Why Digital Nomads Are Choosing Lagos And What It Means for Homes to Buy in Portugal

Read why digital nomads are flocking to Lagos, Portugal—and how this growing trend is reshaping the local real estate market. Find out what it means for buyers, investors, and anyone considering a home in the Algarve.

By LiveAlgarve on 18th April 2025 - 3-4 m. reading time 

In recent years, Portugal has become a central focus for digital nomads seeking a better work-life balance and high quality of life. With the launch of the Digital Nomad Visa and increasing global attention on lifestyle-based relocation, towns like Lagos in the Algarve are drawing a growing number of remote professionals.

This shift is more than just a passing trend. It’s already having a visible impact on the local real estate market, presenting a significant opportunity for investors, homeowners and real estate professionals alike. Here’s what’s happening, and what it means for those considering homes to buy in Portugal.

Portugal’s Digital Nomad Visa

Portugal’s D8 Digital Nomad Visa was introduced to attract non-EU professionals who work remotely. It allows eligible individuals to live in Portugal either on a temporary basis (up to one year) or through a renewable residency permit.

To qualify, applicants must provide proof of remote work or freelance activity and meet a minimum income threshold, currently €3,280 per month. Since its rollout, the visa has been widely adopted by individuals and families relocating from the US, UK, Canada, and Brazil.

Source: Global Citizen Solutions – Portugal Digital Nomad Visa

Why Lagos?

Lagos isn’t just another beach town, it’s becoming one of the most popular destinations for digital nomads in Portugal, and with good reason.

Strong Infrastructure for Remote Work

Reliable fibre-optic internet is available throughout the town, and coworking spaces such as Lagos Coworkers and Giramar Cowork offer remote workers modern, flexible environments. Some even provide 24/7 access, community events and professional networking opportunities.

Lifestyle and Lower Living Costs

Compared to Lisbon or European capitals, Lagos offers a more relaxed lifestyle at a more affordable cost. Housing, food, and transport are reasonably priced, making it easier for remote professionals to build a sustainable long-term base.

A Natural Fit for Work-Life Balance

Lagos blends historical charm with modern conveniences. Professionals can finish a day of work and still enjoy a swim, coastal hike, or dinner in the town’s vibrant old quarter. It’s this balance of productivity and quality of life that continues to draw nomads in.

Real Estate Impact

As more nomads arrive, the property landscape in Lagos is evolving:

• Demand for medium- and long-term rentals is rising, especially for well-equipped apartments with good internet and dedicated office space.
• Buyers are increasingly seeking ready-to-move-in homes - turnkey apartments or villas suited for remote work or flexible rental use.
• There is new interest in shared living spaces, co-living, and investment properties tailored to digital professionals.

This demographic typically seeks high livability, flexibility, and proximity to amenities such as coworking spaces and transportation. For property owners and investors, it presents an opportunity to cater to a rapidly growing market.

Challenges and Considerations

It’s also important to consider the broader impact of these changes. With rising property prices and increased rental demand, questions are emerging around affordability for local residents. Additionally, licensing for short-term rentals (Alojamento Local) is once again a topic of debate among municipalities.

Anyone investing in real estate in Lagos should be aware of local zoning laws, licensing requirements, and shifting regulations, especially as tourism and digital relocation continue to converge.

Summary

Lagos is certainly positioning itself as a long-term destination. The increase in digital nomads has brought renewed interest and energy to the local housing market, and for those exploring homes to buy in Portugal, Lagos represents a valuable blend of opportunity, lifestyle and growth.

Interested in property here? Get in touch with our helpful team at Live Algarve Realty.