional. In this section, we’ll provide you with a brief overview of the southernmost region of Portugal.
Climate in the Algarve
The Algarve region boasts a Mediterranean climate with long, hot summers and mild winters, making it a year-round destination and one of the key selling points for exapts looking to move to a warmer climate or better enjoy outdoor activities throughout the year. With over 300 days of sunshine annually, temperatures typically range from 15 Degrees C (59 Degrees F) in winter to 30 Degrees C (86 Degrees F) in summer.
While it is no doubt hot, it does not get unbearable. The coastal region benefits from refreshing sea breezes, particularly along the coast, offering relief from the heat. Rainfall is minimal, mostly occurring between November and March.
Beaches in the Algarve
The Algarve’s beaches are some of the most beautiful in Europe, attracting exapts from around the world each year. From secluded coves to expansive stretches of golden sand, there’s a beach to suit every preference. Praia da Marinha, in between Portimão and Albufeira, is incredible, with its dramatic cliffs and crystal-clear waters, while Praia da Rocha offers a vibrant atmosphere with its bustling promenade and beach bars that come alive in the summer months. There are also several festivals that take place on the endless sands of Praia da Rocha, making it a top summer destination for many.
Families flock to Albufeira’s Praia da Oura for its shallow waters and amenities, while surfers favor Sagres for its excellent waves. Beaches in the Eastern Algarve – close to Tavira – offer a quieter retreat for those looking to enjoy peace and quiet, and a more authentic taste of the region.
Whether you seek relaxation, water sports, breathtaking scenery, or spending quality time with your family, the Algarve’s beaches have something for everyone.
Culture in the Algarve
The Algarve’s rich history is a rich tapestry with a strong Moorish influence that can be seen in architecture across the region. Each town will have its own local traditions, cuisine, and traditional practices, such as artisanal crafts and folk music. For food lovers, the region’s cuisine is a highlight, and it should come as no surprise that fresh seafood and fish feature greatly. Festivals like the Fiesta Sand Sculpture Festival in Lagoa and the World Music Festival in Loulé showcase the Algarve’s vibrant arts and music scene, while historic sites such as Silves Castle and the Moorish Alcoutim Castle offer glimpses into its storied past. Visitors can immerse themselves in the Algarve’s cultural heritage through its museums, markets, and festivals.
Lifestyle in the Algarve
If you’re considering moving to the Algarve region, you’ll be able to enjoy a high quality of life. If you’re into golf, you’ll find 33 excellent golf courses, so no matter where you are living, you will likely be within striking distance of a world-class golf course. For those who prefer water sports, you’ll be able to enjoy kayaking, paddleboarding, surfing, bodyboarding, and a wide array of other activities.
The region’s affordable cost of living, excellent healthcare, and safety contribute to its appeal for retirees, expats, and digital nomads seeking a relaxed pace of life. From quaint villages with cobblestone streets to bustling coastal resorts, the Algarve caters to diverse lifestyles, whether you seek tranquillity or excitement, making it a coveted destination for those craving a Mediterranean way of life. As we’ve mentioned, the Algarve has stunning beaches and incredible gastronomy, and there is a real community feel in much of the region.
Expats in the Algarve
The latest numbers show that 22.5 percent of the residents of the Algarve are expats, highlighting the region’s desirability amongst foreigners from all walks of life. With world-class international schools, families are increasingly looking to the Algarve for a more relaxed pace of life and as a place to spend quality time with their family – the sublime weather, where it is possible to get outside for most of the year helps, while the region has long been known as a retirement haven, for those looking to enjoy their golden years in style. And, given the recent shift in remote working, more digital nomads than ever before are enjoying the freedom of flexible working by enjoying the incredible lifestyle and culture that Portugal offers, the Algarve included.
Given the large number of expats, English is widely spoken. This is certainly the case in healthcare facilities, which are also increasingly geared towards providing expats with the healthcare that they need.
Transport in the Algarve
While having or renting a car is the easiest way to get around the Algarve, where you will be able to reach more secluded beaches that you cannot get to by bus or train, there are good public transportation links. From Faro, you can get to most key areas by train, plus there are good bus links between towns and cities. Uber is also an option and is very cheap compared with other Western European countries. For international travelers, Faro Airport makes it easy to get around, whether you are traveling for business or leisure.
International Schools in the Algarve
The Algarve is home to 12 international schools, from Aljezur in the west to Tavira in the east.
The list of international schools can be found below:
Lagos
- Barlavento International Primary School
- Vale Verde International School
Silves
- Nederlands Onderwijs Algarve Portugal
Olhão
- Colégio Bernadette Romeira
Tavira
- Colégio Santiago Internacional
Aljezur
- Aljezur International School
Albufeira
- Eden Montessori International School
Lagoa
- Nobel Algarve British International School
Loulé
- Educan, Algarve
- CIV-Vilamoura International School
- Eupheus International School Loulé – Algarve
- Algarve International School
A Step-by-Step Guide to Buying Property in the Algarve
Below, you can find a simple step-by-step guide for a successful property purchase in the Algarve. As you can see, with expert assistance, the process is not too difficult.
Steps | Details |
Step 1: Obtaining a Portuguese Tax Number | Non-EU citizens and EU citizens purchasing property in Portugal will need a NIF, the Portuguese tax number, to open a bank account and complete financial transactions in Portugal. If you are a non-EU citizen, you will need a fiscal representative to apply online or at the local tax office. |
Step 2: Secure financing for your property | Assess your finances, explore mortgage options from Portuguese banks, and understand associated costs such as taxes, legal fees, and property registration expenses. |
Step 3: Finding a property | Set a budget and research the Portuguese real estate market, focusing on location, amenities, and rental potential. Seek guidance from real estate professionals like buyer’s agents or real estate agents. |
Step 4: Purchasing the Property | Once you find a suitable property, negotiate an offer with the seller, potentially facilitated by a real estate professional. Consider having a buyer’s agent representing your best interests during negotiations. |
Step 5: Signing the Promissory Contract (CPCV) | After an offer is accepted, a Reservation Agreement may require a refundable fee. The Promissory Contract (CPCV) finalizes the deal, often with a 10 percent deposit, signed in front of a Notary. |
Step 6: Signing the Escritura | The Escritura, or Final Deed, officially transfers property ownership. Signed before a Notary, it involves paying remaining balances and fees. After signing, the buyer becomes the official owner, concluding the process. |
Step 7: Paying Fees and Complying with Property Tax Obligations | There are other costs involved besides the standard property prices including legal fees, property taxes, property transfer tax, and possibly capital gains tax if you ever decide to sell the property. |
Requirements for a Successful Property Purchase
An essential step of buying property in Portugal is applying for a Portuguese NIF number and opening a bank account. The NIF is your personal tax number, which is essential for any financial transactions in Portugal, while having a Portuguese bank account will save you international transaction fees and make your life easier, as some establishments in Portugal only accept Portuguese cards. You can find out more in this guide, How to Get a NIF (Tax Identification Number) Portugal: A Guide for Expats, by our partner Global Citizen Solutions.
Required documents
In addition to your NIF, you will need to have the following documents.
- Photo ID: A valid identification document
- Contrato Promessa de Compra e Venda (CPCV): The buying contract or property deed that outlines the terms and conditions of the property purchase
- Energy Certificate: The property’s energy certificate outlining the energy efficiency of the property.
- Imposto de Selo: The Stamp Duty payment, which is a tax required by the Tax Authority for property transactions
- Caderneta Predial: The land register document that contains essential property information, including its location, boundaries, and registered owner
Portuguese Property Taxes
When purchasing property, you will need to be aware of the Portuguese property taxes that you will need to pay at the time of purchase and on an annual basis.
For your property investment, you will need to consider the following:
Property taxes at the time of purchase: You will need to pay the Property Purchase Tax (IMT), also referred to as the Property Transfer Tax, in addition to Stamp Duty when buying property in Portugal.
Property taxes on an annual basis: You will need to Municipal Property Tax (IMI) and Wealth Tax (AIMI) on properties above €600,000.
Financing your Property
Should you need assistance with financing your property, there is a wide array of financing options in Portugal. There are more than fifteen banks that offer various lending options to buyers. You should consult a mortgage broker to determine which option is best suited to your personal requirements.
For fiscal residents in Portugal, the Loan-to-Value (LTV) is permitted up to the amount of 90 percent for your own home or personal home, reduced to 80 percent if it is a holiday home. This ratio is considered on the lower value of either the purchase price or bank appraisal price.
For non-residents in Portugal, the maximum LTV ratio is 60 to 70 percent, but this will vary slightly depending on the bank.
Exploring Visa and Immigration Options for Portugal
If you are considering buying property in Portugal and are looking to move to the country, you will need to ensure that you can live in the country.
EU citizens will face no issues and will simply need to get a Registration Certificate if they intend to stay in Portugal for more than three months.
For non-EU citizens, the process is slightly more complicated. However, you will be pleased to know that Portugal is one of the easier countries to secure residency in Europe and there are several options on the table.
Options include the following:
Portugal Golden Visa: You will be able to secure residency in Portugal in exchange for a significant investment into the country. Investment options include job creation, an investment into cultural production, or an investment fund. The minimum investment amount is €250,000 (cultural production investment pathway).
D7 Visa: Also referred to as the Passive Income Visa or Retirement, you can live in Portugal provided you have sufficient passive income (from investments, your pension, intellectual property, transferable equity, dividends, royalties, etc.) amounting to €820 per month.
Digital Nomad Visa: For remote workers who have a non-Portuguese employer, you can apply for the Digital Nomad Visa.
There is a wide range of residency options available, more than the three we mentioned above. To discuss which pathway could be best suited for your needs, you can get in touch with our partner, Global Citizen Solutions.
How can we help you find your dream property?
Whether you are looking to find a holiday apartment to rent out, to buy property to relocate to with your family, or for a lovely place to retire to, BE Global Properties is here to help you uncover the property of your dreams. With a wide array of incredible investment prospects in the Algarve, this sundrenched region of Portugal is one of the best parts of the country to snap up property in.
There is an array of challenges to buying property in Portugal and finding the perfect property designed for your exact needs. BE Global Properties acts as a guiding light to find your perfect space, whether it’s a quiet apartment with sweeping views, a spacious holiday home, or a killer investment property.
At BE Global Properties, we’ve painstakingly crafted a platform that surpasses conventional standards. It’s more than just a listing service; it serves as an exclusive portal to access some of the most remarkable properties worldwide, many of which can be found in Portugal.
Frequently asked questions about buying property in the Algarve
Are there any international schools in the Algarve?
Yes, you will find a total of 12 international schools in the Algarve region, from Aljezur in the west to Tavira in the east. International schools will offer a wide range of curricula and languages.
What is transport like in the Algarve?
The Algarve boasts a well-connected transport system with buses and trains, plus taxis and Uber are also available at affordable rates. Buses are popular for short distances, while trains offer scenic routes and make it very easy to travel across the Algarve region. However, bear in mind that having a car is the best way to get around, as you will be able to get to secluded beaches that are difficult to get to by using publci transportation.
Where do expats live in the Algarve?
Algarve real estate offers a wide range of property options based on your investment and lifestyle preferences. Expats in the Algarve often settle in popular areas like Albufeira, Lagos, or Faro. These locales offer amenities, English-friendly services, and vibrant expat communities, making integration easier. Portugals’ real estate market has something for everyone. If you are unsure where to buy, get in touch with a local real estate professional. Real estate agents and buyer’s agents will be able to narrow down locations and find top investment prospects based on your requirements.
What are the best beaches in the Algarve?
The Algarve is renowned for its stunning beaches. Praia da Marinha, Praia da Falésia, Praia da Rocha, Praia de Tavira, and Praia Dona Ana are among the top picks of beautiful beaches, each offering golden sands, clear waters, and picturesque cliffs.
How far is the Algarve from Lisbon?
The Algarve is around a 2 and a half to three-hour drive from Lisbon.
Are there any airports in the Algarve?
The Algarve is served by Faro Airport (FAO), conveniently located near Faro. It offers domestic and international flights, making it the primary gateway for travelers visiting the region.
Is the cost of living in the Algarve expensive?
The cost of living in the Algarve will obviously vary depending on lifestyle choices and location. Generally, however, it’s more affordable than many European countries, with reasonable expenses for accommodation, food, and leisure activities
Is the Algarve safe?
The Algarve is considered safe for both residents and tourists. Crime rates are relatively low, and violent crime is rare. Portugal ranked in seventh position in the 2023 Global Peace Index. However, it’s always wise to take common-sense precautions, such as safeguarding belongings and staying alert in crowded areas.
Are there any restrictions on foreigners buying property in Portugal?
No, there are no restrictions on foreigners buying property in Portugal. If you do want to secure residency in the country, however, you will need to secure a valid residency permit.
