Home » News » From Florida to Portugal

From Florida to Portugal: Exploring Real Estate Opportunities Across the Atlantic

Porto Portugal Old City

Florida, known for its sun-soaked beaches, vibrant communities, and thriving real estate market, has long been a haven for property investors and homeowners alike. But as the world becomes increasingly interconnected, a new horizon is capturing the attention of Floridians: Portugal.  Portugal, with its charming cobblestone streets, rich history, and breathtaking countryside, has become the latest hotspot for those seeking a European escape. Known for its beautiful coastline, mild climate, and diverse landscapes, Portugal offers some of the best outdoor features for those looking to invest in a vacation home or retirement destination. As the allure of Portugal continues to grow, more and more Floridians are turning their sights across the Atlantic to explore this new and exciting real estate opportunity.

With its rich history, stunning landscapes, and attractive real estate opportunities, Portugal is emerging as a compelling destination for those looking to diversify their investments or find a new place to call home.

Let’s journey across the Atlantic to explore how Portugal’s real estate market compares to Florida’s, why more Americans are considering international properties, and what you need to know if you’re thinking about making a move or investment overseas. 

We had the help of a Portuguese buyers agent, for writing this guide. They provided some client quotes and have been seeing the recent appetite for Portugal real estate from Americans, especially after the pandemic.

The Appeal of Portugal: A European Gem

A Climate That Feels Like Home

One of the first things that Floridians notice about Portugal is the similarity in climate. The southern region, known as the Algarve, boasts over 300 days of sunshine a year, mirroring Florida’s warm weather. Imagine strolling through cobblestone streets under the same bright sun but with the addition of centuries-old castles and vineyards as your backdrop.

Affordable Luxury

While Florida’s real estate market has seen significant appreciation, leading to higher property prices, Portugal offers a more affordable entry point without sacrificing quality or amenities. According to Numbeo, the average price per square foot to buy an apartment in Lisbon’s city center is around $350, compared to $450 in Miami’s city center. 

This affordability extends to the cost of living, with dining, entertainment, and healthcare often costing less than in major U.S. cities.

A Safe and Welcoming Environment

Portugal ranks as the 3rd safest country in the world according to the Global Peace Index. The country’s low crime rate and friendly locals make it an inviting place for families, retirees, and solo adventurers alike.

Comparative Real Estate Markets: Florida vs. Portugal

real estate market 1000px

Market Growth and Stability

Both Florida and Portugal have experienced robust growth in their real estate markets over the past decade. However, Portugal’s market is still in a growth phase, offering potential for appreciation.

  • Florida: The median home value in Florida has increased by 8.9% over the past year, with strong demand in cities like Orlando and Tampa.
  • Portugal: Property prices have risen by approximately 6% annually, with hotspots in Lisbon, Porto, and the Algarve.

Stories of Floridians Embracing Portugal

The Smiths’ Transatlantic Move

John and Lisa Smith, a couple from Jacksonville, decided to retire early and were looking for a place that offered a high quality of life at a lower cost. After a vacation in Portugal, they fell in love with the coastal town of Lagos.

“We were enchanted by the beauty of the Algarve,” says Lisa. “The people are welcoming, the food is incredible, and we found a beautiful home overlooking the ocean for a fraction of what it would cost in Florida.”

They purchased a three-bedroom villa for €350,000, enjoying lower property taxes and living expenses. The Smiths now spend their days exploring local markets, taking boat trips along the coast, and immersing themselves in the vibrant culture.

Navigating the Buying Process in Portugal

Key Differences to Consider

While the prospect of buying property abroad is exciting, it’s essential to understand the differences in the buying process.

  1. Legal Representation: In Portugal, it’s customary to hire a lawyer (advogado) to handle the transaction, ensuring all legal aspects are properly managed.
  2. Property Taxes: Buyers should be aware of the Imposto Municipal sobre as Transmissões Onerosas de Imóveis (IMT), a property transfer tax that varies based on the property’s value and type.
  3. Financing Options: Portuguese banks do offer mortgages to foreigners, typically financing up to 70% of the property’s value. Interest rates are competitive, but the approval process may require more documentation.

Tips for a Smooth Transaction

  • Hire a Local Buyer’s Agent: They can navigate the market, negotiate prices, and protect your interests. A quick search gets 
  • Get Pre-Approval: If financing, secure pre-approval to strengthen your negotiating position.
  • Visit in Person: Whenever possible, visit the properties to get a true sense of the location and condition.

Lifestyle Considerations

two chairs on beach

Embracing a New Culture

Moving to Portugal isn’t just a change of address—it’s a new way of life. The pace is slower, with an emphasis on enjoying the moment. Long lunches, afternoon siestas, and community festivals are integral parts of daily life.

Sensory Details:

  • Taste: Savor Pastéis de Nata, traditional custard tarts, and fresh seafood like grilled sardines.
  • Sound: Experience Fado, the soulful music genre that echoes through Lisbon’s alleyways.
  • Sight: Marvel at the intricate azulejo tiles adorning buildings, telling stories of the past.

Language and Integration

While many Portuguese speak English, especially in tourist areas, learning basic Portuguese phrases can enrich your experience and help you connect with locals.

Tax Implications and Financial Benefits

Non-Habitual Resident (NHR) Tax Regime

Portugal offers attractive tax benefits for new residents under the NHR program, including:

  • Tax Exemptions: On foreign income for the first 10 years in certain cases.
  • Reduced Tax Rates: A flat 20% tax rate on Portuguese-sourced income from specific professions.

Cost of Living Comparison

ExpenseOrlando, FLLisbon, Portugal
Monthly Rent (1BR)$1,400$1,000
Meal for Two (Mid-range)$60$40
Public Transportation Monthly Pass$50$40
Internet (60 Mbps)$60$35

Source: Numbeo

Making the Decision: Is Portugal Right for You?

boy with helmet

Factors to Consider

  • Purpose: Are you looking for an investment, vacation home, or permanent residence?
  • Location: Coastal living in the Algarve, urban life in Lisbon, or the wine regions of the Douro Valley?
  • Budget: Determine your financial capacity, including purchase price and ongoing costs.

Next Steps

  1. Research: Dive deeper into regions and properties.
  2. Consult Professionals: Engage with real estate agents and legal experts familiar with both U.S. and Portuguese markets.
  3. Plan a Visit: Experience the country firsthand to make an informed decision.

Final Thoughts

The allure of Portugal lies not just in its beautiful landscapes and rich culture but also in the tangible benefits it offers to property buyers. For Floridians accustomed to a certain lifestyle, Portugal presents a familiar yet refreshingly different environment.

Whether you’re an investor seeking new opportunities, a retiree dreaming of European charm, or simply curious about the possibilities, Portugal’s real estate market beckons with promise.