British citizens can stay for up to 90 days in Portugal during any six-month period, even after Brexit. You will need a visa if you plan to stay in Portugal for a long time. There are many types of visas that you can apply for in Portugal.
The Portuguese Golden Visa Option
For many years, The Portuguese Golden Visa has been a very popular program for non-EU citizens. Prior to Brexit, UK citizens weren’t eligible for a Portuguese Golden Visa. The situation has changed and you can now apply for a Golden Visa to Portugal. You can live in Portugal without visa restrictions. At the end of five year, you can even become a Portuguese Citizen. You can only stay in Portugal for seven days per year under the program. Individuals who travel often and have business interests in Portugal will find this a great benefit. You can also enjoy education, healthcare, and social security rights while you are in Portugal with a Portuguese Golden Visa.
Portugal Golden Visa may be the right option for you if your plans include property acquisition. The program is available to those who purchase a property worth EUR500,000. There are discounts available depending on the house’s location and situation.
The important thing is that properties purchased in Lisbon, Porto and the Algarve as well as some coastal areas won’t be eligible for a Golden Visa. If you are looking to purchase a property in Portugal now is the best time to begin your search.
For more information, please visit our Portugal Golden Visa Definitive Guide.
D7 Visa Option
A D7 visa is also available if you earn at least EUR1,000 per month. You can also live in Portugal with this visa. You will need to spend at least 16 months in Portugal during your first 2 years.
While you are in the UK, you will need to apply for a D7 Visa. Along with the basic documents, you will need to show proof of your long-term housing.
The Non-Habitual Resident (NHR).
Portugal also offers non-habitual residency (NHR), which is a benefit to foreigners. This status allows you to exempt most of your foreign income from the Portuguese taxation system for a period of 10 years. If you rent your UK house before moving to Portugal, this means that you won’t have to pay any taxes in Portugal on the income.
A NHR is a person who qualifies if:
- Portugal legislation defines tax residents.
- For the last five years, you have not been subject to tax as a Portuguese resident.
A tax resident is someone who stays in Portugal for more then 183 days during the relevant fiscal years. This also means that you are a tax resident if you have a residence in Portugal on 31 December with the intention of making it your habitual residence.
The NHR makes UK pensions taxable at 10% for the first ten year.
Portugal: Appointing a Fiscal Representative
There are changes in the taxing procedure for British citizens, as the UK is no longer part of the EU. You must appoint an official fiscal representative if you own a house or open a bank account in Portugal.
This step is required for all non-residents who are subject to income taxes.
Any individual or group with a fiscal address in Portugal or a head office can be appointed as a tax representative.
It is not necessary to appoint a fiscal representative if you intend to live in Portugal.