Only a few things are more stressful than relocating, even if it is just around the block. However, annually, many Brits pack up their belongings to start a new life on the Iberian Peninsula.

It has become so common that Portugal ranks among the top ten countries with the largest British-born populations outside of the United Kingdom. According to statistics from Portugal’s immigration agency, more than 40,000 Britons applied for residency in 2021.

But why do the figures keep on increasing? The United Kingdom is relatively stable in terms of the economy and crime, so why are more Brits moving to Portugal or Spain? In this article, we’ll explore the many reasons why there is seemingly an exodus from the British Isles and what many people are looking for in their new home country.

A Growing Statistic

portugal-best-cities-to-liveTo fully understand the appeal of moving to Portugal, one only needs to turn to official statistics from the European Union. At the beginning of 2023, citizens of the United Kingdom living in Portugal made up six percent of the foreign-born population.

While there are plenty of immigration options available, Portugal’s Golden Visa and the D7 Passive Income Visa are among the most popular. According to Portugal’s Agency for Immigration, Migration, and Asylum, more than 230 Golden Visas were issued to UK nations in September 2024 alone.

Specific statistics on the number of D7 visas issued to UK citizens aren’t publicly available, but it stands to reason that the number is far higher than for the Golden Visa. But it’s not just older retirees flocking to the country.

You also have to factor in temporary residency permits aimed at younger people that can lead to citizenship, such as the D8 Digital Nomad Visa and the D3 Entrepreneur Visa.

Over the last few years, the demographics of people moving to Portugal and the reasons why have changed. Data shows that more younger people are moving from the UK to Portugal. Entrepreneurs, businesspeople, and young families are all looking to Portugal for the perfect balance between business and leisure.

Chasing the Sun

Algarve-remote-working-pngAccording to Laura Madrid Sartoretto, PhD, the Research Lead of Global Citizen Solution’s Global Intelligence Unit, the reasons why UK citizens are moving to Portugal and Spain are plenty but the most obvious would seem to be the weather. Well, for many, there is a far more profound decision-making process happening before signing the visa application documents.

“In addition to Portugal’s appealing weather and affordable cost of living, its close proximity to the UK and high English proficiency make it especially attractive to British expats. The availability of frequent direct flights between Portugal and the UK also makes it easier for families to stay connected and visit regularly.

These factors, combined with Portugal’s reputation as one of the safest countries in the world, play a significant role in influencing the decision-making process for Brits seeking a better quality of life abroad.”

Our internal immigration data corroborates this. Many potential clients from the UK list the weather, increasing cost of living in the UK, and free movement within the Schengen Area post-Brexit as among the top reasons for looking at the Iberian Peninsula.

For example, recent data indicates that the cost of living in the UK is 41.4 percent higher than in Portugal while housing rental prices are 32 percent higher than in Portugal. Similarly, the cost of basic groceries is 33 percent lower in Portugal, while the price per square meter to buy an apartment in a city center is 61 percent lower in Portugal.

And you also don’t have to look far to find the same sentiment on expat forums and social media groups. “I traveled to 45 countries looking for the perfect place to raise a family. I found Cascais and never left. Beaches to the south, to the west. The weather is great, and the safety is good. The Sintra mountains are 15 minutes away, and Lisbon is 20 minutes away. It’s perfect,” explained an expat on Reddit.

“I am on my own and was retiring in two years. Decided that I needed an adventure, and moved to Portugal. I had never been there before, and I don’t regret my decision at all,” posted another.

Follow the Money

Capital Gains Tax RatesHowever, a growing contingent of Brits is also moving to Portugal to improve their financial standing.

“Portugal is also being investigated by wealthier business people from the UK, especially when it comes to inheritance tax and capital gains tax considerations. In terms of longer-term wealth planning, the changes in the UK’s non-domicile tax status also plays a huge role in decision-making process,” Sartoretto concludes.

Recently, British economists have expressed concern that an exodus of wealthy businesspeople could impact the UK economy. That was sparked after a report suggested that almost 10,000 high-net-worth individuals want to leave the UK.

Emigration to countries like Italy, Cyprus, Portugal, and Spain includes ten billionaires and 85 multi-millionaires looking to protect their wealth after the British government announced plans to increase the tax for non-domiciled individuals.

Particularly in Portugal, the country’s Non-Habitual Resident (NHR) program is an effective driver for immigration. This initiative allows new residents to benefit from reduced tax rates and exemptions on foreign income for up to ten years, making it particularly appealing for pensioners and high-net-worth individuals.

While the NHR has ended, many can still apply for tax benefits until March 2025 if they meet specific criteria.

Visa Options for UK Citizens

Migration is encoded in the human DNA, and thankfully, Portugal has a swath of visa options that cater to almost every reason for relocating. Since the top motivations for moving to Portugal include retirement, investment, and remote working, we’ll take a closer look at those visa options.

Retirement: D7 Passive Income Visa

The Portugal D7 Visa, often called the Passive Income Visa or Retirement Visa, provides a pathway for non-EU nationals to legally reside in Portugal by meeting a minimum passive income requirement.

Eligible funds, targeted at contractors, retirees, and individuals, can include pensions, financial investments, rental income, and earnings from intellectual property, among others.

Investment: Golden Visa

The Portuguese Golden Visa program, officially known as the Portugal Golden Residence Permit Program, was established in 2012 to attract foreign investment and enhance Portugal’s appeal to non-EU nationals. This initiative allows individuals to obtain residency through various qualifying investments.

Structured as a five-year residency by investment scheme, the Portugal Golden Visa enables investors and their family members to secure residence permits while contributing to the country. Qualifying investment options include capital transfers, job creation, and investment in Portuguese companies, offering flexibility to meet different investor interests.

Remote work: D8 Digital Nomad Visa

The Portuguese government introduced Portugal’s Digital Nomad Visa, officially called the D8 visa program, for remote workers seeking to live and work in Portugal.

The visa is a long-term residency option explicitly designed for non-EU/EEA remote workers wishing to live in Portugal while maintaining employment with companies outside the country, like the UK.

It allows you to stay in Portugal for up to one year, with the possibility of renewal. As a D8 Visa holder, you can also travel freely within the Schengen Area, which includes 29 European countries, for up to 90 days within a 180-day period.

Points to Ponder

alicante spainThe growing trend of Brits migrating to Portugal and Spain is driven by the pursuit of a better quality of life, enhanced financial security, and greater opportunities in a post-Brexit world.

With their favorable climates, cost-of-living advantages, and flexible visa options such as the Golden Visa and D7 Visa, the Iberian Peninsula presents an attractive choice for retirees, entrepreneurs, and digital nomads alike.

However, this transition is not without challenges. Moving abroad requires careful planning, an understanding of visa requirements, and the ability to adapt to new cultural and economic environments.

Nevertheless, for many, the benefits outweigh the obstacles, making Portugal and Spain not just travel destinations but also ideal places to start a vibrant new chapter.

As global mobility becomes increasingly accessible, the Iberian Peninsula continues to shine as a beacon for those looking to enjoy the sun, secure their financial futures, and embrace a lifestyle that integrates personal satisfaction with professional fulfillment.