Portugal Commercial Real Estate: 2026 Investment Opportunities

Market Overview: Commercial Properties in Portugal Poised for Growth

The year 2025 proved to be a period of stability and growth for the commercial real estate market in Portugal, which grew by 10 percent compared to 2024, reaching around €2.67 billion.

The beginning of 2026 looks set to be lively, as many deals initially expected to be closed at the end of 2025 will likely be closed at the beginning of this year.

Economic and political stability

Interest in commercial real estate in Portugal is the result of stable economic conditions, strategic location in the EU, innovative development projects, and strong demand for continued sustainable growth.

Rising tourism

Taking a closer look at retail in Portugal has seen record years in the past few years, as there is high confidence in retail transactions due to the quality of Portuguese assets, and due to the continued growth of tourism in the country. In 2025, tourism revenues was expected to exceed €30 billion for the first time, representing around 10 percent of national GDP. 2026 looks set to follow in the same direction, with tourism continuing to be a major part of Portugal’s growth.

Growing international investment

Portugal’s commercial real estate market is dynamic and has registered extraordinary growth in the past few years, attracting both domestic and international interest. Foreign capital was responsible for 60 percent of investment in 2025.

Diverse opportunities

Diversity is also key to Portugal’s strong commercial real estate performance, with a wide range of opportunities for investors across office, retail, industry, and hospitality.

Investors seek out commercial properties across Portugal, but Lisbon, Porto, and the Algarve region are the firm favorites, although there is strong potential for future growth in the center and north of the country, too.

Prime rental yields across key sectors

Source: Cushman & Wakefield, Savills, CBRE Portugal market reports.

Note: These are average prime yields for Portugal and will vary depending on where you invest in commercial real estate. Working with real estate experts can help you identify the best market opportunities.

Why invest in commercial real estate in Portugal?

Benefits of investing in commercial real estate in Portugal include:

EU membership and Schengen zone access

As a full member of the European Union (EU) and Schengen Area, Portugal provides investors with access to the European Single Market, facilitating cross-border transactions, free capital movement, and simplified legal compliance.

Transparent legal framework and strong property rights

Portugal’s legal system is aligned with EU standards, offering a transparent and well-regulated system for property ownership and property transfer. Investors benefit from legal protections, such as title registrations and access to independent notary services.

The World Bank‘s “Doing Business” project, which provides objective measures for business regulation, highlights Portugal’s appeal for contract enforcement and property registration.

Political and economic stability

Portugal’s political system is stable, with economic growth of 2.2 percent predicted for 2026. Ranking in seventh position in the 2025 Global Peace Index, the country is internationally known for its safety and security.

On a broader economic stance, Portugal has reduced its fiscal deficit in recent years and has been controlling inflation quite well, making it a stable environment for business, asset management, and long-term investment planning.

Strategic geographic location

Located in southwestern Europe, Portugal is a key logistics and trade hub that bridges Europe with Africa and the Americas. Proximity to major maritime routes and international air corridors enhances the country’s appeal, particularly for commercial assets such as warehouses, distribution centers, and ports.

Infrastructure and connectivity

Portugal has modern infrastructure, international airports, ports, a high-speed rail system, and highways, which underpin the tourism, logistics, and manufacturing sectors, which drive demand for commercial properties.

 Favorable business environment

Over the past fifteen years, the Portuguese government has prioritized foreign direct investment (FDI), launching various initiatives to support businesses in Portugal and simplify regulations, positioning the country as an attractive place to do business. Higher investment yields than residential properties, stable and predictable income, capital appreciation, and portfolio diversification add to Portugal’s appeal.

How to Buy Commercial Real Estate in Portugal: Step-by-Step

When investing in commercial real estate, you will need to understand the legal framework, taxes, and the steps involved in the process for a straightforward purchase.

Below, we provide you with an easy-to-digest guide to purchasing commercial property.

Legal requirements and regulations

The legal process for purchasing commercial real estate requires the following legal documents. We recommend working with a real estate lawyer in Portugal to ensure your property purchase is legally compliant.

• Promissory Contract: The Promissory Contract (Contrato de Promessa de Compra e Venda, CPCV) is the preliminary agreement between the buyer and seller, including terms of sale (price, payment schedule, and purchasing conditions).
• Public Deed: The Escritura Pública is the final deed that is signed before a Notary and which legally transfers ownership from the seller to the buyer.
• Land registry: The land registry (Conservatória do Registo Predial) is required to register the new ownership of the property, protecting property rights and legal recognition.
• Tax registration: For tax purposes, the property’s registration is updated with the Tax Authority (Autoridade Tributária).

There are no restrictions on foreign buyers purchasing commercial property, and there is minimal red tape. The Notary Deed and Land Registration follow standard protocols for title transfers. Regarding leases, Portugal’s Urban Lease Law (NRAU) is flexible for commercial properties, and waivers of tenant pre-emption are common for offices.

Taxes, fees, and stamp duty

Taxes you will need to consider when buying commercial real estate include:

• Municipal Property Transfer Tax (IMT): Typically around 6.5 percent on commercial property
• Stamp Duty (Imposto de Selo): Fixed at 0.8 percent on property value
• IMI: Annual municipal property tax, ranging from around 0.3 to 0.45 percent

Also take into consideration Notary fees (around €500-€1,00) and land registration fees (around €250).

Working with an experienced tax accountant will ensure you pay your taxes on time and face no outstanding payments.

Financing and investment structures

International investors can structure their commercial investments in different ways.

1. Special Purpose Vehicles (SPVs): By creating a Portuguese company to hold the property. This can offer tax advantages and limit liability.
2. Real Estate Investment Funds (REIFs): Investing through regulated funds, which can offer diversification and professional management.

Working with legal and financial experts can help you determine the best structure based on your investment goals, while taking into consideration your tax obligations.

If you would like to secure financing, you can get a mortgage for commercial properties, starting the process with banks as soon as possible, and determining the Loan-to-Value (LTV) will make your buying process that much easier.

Risk mitigation strategies

To safeguard your investment, consider the following risk mitigation strategies:

• Insurance: Obtain comprehensive property and liability insurance to protect your investment from future uncertainty.
• Warranties and indemnities: Work with your lawyer to include clauses in the purchase that hold the seller accountable for undisclosed issues, which can really protect you in the long term.

Where to Find Commercial Property for Sale in Portugal

To find Portugal commercial real estate for sale:

1. Determine what type of commercial real estate you are seeking to buy, define your long-term goals, and, if you have a particular location in mind.
2. To find commercial property, Portugal, check commercial real estate listings and work with experienced real estate agencies to unpack which property types or investments could work for your investment goals. When working with a real estate professional, make sure they have an AMI licence issued by IMPIC, which is required for real estate brokerage.
3. When you have your investment in mind, complete a thorough risk analysis on the investment.
4. Following thorough risk analysis and due diligence, and working with a seasoned real estate professional and lawyer, you can proceed with your property purchase.

Top locations to consider for commercial real estate

• Lisbon: Parque das Nações or Marvila real estate investment is an ideal location in 2026 to invest in commercial property in Portugal’s capital. Parque das Nações remains a premier hub for office space, while Marvila is poised to become one of Lisbon’s prime neighborhoods for creative retail, co-working spaces, and new restaurants and bars, offering strong capital appreciation potential.
• Porto: Vila Nova de Gaia and Campanhã have emerged as smart options for commercial property investments, with Gaia seeing more families and young professionals looking for more space outside Porto, offering potential for retail, while Campanhã, with excellent infrastructure and rail, offers excellent opportunities for business and logistics.
• Western Algarve: While the Central Algarve often takes center stage, investments in the Western Algarve, close to Lagos, are less crowded and cheaper, with investments in boutique eco-hotels and wellness centers offering great potential. The Eastern Algarve, close to Tavira, is also worth exploring.
• Setúbal: Just a short drive from Lisbon, Setúbal offers strong potential for logistics and industry.
• Braga, Coimbra, and Aveiro: Moving more firmly onto the map, lesser-known cities are set to increase in popularity amongst tourists, although student accommodation can also offer strong returns.
• Alentejo and Silver Coast: As Portugal’s tourism strategy moves out of hotspot locations, such as Lisbon and Porto, stunning areas such as the Silver Coast and the Alentejo are poised for growth. Investments in wellness centers and boutique hotels are smart investments for 2026.

Portugal Commercial Real Estate Market Segmentation

Portugal’s commercial real estate market in 2026 is shifting towards more sustainable systems, which can be broken down into four main sectors.

• Hospitality and tourism: With continued tourist numbers, boutique and luxury hotels, particularly in Lisbon, Porto, and the Algarve, will be prime yield investments (with less vacancy for rents and high take-up), with interest also moving outside these hotspot areas to lesser-known coastal and interior areas.
• Offices in urban areas: Offices to focus more on co-working and hybrid models to cater to shifting working environments.
• Logistics and data centers: Portugal’s strategic location and access routes to Europe are likely to see its logistics and data centers continue to add significant value to Portugal’s broader economic future.
• Alternative “living” assets: Investors may choose to pivot towards student housing, co-living, and senior living properties, which can yield high returns in key areas.

Maximizing Returns on Commercial Properties

The high demand for commercial properties in Portugal looks set to continue into 2026, making it an appealing opportunity for portfolio expansion. Whether in retail, hotels, industry, or logistics, you will find investors flocking to Portugal due to its resilient and growing economy and business-friendly environment. When it comes to the best places to buy real estate in Portugal, the Lisbon and & Porto commercial markets remain tried-and-tested locations, although the market is diversifying.

Investors can maximize their returns on commercial properties by carefully considering the location and property type. Also, be sure to consider your time horizon. Are you seeking a long-term investment? Or a shorter time horizon? With some thought and through speaking with seasoned professionals on the market, you’ll be able to map out your Portuguese real estate investment strategy to maximize returns, benefitting from a dynamic European market that continues to move from strength to strength.

If you are interested in investing in residential properties for short-term or long-term tenants, sustained demand in 2026 can offer significant returns. Bear in mind that for short-term rentals, you will be required to have an Alojamento Local license.