Buying a Home in Algarve After Brexit: What Brits Need to Know

Introduction

The Algarve has long been a favorite for British property buyers — and even after Brexit, that hasn’t changed. UK citizens continue to buy holiday homes, retirement villas, and investment properties across the region.

But while you can still legally buy property in Portugal, there are now important differences in how British buyers are treated, especially when it comes to residency, taxes, and staying long-term.

Here’s what you need to know before buying a home in the Algarve as a UK national in the post-Brexit landscape.

1. You Can Still Buy Property Without Restrictions

Brexit has not affected property ownership rights. British citizens can:

• Buy residential, commercial, or rural property
• Own land or urban real estate
• Rent out short-term or long-term
• Purchase through a company or personally

There are no additional taxes or restrictions on UK citizens purchasing property in Portugal.

2. Residency and Stay Limits Have Changed

While buying property is allowed, how long you can stay in Portugal has changed. UK citizens are now considered non-EU nationals, meaning:

• You can stay up to 90 days in any 180-day period without a visa
• If you want to stay longer, you’ll need a residency visa, such as:
  • D7 Visa – for retirees or those with passive income
  • D8 Visa – for remote workers or freelancers
  • D2 Visa – for entrepreneurs

Buying a property does not automatically give you residency, but it can support your visa application.

🔗 Related reading: Can British Citizens Buy Property in Portugal?

3. Buying for Investment or Holiday Use? No Residency Needed

If you’re only planning to use your Algarve home for holidays or as an investment rental, and don’t plan to exceed 90 days per 6 months in Portugal, you don’t need to apply for a visa.

Just make sure you:

• Track your time in the Schengen Zone
• Appoint a fiscal representative in Portugal if you are tax non-resident
• Register any rental activity with local authorities (especially for short-term lets)

4. Taxes and Buying Costs Are Still the Same

Brexit hasn’t changed the property taxes or fees that British buyers pay.

Expect to pay:

• IMT (property transfer tax): 1% – 8% depending on value and usage
• Stamp Duty: 0.8%
• Legal fees: typically 1% – 2%
• Annual IMI (municipal property tax): ~0.3% – 0.5%

🔗 Check your taxes with our IMT & Stamp Duty Calculator, Costs and Taxes When Buying Property in Portugal

5. Mortgages for UK Buyers Are Still Available

Portuguese banks continue to offer mortgages to UK citizens. Typical terms include:

• Up to 60–70% loan-to-value (for non-residents)
• Terms of up to 30 years
• Income and credit documentation required

It’s important to plan for currency exchange risks if your income is in GBP and your mortgage/property is in EUR.

6. You’ll Need a Portuguese Tax Number (NIF)

All buyers in Portugal, including non-EU citizens, must have a NIF (Número de Identificação Fiscal).

You’ll also need:

• A Portuguese bank account
• Power of attorney if you’re buying remotely
• A lawyer to guide you through due diligence and contracts

We assist UK clients with NIF registration, legal setup, and remote buying every week.

7. Golden Visa? No Longer Available Through Residential Property

Before, UK buyers could apply for Portugal’s Golden Visa by investing in residential property. As of recent law changes, that’s no longer possible in most areas — including the Algarve.

Alternative residency routes include:

• D7 (passive income)
• D8 (digital nomad/remote worker)
• Non-Habitual Resident (NHR) regime — though this is being phased out

Final Thoughts

Brexit may have changed the residency and visa rules, but it hasn’t made Portugal any less attractive for UK buyers.

You can still:

• Buy and own property freely
• Rent your property
• Visit for short stays
• Apply for residency if you want to stay longer

As long as you understand the new legal landscape — and work with a team who can guide you — buying a home in the Algarve after Brexit is still a smooth and worthwhile process.

FAQs