The Portugal Brief -- Daily Briefing, March 19, 2026

Government to Approve New Immigration 'Return Law' Today

The Council of Ministers will approve a new "return law" for irregular immigrants on Thursday, Prime Minister Luis Montenegro announced during Wednesday's parliamentary debate. The legislation forms part of a broader reform push that includes changes to labour law, housing policy, and public spending oversight. Montenegro challenged opposition parties to back the reforms, arguing Portugal must "reject immobility and affirm reformism."

Housing Minister Points to Recovery Signs

Housing Minister Miguel Pinto Luz told parliament that rental growth in the Lisbon Metropolitan Area has slowed from 5% to 1%, while nationally, average asking rents fell 2% between 2024 and 2025. Construction investment rose 5.5% in 2025 to 28 billion euros, and public works tenders reached a record 10 billion euros. The government has transferred 75 state-owned properties to municipalities for housing development.

Mortgage Lending Surges 27%, Driven by Young Buyers

The Banco de Portugal reports that 105,000 new mortgage contracts were signed in 2025, a 27% increase on the previous year. Young adults aged 18 to 35 accounted for 58% of new borrowers, up 11 percentage points. Foreign nationals represented 16% of all new credit borrowers, with Brazilians the largest group. Total new credit reached 35 billion euros across all categories.

Spanish Manufacturer Cortizo to Build 100M Euro Factory in Chaves

Galician aluminium giant Cortizo will invest 100 million euros in a new factory in Chaves, northern Portugal, expected to create 450 jobs by late 2027. The 80,000-square-metre facility has been classified as a Project of National Interest. The investment represents one of the largest industrial projects ever undertaken in the Vila Real district.

Nearly Half of Americans in Portugal Would Consider Dropping U.S. Citizenship

A survey of 200 Americans considering or living in Portugal found that 49% would consider renouncing U.S. citizenship after obtaining Portuguese nationality. Political disenchantment was cited by 83% as the primary motivator. Official AIMA data shows 19,258 U.S. citizens living in Portugal in 2024, up from 14,126 the previous year.

Portugal's Producer Prices Fall 3.5% in February

Statistics Portugal reported that the producer price index fell 3.5% year-on-year in February, accelerating from the 2.1% decline recorded in January. Producer prices have been in negative territory since January 2025, reflecting easing input costs despite the recent surge in global energy prices linked to Middle East tensions.

Deposit Return Scheme Launches April 10

Portugal will implement a Deposit Return Scheme starting April 10, requiring a 10-cent deposit on beverage containers up to 3 litres. The deposit is refunded upon return and is not subject to VAT. All retailers and hospitality operators must comply. The scheme targets a 90% collection rate by 2029, aligning Portugal with broader EU environmental policy.

Oil Prices Climb on Middle East Escalation

Brent crude surged 5.2% to $108.79 per barrel on Wednesday after Iran warned Gulf states that energy assets had become "legitimate targets" following an Israeli strike on the South Pars gas field. WTI rose 1.8% to $97.28. European markets turned negative in the afternoon session on energy concerns, with Lisbon's PSI index closing down 0.44% at 9,134.62 points.