Jota arrives to Anfield after a successful stint at Molineux, where he arrived in 2017 and was a consistent scorer for Nuno Espirito Santo's side.
"It's just a really exciting moment for me and my family," Jota told the club's website.
"All of my path since I was a kid and now, to join a club like Liverpool -- the world champions -- is just unbelievable. I just want to get started.
"It is one of the best teams in the world - the best at the moment because they are world champions. When you look at the Premier League, you always see Liverpool as one of the biggest teams in the country, so it's impossible to say no.
"So we just want to come [here], to give our best and hopefully I can become a good option for Liverpool in the future."
It wasn't the only move between the clubs, as Liverpool have sent defender Ki-Jana Hoever to Wolves in a deal worth an initial £10m. A former product of Ajax Amsterdam, Hoever had recently signed a new deal with Liverpool.