Can UK buyers still purchase property in the Algarve?

Can UK buyers still purchase property in the Algarve

Yes, there are no restrictions on UK nationals buying property in Portugal.

The process is broadly the same as for a Portuguese buyer, although you will need:

  • a Portuguese tax number (NIF)
  • a local bank account
  • legal representation for due diligence and contracts

Golden Visa – the key change UK buyers must understand

Buying property no longer gives you residency.

  • The real-estate route was removed in October 2023
  • Property purchases do not qualify for a Golden Visa in 202

The Golden Visa still exists – but only through:

  • investment funds
  • business creation
  • cultural or research contributions

What this means in practice

Most UK buyers in the Algarve are now:

  • lifestyle buyers
  • second-home owners
  • D7 or Digital Nomad visa applicants

not “property-for-residency” investors.

How long can a UK buyers stay in Portugal?

Post-Brexit:

  • You can stay 90 days in any 180-day period without a visa
  • To live full-time, you need a residency visa

The most common routes are:

D7 visa (passive income / retirement)

Ideal for:

  • retirees
  • remote earners with stable income

Digital Nomad visa

For:

  • UK remote workers employed outside Portugal

Buying a property is not a legal requirement for either, but it helps support the application.

Mortgage options for UK buyers in 2026

Portuguese banks do lend to non-residents, but on different terms.

Typical lending:

  • 60–70% loan-to-value for non-residents
  • Higher deposits than for residents

You will normally need:

  • passport
  • NIF
  • proof of income
  • tax returns
  • credit report

Cash buyers still dominate the prime Algarve market.

Purchase costs in the Algarve

Buying costs are typically 6–10% of the purchase price.

Main taxes and fees

IMT (property transfer tax)

  • Progressive scale up to 7.5–8% depending on price and use

Stamp duty

  • 0.8% of the purchase price

Legal, notary and registration

  • Usually 1–2%

Annual property taxes

IMI (municipal property tax)

  • 0.3% – 0.5% per year for urban property

AIMI (wealth tax – high-value homes)

  • Applies to property portfolios above €600,000

Portugal still has:

  • no traditional inheritance tax for direct family
  • 10% stamp duty only for non-direct heirs

The buying process step-by-step

1. Get a NIF and open a bank account

Required for any transaction.

2. Find a property and agree a price

3. Sign the promissory contract (CPCV)

  • Pay a deposit (usually 10–30%)

4. Legal checks

Your lawyer confirms:

  • ownership
  • licences
  • debts
  • planning compliance

5. Completion at the notary (Escritura)

The full process typically takes 1–3 months.

Is the Algarve still a good choice for UK buyers in 2026?

Demand remains strong and prices have continued to rise due to:

  • limited housing supply
  • international demand
  • lifestyle relocation trends

What has changed is the buyer profile:

Before – Golden-Visa investors
Now – lifestyle, relocation and second-home buyers

That has made the market:

  • more stable
  • less speculative
  • more focused on long-term ownership

The most common mistakes UK buyers make

  • Assuming property gives residency
  • Not budgeting for purchase taxes
  • Using a UK mortgage instead of a Portuguese broker
  • Skipping independent legal advice

Thinking of buying in the Algarve?

If you’re considering purchasing a property in the Algarve, either as a holiday home, relocation or investment, get in touch with Portugal Property Hub today. Our helpful team is there to answer any questions you may have about the process.