Since United Kingdom left being a member of European Union by January 2020, British citizens started qualifying for applying for Portugal Golden Visa program.
In the last five years, according to our experience, British citizens are one of the most important Portugal Golden Visa groups in terms of applications.
Simultaneously, the British are one of the most relevant western expat communities in Portugal, with around 50 thousand and growing living in the country.
They mostly live in the areas of Lisbon, Algarve, Porto as well as in the Island of Madeira.
Why British Investors Choose the Portugal Golden Visa
Based in our team’s long experience in serving British customers, we have ranked the 10 main reasons for their preference for Portugal:
1 – Portugal is one of the oldest nations in Europe but also one of most dynamic and culturally rich countries, with 17 sites classified as World Heritage as per United Nations.
2 – The country is known for its high quality of life, safety, welcoming environment with friendly people, a beautiful and an excellent cuisine.
3 – Predictable and stable weather with an average of more than 300 sunny days in a year.
4 – Portugal has an affordable cost of living, cheaper on average by around 35% compared with the UK.
5 – High proficiency in written and spoken English by a large majority of the Portuguese population.
6 – Easy access to Portugal with many daily direct flights from the United Kingdom.
7 – Access to free education and healthcare.
8 – Many reputable international schools with the English curriculum in the Lisbon area.
9 – Visa-free travel across Europe’s Schengen Area currently composed of 29 countries, is included, allowing free movement for the investor and eligible family members.
10 – Portugal allows for dual citizenship, and after 5 years of residence permit, they can apply for the Portuguese passport.
Tax Benefits for British Investors in Portugal
On top of the above reasons, several British investors have been exploring and benefiting the tax benefits linked with the IFICI tax regime.
The IFICI Tax Regime is tailored for professionals engaged in high-value activities and industries, including higher education, scientific research, advanced technology, and export-driven businesses. Eligible participants must meet specific criteria, including maintaining tax residency in Portugal and deriving income from activities recognized as economically impactful by the government.
The IFICI+ regime delivers compelling advantages for qualifying individuals, including:
- A flat 20% tax rate on employment or self-employment income from eligible activities.
- Exemptions on foreign-sourced income, covering dividends, rental income, and capital gains.
- A 10-year benefit period, offering financial stability and predictability for long-term residents.
For British entrepreneurs, being tax exempt on dividends is not a small gift!
Impact of UK Tax Reforms on Wealthy Individuals
The current Labour government 2025 tax reforms have reduced the benefits of non-domiciled individuals, leading their tax treatment being quite similar to UK residents. Simultaneously, it was imposed taxation on inheritances through offshore trusts.
Those changes, coupled with the speculation that a new wealth tax is being studied and prepared by the UK government, is also weighting on wealthy individuals looking for more attractive tax locations, like Portugal.
Millionaire Migration: Why Portugal Is on the Rise
Just as a reference of the current wave of British wealthy investors moving into Portugal, according to the One Investments publication, on the 2025 ranking of Millionaire Migration, Portugal is the 7th best placed country in the world in terms of attracting millionaires, expected to receive about 1,400 during the current year. On the extreme pole, you have United Kingdom as 60th in the ranking, expected to lose 16,500 millionaires in 2025!
