Portugal Benefits amid Spain Tourism Crackdown

As Spain grapples with anti-tourism sentiment and enforces strict limits on holiday rentals, neighbouring Portugal is enjoying a tourism renaissance—positioning itself as Europe’s rising star for luxury and eco-conscious travel.

Spain’s Restrictions Drive Tourists Across the Border

Spanish cities such as Malaga, Madrid, and Seville have rolled out sweeping restrictions on short-term holiday lets. Malaga, for instance, has implemented a three-year moratorium on new rental registrations. These efforts aim to counter the negative impacts of overtourism—soaring rents and resident discontent—but they’re also pushing international tourists to look elsewhere.

Portugal has become the natural beneficiary. Unlike Spain, it has maintained a welcoming stance, making it an increasingly attractive option for global travellers seeking high-quality and flexible hospitality.

Record-Breaking Visitor Numbers in Portugal

Portugal’s tourism sector is flourishing. The country recorded an all-time high of 3.8 million visitors in August 2024, marking a 5.9% increase over the previous year. The trend continued into 2025, with 5.7 million tourist arrivals in the first quarter alone—a 2.3% year-on-year growth.

Strategic government measures, including enhanced flight connectivity from the United States and targeted hotel improvements, have played a crucial role. Overnight stays by American tourists surged by 33%, contributing €2.5 billion in revenue.

Tourism now accounts for 16.5% of Portugal’s GDP. In 2023, tourism-related consumption nearly reached €44 billion—testament to the sector’s pivotal role in the nation’s economic growth and its increasing appeal as a luxury and sustainable destination.

Surge in Luxury and Eco-Tourism Investment

Portugal’s allure extends beyond holidaymakers. The country’s luxury and eco-tourism segments are drawing considerable interest from global investors and wealth funds. The stability of Portugal’s economy, along with its high quality of life and residency incentives, is driving this trend.

Paul Stannard, founder of Portugal Pathways and the Portugal Investment Owners Club, notes:

“Portugal has created a unique environment for like-minded people to create sustainable investments in key sectors of its economic strength. We’re seeing a surge in luxury and eco-tourism investments, as global investors recognise the country’s commitment to quality, sustainability, and innovation.

"This is driving record growth in hospitality and creating new standards for the industry.”

Portugal Golden Visa Fuels Investment Boom

At the heart of Portugal’s investment momentum is its restructured Golden Visa scheme. While the programme no longer accepts direct property purchases, it now centres around approved alternative investment funds. A minimum investment of €500,000 grants investors Portuguese residency, access to the Schengen Area, and a route to EU citizenship.

Paul Sheedy, special advisor at the Portugal Future Fund, explains:

“A blended approach to investment—spanning sectors such as luxury hospitality and tourism, renewable energy, media and international events, healthcare, and technology—not only aligns with Portugal’s economic strengths but also offers investors robust, diversified returns. The Portugal Future Fund, approved for Golden Visa residency-by-investment, is seeing heightened interest from those seeking both financial and lifestyle benefits.”

Investors are only required to spend seven days annually in Portugal to maintain their residency, with eligibility for permanent citizenship—and a European passport—after five years.

A Bright Horizon for Portuguese Tourism

Portugal’s deliberate focus on sustainability, high-end tourism, and investor-friendly policies is rapidly elevating its global status. While Spain tightens regulations and contends with public unrest, Portugal is redefining the future of tourism in Europe—drawing not only record-breaking visitor numbers but also long-term investors eager to be part of its success story.

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About Portugal Future Fund

The Portugal Future Fund strategically invests in key sectors, driving growth and innovation across Portugal. Approved for Portugal’s Golden Visa residency-by-investment, it offers a unique opportunity for impactful and rewarding participation.

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Disclaimer: The information on the Portugal Future Fund website and in email communications is for general informational purposes only and should not be construed as legal, tax, or financial advice. You should consult and check with a qualified professional advisor before relying on any information provided on this website or in email communications. As it relates to investments in Golden Visas or other wealth management solutions offered by regulated and professional advisors, it is important to note that past performance is no guarantee of future returns. Private equities can be highly illiquid and come with risk and should always be under professional independent advice. Portugal Future Fund operates under CMVM regulations but is not directly endorsed by the CMVM or any governmental entity.

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