_Let's relocate to the Algarve: why Portugal's coast is luring savvy Britons

A firm favourite among those swapping the daily grind for a daily surf, the region's stunning scenery, kilometres of golden beaches framed by limestone rocks, barnacled coves and subtropical climate (temperatures can still reach 18 degrees in December), year on year lures non-retirees astute in making that permanent move. 

There are so many layers to the Algarve; perhaps best known are the popular holiday destinations - developed, upscale resorts such as Praia de Luz and Quinta do Lago offering a wide range of amenities from luxury hotels to five star golf courses and there's the wilder, more tranquil Algarve where time has seemingly stood still.

Those looking for unspoilt areas with a slower pace of life will find Shangri-La in historic Silves - the ancient, inland capital of the Algarve - or tiny coastal villages of cobbled streets and whitewashed houses such as Salema in the far west. 

However, the Algarve's allure lies not just in its ability to beguile its visitors, feed them well and send them home with a bronzed glow. British inward investment finds a savvy home in the Algarve thanks to the good value for money and considerable tax savings or exemptions on offer through the Non Habitual Residents tax programme (NHR).

Rugged coastline, sleepy villages, powerful waves and  deserted coves or luxury golf resorts and five star hotels - whichever part of the Algarve you choose the hype is very real

Quality of Life

Highlighted in Knight Frank’s Portugal Insight Report, setting the Algarve apart during the 2008 economic crisis was the region's significant investment in infrastructure.

This investment has proved pivotal to enticing British buyers and making a permanent move a very real option for many of working age. The expansion of Faro airport has facilitated nine airlines to fly frequently from the United Kingdom direct to the Algarve, providing a viable commuter route for dynamic Britons who choose a geographically flexible working style. 

Pan-European commuters are able to spend Monday to Friday earning in Britain, then fly a reasonable two and a half hours back to the Algarve to enjoy sunny weekends, in an area where comparatively lower residential prices mean buyers can get more for their money, especially if relocating as a family.

Alongside this, the Algarve operates competent international schools, and with English widely spoken across the region as well as a lively expat social scene, relocation can clearly provide an excellent quality of life in a familiar (but hotter) setting for British buyers.  

Tax Exemptions

Arguably, the greatest pull factor for Britons to relocate are the attractive tax exemptions on offer. The Portuguese Non Habitual Residents (NHR) tax programme exempts those spending 183 days a year in Portugal from being taxed on non-Portuguese incomes, including pensions, salaries and capital gains for up to ten years. 

If you’ve previously been a tax resident, it’s still possible to qualify for the scheme, as long as five years have passed since last holding the positon. With such inviting schemes in place, it’s not surprising relocation to the Algarve is being taken so seriously with applications 

European Links

The recent Brexit decision can also be held accountable for Britons relocating, with many keen to invest before any changes are enforced. Additionally, relocation can provide security for those Britons eager to maintain links with the rest of Europe in a post- Brexit world.

Portugal’s Golden Visa programme allows for foreigners outside the EU to reside in Portugal and circulate within the Schengen countries without a visa in exchange for a €500,000 investment into the country. 

Above: Roomy five bedroom family villa in Salema on the market through Knight Frank: £668,485.38

Certainly, the tourist attractions of the Algarve have and will continue to cement it as a popular destination for British holidaymakers.

However, the infrastructure, taxation and visa schemes in place clearly illustrate Portugal’s commitment to attracting international attention, paving the way for the Algarve to establish itself as a viable residential area for numbers of Britons. 

Sun, sea and savings? It’s well time to cast off the belief that property in the Algarve is suited for holidays only, but a rewarding investment for years to come. 

How can you benefit from NHR? 

• Introduced in 2009, the NHR exempts non-residents spending 183 days a year in Portugal (or those with a primary residence in the country) from income tax on non-Portuguese incomes, including pensions, salaries and capital gains for a period of 10 years.
• Those applying must not having been a tax resident in Portugal in the previous five years. This status can be maintained for 10 years.
• This offers a 20 per cent tax rate on much income and some foreign-sourced revenue is totally tax-exempt (i.e UK state pension)
• Portugal’s Golden Visa – by far the most successful of the European schemes in existence – has seen inward investment rise significantly specifically from countries such as Russia and China. It gives foreign investors who spend 500,000 Euros on a property the right to live in Portugal. They are also free to travel around all the EU countries in the Schengen area and after six years  can apply for Portuguese citizenship.

Searching for property for sale in the Algarve? We market some of the region's best villas, apartments and family homes. Search for your new home in the Algarve or contact our International Team who can help you make your move.