After the UK left the European Union with Brexit, many Brits wondered how Brexit would affect real estate possession in Portugal. One of the many questions people have is, can Brits buy property in Portugal after Brexit? Suppose you are contemplating the purchase of a real estate in Portugal but are still determining your position as a non-EU citizen in light of Brexit. In that case, this informative guide will provide you with the necessary information.
Can UK citizens buy property in Portugal?
Even after Brexit, Brits can still buy property in Portugal like any other foreign individual. However, one notable change following Brexit is that UK citizens no longer stay indefinitely in the EU without obtaining a visa. Presently, British citizens can stay in the EU for a maximum of 90 days within 180 days without requiring a specific visa. Nevertheless, Portugal remains an appealing destination for foreigners due to the availability of excellent residence options for those intending to settle there permanently.
Buying property in Portugal after Brexit: How to do it in 3 steps
As with any foreign nationals, Brits follow the same process when buying a property in Portugal.
Step 1: Obtain a NIF
You need a NIF when buying property in Portugal after Brexit. It is a Portuguese tax identification number; you need one before making any property transaction. You can obtain this personally or through a fiscal representative in any government finance office. Conveniently, you can also send your application online.
Take the first step towards obtaining your Portuguese NIF by clicking the button below and completing the process online. For only $150, you can easily acquire your NIF and enjoy the benefits it offers.
Step 2: Search for the perfect property
Once you have an NIF, it is crucial to conduct thorough research when looking for the perfect property. There are many types of property in Portugal, so it is better to get professional service, like having a real estate agent help you find a property. It would be best if you used a real estate agent in Portugal for many reasons, such as having access to a broader range of property options and that they can help you secure a better deal.
Step 3: Signing the deed of purchase
Signing the Deed of Purchase and Sale, locally known as Escritura de Compra e Venda, will seal the deal in making you an owner of a Portugal property. But before that, ensure you review the agreement thoroughly, ideally with your lawyer.
Portuguese visas for UK citizens
UK citizens are eligible for the D7 Residence Visa and the Golden Visa program, which gives them the right to travel and live in the Schengen Area.
D7 Residence Visa
While the Portuguese Golden Visa is an excellent way to secure residency in Portugal, another residency visa open to British citizens is the D7 Visa. This residency visa is a perfect option if you want to move to Portugal but do not want to invest a lot of money. The D7 Visa is an affordable way to secure a Portuguese residency permit. Pensioners, entrepreneurs, and other expats living off a recognized stable monthly income at a minimum of €760 ($828) can apply.
You can renew the residence permit after two years for a further three-year period. Following this, you may be eligible for a permanent residence permit. After five years of holding a residence permit under the D7 Visa scheme, you can also apply for Portuguese citizenship, provided that you fulfill the additional requirements set out under Portugal nationality law.
Golden Visa
The Golden Visa is one of the best visa options for UK citizens above 18 years old and has a clean criminal record. The initial step to acquiring a Portuguese Golden Visa is to invest in the country. There are various qualifying investment methods, including:
- Purchase a real estate property. Different threshold amounts exist, but the lowest is €250,000 ($272,500) in low-density areas.
- Invest €500,000 ($545,000) in Portuguese investment funds or venture capital.
- Job creation.
- Invest a minimum of €250,000 ($272,500) in arts.
Tax benefits for UK citizens by moving to Portugal
Under Portugal’s ‘non-habitual residence’ (NHR) regime, new residents can take advantage of significant tax benefits for the first ten years. As part of the scheme, individuals in Portugal in a ‘high-value’ occupation can benefit from a reduced income tax rate of 20%. Additionally, the NHR program allows for certain types of foreign income to be received tax-free. Furthermore, individuals may be exempt from capital gains tax in Portugal when selling property in the UK.
To qualify, you must not have been a resident in the past five tax years and should apply through the local tax office shortly after arriving in Portugal.
Portuguese personal income tax rates
| Total income | Tax rate |
|---|---|
| Up to €7,479 ($8,152) | 14.5% |
| €7,480 ($8,153) to €11,284 ($12,300) | 23% |
| €11,285 ($12,301) to €15,992 ($17,431) | 26.5% |
| €15,993 ($17,432) to €20,700 ($22,563) | 28.5% |
| €20,701 ($22,564) to €26,355 ($28,727) | 35% |
| €26,356 ($28,728) to €38,632 ($42,109) | 37% |
| €38,633 ($42,110) to €50,483 ($55,026) | 43.5% |
| €50,484 ($55,028) to €78,834 ($85,929) | 45% |
| €78,835 ($85,930) and more | 48% |
Buy property in Portugal with Own Property Abroad
Do you want to buy property in Portugal? Own Property Abroad can assist you and ensure a seamless and hassle-free property journey, whether selling or buying real estate in Portugal. Thanks to our knowledge and experience in the local market, we can help with legal requirements, finding suitable properties, negotiating the best deals, and conducting due diligence.
With our expert team, you won’t have to navigate the complexities of the Portuguese real estate market alone. For further information on how we can assist you, kindly drop your details below or email us at [email protected]. Let’s start working on your property success story today!
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Frequently Asked Questions (FAQs)
Can UK citizens buy property in Portugal?
Yes, UK citizens can buy property in Portugal. Brexit did not affect UK citizens’ opportunity to invest in Portuguese real estate.
What are the rules for Brits buying property in Portugal?
UK citizens are now subject to the same regulations as non-EU citizens and must apply for a NIF and residency visa.
Can Brits move to Portugal after Brexit?
Yes, Brits can move to Portugal after Brexit. However, they will now be subject to the immigration and residency regulations applicable to non-EU citizens, which may require obtaining a visa or meeting specific criteria to reside in Portugal.
