For decades, the Algarve in southern Portugal has been a favourite for British property buyers. From retirees seeking sunshine to families looking for a holiday home, this stretch of coastline continues to top the wish list for Portugal, and for good reason.
A sunshine lifestyle all year round
With over 300 days of sunshine a year, the Algarve offers one of the most reliable climates in Europe. The mild winters, with daytime temperatures averaging 16–18°C, make it a perfect retreat for those wanting to escape the grey skies and drizzle of the UK. Summers, on the other hand, are warm and dry, with average highs around 28–30°C.
This climate makes outdoor living part of daily life, whether it’s enjoying long lunches on a shaded terrace, walking along the golden beaches, or taking advantage of the Algarve’s world-famous golf courses. It’s no wonder many Brits who originally planned to buy just a holiday home often end up staying for much longer.
Accessible and convenient
One of the Algarve’s biggest draws is just how easy it is to reach from the UK. Faro Airport, the region’s main hub, is well connected with dozens of flights every week. Travel times are short, meaning the Algarve feels like it’s on your doorstep, with flights from London Heathrow, Manchester and Birmingham all around three hours.
For buyers who want a second home they can use regularly, this accessibility is a huge advantage. Whether you’re planning weekend breaks, school holidays, or longer stays, the Algarve is a convenient overseas destination for UK residents.
What are the costs of buying a property in Portugal?
The total cost of buying a property in Portugal includes the purchase price and the closing costs, which average 6–10 per cent of this price. So how does it add up? The biggest cost is property transfer tax (Imposto Municipal sobre Transmissões or IMT), paid on second home properties over €92,407 on a sliding scale from 2–8 per cent. There is a Stamp Duty (Imposto de Selo) that is a fixed rate of 0.8 per cent. Notary, admin and registration fees are 1.5–2.5 per cent, and legal fees 1–2 per cent of the purchase price. The seller pays the estate agency fees.
Strong expat community
For many British buyers, moving abroad comes with the question of how easy it will be to settle in. The Algarve removes much of the uncertainty thanks to its well-established expat community.
English is widely spoken, from restaurants and shops to medical clinics and government offices, which makes day-to-day life far easier for newcomers. There are also countless clubs, social groups, and businesses run by Brits, providing a ready-made support network. This means you can integrate quickly while still enjoying the authentic Portuguese culture, traditions, and way of life.
Investment potential
The Algarve isn’t just a lifestyle purchase; it’s also a smart investment. The region attracts millions of tourists every year, and rental demand for holiday homes remains strong. Hotspots like Albufeira, Lagos, Carvoeiro, and Vilamoura see particularly high levels of demand, meaning property owners can generate solid returns when they’re not using their homes.
Short-term rental income is especially attractive in the summer months, when weekly rates can be very lucrative. Combine this with Portugal’s stable property market and rising international interest, and the Algarve continues to stand out as one of Europe’s most reliable destinations for property investment.
Lifestyle benefits beyond the beach
While the Algarve is world-famous for its beaches, it offers far more than just sand and sea. The region is known for its excellent healthcare system, with modern facilities and highly trained staff, which is reassuring for retirees and families alike. It’s also regarded as one of the safest regions in Europe, offering peace of mind for those looking to relocate or spend extended periods there. Add to this a thriving food scene, from fresh seafood at local markets to Michelin-starred restaurants, plus vibrant cultural festivals and world-class golf courses, and it’s easy to see why so many Brits call the Algarve their second home.
Even after Brexit, the Algarve remains one of the most attractive and practical choices for British buyers. Its unbeatable climate, easy accessibility, affordable property prices, and welcoming community ensure it will stay at the top of the list for years to come.
Residency options
Since Brexit, UK citizens need a visa if they want to live in Portugal full time, and the D7 visa has become one of the most popular routes. Sometimes called the “passive income visa”, it’s designed for those who can show a stable income, such as pensions, rental income, or savings.
For many retirees, the D7 is ideal as it allows you to enjoy residency in Portugal without the need to work. Digital nomads and remote workers also use it if they can prove regular earnings from outside Portugal. Once granted, the D7 visa gives you the right to live in Portugal, access healthcare, and eventually apply for permanent residency or citizenship after five years.
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