Moving to Portugal: Practical Guide Including NHR and D7 Visa

Portugal has been one of the most sought-after destinations for UK expats and international HNW individuals for much of the past decade. Its combination of affordable cost of living, Atlantic climate, friendly culture, excellent food and wine, and historically generous tax incentives made it highly attractive. As of 2026, the country is navigating a significant transition in its tax policy for foreign arrivals — the Non-Habitual Resident (NHR) regime has been replaced — but Portugal remains an excellent destination for those who plan carefully.

This guide covers the visa routes, the replacement tax regime, banking, healthcare, and practical steps for a successful UK-to-Portugal relocation.

Visa Options for UK Citizens (Post-Brexit)

UK nationals are third-country nationals since Brexit. Tourist visits are permitted for up to 90 days in any 180-day period without a visa. To stay longer, you need a visa or residency permit.

D7 Passive Income Visa (Resident Visa for Holders of Income). The most popular route for retirees, investors, and those with passive income (pensions, dividends, rental income, investment returns). You must demonstrate a stable passive income of at least the Portuguese minimum wage per month — as of 2026, approximately €870 per month for the principal applicant, with incremental amounts for dependants. Apply at the Portuguese consulate in the UK. You will then apply in Portugal for your residency permit.

Digital Nomad Visa (D8). For remote workers employed by foreign companies or freelancers with foreign clients earning at least four times the Portuguese minimum wage (approximately €3,480 per month as of 2026). Applications via the Portuguese consulate in the UK.

Golden Visa (ARI — Autorização de Residência para Atividade de Investimento). The property route was closed to new applicants in late 2023. The programme continues for qualifying investments in certain funds, cultural projects, and job-creating business activity, but property investment no longer qualifies. Check current eligibility with a specialist before planning around this route.

D2 Entrepreneur/Self-Employment Visa. For those starting a business or working as freelancers in Portugal. Requires a business plan and proof of resources.

NHR Regime — The Transition (Important as of 2026)

Portugal's NHR (Non-Habitual Resident) regime — which for a decade offered a flat 20% income tax rate on Portuguese-source income and full exemption on most foreign-source income for ten years — was closed to new applicants at the end of 2023.

A replacement regime — the IFICI (Incentivo Fiscal à Investigação Científica e Inovação), also referred to as NHR 2.0 — was introduced from 1 January 2024. As of 2026, IFICI:

• Applies to a narrower category of qualifying professionals: technology and IT professionals, scientific researchers, academics, and those in qualifying investment management roles.
• Offers a 20% flat income tax rate on Portuguese-source qualifying income.
• Excludes general retirees, passive income holders, and many of the categories who benefited from the original NHR.
• Applicants must register by 15 March of the year following their first year of tax residency.

Individuals who were already approved for NHR under the old regime continue to benefit for their original ten-year period.

For UK retirees and passive income holders who expected to use NHR, the landscape has changed materially. Portugal still has relatively moderate standard progressive tax rates compared to Spain and France (top rate around 48% as of 2026), and the cost of living and lifestyle advantages remain. But the headline tax benefit that drove much of the UK expat interest in Portugal is significantly reduced for those who do not qualify for IFICI.

The UK-Portugal Double Tax Treaty is important: it provides that UK government pensions (civil service, NHS, police, military, teachers) remain taxable only in the UK. Private pensions and investment income are generally taxable in Portugal for Portuguese residents, subject to treaty provisions.

NIF (Tax Identification Number) — Your First Step

The Número de Identificação Fiscal (NIF) is Portugal's equivalent of a national insurance number for tax and official purposes. You need it to open a bank account, sign a rental agreement, buy property, and almost anything else official.

You can obtain an NIF at any Portuguese tax office (Finanças) with your passport and a Portuguese address, or via a fiscal representative while still in the UK. Getting a NIF before arrival is strongly recommended — it speeds up the bank account opening and rental process significantly.

Banking

Post-Brexit, opening a Portuguese bank account without a Portuguese address or NIF is difficult. The main banks used by UK expats:

• Millennium BCP / Novo Banco / Santander Portugal / Caixa Geral de Depósitos — the main high-street banks; service quality and English-language capability varies by branch.
• ActivoBank — an online subsidiary of Millennium BCP with a better digital experience.
• Revolut and N26 — widely used for day-to-day spending; not a replacement for a local account for rent, utilities, and Portuguese direct debits.

Maintain your UK account. Non-resident UK accounts (HSBC, Lloyds International, Barclays) are the backbone of many UK expats' financial arrangements while in Portugal.

Healthcare

Portugal has a public health system (SNS — Serviço Nacional de Saúde) that is accessible to legal residents. Quality and waiting times vary considerably by region — Lisbon and Porto have better provision than rural areas.

D7 visa holders need to show private health insurance on application. Once registered and legally resident, you may access the SNS, though some services carry co-payments.

Private healthcare in Portugal is excellent in urban areas and considerably more affordable than in Northern Europe. Main private providers include Luz Saúde, Hospital da Cuf, and HPP. Monthly premiums for a comprehensive international plan for a couple in their 50s typically run €200–500, varying significantly by age and plan scope.

Cost of Living

Portugal remains one of Western Europe's most affordable countries, though prices in Lisbon, Porto, and the Algarve have risen significantly in the past five years. As of 2026:

• Lisbon: a two-bedroom apartment in a good central neighbourhood runs €1,500–2,500 per month.
• Porto: similar quality for €1,000–1,800 per month.
• Algarve: varies widely — coastal and tourist areas are more expensive in peak season; rural central Algarve offers better value.
• Interior Portugal (Alentejo, Douro Valley, Silver Coast): significantly lower property and rental costs, genuine quality of life.
• Groceries: 25–35% cheaper than the equivalent UK supermarket shop.
• Eating out: a quality restaurant meal with wine for two: €40–80 in Lisbon; €25–50 outside major tourist areas.

Practical Relocation Steps

1. Obtain NIF (via fiscal representative or Portuguese consulate)
2. Apply for D7, D8, or other appropriate visa at Portuguese consulate in UK
3. Arrange private health insurance (required for visa application)
4. Apostille UK documents where required (criminal record, birth certificate)
5. Arrange accommodation in Portugal (rental initially; purchase later once settled)
6. Apply for residency permit (Autorização de Residência) in Portugal
7. Register with Finanças as Portuguese tax resident
8. Open Portuguese bank account
9. Register with local health centre (SNS) once entitled
10. File Portuguese tax return by 30 June of the following year

Popular Expat Areas

• Lisbon — cosmopolitan, cultural, buzzing; expensive by Portuguese standards.
• Cascais and Sintra — upmarket coastal towns west of Lisbon; popular with HNW expats.
• Porto and the North — emerging expat scene, lower costs, world-class wine country.
• Algarve — established British expat community, golf, beaches, sunshine; more seasonal in feel.
• Silver Coast (Óbidos area) — growing expat community, authentic rural Portugal, lower costs.
• Madeira — autonomous region, tax incentives (IFICI may apply), excellent climate year-round.

How Global Investments Can Help

Portugal's tax regime is in transition, and the interaction between UK and Portuguese tax obligations is complex. Global Investments advises clients on the correct structuring of income and assets for Portuguese residency, the IFICI eligibility assessment, UK departure planning, and the coordination of wealth management across both jurisdictions. With 32+ years of experience in cross-border financial planning, we are well placed to help you navigate the new landscape.

This guide is for general information only. Tax rules, visa requirements, and regulations change frequently — in particular Portugal's NHR successor regime is relatively new as of 2026 and subject to ongoing interpretation. Always seek professional legal and financial advice tailored to your circumstances before making relocation or investment decisions. Investments can fall as well as rise in value.