British in Portugal: A Growing Community in 2025

The “Old Alliance” and the British in Portugal

The historic “old alliance” between Portugal and the United Kingdom remains strong. Portugal continues to be seen as a true paradise by the British community, who increasingly choose the country not only for holidays but also to settle, invest, and build their lives.

A Growing Community

According to the most recent data, the number of foreign residents in Portugal surpassed 800,000 in 2023, the highest figure ever recorded. Within this total, the British community has grown to over 50,000 residents in 2025, consolidating its position as one of the largest foreign nationalities in the country.

Why Portugal Attracts the British

It is not only Portugal’s natural beauty, beaches, and mild climate that attract the British. Key factors include:

• National tranquility and low crime rates compared to other countries

• A solid healthcare system and modern infrastructure

• High‑quality education

• Lower cost of living compared to the UK

• Widespread English proficiency among Portuguese citizens

• Rich gastronomy and renowned hospitality

The Impact of Brexit

The UK’s departure from the European Union significantly increased the number of British citizens choosing Portugal as their permanent home. Thousands have regularized their status through biometric residence permits, ensuring their rights to remain and reunite with family members.

Where Do the British Live?

The community is concentrated mainly in the south:

• Algarve (Faro district): nearly half of all British residents

• Lisbon: the second largest concentration

• Leiria, Coimbra, and Madeira: notable communities

• Porto and Setúbal: moderate presence

• Northern interior districts: minimal numbers, such as Vila Real and Bragança

Employment and Economic Activity

British nationals in Portugal are most active in:

• Hospitality and catering

• Real estate

• Consultancy, scientific, and technical services

Average earnings for British workers remain higher than those of Portuguese nationals, reflecting their strong presence in tourism, investment, and professional services.

Extra Benefits of Living in Portugal

For the British, Portugal offers additional advantages:

• Sunny, temperate climate almost year‑round

• Diverse leisure options: beaches, surfing, mountains, castles, and cultural heritage

• International recognition: Portugal continues to win tourism and lifestyle awards

• Tax benefits that make relocation even more appealing

🎯 Conclusion

By 2025, Portugal has firmly established itself as one of the preferred destinations for the British community, with more than 50,000 residents and a growing presence in the Algarve and Lisbon.

More than an “old alliance,” it is a renewed and expanding relationship.