Jota has agreed a five-year contract and will provide relief to the Liverpool front three of Mohamed Salah, Sadio Mane and Roberto Firmino.
The 23-year-old arrived in England in 2017 and helped Wolves return to the English top flight.
Last season, the four-time Portuguese international found the net 16 times in 48 appearances.
He follows Thiago Alcantara to Anfield on a stunning day of transfer business for the Merseyside club.
Hoever goes the other way
In a separate deal, Wolves are signing young Liverpool defender Ki-Jana Hoever in a £13.5m (€14.7m) deal.
Wolves will pay £9m up-front with a further £4.5m in potential add-ons for 18-year-old Hoever.
Liverpool will also receive 15% of any future fee for the highly-rated Dutch youth international.
Hoever made three appearances for Liverpool and his debut came against none other than Wolves in the FA Cup.
Jota’s move to Liverpool has now been made official by the club.
JOTA ANNOUNCED 😉
— Liverpool FC (@LFC) September 19, 2020