What to know before moving to Portugal from the UK

Learn everything you need to know about moving to Portugal from the UK, from visas and cost of living to paying taxes and opening a bank account.

Ivandzhelin

7 minute read

·

8 Aug 2024

·

Moving

Are you thinking of swapping the gloomy British weather for Portugal’s sunny charm? With several British expats in Portugal, and the country’s beautiful scenery and affordable cost of living, you won’t be making a mistake. Yet, before you start exploring homes for rent in Porto, Lisbon, or another city, it’s best to find out what you need to move to Portugal from the UK. Our guide breaks down all you need to know, such as visas, budgeting for your move, finding a place to live, paying taxes, and healthcare.

Yes, UK citizens can move to Portugal, but they need a visa if they plan to live there for more than 90 days. The 5 most popular national visas for people moving to Portugal from the UK are:

• Work visa
• Student visa
• Golden visa
• D7 visa (passive income visa)
• D8 visa (digital nomad visa)

Work visa

Portuguese work visas are ideal for foreigners planning to work in Portugal. Depending on your job and experience, you can be eligible for several work visas, including a tech visa, EU Blue Card, highly-qualified worker visa, and skilled worker visa.

Work visa requirements vary, but you should usually be employed by a Portuguese employer and meet a minimum salary requirement. If you’re moving to Portugal from the UK for work, you can check out our guide to Portuguese work visas to see which one is the best for you.

The work visa allows you to enter Portugal. To stay legally in the country, you’ll need to apply for a residence permit. The permit allows you to work in Portugal after your visa expires and is valid for 1 year, with the possibility of being renewed for 2 years. Check out our guide to Portuguese residence permits to learn more about the application process, costs, and where you can apply.

Student visa

Portugal is home to world-renowned universities that attract students from all over the world, including the UK. There are 2 types of visas students can use:

• Type C visa or a Schengen visa is valid for up to 90 days, perfect for exchange programs
• Type D visa is valid for more than 90 days and is ideal if you’re pursuing a degree in Portugal

In general, you’ll need to be accepted into a Portuguese university and prove that you can support yourself throughout your studies.

Additionally, you’ll need to show that you have arranged accommodation in Portugal. For example, if you’re studying at the University de Lisboa, you should book student accommodation in Lisbon before applying for your visa.

Both visas have application costs, with the short-term one costing €75 (£64) and the long-term one costing €90 (£77).

For more information on requirements and costs, check out our guide to getting a Portuguese student visa.

Golden visa

A golden visa or investment visa is available to foreigners who want to invest in Portugal. This can be done by funding research, creating jobs, funding cultural heritage programs, or investing in a Portuguese company or venture capital. You can apply for the Golden visa if you:

• Invest at least €250,000 (£213,808)
• Have no criminal history
• Spend at least 7 days in Portugal during the first year and at least 14 days each year during the next 2 years.

Holders of golden visas are also eligible for permanent Portuguese residency once they have the visa for 5 years.

D7 visa (passive income visa)

The D7 visa, also known as the Passive income visa, is for Brits who want to live in Portugal and have a passive main source of income, such as investments or pension.

The main requirement for this visa is that you don’t earn income in Portugal, and you provide proof of sufficient funds to support yourself. Depending on how many people you plan on moving with, you’ll need to provide:

• €7,200 (£6,158) for the main adult
• €3,600 (£3,079) for every other adult
• €2,160 (£1,847) per child

D8 visa (digital nomad visa)

D8 visa or Digital nomad visa, is for Brits who want to live in the sunny country while working remotely. To be eligible for the D8 visa, you need to:

• work fully remotely or be a freelancer
• earn a minimum of €3,280 (£2,818) per month
• have accommodation in Portugal (rental contracts have to be a minimum of 1 year)

There are 2 types of Digital nomad visas:

• Temporary digital nomad visa: valid for 1 year, with a minimum income requirement of €3,280 (£2,805)
• Long-term digital nomad visa: valid for 4 months, with permission to get a 2-year Portuguese residence permit and minimum income requirement of €3,040 (£2,600).

Both visas are renewable.

On average, the cost of living in Portugal is 29% lower than in the UK. This means that living expenses like rent, food, healthcare, and entertainment are much cheaper in Portugal than in the UK.

In Portugal, the monthly living cost is around €1,350 (£1,163) for a single person. If you're relocating with a partner or family, expect these costs to double or even triple. Of course, things like your salary, the city you choose, and your lifestyle will also impact the cost of living in Portugal. But a good starting point is having at least £4,000 (€4,662) in savings for your first few months in Portugal. This will help you cover your expenses while settling in and allow you to explore your new home without counting pennies.

There are over 45,218 Brits living in Portugal, so you’ll find fellow Brits regardless of which city you move to. Yet, some cities in Portugal are between for expats than others. This is mostly because of the lower language barrier, career opportunities, and high quality of life.

The majority of British expat communities are concentrated in the bigger cities like Lisbon and Porto and in the Algarve area in the south of Portugal. You can join expat Facebook groups, Reddit forums, or search on other social media for British communities in Portugal.

Finding a place to live before moving to Portugal depends on which city you want to live in. If you’re moving to the capital, you need to start exploring homes for rent in Lisbon prior to moving, as the rental market is competitive there.

If your eye is set on Porto, you can get away with searching for houses for rent in Sines closer to your move date, but it’s still better to have something before you move.

Another factor why you may want to book housing early is the requirement for your visa. As we mentioned, for some visas, e.g., student visas, you need to have a place to live before moving to Portugal.

Paying Portuguese taxes depends on your tax residency. This is determined by your income sources and the amount of time you live in Portugal.

You need to live in Portugal for more than 183 days per year to be considered a tax resident. In addition, there are other situations in which you can be seen as a Portuguese tax resident:

• you’re a crew member of a Portuguese ship or aircraft
• the head of your household is a Portuguese tax resident
• you’re a permanent resident of Portugal on December 31st of the same tax year
• you work for the country of Portugal (regardless of where you live)

If those don’t apply, you’re considered a British resident for tax purposes. Because of the dual-tax agreement between Portugal and the UK, you continue paying taxes only to the HMRC. You might only pay taxes on income earned in Portugal, which is taxed at 20%.

Portugal also has a tax regime called non-habitual residence (NHR)(changed to fiscal incentive for scientific research and innovation (IFCI) in 2024). Under this law, Portuguese tax residents can receive income from investments and dividends or foreign source income tax-free for the first 10 years of their residency if their income is taxable under the DTA or OECD tax model. Any Portuguese income you receive as a non-habitual resident is taxed at 20%, and any foreign pension is taxed at 10%, regardless of size.

To be eligible for NHR as a UK citizen, you need not to have been a Portuguese tax resident in the last 5 years, be a current Portuguese resident, and be a highly qualified professional working in:

• Technology and innovation center
• Startup
• A strategic sector in a role approved by IAPMEI or AICEP
• Research and development
• Higher education and research

Public healthcare in Portugal is relatively affordablre. The state covers most costs associated with health insurance and medical necessities. Residents only need to cover the taxas moderadoras or the user fee. For example, they pay €5 for a GP appointment.

To access healthcare in Portugal, you can:

• use your GHIC/EHIC cards, if you’re residing temporarily or are a student
• register for Portuguese public healthcare (SNS), which is similar to the NHS
• use the S1 form issued by the UK

To access Portugal’s public healthcare system (SNS), you need to get public health insurance in Portugal. For this, you need to register at the local health center (centro de saúde) and bring the following documents:

• Portuguese residence permit
• Valid passport
• Tax ID (NIF)
• Social Security number (NISS), which you can get through your employer

Once that’s done, you get your own número de utente de saúde (health number), which allows you to access public healthcare.

The S1 form is for posted or detached workers sent to Portugal by UK employers or those receiving a UK state pension or benefit. You need to apply as a posted or detached worker at the NHS Overseas Healthcare Services and then use the S1 form to register at the local segurança social (social security office) once in Portugal.

Yes, you can drive in Portugal with a British driving licence until it expires. You’ll need to register with the Instituto da Mobilidade e dos Transportes (IMT) within 60 days of getting your residence permit.

You can also exchange your British license without having to take a driving test in Portugal. All you need to do is visit the IMT website, fill out the application form and provide the necessary documents. Keep in mind that you need to do a test if your driving licence was issued by a different country and then you exchanged it for a British one.

For example, you got your driving licence in the Netherlands but moved to the UK and exchanged your licence there. Now, you’re moving to Portugal from the UK where you also want to drive. In such cases, you need to take a driving test in Portugal.

So there you have everything a Brit should know before moving to Portugal from the UK. Good luck!