Many people have moved from the seemingly year-round gloomy weather of the UK to sunny Portugal. It’s easy to see why, as places like the Algarve get around 300 days of sunshine a year. But how complex is moving to Portugal from the UK?
In this article, we’ll take a look at how Brexit impacted UK citizen’s ability to freely travel across the European Union, residency and visa changes in Portugal and key requirements for British citizens who wish to relocate to the Iberian Peninsula.
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Why are British citizens moving to Portugal?
Many British citizens choose to live in Portugal for reasons that go far beyond having a beach at their doorstep and pleasant weather—although these are still considerations. Many people want to know what schools are available, how far the pound sterling gets you, and is Portugal safe?
Safety: Portugal is widely considered one of the safest countries in the world. The country has a low violent crime rate and a reputation for being welcoming and peaceful. On the other hand, the UK has a robust law enforcement framework and advanced surveillance systems but still experiences higher levels of petty and serious crimes.
Healthcare: The Portuguese national health service is a universal healthcare system that delivers affordable, high-quality care to residents with little to no waiting times. However, while the UK’s National Health Service is comprehensive and free, non-urgent care has long waiting times. The service is also often overburdened in urban areas.
Retirement–friendly: Both the UK and Portugal are great retirement options, but Portugal makes a compelling case for many. Portugal offers a lower cost of living compared to the UK, allowing retirees to live a great life on a modest pension. Especially in the Algarve, the country has a thriving expat community, welcoming of any new residents.
Read our Portugal Citizenship by Investment Guide
Impact of Brexit on UK Citizens Moving to Portugal
Before exploring the possibility of moving to Portugal from the UK, it’s crucial to understand how border control worked before the UK left the European Union. Until the end of 2020, UK citizens were allowed to travel to Portugal without requiring visas, similar to how other EU citizens can today travel to Portugal.
However, when Brexit came into force in January 2021, UK citizens were now treated as third-country nationals. Before entering Portugal, you must apply for a visa, such as the D7 Visa or the D2 Visa, if you want to stay in the country for more than 90 days within a 180-day period.
While there are several pros and cons to living in Portugal now, it was slightly more beneficial before Brexit. UK citizens only had to register their residency with Portuguese authorities and were eligible for rights under the Withdrawal Agreement.
Can you still move to Portugal from the UK after Brexit?
Despite Brexit, UK citizens can still move to Portugal. However, the process involves more preparation and compliance with immigration rules.
UK citizens can also buy property in Portugal without restrictions, whether they intend to live there, rent it out, or use it as a holiday home. Additionally, after five years of residency in Portugal, UK citizens can apply for permanent residency or citizenship
Steps for Relocating to Portugal from the UK
Getting a tourist visa to visit Portugal on a summer break is easy. However, there are several administrative tasks that must be handled if UK citizens want to make Portugal their long-term home.
1. Getting a Portuguese tax identification number
The Portuguese NIF number, commonly referred to as “Número do Contribuinte” or the “Número de Identificação Fiscal,” is your Portuguese tax identification number and is one of the most important documents you’ll need.
Even as a UK citizen, you’ll need a NIF to perform any economic activity in Portugal. This includes everything from signing a lease and opening a mobile phone contract to accessing public services, such as healthcare, education, or social security benefits.
It is technically free to apply for an NIF online, but procedural fees can cost you money. If you want to get your NIF online using a tax representative, online businesses can charge for this process. If you would like a Portuguese tax card (a credit card-sizes document with all the details on it), Finanças charges €6.80 for this service.
2. Open a Portuguese Bank Account
Non-residents, including citizens from the UK, can open bank accounts in Portugal as long as you have your NIF number. No matter which bank you choose, there are a few required documents you’ll need:
- Proof of ID (e.g., passport)
- Proof of address (e.g., recent utility bill or letter received in the previous three months, with your name and address both visible)
- Confirmation of NIF
- Proof of income or employment (e.g., recent payslip or employment letter). You can still open a local bank account if you are not employed. You must show proof of registration with the Portuguese employment center (Centro de Emprego) or that you have an assured work contract.
- A Portuguese phone number for SMS activation: This may not be required and depends on the bank. Some banks also accept international phone numbers.
It’s also important to remember that most Portuguese banks require a minimum cash deposit of €250, although this will depend on the bank.
3. Accommodation in Portugal
For most visa options, UK citizens will need to provide proof of accommodation, usually a rental agreement that’s valid for at least 12 months. So, once you have your NIF and a Portuguese bank account, you can start looking for a place to stay.
Depending on your financial situation, it will be helpful to consider whether you want to buy a property or rent.
Rental prices in Portugal can vary significantly depending on the location, with major cities like Lisbon experiencing higher rates compared to quieter rural areas. In fact, according to data, rent prices in Lisbon and Porto have increased by over 40 percent in the past five years.
The average rental price in Portugal is €15 per square meter, a 30 percent rise from July 2022. Notably, Lisbon has the highest rental prices, exceeding €18 per square meter.
Despite these increases, rental costs in Portugal remain lower than those in many European countries and the UK. Many expats find it helpful to work with a real estate agent when entering into a rental contract or specific rental agreement to navigate the process effectively.
As for buying real estate, there are no restrictions on British citizens purchasing property in Portugal. Due to demand from foreign buyers and investors, Portuguese property prices are generally on the rise, particularly in popular areas like Lisbon and Porto. For those seeking more sunshine than anywhere else in Portugal, you might want to consider living in the Algarve.
Prices in Lisbon have surged significantly and are much higher compared to other parts of the country. For cheaper properties, your best bet is to look more inland, or you can enlist the help of a reputable real estate agent to find the best property for you.
Visa and Residency Options
While it is no longer possible for British expats to just pack up their belongings and move to Portugal, there are a few temporary stay visa options that aren’t too complex. Once you have your NIF, a bank account, and suitable accommodation in Portugal, you can start looking at Portuguese residence permit and visa options and apply through a Portuguese consulate.
Portugal Golden Visa
The Portugal Golden Visa program is a residency-by-investment program that allows UK citizens to live and work in Portugal if they meet the minimum investment requirement. A key benefit of this visa is the flexibility in the stay requirement; to maintain your legal residency status, you only need to spend an average of seven days per year in Portugal.
Investment opportunities start at €250,000 for donating to an art project or a project preserving Portugal’s national cultural heritage, reduced to €200,000 in low-density areas.
As with most residency visas, UK citizens can establish a permanent residence and become Portuguese citizens and gain a Portuguese passport after five years, provided they meet all the requirements under Portuguese nationality law.
D7 Retirement Visa
The D7 Visa, or the Passive Income Visa, allows UK citizens to retire and work in Portugal if they have passive income from sources such as a pension, real estate investments, intellectual property, or other financial equity.
Additionally, under the EU family reunification scheme, the entire family of the Passive Income visa holder is eligible for residency in Portugal. After renewing the residence permit for five years, UK citizens can apply for permanent residency and Portuguese citizenship.
D1 Work Visa
The D1 Visa covers a wide range of activities and is a long-term visa that permits UK citizens to live and work in Portugal. It is specifically intended for individuals who have secured a job offer from a Portuguese employer.
It is typically granted for a year, after which it can be renewed and may eventually lead to a residence permit, allowing the holder to live and work in Portugal long-term. You’ll need to prove
employment, a work contract, or an invitation from a Portuguese company, along with other documentation to demonstrate suitability for the job.
D2 Entrepreneur Visa
If you want to start a business in Portugal, the Portugal D2 Visa is an excellent choice. It is a residency visa for entrepreneurs who are not European Union citizens, like UK citizens. It is aimed at people who want to contribute to and grow the Portuguese economy by purchasing existing companies or developing startups.
Shipping Your Belongings to Portugal
If all goes according to plan, Portugal’s immigration agency should approve your visa and residency application in a few months. The only thing left for you to do is ship your belongings from the UK to Portugal.
In addition to finding a moving company that can transport your belongings from the UK to Portugal, you’ll need to get a baggage certificate. This is an official document issued by customs authorities that confirms personal belongings being transported across international borders have been cleared through customs.
It certifies that the goods are either exempt from customs duties and taxes or that any applicable charges have been paid.
Since Portugal is an EU country, there are no customs duties for the personal belongings of UK expats moving from the UK post-Brexit, provided you follow regulations and your goods qualify for personal use. You’ll also need to get a Certificate of Change of Residence (Certificado de Mudança de Residência) from Portuguese authorities to avoid VAT on household items.
It is important to note that your belongings must arrive in Portugal within 12 months from the start of the residency permit, and the baggage certificate must be valid.
Cost of Living in Portugal
A common question most people ask before relocating is: is Portugal expensive? Well, Portugal offers a notably lower cost of living compared to the United Kingdom. On average, living expenses in Portugal are approximately 40% less than in the UK. This difference is evident across various sectors. For instance, restaurant prices in Portugal are about 40% lower than in the UK, making dining out more affordable.
Grocery costs also favor Portugal, with prices being roughly 32% lower, allowing residents to enjoy a diverse diet without straining their budget. When it comes to housing, rent prices in Portugal are approximately 24% lower than in the UK, providing more cost-effective accommodation options.
However, if you choose to live in a city like Lisbon or Porto, rent prices can be relatively high, especially in central areas. A one-bedroom apartment in the city center might cost between €800 to €1,200 per month. In smaller towns or rural areas, rent can be significantly lower, often ranging from €400 to €700 for similar accommodations.
Additionally, transportation expenses, including local transit and fuel, are generally lower in Portugal, contributing to the overall affordability. However, it’s important to note that while the cost of living in Portugal is lower, the average net salary is also lower than in the UK.
Portugal | United Kingdom | |
Utilities (monthly) | €114.74 | €284.43 |
3-Bed apartment in city center | €1,599.51 | €2,050.19 |
Mobile phone monthly plan | €18.94 | €15.07 |
White bread | €1.36 | €1.47 |
Milk (1 liter) | €0.94 | €1.46 |
Eggs (12) | €2.68 | €3.50 |
Average monthly net salary | €1,043.25 | €2,872.04 |
Driving in Portugal
Driving in Portugal as a UK driver is relatively straightforward but requires some preparation. Portugal drives on the right-hand side of the road, and speed limits are strictly enforced, especially on highways. The road network is generally well-maintained, with tolls on major highways.
If you are a resident of Portugal, you can use a full and valid driving license issued in the UK or Gibraltar until it expires, provided you have registered it with the Instituto da Mobilidade e dos Transportes (IMT).
You must do this within 60 days of the issue date on your residence certificate or immediately if you have already been in Portugal for more than 60 days. You can also exchange your license for a Portuguese one without taking a driving test, but only before your UK driving license expires.
Taxes in Portugal
Portugal’s tax system is comprehensive, with various taxes targeting different income sources and activities. It also provides specific incentives and benefits for new residents and businesses investing in certain sectors. If you’re moving to (or are already in) Portugal and earning an income, you may have to pay taxes. If you reside in Portugal for 183 days or more a year, you must pay income taxes in Portugal on your worldwide income.
As per tax laws, the Portuguese tax year follows the calendar, starting on 1 January and ending on 31 December, with a tax return submitted between April and June of the following year. Returns can be completed online via the Portuguese Tax Authorities’ website or printed forms. Whether you are a foreigner or a local, there are several taxes that everybody must pay.
Let’s assume that you bought your first house in Portugal as part of the move from the UK. In that case, you’ll be liable for Portugal’s equivalent of council tax, which is to be paid by property owners.
The IMI (Imposto Municipal Sobre Imóveis) rates are different according to your property’s area and are set by each municipality. The IMI goes towards maintaining public infrastructures such as bin collections and street cleaning. Residents with homes valued at more than €600,000 need to pay a higher level of IMI known as AIMI.
If you are in Portugal using pension funds, started a self-employed business, or renting out an apartment, you’ll also pay personal income tax. The IRS rates, ranging from 14.5 percent to 48 percent, apply to the incomes of Portuguese residents and non-residents currently working or employed. Even if you retire in Portugal, you’ll still be subjected to certain taxes.
Tax is automatically deducted from pay slips, but you must complete an annual tax return. Your income tax rates are determined by calculating your taxable income earned and the corresponding tax rate and removing any legal deductions.
Portugal's Healthcare System
Portugal has universal healthcare through the publically financed Serviço Nacional de Saúde (SNS), which provides free healthcare for children under 18 and people over 65. State healthcare provides subsidized medical costs at a low rate for everyone else. Depending on the health center, physicians should administer medication during a procedure or even provide urgent care free of charge.
As a UK citizen now living in Portugal, you are entitled to access the Portuguese healthcare system, which is broadly similar to the National Health Service in the UK. This gives citizens and legal residents access to any public health facility or hospital, but not all health centers offer public coverage. For example, medical emergency care is free, but all other services incur a fee, sometimes due immediately. This may apply to consultations, medical emergency room visits, and ambulance services.
Private doctors and healthcare facilities are widely accessible through private health insurance. The healthcare system has seen improvements through the introduction of public-private partnerships for new hospitals, modifications to hospital management structures, reforms in pharmaceuticals, reorganization of primary care, and the establishment of long-term care networks.
In Portugal, the costs of private healthcare are relatively low compared to many other countries. Private insurance also allows for quicker access to appointments than the public healthcare system. Additionally, you can be confident that nearly all doctors in the private healthcare sector speak English.
Finding a Job in Portugal
The job market in Portugal offers various opportunities for native English speakers, especially in fields where English proficiency is highly valued. One of the most in-demand areas is language education, where English teachers are frequently sought after. Private language schools consistently look for instructors to teach both general and specialized English courses.
The tourism and hospitality industry is another sector that actively seeks English-speaking staff due to the importance of tourism in Portugal’s economy. Jobs in hotels, resorts, and tour agencies often require strong communication skills in English to effectively serve international visitors.
Additionally, the technology and IT sector provides opportunities for English speakers. Many tech companies operate in an international environment where English is the primary language of communication. Available roles may include customer support, project management, or software development, provided candidates possess the relevant skills.
The average annual salary in Portugal varies depending on the profession, qualifications, and years of experience. For highly skilled professionals, the average annual salary is around €22,500, while the national minimum wage is €870.00 per month.
Crafting a compelling CV and a well-motivated cover letter is crucial for those finding a job in Portugal online. Employers in Portugal generally prefer concise CVs of one page, although extending to two pages for more technical roles is acceptable—exceeding this is rare.
Be prepared for the Portuguese hiring process, which may take time. Patience is key, and remember that a lack of immediate communication is not necessarily a bad sign. Expect multiple stages in the interview process, including personal and technical assessments. If you are asked about your proficiency in Portuguese, don’t panic; English proficiency is often sufficient for positions in start-ups or multinational corporations.
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Frequently Asked Questions on Moving to Portugal from the UK
Do UK citizens need a visa to move to Portugal?
Post-Brexit, UK citizens need a visa to live in Portugal for more than 90 days within any 180 days. There are various visa options, including the D7 Visa for retirees and individuals with passive income or the D2 Visa for entrepreneurs.
What are the main residency visa options for moving to Portugal?
Several visa options are available for UK citizens. These include the D7 Visa for those with passive income, such as pensions, dividends, or savings, and the D2 Visa for entrepreneurs looking to establish a business.
Can I access healthcare in Portugal as a UK citizen?
Portugal offers a robust public healthcare system. UK residents can access the Serviço Nacional de Saúde (SNS) after registering for a Número de Utente (healthcare user number). Many expats also choose private health insurance for additional flexibility.
How does Brexit impact my ability to move to Portugal?
Brexit means UK citizens no longer have automatic EU freedom of movement. However, residency applications are straightforward for those meeting visa requirements. If you were a resident before January 1, 2021, you could apply under the Withdrawal Agreement.
Is it easy to find accommodation in Portugal?
The rental market varies depending on the region. Popular cities like Lisbon and Porto have high demand, but smaller towns and rural areas often have more affordable and available options.
What are the benefits of living in Portugal as a UK citizen?
Benefits include a warm climate, affordable cost of living, excellent healthcare, and a high quality of life. The ease of integrating into local communities and the growing number of expat-friendly regions make Portugal particularly attractive.
Is it easy for Brits to move to Portugal?
Moving to Portugal as a Brit is achievable but now requires more planning and compliance with immigration rules due to Brexit. While it is no longer as straightforward as before, Portugal’s welcoming policies, including the D7 visa for retirees or individuals with passive income and the D2 visa for entrepreneurs, make it accessible for UK citizens.
What are the tax implications for Brits moving to Portugal?
You become a Portuguese tax resident if you spend more than 183 days in Portugal within a year or have your primary residence there. Portuguese tax residents are taxed on their worldwide income, but double taxation agreements between the UK and Portugal can prevent paying taxes in both countries.
How do UK citizens transfer pensions when moving to Portugal?
The Qualifying Recognized Overseas Pension Scheme (QROPS) is an option for transferring UK pensions to a recognized scheme in Portugal. It can provide benefits such as flexibility in accessing funds and reduced tax liabilities.
