Comparison · GB vs PT
UK vs Portugal — buying property compared.
Two of Outpost’s most popular markets, with very different tax, legal, and lifestyle profiles for a foreign buyer. Side-by-side below.
Last updated:
| Topic | GBUnited Kingdom | PTPortugal |
|---|---|---|
| Purchase tax | SDLT 0-12% + 2% non-resident surcharge | IMT 0-8% sliding + IS 0.8% |
| Notary / legal fees | £1,500-£3,000 solicitor | Notary ~€1,200 + solicitor 1.5% |
| Average all-in cost | 8-13% of price for non-resident | 5-8% of price |
| Annual property tax | Council Tax (1991 valuation bands) | IMI 0.3-0.45% of VPT |
| Wealth tax | None | AIMI 0.4-1.5% on portfolio > €600k |
| Rental income tax (BTL non-resident) | 20-45% on net | 25% on net (long-term) · 8-10% effective (AL short-term) |
| Capital gains tax (foreign owner) | 24% on residential | 28% flat (no taper) |
| Residency from purchase | None (Investor visa scrapped 2022) | None (Golden Visa real-estate route abolished Oct 2023) |
| Tourist rental licence | London 90-day cap; HMO if shared | AL frozen in central Lisbon/Porto |
| Climate | Temperate, wet | Mediterranean, sunny, mild winters |
| Healthcare for residents | NHS — free at point of use | SNS — universal, low co-pay |
| Language barrier | None (for English-speaking buyers) | Moderate — English widely spoken in cities |
The honest summary
If you want predictability and English-language legal certainty, the UK has the cleaner system. SDLT is mechanical, solicitor culture is mature, EWS1 and leasehold issues are real but well-documented. The 2% non-resident surcharge stings on purchase, but ongoing costs (Council Tax + standard income tax) are predictable.
If you want lifestyle, climate, and lower all-in burden, Portugal is the easier place to own a property. Lower purchase tax, lower annual IMI, milder weather, gentler bureaucracy if you have a local solicitor. The flip side: the AL containment in Lisbon kills the central-Lisbon short-term rental thesis, and the Golden Visa for real estate is gone.
If your priority is rental yield, neither is currently exceptional. UK BTL has Section 24 mortgage relief restrictions and falling demand in some regions. Portuguese AL works mainly outside the central containment zones — Setúbal, Cascais peripheries, Algarve outside the busiest hubs.