The Algarve has long become more than just a holiday retreat for the British. The climate, the sea and security continue to weigh on the decision, but there are other factors that explain why so many UK citizens choose this Portuguese region to live or invest.
According to the website dedicated to the world of real estate, A Place in the Sun, the south of Portugal remains among the most sought after European destinations by British buyers, both for permanent residence and second homes. The combination of accessibility, economic stability and quality of life makes the investment particularly appealing and, according to many, “smart”.
Stable climate and quality of life
With more than 300 days of sunshine a year, the Algarve offers one of the most predictable climates in Europe. Average temperatures in winter range between 16 and 18 degrees, while in summer they can exceed 30 degrees. According to the same source, this meteorological constancy favors a more relaxed and open-air lifestyle, with long meals on terraces, walks along the coast and regular golf practice.
Many Brits who initially only intended to purchase a holiday home end up spending much of the year in the region. The proximity to the United Kingdom helps: Faro Airport receives direct flights from several British cities, including London, Manchester and Birmingham, with journeys lasting around three hours.
Accessibility and purchase costs
The average property price in the Algarve is considered competitive compared to other Mediterranean destinations. The same portal states that the total cost of purchasing a property in Portugal includes not only the purchase price, but also legal and tax charges that vary between 6% and 10% of the final value.
The main charge is the Municipal Transmission Tax (IMT), which can reach 8% on second home properties. To this is added the Stamp Tax, of 0.8%, and notary and registration fees between 1.5% and 2.5%. Real estate commissions, as a rule, are borne by the seller, which makes the process more transparent for the buyer.
British Commonwealth and facilitated integration
One of the aspects that most reassures those who decide to move to the Algarve is the presence of a large and well-integrated British community. The website writes that English is widely spoken, not only in hotels and restaurants, but also in clinics, offices and public services.
The existence of social groups, clubs and businesses run by British people helps newcomers adapt. According to the same source, this informal network allows for gradual integration into local life, maintaining contact with Portuguese culture and regional traditions.
Investment and profitability
For many, the Algarve is more than a lifestyle choice: it is also a considered economic decision. The region continues to attract millions of visitors per year, which keeps demand for short-term accommodation at high levels. Areas such as Albufeira, Lagos, Vilamoura and Carvoeiro stand out for their strong profitability during the high season.
According to , revenue from seasonal rentals can represent a significant return, especially in the summer months. The stable and regulated Portuguese real estate market reinforces the safe nature of this type of investment.
After Brexit: living legally in Portugal
Since the United Kingdom left the European Union, British citizens who wish to reside in Portugal permanently need a visa. The D7, known as the “passive income visa”, has been the most sought after, explains the website.
It is aimed at those who have regular income, such as pensions, rent or savings, and allows them to reside in Portugal, access the healthcare system and, after five years, apply for Portuguese citizenship. For retirees and remote workers, the D7 visa offers stability and freedom, consolidating the Algarve as a long-term destination.
Also read:
