The purchase power of UK shoppers in Portugal is set to increase up to 20%, according to the country’s tourist board.
After the UK’s exit from the European Union, British residents from England, Scotland and Wales will be eligible to shop tax-free in Portugal’s shops, starting on January 1.
The tourist board said: “The UK is a major source of tourism for Portugal, with more than 2.1 million British tourist visits in 2019.
“Their retail activity equated to €79 million spent in Portugal stores, with clothing and accessories and non-specialised retail being the categories with the largest share of British spend.
“With the price of goods in Portugal being on average 5-10% cheaper than in the UK, combined with the additional savings offered by tax-free shopping, the purchase power of UK shoppers in Portugal is set to increase up to 20%, creating a strong opportunity for local retailers to maximise their in-store revenue.”
British residents from England, Scotland and Wales will be classified as non-EU residents and will be subject to the same eligibility criteria as any other tax-free shopping nationality.
They must meet the minimum spend criterion of €50+VAT and show their passport along with a separate document providing proof of address, to confirm they reside in England, Scotland or Wales.
They then complete a tax-free form, which will be validated at customs when they leave the EU.