Comparison

Portugal vs UK

Side-by-side figures with visible as-of dates. The narrative below states the genuine trade-off — not a default recommendation to buy in Dubai.

Portugal

Trade-off summary

Portugal: Portugal beats the UAE decisively on two things: financing cost (3. UK: The UK genuinely beats the UAE on legal certainty of title, depth of the mortgage market, and — in the North East, North West and Yorkshire — on gross yield.

Data

Side-by-side figures

Sourced ranges and values. Where a field is unpublished, the research file says so rather than inventing a number.

Metric	Portugal	UK
Gross yield range	4.3%–6.5%as of 2026-04 · sourceIdealista reported a 6.3% national gross buy-to-let yield in Q1 2026 — down from 7.2% in Q1 2025 and 7.3% in Q1 2024. Lisbon is the LOWEST-yielding city in the country at 4.3%, because it has both the highest rents and the most expensive stock. Higher yields are found in Évora (5.8%), Braga (5.6%), Setúbal (5.4%) and university/secondary cities. Porto sits at 4.9%.	3.5%–8%as of 2026-04 · sourceZoopla's national average gross yield is 5.8%, based on an average buy-to-let price of £270,045 and average rent of £1,301/month. The north–south divide is the dominant structural pattern: the North East averages 7.9% while London sits at roughly 5.4% and much of the South East below 4%. Sunderland, Aberdeen and Burnley exceed 8%.
Net yield range	2.5%–4.5%as of 2025-09 · sourceNet yields typically run 1.5–2 points below gross. A Lisbon apartment at 4.5% gross realistically nets 2.5–3%.	2.5%–5%as of 2026-06 · sourceNet is typically 1.5–2.5 points below gross before financing, and costs reduce gross by 25–40% in total. Letting agent fees run 10–15% of rent for full management; maintenance 1–2% of value annually; voids 4–8 weeks. Buy-to-let mortgage rates of 4.5–5.5% for 5-year fixes in 2026 mean the bar for cash-flow-positive property has risen sharply versus the 2015–2021 low-rate era.
Total entry cost (indicative)	roughly 10.5–12% of purchase priceas of 2026-04 · source	roughly 8–20% of purchase price, driven almost entirely by SDLTas of 2026-05 · source
Rental income tax	25% flat for non-residentsas of 2025-12 · source	20%–45% progressive; 20% withheld at source unless gross-payment status obtainedas of 2026-03 · source
Capital gains tax	Non-residents taxed on 100% of the gainas of 2025-12 · source	18% (basic rate) or 24% (higher rate) on residential propertyas of 2026-06 · source
Annual property tax	IMI 0.3%–0.45% of VPT annually (urban property); AIMI wealth surcharge above €600,000as of 2026-06 · source	Council tax (paid by tenant in a let property); ATED for corporate ownershipas of 2026-06 · source
Residency / citizenship	NONE via real estate — the Golden Visa property route was abolishedas of 2026-05 · sourceSeparately, the D7 passive-income visa requires roughly €920/month in foreign income (as at January 2026) and owning a Portuguese home counts as proof of accommodation for that application — but the property is incidental, not the qualifying investment. Note also that the NHR (Non-Habitual Resident) tax regime has closed to most new arrivals; the replacement IFICI regime is far narrower and targets specific highly-qualified professions.	Noneas of 2026-07 · source
Foreign ownership	No restrictions. Any foreigner may buy property in Portugal with the same rights as a Portuguese citizen. A NIF (Portuguese tax number) and a Portuguese bank account are required.as of 2026-05 · source	No restrictions. Non-residents may buy freehold or leasehold residential property in England and Wales with the same title rights as residents. The constraint is fiscal, not legal — see entry costs.as of 2026-07 · source

Neither market in this comparison carries a CoreSpaces transactional path. Use the individual market pages for regulator links and research-only notices.