Many Britons are Moving to Portugal for E.U. Residency

Relocation used to mean taking yourself off to a town down the road, in the 21^st century that town down the road could be anywhere in the world. The pandemic gave us all plenty of time to brood over whether our life would be better somewhere else, and now that travel is easing up again, some of us are upping sticks and heading for the sun. The U.K.s departure from the E.U. put an end to carefree movement across Europe; the right to work and travel in Europe are now much constrained for British citizens, so for anyone wanting to spend more than 90 days in Europe, the only option is to obtain E.U. residency.

There are now estimated to be around 49,000 brits who have settled in Portugal, making them the second largest nationality after Brazilians. It’s not hard to see the attraction, Portugal is regularly listed in the top three best locations for expats to settle. Top of the attractions for most brits must be the weather, around 300 days of sunshine a year. Then there’s the 1,000-mile coastline which is home to some of the best beaches in the world. And if the country’s natural attractions aren’t enough there’s a cost of living which is at least a third lower than the U.K. and a low crime rate which makes Portugal the third safest country in the world.

Then of course there’s the opportunity for residency, which brings with it the opportunity for visa free travel throughout the entire Schengen area. Portugal’s ‘Golden Visa’ scheme has been one of the most successful schemes of its kind in the world. The scheme entitles a foreign purchaser of property, in excess of a threshold figure, to obtain residency rights for themselves and their family, leading in five years to a full Portuguese passport and dual citizenship. As of March 2021, over 25,000 ‘Golden Visas’ have been issued, which has generated 5.7 billion euros of foreign investment. Post Brexit there has been a dramatic increase in applications from U.K. citizens.

The scheme has driven a property boom in the country which has seen property prices in the coastal areas of Porto, Lisbon, and the Algarve soar and in response the Portuguese government imposed a number of constraints, which came into effect in January 2022. The threshold invest has now been increased to 500,000 euros, although there is a 20% discount on that figure for properties which are deemed to be in areas of low population density and there is a 280,000-euro threshold for old buildings in need of restoration.

The most significant change to the ‘Golden Visa’ scheme is that the popular coastal areas are no longer eligible, however, this restriction does not seem to

have diminished the enthusiasm of British buyers. Homes in inland areas such as Portalegre represent excellent value for money and foreign investors are exploring options for investment in the fine ancient cities of Portugal’s interior, where the coast is never more than a few hours away.