In 2007–08, Varela, alongside former Sporting players Beto and Carlos Martins, played for Recreativo de Huelva in Spain (Varela on loan again). After a disappointing campaign despite having received playing time in La Liga, he returned to Sporting in July 2008 only to be immediately sold to C.F. Estrela da Amadora.

Before the season was over, in March 2009, courtesy of his solid performances at Estrela, only relegated from the Primeira Liga off the field, Varela signed a five-year agreement with champions FC Porto on a free transfer, starting in July. In his first year he ranked second in overall goals in the squad, only behind Radamel Falcao; in March 2010, however, he broke his fibula in training, being lost for the remainder of the campaign as the team finished third.

Due to his Porto performances, Varela earned his first full cap for the Portuguese national team on 3 March 2010, appearing in the second half of the 2–0 friendly win with China in a match played in Coimbra. His first goal came on 26 March 2011 in a 1–1 friendly draw against Chile, in Leiria.

In 2011–12, under new manager Vítor Pereira, Varela – as practically all Portuguese players (the roster was composed of three nationals) – lost his importance in the side. On 16 February 2012, in a rare start, he put Porto ahead against Manchester City in the season’s UEFA Europa League round-of-32, in an eventual 1–2 home loss.

On 24 August 2014, Varela signed with Premier League side West Bromwich Albion on a season-long loan deal. Having arrived whilst still recovering from injury, he made his official debut on 2 December, replacing Craig Gardner midway through the second half of a 1–2 home defeat to West Ham United; he scored his first goal for the Baggies on the 20th, but in a 2–3 loss at Queens Park Rangers.

On 19 May 2014, Varela was named in the final 23-man squad for the 2014 FIFA World Cup. On 23 June, again after having replaced Meireles, he headed home in the 94th minute to earn his team a 2–2 group stage draw against the United States.

On 20 January 2015, still owned by Porto, Varela joined struggling Serie A team Parma F.C. until June.

Having made only seven appearances for Porto during the season, Varela, who was by then the club’s longest serving player, ended his seven-and-a-half-year link on 20 January 2017 by signing for Turkey’s Kayserispor. He and fellow veteran Asamoah Gyan were told at the end of their contracts in June 2018 that they would only be retained if they signed performance-based deals, due to their injury record.

On 8 October 2019, having been a free agent, Varela returned to his country’s top-flight by signing for Belenenses SAD until the end of the season.

Varela’s nephew Nilton was also a footballer, playing in defence. He made his professional debut for Belenenses SAD alongside him in November 2019.