Lagos Algarve Real Estate Attracts More UK, US and Canadian Luxury Buyers

Lagos, Algarve is attracting a surge of luxury buyers from the UK, US, and Canada, driven by lifestyle, tax incentives, and long-term market growth. With political stability, stunning coastlines, and a lower cost of living, it’s fast becoming a top global destination for high-end property investment.

By LiveAlgarve on 27th June 2025 - 3-4 m. reading time 

Lagos continues to capture the attention of high-end property seekers from the United Kingdom, Canada and the United States, reinforcing its position as one of Europe’s most desirable coastal investment destinations. 

Demand Surges from Across the Atlantic

A growing number of luxury property investors are turning to Portugal, particularly the Algarve. Recent data and reports confirm that British and American buyers are at the forefront of this surge.

International agencies have observed a marked increase in demand from both UK and US clients in Portugal. The Algarve is now firmly on the global luxury map and Lagos, in the west, is one of its brightest highlights. In addition, data shows that Portugal’s property market is set to grow at double the rate of the US, UK and EU by 2027. 

Why Portugal Appeals to High-Net-Worth Buyers

UK nationals have traditionally led the way in Portuguese real estate investment, but a growing wave of interest from US and Canadian luxury buyers is reshaping the landscape, with all three markets continuing to gain momentum. Portugal offers a compelling package that goes far beyond beautiful coastlines:

Political Stability

Portugal is known for its stable government, low crime rates, and strong institutions, all factors that appeal to buyers looking for long-term security in their investments and lifestyle.

Attractive Tax Benefits

The Non-Habitual Regime 2.0 (NHR) allows eligible foreign residents to benefit from reduced tax rates or even tax exemptions on certain income streams for up to 10 years. This incentive has played a significant role in attracting entrepreneurs, retirees and remote workers alike.

Lower Cost of Living

Compared to cities like London, Paris, or New York, the cost of living in Portugal is considerably lower, while still offering excellent healthcare, education and public infrastructure. This affordability, without sacrificing quality, makes Portugal especially appealing to high-net-worth individuals looking for a more relaxed, rewarding lifestyle.

Lifestyle Over Investment

While the Algarve does offer long-term capital appreciation and rental potential, many foreign buyers are motivated by lifestyle. Mild winters, excellent healthcare, a strong expat community and easy access to international airports (Faro) make Lagos a highly liveable second-home destination or even a permanent one. Faro boasts direct flights to the UK, USA and Canada, with routes including Toronto, London and Newark (New York, USA), with the latter only being introduced earlier this year, an indicator that investment from America is on the up. 

Working With Us

As the local market evolves, working with a knowledgeable, reputable real estate partner is essential. At Live Algarve, we specialise in guiding international buyers through the process  from first inquiry to final signature. Our portfolio of luxury properties in Lagos and the surrounding Algarve reflects the very best this region has to offer.