Is It Worth Buying a Property for Rural Tourism in Portugal?

What is rural tourism?

Rural tourism is a type of tourism that happens in non-urban (rural) areas with low-population density, traditional lifestyle and social structure, and a land that is mostly used for forestry and agriculture.

In Portugal, rural tourism (Turismo em Espaço Rural – TER) is a solid investment alternative to urban regions with high rates of profitability.

Based on the Decree-Law No. 39/2008, Under Article 18, TER projects are:

• Situated in rural areas
• Provide tourist accommodations with a traditional, authentic, or rural character
• Properties that have historical, architectural, or heritage value (or use the traditional materials and designs that of their respective region)

The main categories of rural tourism establishments are: Country houses (casas de campo), agritourism (agroturismo), and rural hotels (hotéis rurais).

Rural Tourism in Portugal: Statistics

In 2025, tourism in rural areas recorded 35,656 beds (+4.4%), 16,203 rooms (+3.8%), and 2,054 establishments (+3.4%), according to Turismo de Portugal and the Instituto Nacional de Estatística (INE).

TER in Portugal reached 1.5 million guests (+6.7% than in 2024), which created well over 3.3 million overnight stays (+6.9%). The demand is higher from domestic visitors, accounting for 51.8% of total overnight stays.

Interest in rural tourism in Portugal is highest in September, August, and July, which account for 42.9% of overnight stays (1.4 million). The regions that take up most (65.1%) of overnight stays are the Alentejo, Northern, and Central Portugal.

Source: INE, Turismo de Portugal

Germany is the main international market for TER with almost 300,000 overnight stays, followed by France, Spain, and the United States.

Here are the top 10 international markets for Portugal’s rural tourism:

Source: INE, Turismo de Portugal

Why is rural tourism popular in Portugal?

Rural tourism is steadily growing in Portugal, driven by the demand for low-density tourism, countryside appeal, and peaceful landscape. Another important aspect of the increasing appeal of rural tourism is authenticity beyond urban and coastal areas.

For buy-to-let investors, estates, traditional houses, luxury villas can provide a steady stream of rental income. Rural destinations appeal to tourists who enjoy ranch stays, farm tours, wine-tasting, hiking, and cycling.

Properties in Portugal’s rural areas often have ample living space and excellent connectivity for remote workers.

The Benefits of Rural Tourism Property in Portugal

Investing in rural real estate in Portugal can bring multiple advantages:

Capital appreciation

Restored rural properties in strategic locations can appreciate well over time, particularly in regions where the tourist demand is increasing.

Rental income

A rural tourism property can provide a stable source of income through accommodations, retreats, local events, or different types of experiences.

Here is a quick look at the average monthly revenue income stream across different locations:

Source: INE

Diversifying assets

Buyers can use rural properties as an alternative form of real estate investment than urban developments.

Quality of life and natural beauty

Rural properties are more than just a financial asset. They are known for their peacefulness, cleaner air, and natural views.

What to consider before buying a rural property?

• NIF number: The Portuguese NIF (Número de Identificação Fiscal) is your personal tax number which you will need for all fiscal activities, such as buying property, paying taxes, and singing contracts, to name a few.
• Renovation and repair costs: Most rural properties in Portugal for sale have been empty, sometimes for decades. You can buy beautiful village houses, an old mill, detached cottages, and two joined houses that you can later separate. There are several historic properties, like castles for sale in Portugal that date back to the 14th or 15th century. Most of them require extensive maintenance.
• Market opportunities: The demand for sustainable and authentic experiences in Portugal is different across regions. Check out the niches in each market, such as wine tourism, equestrian tourism, gastronomic tourism, birdwatching, hiking, and astrotourism.
• Potential risks: Rural tourism requires a realistic business plan. Seasonality and licensing supplies in different regions can affect the value of your investment.
• Additional costs: There are associated costs that go beyond the sale price. These are Notary fees, land registration costs, stamp duty tax, Municipal Property Transfer Tax (IMT), property reservation and finalizing the deed, and home insurance.

Legal Requirements and Licensing

Although buying property in Portugal, is a relatively straightforward process, you still need to meet the legal requirements and obtain the right licenses.

To rent out a rural home, you must meet the legal requirements for tourism licensing. For holiday rentals, you will need an Alojamento Local (AL).

For a tourism development, like a boutique hotels in Portugal check the Regime Jurídico dos Empreendimentos Turísticos (RJET).

Consult with the local council (Câmara Municipal) about building approvals or any urban planning rules based on the Municipal Master Plan (PDM).

That being said, we highly recommend you check if the rural property has any REN or RAN restrictions. RAN (National Agricultural Reserve) protects agricultural land, so you can’t buy land here and turn it into a tourist accommodation. REN (National Ecological Reserve) are wetlands, steep slopes, and areas prone to floods, with similar restrictions.

Although it is not mandatory, you can request a PIP (Pedido de Informação Prévia) at your local council, to check whether you can build, renovate, or turn your real estate investment into tourist accommodation before you buy it.

Mortgage and Financing Your Property

Most Portuguese banks provide mortgages to international investors, with financing around 65–75% of the property’s value. For Portugal’s residents the loan-to-value (LTV) ratio is often higher about 80-90%

Some of the top international banks in Portugal for expats are Millennium BCP, Caixa Geral de Depósitos, ActivoBank, Santander Portugal, Novo Banco, and Banco BPI. For more details, read our article on how to get a mortgage in Portugal.

Financial Incentives and Support

Portugal often provides government support and financial incentives that you can use to fund your investment.

Here are a few examples:

• Tourism of Portugal: There are incentives for sustainable tourism, inland development, and accessibility. Such options are Linha de Apoio à Qualificação da Oferta and Crescer para o Turismo, which are active until December 31, 2026, or until the budget runs out.
• PT2030 / +CO3SO Emprego: These are for job creation and business development in inland or low-density areas in Portugal. They are non-refundable grants for wages and indirect expenses for operating a business. They don’t cover housing projects.
• PEPAC 2023–2027: They focus on farmers and rural landowners that diversify into tourism (e.g., agritourism, rural lodging, and leisure activities). They are non-refundable grants.

Note: These are temporary programs that open and close all the time. We suggest you check the official government portals and regional websites for active or closed initiatives.

Goldcrest: How We Can Help You 

Goldcrest is the first buyer’s agent in Portugal. We provide expert, impartial advice on real estate investments and how to buy property in Portugal. From scouting out the perfect property through to property acquisition, we have you covered throughout the process. 

Unlike traditional real estate agents in Portugal who represent the seller, we are dedicated exclusively to protecting the buyer’s interests. 

If you are looking to purchase property in Portugal, don’t hesitate to get in touch. Our team of skilled experts is available to solve all your real estate doubts, helping you with the property search and offering insightful expertise and strategic advice. 

Why choose Goldcrest?

• Local knowledge: With offices located across Portugal, our presence nationwide allows us to assist you personally across the country.
• Independent service: As an independent buying agent, we do not represent any development or project. Our service is entirely tailored toward each individual client, providing you with everything you need to secure the perfect property at the best possible price.
• Streamlined process: Our real estate agents speak English and Portuguese, and our service is completely focused on providing you with a hassle-free buying experience, saving you time. We can also help you buy property remotely.
• Experienced team: Our expert real estate team has a vast local knowledge of the Portuguese property market. We have cutting-edge technology and metasearch tools at your disposal to provide full market coverage, ensuring the best investment choices and negotiated prices.
• Network of partners: We have a close network of partners, including lawyers, property management services, builders, architects, designers, and landscape gardeners, again saving you time and hassle by providing you with trusted experts in their field of work.