Portugal Low Density Areas: Where Do You Need to Invest?

Portugal low density areas offer a variety of opportunities for investors and expats seeking an investment property or inexpensive home in some of the most stunning locations in Portugal.

Many relatively undiscovered areas, such as the Douro Valley and parts of the Alentejo, could make dream homes or strategic investments, as these regions look set to increase in popularity in the coming years.

Once a popular option of the Portugal Golden Visa residency by investment program, while real estate investments no longer qualify you for this visa option (under new rules that rolled out in October 2023), investing in low density and interior areas in Portugal remains an appealing option to foreign buyers.

Why invest in Portugal? And why in one of the country’s low-density areas? This guide will provide you with more information about low-density and interior areas of Portugal and what makes them stand out as highly desirable locations.

We’ll cover:

• What are Portugal’s low density areas? 
• Key Low Density Areas to Consider
• Advantages of Investing in Low-density Areas
• Best Low Density Regions for Different Goals

What Are Portugal's low density areas?

Low-density areas are urban or suburban regions. These quiet neighborhoods are a bit more spread out than the rest of the city. They have fewer buildings, people, and commercial districts. But the properties are larger with more greenery and a relaxed atmosphere. So, even if the stores and coffee shops may be further away, you can enjoy fewer crowds, less traffic, and a great quality of life.

The population in Portugal’s low-density areas is less than 100 inhabitants per square kilometer and the GDP per capita is less than 75 percent of the national average. There are areas popular amongst investors, with properties in low density areas typically amongst the most affordable in the country.

Golden Visa Changes 2023

Investments in properties in low-density areas in Portugal were one of the investment options for the Portugal Golden Visa. However, significant changes were made by the Portuguese government concerning the Portugal Golden Visa in October 2023. You can find the latest information on the Golden Visa in the sections below.

The end of the Portugal real estate pathway

It’s essential to understand that real estate investments no longer qualify as an option within the program, including investing in an interior or low density area.

Wondering how to get Portuguese residency now that the real estate pathway is no longer an option? Luckily, several other attractive investment routes remain eligible for the program to encourage investment in Portugal.

For detailed information, please consult the Portugal Golden Visa Ultimate Guide provided by our residency and citizenship division, Global Citizen Solutions.

In the section below, we also provide a quick rundown of the current investment options.

Current Golden Visa options: Updated

While real estate has traditionally been the most favored investment pathway, it’s no longer available, and this extends to making a Portugal Golden Visa low density investment. Investors seeking alternative options to qualify for the Golden Visa are increasingly turning to the investment fund route. More details on this pathway can be found in this Portugal Golden Visa Investment Fund guide.

The current Golden Visa investment options are:

• Fund subscription: Contribute a minimum investment amount of €500,000 to a certified investment fund
• Arts or heritage reconstruction contribution: Minimum investment of €250,000 towards the arts or the restoration of national heritage. Note that if the project takes place in Portugal low density areas (see map below), then a 20 percent discount will apply
• Scientific research: Minimum investment requirement of €500,000 or more to research in the field of science or technology
• Job creation: Generate and sustain ten positions over the specified period for economic development
• Share capital and job creation: Establish a company or strengthen its share capital with a minimum investment of €500,000, combined with the creation of five jobs or the maintenance of ten (with at least five being permanent)

Top benefits of the Portugal Golden Visa

Although the real estate investment option is no longer available, there remain a multitude of benefits to the Portugal Golden Visa program. These include:

• You can obtain European Union residency and enjoy visa-free travel across Europe and the Schengen Area. After five years of maintaining your investment and meeting all Portuguese nationality requirements, you can apply for Portuguese citizenship.
• Your immediate family members can be included in your Golden Visa application and they can enjoy the same opportunity as you to live and work in Portugal.
• There remain several very attractive Golden Visa investment options, including job creation, investment funds, and investing in cultural production or historical heritage projects.
• The minimum residency requirement is seven days in the first year and 14 days in subsequent years.

The Portugal Golden Visa program is one of the most popular Golden Visa programs of its kind, offering a streamlined route to Portuguese residency and potentially, citizenship.

Be aware of  potential delays with the Portuguese immigration and borders service (AIMA), which has inherited a large backlog of applications, whereby it can take longer than expected at the moment to secure an initial residency permit.

Interior Areas of Portugal

This map highlights Portugal’s interior regions.

Interior and Low-density Residential Real Estate

Although the Portugal Golden Visa low density areas pathway is no longer an eligible route of the residency-by-investment program, interior and low density areas in Portugal still present an attractive investment opportunity, such as the Douro Valley, Aljezur, and Peneda Gerês.

Each of these offers excellent, spacious properties that are very good value for money. You will be able to find residential properties with a private swimming pool and large areas of land for roughly €400,000.

Low Density Areas

Low-density areas in Portugal are largely located in the interior regions and include parts of the Alentejo, Douro Valley, and the Algarve, amongst other municipalities and parishes.

These areas are defined as territorial units (NUTS III) that have less than 100 inhabitants per square km or per capita GDP that is less than 75 percent of the national average. When the real estate investment pathway of the Portugal Golden Visa program was still available, low-density areas determined whether a 20 percent discount rate was applicable to your investment or not.

Portugal low density areas are shown in light grey below (areas that fall outside the low-density zone are shown in dark grey).

Key Low-density Areas

Buying property in Portugal, in particular low-density areas, can be a smart move. Below are some of the best low-density areas to invest in, with properties in these areas being much more affordable than in other parts of Portugal.

There is high potential for eco-tourism and upmarket and boutique tourism. Should you be seeking a calm place to relocate to, low-density areas provide a slower pace of life away from crowds and are appealing to those seeking tranquility and a more relaxed lifestyle.

• Alentejo: The breadbasket of Portugal, located to the North of the Algarve in Southern Portugal, is beloved by locals, known for its low population density and traditional way of life.
• Douro Valley: Known for its never-ending vineyards and stunning landscapes, the Douro Valley offers a tranquil, low-density environment.
• Algarve: While the coastal areas can be densely populated, inland areas are much quieter. Think places such as Castro Marim and Alcoutim in the east, or Vila do Bispo, or Aljezur in the west, which is such a great location for surfers, with beautiful beaches. Monchique in the center-north is also a top location.
• Other regions: Viseu, Évora, Santrarém, Leiria, Braga, Aveiro, Viana do Castelo, and parts of Coimbra are also good options, each with its own unique character. Serra da Estrela, home to the highest mountains in Continental Portugal, is the perfect place for nature lovers, where you can ski in the winter, while Ferreira do Zêzere in the Ribatejo Region is known for its tranquility and beautiful landscapes.

Advantages of Investing in Low-density Areas

• Affordable commercial and residential properties, with the opportunity to earn high rental returns
• In low-density areas, investors are likely to find much bigger and better properties with two to three units to rent.
• As the capital needed to invest is low for residential property and commercial real estate in low-density areas, investors have more freedom for other business investments.
• Away from the crowds, these low-density areas of Portugal are great for new beginnings and offer a high quality of life.
• Major cities and towns in the interior of Portugal are becoming popular with students, and as the young population grows in these cities, the need and opportunity to serve them intensifies.
• Increasing interest in residential and commercial properties in low density municipalities from both local and foreign investors
• High yearly growth potential and capital appreciation
• Low density regions in Portugal are promising locations to develop eco-tourism, wellness, innovation, and luxury projects. Many interior areas are likely to experience tremendous tourism growth in the coming years.
• Given the small size of Portugal, even if you buy property in low density regions, you will usually still be quite close to major cities and more densely populated regions.
• You can find very affordable deals if you are seeking a residential rehabilitation project or a commercial rehabilitation project in low density regions.

Other Excellent Low-Density Areas to Invest in Portugal

Peneda-Gerês, in the north of Portugal is a beautiful location, to the north east of Braga. Gerês is one of the favorite regions for investors due to its dense and wonderful Peneda Gerês National Park, the only official national park in Portugal (the rest are natural parks). It is an incredible place. The famous waterfalls are paradisiacal and a rarity in Europe.

Classified as a World Heritage Site by UNESCO, the Douro Region is one of the most acclaimed areas in the world due to its untouched natural landscapes. This is one of the best low density municipalities and areas in Portugal for those seeking unrivalled natural landscapes.

Visitors and expats are just now seeing how much the North of Portugal can offer, breathtaking landscapes and hidden gastronomical gems focusing on local Portuguese food.

Other areas include Vila do Bispo in the Algarve, for quiet village life and an untouched coastline, and Melgaço in Minho, in the northwest, where you’ll find charming vineyards and where the famous vinho verde (green wine) hails from.

Interior areas are becoming top locations for investment in Portugal. If you are considering buying property in interior areas, make sure to get expert advice. For example, if looking for property in the Alentejo, work with an experienced real estate agent in Alentejo or, preferably a buyer’s agent for a seamless buying experience.

While a real estate agent in Portugal will be helpful in finding properties in Portugal, it’s essential to know that they will work on behalf of the seller, whereas a buyer’s agent, such as Goldcrest, will work on behalf of the buyer helping you with your property search and in finding the best real estate investment option based on your specific needs. They will also help you throughout the property, through to property acquisition and beyond.

Goldcrest: How We Can Help You 

Goldcrest is a buyer’s agent that is based in Lisbon. 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.

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. As an impartial advisor on the market, we work solely on behalf of our client and provide a service tailored to your needs and requirements.
• 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.
• 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.