Duncan Evans, 58, a one-time British amateur golf champion, has already served two jail sentences in the past 14 years, in 2003 and 2009, for charges relating to money laundering and tax fraud.
He is said to be wanted by UK authorities but the official reason for the issuing of the European Arrest Warrant has not been specified.
Following his arrest, a spokesman for Her Majesty’s Revenue and Customs said: “The HMRC and the crown prosecution service are aware that Duncan Evans has been arrested in Portugal following the issue of a European arrest warrant.
“We routinely work with our international partners to tackle cases of tax fraud and always look to bring tax fugitives back to the UK to face justice. We can make no further comment at this stage.”
The BBC claims Evans was arrested in Portugal “after fleeing Britain to avoid a 10-year prison sentence”, and his arrest is related to a “£20 million fraud bill.”
Portuguese authorities have confirmed Evans was arrested in the Algarve after playing a round of golf. He has been remanded in custody as extradition proceedings continue.