Low-Density Areas in Portugal

The Portugal Golden Visa scheme offers several different investment options as a route to residency. The most affordable of these is the €280K low-density real estate investment option. It is similar to the €350K property renovation investment option, but the lower financial requirements make it a very attractive option for those with more flexibility about location.

Since its implementation in 2012, the Golden Visa program has flourished in the cities of Lisbon and Porto. The investments have created a ripple effect in economic growth for the country.

The changes to the Golden Visa program that will come into effect in January 1st, 2022 will allow purchasing properties in Portugal only in the low-density and less populated areas.

The changes and specifically the €280K low-density amendment of the program aims to redirect, encourage and diversify more investment into lesser-known areas in the interior of Portugal where there is a considerable amount of property that requires renovation. These inland areas are less populated but still very attractive to tourists for their historic and cultural values, as well as natural beauty. It is hoped that the changed rules will boost this redevelopment process and open up the rural areas of Portugal for residents and tourists alike.

Concept of low-density areas. Location on a map in Portugal

Map of all low-density areas in Portugal

Nearly all the interior regions of Portugal are categorised as Golden Visa low-density areas and offer beauty, diversity, and culture.

The capital city of Lisbon, major cities like Porto, most of Portuguese mainland coastal parishes south of the River Lima and north of the River Sado (with some exceptions in the districts of Setúbal, Beja and Faro) and the islands of Azores and Madeira are excluded from the low-density areas.

Mainland Portugal is divided in 18 districts, each district is divided in multiple municipalities and each municipality is divided in multiple civil parishes. There are a total of 165 counties and 74 parishes considered low-density.

Map of all low-density areas in Portugal

Full list of low-density municipalities in Portugal

  • Abrantes
  • Aguiar da Beira
  • Alandroal
  • Alcácer do Sol
  • Alcoutim
  • Alfândega da Fé
  • Alijó
  • Aljezur
  • Aljustrel
  • Almeida
  • Almodôvar
  • Alter de Chão
  • Alvaiázere
  • Alvito
  • Ansião
  • Arcos de Valdevez
  • Arganil
  • Armamar
  • Arouca
  • Arraiolos
  • Arronches
  • Avis
  • Baião
  • Barrancos
  • Beja
  • Belmonte
  • Borba
  • Boticas
  • Bragança
  • Cabeceiras de Basto
  • Campo Major
  • Carrazeda de Ansiães
  • Carregal do Sal
  • Castanheira de Pêra
  • Castelo Branco
  • Castela de Vide
  • Castro Daire
  • Castro Marim
  • Castro Verde
  • Celorico da Beira
  • Celorico de Basto
  • Chamusca
  • Chaves
  • Cinfães
  • Constância
  • Coruche
  • Covil
  • Crato
  • Cuba
  • Elvas
  • Estremoz
  • Évora
  • Fafe
  • Ferreira do Alentejo
  • Ferreira do Zêzere
  • Figueira de Castelo Rodrigo
  • Figueiró dos Vinhos
  • Fornos de Algodres
  • Freixo de Espada à Cinta
  • Fronteira
  • Fundão
  • Gavião
  • Góis
  • Gouveia
  • Grândola
  • Guarda
  • Idanha-a-Nova
  • Lamego
  • Lousã
  • Mação
  • Macedo de Cavaleiros
  • Mangualde
  • Manteigas
  • Marvão
  • Meda
  • Melgaço
  • Mértola
  • Mesão Frio
  • Miranda do Corvo
  • Miranda do Douro
  • Mirandela
  • Mogadouro
  • Moimenta da Beira
  • Monção
  • Monchique
  • Mondim de Basto
  • Monforte
  • Montalegre
  • Montemor-o-Novo
  • Mora
  • Mortágua
  • Moura
  • Mourão
  • Murça
  • Nelas
  • Nisa
  • Odemira
  • Oleiros
  • Oliveira de Frades
  • Oliveira do Hospital
  • Ourique
  • Pampilhosa da Serra
  • Paredes de Coura
  • Pedrógão Grande
  • Penacova
  • Penalva do Castelo
  • Penamacor
  • Penedono
  • Penela
  • Peso da Régua
  • Pinhel
  • Ponte da Barca
  • Ponte de Sor
  • Portalegre
  • Portel
  • Póvoa de Lanhoso
  • Proença-a-Nova
  • Redondo
  • Reguengos de Monsaraz
  • Resende
  • Ribeira de Pena
  • Sabrosa
  • Sabugal
  • Santa Comba Dão
  • Santa Marta de Penaguião
  • Santiago do Cacém
  • São João da Pesqueira
  • São Pedro do Sul
  • Sardoal
  • Sátão
  • Seia
  • Sernancelhe
  • Serpa
  • Sertã
  • Sever do Vouga
  • Soure
  • Sousel
  • Tábua
  • Tabuaço
  • Tarouca
  • Terras de Bouro
  • Tondela
  • Torre de Moncorvo
  • Trancoso
  • Valpaços
  • Vendas Novas
  • Viana do Alentejo
  • Vidigueira
  • Vieira do Minho
  • Vila de Rei
  • Vila do Bispo
  • Vila Flor
  • Vila Nova da Barquinha
  • Vila Nova de Cerveira
  • Vila Nova de Foz Côa
  • Vila Nova de Paiva
  • Vila Nova de Poiares
  • Vila Pouca de Aguiar
  • Vila Real
  • Vila Velha de Ródão
  • Vila Verde
  • Vila Viçosa
  • Vimioso
  • Vinhais
  • Vouzela

Full list of low density parishes in non-low density municipalities in Portugal

  1. Águeda
    • União das freguesias de Belazaima do Chão, Castanheira do Vouga e Agadão
    • União das freguesias do Préstimo e Macieira de Alcoba
  2. Amarante
    • Ansiães
    • Candemil
    • Gouveia (São Simão)
    • Jazente
    • Rebordelo
    • Salvador do Monte
    • União das freguesias de Aboadela, Sanche e Várzea
    • União das freguesias de Bustelo, Carneiro e Carvalho de Rei
    • União das freguesias de Olo e Canadelo
    • Vila Chã do Marão
  3. Amares
    • Bouro (Santa Marta)
    • Goães
    • União das freguesias de Caldelas, Sequeiros e Paranhos
    • União das freguesias de Vilela, Seramil e Paredes Secas
  4. Caminha
    • Dem
    • União das freguesias de Arga (Baixo, Cima e São João)
    • União das freguesias de Gondar e Orbacém
  5. Castelo de Paiva
    • Real
    • União das Freguesias da Raiva, Pedorido e Paraíso
  6. Condeixa-a-Nova
    • Furadouro
  7. Guimarães
    • União das freguesias de Arosa e Castelões
  8. Loulé
    • Alte
    • Ameixial
    • Salir
    • União de freguesias de Querença, Tôr e Benafim
  9. Marco de Canaveses
    • Várzea, Aliviada e Folhada
  10. Ourém
    • Espite
    • União das freguesias de Freixianda, Ribeira do Fárrio e Formigais
    • União das freguesias de Matas e Cercal
    • União das freguesias de Rio de Couros e Casal dos Bernardos
  11. Pombal
    • Abiul
  12. Ponte de Lima
    • Anais
    • Ardegão, Freixo e Mato
    • Associação de freguesias do Vale do Neiva
    • Bárrio e Cepões
    • Beiral do Lima
    • Boalhosa
    • Cabaços e Fojo Lobal
    • Cabração e Moreira do Lima
    • Calheiros
    • Estorãos
    • Friastelas
    • Gemieira
    • Gondufe
    • Labruja
    • Labrujó, Rendufe e Vilar do Monte
    • Navió e Vitorino dos Piães
    • Poiares
    • Serdedelo
  13. Porto de Mós
    • São Bento
  14. Santarém
    • União das freguesias de Casével e Vaqueiros
  15. Silves
    • São Marcos da Serra
  16. Tavira
    • Cachopo
    • Santa Catarina da Fonte do Bispo
  17. Tomar
    • Olalhas
    • Sabacheira
    • União das freguesias de Além da Ribeira e Pedreira
    • União das freguesias de Casais e Alviobeira
    • União das freguesias de Serra e Junceira
  18. Vale de Cambra
    • Arões
    • Junqueira
  19. Valença
    • Boivão
    • Fontoura
    • União das freguesias de Gondomil e Safins
    • União das freguesias de São Julião e Silva
  20. Viana do Castelo
    • Montaria
  21. Viseu
    • Calde
    • Cavernães
    • Cota
    • Ribafeita
    • São Pedro de France
    • União das freguesias de Barreiros e Cepões

Benefits of investing in a low-density areas in Portugal?

There are many reasons that make investing in one of Portugal’s Golden Visa eligible low-density regions an attractive option that is well worth considering as an alternative to the current most popular property investment locations like the capital city of Lisbon, major cities like Porto or the coastal areas of Algarve.

Some of the key benefits of the Portugal's low-density areas are:

  • The lower level of investment confers exactly the same residency rights as other more expensive investment options.
  • The low level of investment, coupled with the high rental returns available in some of the low-density municipalities, offers excellent returns on investment.
  • Many of the properties in these interior areas are large enough to be split into smaller units, thus increasing rental income.
  • The low cost of property in these areas means that more than one home could be purchased whilst staying within the 280K limit.
  • The cost of building and renovation work in Portugal is very affordable by EU standards. Renovation work can cost as little as €200 per square metre. Adding an extension would cost in the region of €700 per square metre.
  • All building work in Portugal is covered by a compulsory five-year warranty removing any concerns over potential problems resulting from renovation work.
  • Many of the low-density areas are amongst the most beautiful in Portugal, including the Peneda Geres region, the Dourro Valley and the Aljezur region.
  • The areas offer peace and tranquillity away from tourist crowds and so are popular with older, more affluent holiday makers. This makes them ideal for the development of upmarket and eco-tourism projects.
  • Universities in the interior Portuguese cities, such as Coimbra, Evora and Aveiro, are becoming more popular with students. Providing rental homes for students can secure you a regular and dependable source of income.
  • Property prices in Portugal are buoyant. In the country as a whole, property prices rose by an average of 6% in 2020 and similar rises were seen in the low-density regions. This trend is expected to continue as these areas are becoming more popular with younger Portuguese looking for move out of more expensive major cities.
  • Tourism in Portugal is booming and the government recognises and supports the significant contribution it makes to the country’s GDP. The popularity of Airbnb in particular means that growth in self-catering accommodation is outstripping the hotel sector, with an increase of over 20% in 2019. Once Covid travel restrictions are lifted, it is fully expected that tourists will return to Portugal.

What are some of the best low-density municipalities to invest in real estate?

Many of the Portugal Golden Visa inland areas are off the tourist map and as such might be more suited to people wanting to retire and live in Portugal rather than invest in a property for rental income. However, there are some Portugal low-density municipalities, counties and parishes that are deservedly popular with tourists and so would represent a fantastic investment. Three are particularly worth mentioning.

Peneda Geres

The Peneda Geres region is home to Portugal’s first and only national park, the Peneda-Gerês National Park. Popular with hikers and tourists seeking awe-inspiring scenery and a real sense of being away from it all, the low cost of property here offers excellent returns on holiday rental investments. €280,000 EUR will buy you a 160 square metre property in good condition which could be split into smaller units to further enhance the investment potential.

Located on the northern border of Portugal, it is only about 1 hour away from Porto’s airport, 40 minutes away from the ocean, and another 1 hour away from Vigo, in Spain. Filled with stunning waterfalls and lakes, dense forests, and wild horses running free, this is still one hidden gem, even for some Portuguese people.

View from Peneda Geres, Portugal

Douro Valley

The Douro Valley is famed the world over for the breath-taking beauty of its river valley and vineyards. It has become a popular tourist area, especially for those who enjoy wine tasting, walking and water sports. However, it is not only the wine that is special here. The carved hills, the historical villages, the comfort food, the world recognized foot trails, the sights, and overall culture, are just unforgettable.

In this area, a 120 square metre house in need of some renovation could be bought for €280,000 EUR. A holiday rental would give you a solid return on your investment here.

View from Douro Valley, Portugal

Aljezur

Surprisingly, certain parts of the Algarve are now categorised as low-density areas. A long-time favourite for European ex-pats, this world-famous holiday destination has beautiful beaches and great year-round weather. Investing in a property in the Algarve could deliver amazing returns, as it is popular with families and sun-worshippers alike. One such area is the region around the town of Aljezur. Enclosed by the sea on one side and the mountains on the other, this area offers stunning views and a surprising amount of peace and quiet. Houses here are typically single-story and a 160 square metre property could still be bought for €280,000 EUR.

View from Aljezur, Portugal

Other low-density areas

The low-density interior regions of Portugal offer a glimpse into a traditional way of life which both expats and tourists alike find charming. In addition to the three areas already mentioned, three others are worth highlighting:

  • The Alentejo region is an established popular tourist destination, well-known for its fabulous wine and the amazing preserved Roman town of Evora.
  • The Serra da Estrela region with its winter ski resorts would make a great year-round investment.
  • The Ferreira do Zezere in the Ribatejo region is an enchantingly remote place of breath-taking landscapes.

FAQs about Portugal low-density areas

1. What is a low-density area of Portugal?

Low density areas are defined as areas with less than 100 inhabitants per square km and the GDP per capita is less than 75% of Portugal’s average.

2. Will Portugal Golden Visa changes in 2022 affect the investments in the low-density areas?

The changes being introduced to the Golden Visa program mean that property investments in Porto, Lisbon and other high density urban areas on the coast will no longer qualify under the Portugal Golden Visa scheme starting 1st of January, 2022. However, the reduced real estate investment options - purchasing property worth of €280K (reduced from 350K) or €400K (reduced from €500K) in low-density areas will still qualify as a route to residency.

3. Is investing in low-density areas profitable?

Yes! Buying real estate in low-density regions is a major trend among local and Euopean investors. The markets are still extremely cheap compared to the big cities in Portugal or other European countries. At the same time the demand for short term rentals increased strongly in the last three years. This led to good and steady value appreciation growth rates of around 5-7% which is forecasted to pick up in the next years.

Begin your journey towards residency in Portugal today!