Direct flights from Toronto to Faro, mild winters and a lower cost of living have quietly turned the Algarve into a Canadian hotspot. Many are no longer just visiting – they are acquiring homes, opening businesses and using the D7, D2 and Portugal Golden Visa fund route to make the Algarve their long-term European base.
By Explorer Investments • Updated 7 December 2025
Key Market
Canadians
Tourists & expats
Main Visas
D7 • D2 • GV
Passive, entrepreneur & funds
Golden Visa
€500k
CMVM fund route (no real estate)
Stay Limit
90/180
For non-resident visitors
“Direct Toronto–Faro flights turned the Algarve from a “nice idea” into a practical winter base for Canadians. The next step for many is obvious: secure a visa, buy a property with strong rental potential or allocate capital to a Golden Visa fund – and turn a favourite destination into a real Plan B.”
Since January 2022, when Air Transat launched its direct winter flight from Toronto to Faro, Canadian traffic to the Algarve has accelerated. Previously, Canadians had to fly into Lisbon and connect onwards to the south; now, they can land directly in the region that they actually intend to enjoy.
The route initially targeted the winter “snowbird” segment, but demand was strong enough that it was later extended to operate year-round. As a result, most Canadian visitors fall into two groups:
The growth in Canadian visitor numbers has naturally translated into more Canadians buying property in the Algarve. Local estate agents report a marked increase in Canadian clients – often couples or retirees who:
Many of these buyers look for properties with strong rental potential – villas or apartments they can enjoy themselves during the winter months while renting out to tourists during the lucrative summer high season. In many cases, the rental income comfortably covers running costs and can even produce an attractive yield.
The D7 visa – often called the “passive income” visa – is a favourite among Canadian retirees and financially independent individuals. It is designed for people with stable, recurring income such as:
The typical pattern for Canadians using the D7 in the Algarve:
For many, this combination of lifestyle + yield makes the Algarve feel like a smart life decision, not just a dream.
Not all Canadians come to the Algarve to retire. Some arrive with business ideas and use the D2 visa to turn those ideas into reality. The D2 is geared towards entrepreneurs and investors who want to:
A vivid example from the Algarve is a pair of Canadian friends who opened a Texas-style smokehouse restaurant in the town of Boliqueime. With one partner's background in hospitality and the other's 15 years of experience as a pit master, they spotted a gap in the market:
““There’s all this great food, there’s all these expats, but nobody is smoking food. So, we said, ‘let’s start a smokehouse in the Algarve, we’ll be the first to do it’.””
They first visited as tourists, fell in love with the region and then pursued the D2 investment visa on their lawyer’s advice. The process took a couple of years, but once the visa was approved, they relocated quickly and now call the Algarve home.
Alongside the D7 and D2, the Portugal Golden Visa remains a valuable tool for Canadian investors – especially those who want a more passive, financial-product-style route into Portuguese residency.
While the Golden Visa can also be accessed through specific cultural donations, the flagship route for many Canadians is a €500,000 investment into an eligible investment fund. Key points:
This transforms the Golden Visa into a regulated financial allocation that also delivers:
Explorer specialises in private equity–style Golden Visa funds, aligning Canadian investors’ need for governance and risk management with the immigration requirements of the program.
A simple way to think about the three main routes:
As a rule of thumb, non-resident Canadians can stay up to 90 days in any 180-day period in the Schengen Area. If you want to stay longer or live in Portugal full-time, you will need a visa or residency permit such as the D7, D2 or Golden Visa.
It depends on your goals. If lifestyle and rental yield are your priority, property in the Algarve can be attractive. If you prefer a regulated, more hands-off financial product that still leads to residency and citizenship, a CMVM-regulated Golden Visa fund may be more appropriate.
Yes. Family reunification is central to D7, D2 and Golden Visa strategies. Spouses and dependent children can usually be included, subject to providing the right documentation.
Under the current framework, most routes involve around five years of legal residency before a citizenship application can be made, combined with a Portuguese language test and compliance with all legal requirements in force at the time.
The Algarve has moved from being “a great place for a holiday” to a concrete Plan B for Canadian families. For some, that means a D7 visa and a winter base. For others, it means a D2 business like a smokehouse restaurant. For many investors, it means a CMVM-regulated Portugal Golden Visa fundas part of a broader portfolio.
Explorer can help you understand which route fits your profile – and how a Golden Visa fund allocation can support your long-term residency and citizenship strategy while still behaving like a serious, institutionally-managed investment.
Get personalized guidance on the fund process. Our Investor Relations team can clarify the steps, discuss Explorer's fund options, and connect you with trusted legal experts. Schedule your confidential, no-obligation consultation today.
André Bandeira
ab@explorerinvestments.com
Maria Campos Silva
mcs@explorerinvestments.com
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Get your complete, free guide to the Portuguese Golden Visa. Learn how to invest with confidence through Explorer Investments, the country's largest private equity fund.
André Bandeira
ab@explorerinvestments.comMaria Campos Silva
mcs@explorerinvestments.comCopyright © 2025 Explorer Investments
It is recommended to consult Chapter V of Decree-Law nº 162/2014, of October 31st, published in the Official Gazette, as well as its revision by Law nº 2/2020, of March 31st. The information included here is of a general nature, and therefore each potential investor should seek independent advice (e.g., legal, financial, tax, etc.)