Looking to move out of Britain’s drizzle and into somewhere a lot slower and sunnier in Portugal? This can feel like an obvious dream when you first get the idea, but the paperwork and price tags are anything but obvious.
Fortunately, you’ll be glad to know that loads of Brits make this exact move every year, so it’s more than possible. Planning your move to Portugal from the UK does mean you’ve got to treat it like you’re exporting your life rather than just bringing your holiday luggage, but there is a clear route that’s simpler than you may expect.
Portugal is an EU country, so its residency rules follow common European patterns you might already be familiar with. That said, there are definitely still a few local quirks, so we’ve put together this step-by-step to make the whole move and mortgage process a lot easier for you.
According to EU migration data published at the start of 2023, British citizens make up roughly 6% of Portugal’s foreign-born population. It’s not exactly a surprise, either – sunshine and sea can pretty easily sell themselves – but the cost element also matters.
The median Portuguese house price cost just €1,644 per m² in early 2024, while the UK’s averaged £3,522 – even after the slowdown. That gap tells you all you need to know, but then when you factor in how light the bureaucracy is and how you get 300 sunny days a year, it becomes even more obvious!
What are your options for making a move here?
Yes, but it’s a bit more streamlined than it used to be. The new Portuguese golden visa program still grants a five-year Portuguese residence permit in exchange for a qualifying Portugal Golden Visa investment.
But property purchases need to be at least €500,000 outside Lisbon and Porto. In addition, Golden Visa holders have to spend at least 14 days in Portugal across two years.
These are some of the main qualifying routes at a glance:
If you’re someone who earns a steady pension or dividends above Portugal’s minimum wage (rental income can also be used for this), the D7 – which is often called the passive income visa – might be a better option for you.
It costs less than the Golden Visa Portugal pathway, but you’re getting the same two-year permit (renewable to five years) provided you spend most of each year in the country.
Trips under 90 days within 180 days need to follow the Schengen rules for UK citizens, but buying often runs longer. A viewing trip may start visa-free; signing deeds usually requires residency proof or a notary willing to accept your passport plus Portuguese tax resident number (NIF).
Our team at Upscore can connect you with local lenders in Portugal once you know what you’re looking for, but here’s some more information that’s worth knowing about the move:
Prices here massively depend on postcode – no different than Spain, Italy, or anywhere else in Europe. For instance, some properties in Lisbon broke €4,150 per m² in spring 2025, whereas inland Alentejo still sits under €1,300.
Nationally, the average reached €2,622 in April 2024, which was a 5% yearly rise. We know that’s higher than the €1,644 per m² figure we mentioned for early 2024, so remember that €2,622 is just the average, which gets skewed by extremes on both sides. Plus, that’s still a lot lower than it is in the UK!
Banks are fairly conservative here: a non-resident mortgage rarely tops 70% loan-to-value, so you’ll need a chunky deposit plus fees.
Yes. A Portuguese bank account lets the notary verify funds on completion day and set up utility direct debits. And it lets you prove to SEF that you meet the minimum means. Opening one requires:
We’d suggest locking a forward contract – a one-point sterling wobble on a €400,000 villa can wipe out a year’s council tax.
Spend 183 days in Portugal in a tax year – or keep your primary home there – and you become a Portuguese tax resident. And make sure you register quickly so you can claim the Non-Habitual Resident regime: 10% on most foreign pension income and 20% on certain high-value Portuguese work for ten years!
Purchase tax (IMT) also runs between 2 and 8% here, with stamp duty at 0.8%. Fortunately, council tax (IMI) isn’t as bad, at only 0.3-0.45% of fiscal value.
As you might expect, you’ll be facing capital-gains tax if you sell within two years, but rolling gains into another home can actually defer it. And lastly, inheritances between spouses and direct heirs remain exempt here – unlike the UK.
The Portuguese National Health Service (SNS) covers residents, but like the UK, you could be stuck waiting in long queues if you’re in a major city.
We’d recommend bringing private health insurance for faster tests and English-speaking staff; most policies run £45-£90 a month for a couple in their fifties. Your old European Health Insurance Card handles emergencies during short trips while you wait for the permit card, but it won’t cover routine GP visits.
Portugal spends roughly €2,200 per head on health, which is actually below the EU average of €3,000 – so topping up and going private for some things definitely makes sense.
Keep an address and bank account in Britain, and you still get the state pension. HMRC and Portugal hold a tax treaty, so there’s no double charge there! Also, NHS cover continues for return visits under six months per year.
Still mapping your move? Upscore’s Finance Passport helps you organise all your finances and use your UK credit score to secure a mortgage in Portugal!
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