What UK Expats in the Algarve Need to Know About Council Tax on an Empty UK Property

Many British expats who make the move to the Algarve keep the keys to their old UK home, whether as a bolt hole for visits, a property to pass on to family, or simply because there was never quite the right moment to sell. What often gets overlooked in the excitement of the move is what that empty property is now quietly costing back home.

Since 2024, councils in England have been handed much sharper teeth when it comes to charging for homes left standing empty, and the rules changed again in 2025 to catch furnished second homes too. Knowing how to avoid paying council tax on empty property, or at least understanding when the charges apply, can save you thousands of pounds a year while you settle into life under the Algarve sun.

Key Takeaways

• A property empty and unfurnished for more than a year can be charged double the standard council tax, rising to quadruple after ten years.
• Since April 2025, councils can also charge a 100% premium on furnished second homes with no resident, from the very first day.
• Several exceptions can delay the premium for as long as a year, including probate, active marketing and major repairs.
• The average Band D council tax bill in England for 2026/27 is £2,392, before any premium is added.
• Letting the property is usually the simplest way to avoid the charge altogether, rather than leaving it empty or furnished but unused.

The Premium Now Bites After Just One Year

Council tax on an empty home used to be a fairly gentle affair. Councils could apply a surcharge once a property had sat unoccupied and largely unfurnished for two years, and many chose not to bother at all. That changed under the Levelling-Up and Regeneration Act 2023, which shortened the qualifying period to just one year from April 2024.

The current tiers in England work like this: a home left standing vacant and unfurnished for one to five years attracts a 100% premium, meaning you pay double the standard charge. Between five and ten years, the premium rises to 200%, tripling the bill. Beyond ten years, it climbs to 300%, so the total payable is four times the normal rate.

Annual council tax on a Band D home at each stage of vacancy

The "Second Home" Trap Catches Movers Off Guard

This is the part that surprises a lot of people who have relocated to the Algarve. From April 2025, councils gained a separate power to add a surcharge on furnished properties that nobody lives in as their main home, commonly called second homes in council tax terms. Unlike the empty homes surcharge, there is no waiting period at all. The charge can apply the moment the property stops being anyone's main residence.

If you moved to Portugal and left your UK house fully furnished, ready for family visits or a future return, it almost certainly falls into the second home category rather than a genuinely empty property. Many councils have adopted the maximum 100% premium, meaning a furnished, unoccupied UK home can suddenly cost twice as much as it did while you were living in it.

"A furnished property standing empty between tenants, or simply left ready for occasional visits, can be treated as a second home the moment it falls empty, with no year long grace period in most council areas."

Whether your council has actually adopted either premium is entirely down to local discretion, so it is worth checking directly with the billing authority for your old address rather than assuming the national maximum applies everywhere.

Exceptions That Can Buy You Time

The government did build in some breathing room alongside these tougher rules. A property can usually avoid the premium, though not the standard charge, for up to 12 months if it is being actively marketed for sale or to let, is undergoing major structural repairs, or recently passed through probate.

Probate cases are treated particularly generously. A home left empty because the owner has died is exempt from council tax entirely until probate or letters of administration are granted. After that, a further six month exemption typically applies, followed by a 12 month exception from any premium, so families dealing with a bereavement while living abroad are given real time to sort things out.

Job related armed forces accommodation and annexes that form part of a single larger property are also excluded from both premiums, and the government's own guidance on the rules for second homes and empty properties sets out the full list of circumstances that qualify.

Letting It Out Is the Most Reliable Way to Stop the Clock

For most owners, the cleanest solution is also the most obvious one: put the property to use. A home that is genuinely let to a tenant counts as occupied for council tax purposes, so neither surcharge applies, and liability for the standard charge usually shifts to the tenant instead of you.

There is a wrinkle worth knowing if you manage the letting yourself from abroad. Under the Non-Resident Landlord Scheme, a letting agent or tenant is normally required to deduct basic rate tax from the rent before it reaches you, unless you have applied for approval to receive it gross and declare it through Self Assessment instead. It is a detail that trips up a surprising number of owners once they relocate, and one this site has covered in more depth in a piece on how HMRC pursues underpaid tax on rental income.

Client reviews from letting agencies back in the UK often reflect exactly this kind of long distance reassurance. One client of Oliver Jaques, a South East and East London letting agent, described more than twenty years of hands off property management, praising a particular member of staff for consistently sorting out issues efficiently and communicating clearly throughout.

VIDEO: "Second homes to be taxed double from next week" Watch on YouTube

This news report explains how the second homes premium rolled out across England and why so many owners were caught unaware.

What This Actually Costs: A Worked Example

Numbers make the risk easier to picture. Based on England's average council tax charge for a Band D home in 2026/27, here is what an unoccupied property could cost at each stage if nothing changes.

The gap between the standard charge and a property left empty for a decade is close to £7,200 a year, and that is before accounting for a higher council tax band, which many older UK family homes fall into. Multiply that over even a few years of indecision, and the case for either selling, letting or actively marketing the property becomes hard to ignore.

Frequently Asked Questions

Does council tax still apply if my UK home is completely empty?

Yes. Since 2013, English billing authorities have been able to charge the full standard rate on a vacant house from the outset, and since 2024 they can add a premium once it has stood empty for a year, so an unoccupied property is rarely free of charge for long.

How is a second home different from an empty property for council tax?

An empty property is unoccupied and largely without furniture. A second home is furnished but has no resident. Both can attract a surcharge, but the one on second homes can apply immediately, with no 12 month grace period.

Will letting my property stop the premium completely?

In most cases, yes. Once a tenant genuinely occupies the property as their home, it is no longer classed as empty or a second home, and the premium no longer applies, though you should confirm the change with your local council.

What happens if I inherit a UK property while living in Portugal?

The property is normally free of council tax until probate is granted, then exempt for a further six months, and afterwards shielded from any surcharge for another 12 months, giving you time to weigh up a sale, a letting, or simply moving back in.

Can every council charge the maximum premium?

No. Charging a premium at all, and at what rate up to the legal maximum, is entirely at each council's discretion, so two identical houses in different areas can face very different bills.

Deciding Early Saves the Most

Leaving a UK property standing empty as you settle into Algarve life is understandable, but under the current rules it is rarely the cheapest option. Between the surcharge on long term empty homes and the newer one covering second homes, an unused property can end up costing several times what it used to, often with little warning until the bill arrives. Whether you choose to sell, let or simply keep the paperwork in order for an exception, the key is deciding early rather than letting the property, and the charges, sit and grow. For those still weighing up the wider move, our guide covering things to consider when retiring to Portugal from the UK is a useful next stop.

References

GOV.UK, How Council Tax works: Second homes and empty properties, 2026 — https://www.gov.uk/council-tax/second-homes-and-empty-properties

Ministry of Housing, Communities and Local Government, Council Tax levels set by local authorities in England 2026 to 2027, 2026 — https://www.gov.uk/government/statistics/council-tax-levels-set-by-local-authorities-in-england-2026-to-2027/council-tax-levels-set-by-local-authorities-in-england-2026-to-2027

House of Commons Library, Council tax: empty properties, 2026 — https://commonslibrary.parliament.uk/research-briefings/sn02857/

House of Commons Library, Why am I paying a council tax premium on my second home?, 2025 — https://commonslibrary.parliament.uk/why-am-i-paying-a-council-tax-premium-on-my-second-home/

GOV.UK, Guidance on the implementation of the council tax premiums on long-term empty homes and second homes, 2026 — https://www.gov.uk/government/publications/long-term-empty-homes-and-second-homes-council-tax-premiums-and-exceptions/guidance-on-the-implementation-of-the-council-tax-premiums-on-long-term-empty-homes-and-second-homes

Fact Check: All statistics and data points in this article were verified against original sources as of 9 September 2026. Sources are listed in the References section.