Visitors from England, Wales and Scotland will be able to claim VAT refunds on retail purchases made in Portugal, starting next year.
More than 2.1 million British tourists visited Portugal in 2019, spending nearly €80 million.
"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," said Visit Portugal.
Post-Brexit, British residents will be classified non-EU and will be subject to the same eligibility criteria as those from other nations offered the same benefits.
It does not apply to visitors from Northern Ireland.
A minimum of €50, plus VAT, must be spent per transaction to qualify for a VAT refund, and the goods must be taken home within three months.
Tax-free shoppers will have to show their passport and separate proof of address, and fill out a form for validation at customs.
