# Non-EU Buyers Drive 2025 Demand for Property in Lagos, Portugal ## International Interest Surges in the Algarve In 2025, Portugal is experiencing a significant shift in its real estate market. Non-EU citizens now represent the majority of demand for property purchases (54%) and rentals (63%), according to recent data. While Lisbon and Porto remain popular, the Algarve—especially Lagos—is drawing increased attention from international buyers. ## What’s Fueling the Demand? The surge is led by buyers from the United States and Brazil, attracted by Portugal’s safety, high quality of life, and relatively affordable property prices. Even as traditional incentives like the Golden Visa and Non-Habitual Resident (NHR) regime have evolved, Portugal remains a top destination for relocation and investment. ## The New IFICI+ Tax Regime A key driver is the IFICI+ (Tax Incentive for Scientific Research and Innovation) regime, updated in March 2025. This program offers a 20% flat income tax on Portuguese-sourced income for 10 years and exemptions on certain foreign income, targeting professionals in innovation, science, health, ICT, and executive roles. To qualify, applicants must: - Become tax residents after Jan 1, 2024 - Not have been residents in Portugal in the last 5 years - Hold at least a Level 6 (Bachelor's) degree with 3 years’ experience, or a PhD - Work in or with certified entities (e.g., exporters, R&D firms, universities) The application process is more streamlined but has tight deadlines, creating urgency among interested non-EU residents. ## Why Lagos and the Algarve? Lagos and the wider Western Algarve offer a unique blend of lifestyle, climate, and investment potential. As venture capital investment in Portugal slows, real estate remains a stable and attractive option. The region’s modern properties, marina lifestyle, and strong rental market continue to appeal to international buyers seeking security and long-term value. ## Outlook for Investors For non-EU investors, the Algarve stands out as one of Europe’s most promising destinations. The combination of new tax incentives, lifestyle appeal, and market stability is driving ongoing growth in Lagos and beyond. Whether for personal use, relocation, or rental income, Algarve real estate offers a solid foundation for the future. --- Featured image credit: DALL-E (OpenAI)