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Algarve property boom: what Britons need to know before buying abroad

The Algarve in Portugal has emerged as the most searched-for overseas property destination for British buyers this summer, according to Rightmove data. If you’re dreaming of sun, sea, and a new home abroad, it’s worth understanding what buying overseas actually involves — and how to protect yourself.

The surge in interest makes sense. Portugal offers a relatively affordable cost of living compared to the UK, sunshine, and increasingly, a growing community of British expats. But buying property overseas is very different from purchasing a home in Britain, and there are several things you should consider before taking the plunge.

What you need to know before buying abroad

First, get proper legal advice. Portugal’s property laws differ significantly from the UK system. You’ll need a local solicitor (a “lawyer” in Portugal) who understands both Portuguese and English law. This isn’t an optional extra — it’s essential to protect your investment.

Second, understand currency risk. If you’re borrowing in pounds but buying in euros, exchange rate movements could affect how much your property actually costs. A mortgage broker experienced in overseas property can help you navigate this.

Third, think about tax. You may face capital gains tax in Portugal when you sell, as well as potential UK tax implications. It’s worth speaking to an accountant who specialises in expatriate finances before you commit.

Finally, consider your long-term plans. Are you buying as an investment, a holiday home, or somewhere to retire? Your answer affects everything from financing options to tax treatment.

What to do next

If the Algarve is calling, start by getting recommendations for English-speaking Portuguese solicitors from expat forums or your bank. Research Portugal’s current property market conditions and talk to a mortgage broker about overseas property financing options. Most importantly, don’t rush — property is a long-term decision, and doing your homework now could save you thousands later.