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More Brits are moving to Portugal in 2025 due to its favourable tax programs, residency options and high quality of life. The Algarve remains the top choice, attracting retirees, remote workers and property investors. |
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By LiveAlgarve on 31st January 2025 - 3-4 m. reading time Portugal continues to draw the interest of British nationals looking for second homes, permanent residences, or even new business opportunities. With its favourable tax programs and accessible property market, the country has remained a popular destination, especially in the post-Brexit landscape. In 2025, the trend shows no sign of slowing, with the Algarve standing out as the prime choice for UK buyers. Growing British Community in Portugal The British community in Portugal has grown steadily over the years. At the end of 2024, over 47,409 UK nationals had officially registered as residents in Portugal, according to data from the Serviço de Estrangeiros e Fronteiras (SEF). This number represents a significant increase since Brexit, reflecting the enduring popularity of Portugal as a relocation destination. The Algarve remains the most popular region for British expats, especially in hotspots like Lagos, Portimão and Carvoeiro. A 2024 survey conducted by the Moving to Portugal Show and Seminars revealed that over 51% of attendees expressed strong interest in Algarve properties, underscoring its dominant position in the property market (The Portugal News). What's Driving the Trend in 2025? Several factors make Portugal one of the most attractive destinations for British nationals: 1. The NHR 2.0 Scheme Portugal’s famous Non-Habitual Residency (NHR) programme, revamped in 2024 as NHR 2.0, remains a strong incentive. Under the new rules, foreign residents can still benefit from reduced taxes on certain types of income. However, stricter eligibility criteria now require individuals to demonstrate greater economic contributions, such as investments or job creation in Portugal. This has made it particularly appealing for retirees, entrepreneurs and digital nomads. 2. Post-Brexit Residency Options Since Brexit, British citizens can no longer move freely within the EU. However, Portugal has adapted its residency pathways to accommodate UK nationals. While the Golden Visa programme no longer applies to real estate investments, British buyers can still use the D-class Visas for long-term residency. These visas are particularly popular among retirees and remote workers, as some only require proof of passive income or remote work earnings. 3. Portugal's Lifestyle Appeal Portugal ranks consistently as one of the safest countries in the world. Combined with its Mediterranean climate, world-class golf courses and award-winning beaches, it’s no wonder the country attracts so many Brits. Additionally, the cost of living in Portugal remains lower than in the UK, particularly in regions like the Algarve, despite rising property prices in recent years. 4. Accessible Second-Home Market For those not looking to relocate permanently, Portugal’s second-home market is thriving. According to a 2024 report by Engel & Völkers, more than 50% of all property investments in the Algarve were made by international buyers, with British investors leading the way. Many second-home buyers take advantage of the Algarve’s thriving short-term rental market, generating income when they’re not occupying their properties (Idealista). Challenges and Considerations While Portugal remains a top destination for Brits, there are some challenges to consider:
The Future of UK-Portugal Relocation Looking ahead, Portugal’s reputation as a top destination for British nationals is unlikely to wane. For Brits considering the move, 2025 presents a promising moment to join the growing community of UK nationals thriving in Portugal. |
