Best Countries to Buy a Holiday Home in Southern Europe

There is no single best country for a holiday home in Southern Europe, because the right choice depends on your budget, how you will use the home, your tax position and the risks you accept. Spain has the widest choice of places and the biggest buyer market. Portugal has strong demand and higher prices in its best-known areas. Italy has the lowest national average of the three big markets in one early-2026 guide, about €2,100 per m² against about €2,150 in Spain and €2,050 in Portugal, and some very cheap villages in the south. Greece charges a 3% transfer tax on resales but 24% VAT on new builds, and Cyprus is popular for its tax and residency features. This guide compares the countries on price, buying costs, residence routes, taxes, climate risk and ease of buying, uses sources from 2025 and 2026, and says where the data is thin. It is general information, not financial, legal or tax advice.

How should you choose a country?

Start with five questions. How much can you spend in total, including taxes and fees? Will you use the home for holidays, to live in, or to let? Do you need residency, or will you stay within the visa-free limits? Which taxes will you pay at home and abroad? And how much risk are you willing to take with planning, licences and climate? The sections below answer these for each country, and the last sections give a simple scoring method and a plan.

What do the main markets look like?

One guide updated in May 2026 gives approximate national averages as of early 2026 and the buying costs, with these figures for the four main Southern European markets. These are averages from a single source and they hide big regional differences.

Country	Average price per m²	Examples of regional prices	Total buying costs	Notes for foreigners
Spain	About €2,150	Madrid €3,800–€5,500; Barcelona €3,500–€5,300; Valencia €2,000–€3,200; Costa del Sol €2,500–€4,000	10%–15%; ITP 6% in Madrid to 10%–11% in Catalonia; new builds pay 10% VAT	100% foreign ownership; golden visa ended on 3 April 2025; prices up roughly 11%–13% in 2025
Portugal	About €2,050	Lisbon €4,200–€6,500; Porto €2,800–€4,500; Algarve €2,500–€5,000	7%–10%; IMT 1%–8%, 0.8% stamp duty, plus fees	No restrictions; real estate golden visa ended in October 2023; prices up nearly 19% year on year to late 2025
Italy	About €2,100	Milan €4,500–€7,000; Rome €3,000–€5,000; Sicily and Calabria apartments from under €50,000	7%–10% (one guide; two others give 10%–15% and 10%–20%, see the Italy guide); registry tax 2% (main home) or 9% (second home), plus notary and legal fees	No restrictions; buying goes through a notary; many regions are still below their 2011 peak
Greece	About €2,700 for apartments	Athens €2,500–€4,000; Crete €1,500–€3,000; Santorini and Mykonos €4,000–€8,000	7%–10%; 3% transfer tax on resales, 24% VAT on new builds, plus 2%–3% fees	Free purchase, but border areas and some islands near Turkey may need defence ministry approval; golden visa from €250,000 in some areas

The data for Cyprus and Malta in my sources is thinner. Cyprus ranked first and Malta third in a December 2025 holiday-home index by an Australian comparison company (Italy fourth and Greece fifth), but the index scored activities, housing prices and weather without explaining the weights, and it is not a buying guide. Use it as a sign of popularity, not as advice.

What do foreign buyers actually search for?

A Place in the Sun ranked destinations by the property searches and enquiries on its site in January 2026. Spain was first, with an average search budget of £173,915. France was second at £203,363, Italy third at £122,967 (its best ranking so far), Cyprus fourth at £259,254, Greece fifth at £250,077 and Portugal sixth at £299,623, down from £324,373. Turkey, Bulgaria, the Caribbean and Montenegro followed. The article says that Dutch buyers overtook British buyers in the Alicante province in national data, that demand in Portugal moved from the Algarve toward Lisbon, and that Bulgaria remained the cheapest option at £62,401. Searches are not purchases, but they show where UK-based buyers are looking.

How do the purchase taxes compare?

Using the rates in the table, here is what the main transaction tax would be on a €250,000 home. Spain and Portugal use our own guides; Italy and Greece use the single source above and need confirmation.

Country	Case	Tax on €250,000	Approx. in £ / $
Spain, Madrid	Resale, ITP 6%	€15,000	≈ £12,700 / $16,800
Spain, Cataluña	Resale, ITP 10%	€25,000	≈ £21,100 / $28,000
Portugal, non-resident	Resale, IMT 7.5% + stamp duty 0.8%	€20,750	≈ £17,500 / $23,200
Italy	Second home, registry tax 9%	€22,500	≈ £19,000 / $25,200
Greece	Resale, transfer tax 3%	€7,500	≈ £6,300 / $8,400

Conversions are approximate and use the European Central Bank reference rates of 14 October 2026 (€1 = £0.844 = $1.120). Rates move every day.

The lowest line is not the lowest cost. Greek new builds carry 24% VAT, Italian taxes depend on whether it is a first or second home and on who sells, and every country has notary, registry and legal fees. For Spain and Portugal, use the Spain and Portugal calculators and read Spain vs Portugal buying costs.

Which countries offer residence or tax incentives?

Country	Routes and incentives, per the sources I read
Spain	Golden visa ended on 3 April 2025. The non-lucrative visa needs €2,400 a month in 2026, and the digital nomad visa allows remote work. Standard income tax rates can reach 45%–50%.
Portugal	Real estate no longer qualifies for the golden visa; a fund route starts at €500,000 according to one guide. The D7 visa needs €920 a month in 2026. The NHR incentives were phased out in 2025.
Italy	An elective residency visa for people with passive income, with a legal minimum of €31,000 a year per one guide. A 7% flat tax on qualifying foreign income for 10 years is limited to eligible municipalities in the south. An investor visa starts at €250,000 (company) or €500,000 (government bonds).
Greece	Golden visa thresholds from €250,000 to €800,000 depending on area and rules; one guide says €400,000 in prime areas. A 7% flat tax on qualifying foreign income for 15 years, nationwide, for new residents, per one guide.
Cyprus	A 5% tax on foreign pension income and a non-dom regime that can exempt certain foreign dividends, interest and capital gains for up to 17 years, per one guide. Not in the Schengen area.

The thresholds in these sources conflict in places and change often, so verify them with the official immigration and tax pages. One guide says retiree visa income thresholds across these countries generally range from €10,000 to €45,000 a year for a single applicant, and golden visa investment thresholds from €250,000 to €1,000,000 or more. For Spain, see why the golden visa ended; for Portugal, the real estate route.

What about climate and other risks?

A climate comparison published in March 2026 gives January temperatures of 12°C–18°C in the Canary Islands, 12°C–16°C in the Algarve, 7°C–12°C in Rome and Sicily, 10°C–15°C in Crete and 16°C–20°C on the Cyprus coast. It lists the main climate risks as extreme heat and drought in Spain, flooding and sea-level rise in Portugal, extreme heat and seismic activity in Italy, wildfires and heat in Greece and drought and water scarcity in Cyprus. It cites a 2025 study on the Spanish market that found property values fall for each extra day above 35°C, and notes the EU rule that requires the worst-performing 16% of buildings to be renovated by 2030, which may affect older, low-rated homes. Add legal risks to the list: planning and licence problems are covered in illegal builds in Spain and rural property in Portugal, and policy risk in Spain’s proposed tax and the Portuguese holiday-rental rules.

Which country suits which buyer?

Spain suits buyers who want a large choice of coasts, cities and prices, a mature market of lawyers and agents, and good air links. The regional taxes and holiday-let rules vary a lot. Start with the Spain buying guide.
Portugal suits buyers who value the Atlantic climate, a smaller market and the D7 route, and who accept higher prices in Lisbon and the Algarve. Start with the Portugal buying guide.
Italy suits buyers on a lower budget who want character and are willing to deal with the paperwork of older houses; read the Italy guide.
Greece suits buyers who want islands and a low resale tax, and who are ready to check the rules for border areas and new builds with VAT; read the Greece guide.
Cyprus and Malta appeal for their tax features and English-language administration, but verify the current rules and costs with local advisers because my sources are limited.

To compare three of them side by side, see Spain vs Italy vs Greece, and for cheaper options see the cheapest places to buy property in Europe.

How do you score the options?

List the factors that matter to you, give each a weight from 1 to 5, then score each country from 1 to 5 on each factor. Multiply and add. The numbers below are a hypothetical example of the method, not an assessment of the countries.

Factor	Weight	Country A (score)	Country B (score)
Total buying cost	5	3	4
Flight time and links	4	5	3
Rental potential	3	4	3
Residence options	2	2	4
Weighted total		51	49

In this made-up case Country A scores 51 against 49, mainly because flights and rental potential carry weight. Change the weights and the result changes, which is the point: the method shows you what you really value.

What is the step-by-step plan?

Write down your budget, including taxes and fees of at least 10%.
Decide how you will use the home and how many weeks a year you will be there.
Shortlist two countries and two regions in each, using this guide and the country guides.
Compare the total cost with the calculators and the yield method in the rental yield guide.
Check the tax position with advisers in your home country and the target country.
Visit in winter and summer, and speak to an independent local lawyer.
Do the legal checks, avoid the scams in how to avoid property scams and complete the purchase.

What are the common mistakes?

Choosing a country from a national average price instead of a town’s price.
Counting a visa or tax incentive that has ended or changed.
Forgetting that new builds have VAT in several countries.
Choosing by flights from one season only.
Ignoring climate risk, heat and water.
Ignoring the tax your home country will charge on rent or sale.
Buying before checking the legal status of the property.

Before you decide whether to buy at all, read should you buy property abroad.

How do the buying processes differ?

The legal steps are similar in outline, a tax number, a bank account, due diligence, a binding contract with a deposit, and a deed before a notary, but each country has its own details that change the risk you carry. In Spain you need an NIE and normally sign a private contract with arras before the deed; see the arras guide and the NIE guide. In Portugal the equivalent contract is the CPCV, and you need a NIF; see the CPCV guide. In Italy the steps are the proposta d’acquisto, the compromesso with a deposit of 10% to 30% and the rogito, and the seller who backs out owes double the deposit; see the Italy guide. In Greece the AFM tax number, a Greek bank account, a lawyer and a notary deed registered at the cadastre are the core steps; see the Greece guide.

The practical consequence is that the deposit stage is where a buyer is most exposed. Before you pay any money in any of the four countries, your own independent lawyer should have checked the title, the debts attached to the property and its planning status. A seller’s lawyer, an agent’s recommendation or a notary does not replace this: the notary is a neutral official, not your advocate. For how to choose a lawyer and what they should check, read choosing a lawyer in Spain, and for the pattern of fraud aimed at remote buyers read how to avoid property scams.

How do the running costs compare?

The purchase tax is paid once; the annual taxes last as long as you own the home. Spain charges IBI and, for non-residents, tax on imputed income, plus community fees in a development (see running costs in Spain). Italy charges IMU on second homes and TARI waste tax, which the guides put at about €200 to €1,000 a year. Greece charges ENFIA on the objective value, with one source estimating €400 to €1,200 a year for a €200,000 Athens apartment. Portugal charges IMI, and the rules for companies from blacklisted jurisdictions are harsher (see buying through a company). Over ten years, the annual line can matter as much as the one-off tax, so total both when you compare.

Add the costs that guides rarely put in a table: insurance, a local manager if you let the home, utilities in the months you are away, repairs, and travel. If you plan to let the property, the net yield after these costs is the figure that matters, not the gross rent; use the rental yield guide to calculate it with your own numbers.

How do the residency routes compare?

If the aim is residency rather than a holiday home, the visa rules should be compared before the property market. Spain’s golden visa closed on 3 April 2025, and the main route for people with passive income is the non-lucrative visa with €2,400 a month, which does not allow work (see the NLV guide and the digital nomad comparison). Portugal’s D7 needs €920 a month in 2026, and the NHR incentives were phased out in 2025 (see the D7 guide). Italy’s elective residency visa has a legal minimum of €31,000 a year according to one guide. Greece has a golden visa with tiers from €250,000 to €800,000, where the sources disagree on which areas fall in which tier. In none of these cases does buying a holiday home alone give you the right to live in the country for more than the short stays allowed to visitors.

Which tax incentives are real?

Several guides advertise flat-tax regimes for new residents: 7% for 10 years in eligible southern Italian municipalities and 7% for 15 years in Greece. They are aimed at people who move their tax residence and who have foreign income, not at holiday-home owners, and they come with conditions that change. Treat them as a reason to speak to a tax adviser, not as a reason to buy. In the same way, treat any promise of a tax-free structure with caution: the sources on company ownership describe extra taxes for blacklisted jurisdictions and disclosure of beneficial owners, which is the reverse of what such pitches usually claim.

How do you match a country to your type of buyer?

The retiree or long-stay owner

The main questions are healthcare, the residency route, the language and the distance from family. Spain and Portugal have large foreign communities and established services for English speakers; read the cost-of-living guides for Spain and Portugal. Italy and Greece suit people who are willing to learn the language and to deal with more local paperwork. In all four, spend several weeks in the area in winter before buying, because many coastal towns change character out of season.

The holiday-home buyer who also wants rental income

Check the letting licence rules first. Portugal’s Alojamento Local rules changed under Decree-Law 76/2024, with containment zones in Lisbon and Porto (see the AL guide); Spain’s rules depend on the region and community statutes (see renting out property in Spain); Italy’s short-term lets generally face 26% flat tax, or 21% for one qualifying property; Greece’s golden visa bans short-term letting. A beautiful house in a place that does not allow letting has a very different return from the same house where it is allowed.

The budget buyer

The cheapest purchase price is rarely the cheapest outcome. A cheap village house in southern Italy or inland Spain can need major renovation, and a very low price can reflect low demand when you want to sell. Read the cheapest places to buy property in Europe for the price data and the risks, and add a renovation budget and a contingency before you decide.

The buyer from outside the EU

Check the foreign-buyer rules before anything else. Italy requires reciprocity or a residence permit for non-EU citizens, Greece requires authorisation in border zones, and Spain has a pending proposal on non-EU buyers that is discussed in our article on the Spanish non-EU buyer tax proposal. For buyers from the UK, US, Canada, Australia and Ireland, there are country-specific guides: UK, US, Canada, Australia and Ireland.

What should you do before you choose?

Write down your goal in one sentence: holiday use, retirement, rental income or investment.
Rank the five factors that matter most, and weight them from 1 to 5.
Shortlist two countries and two areas in each.
Run the full cost for each with the calculators in Spain and Portugal, and with the guide figures for Italy and Greece.
Ask a lawyer in each country for a written estimate of fees and the steps.
Visit twice, once in each season, and talk to owners who have lived through a winter.
Keep the final decision for at least a week after the last visit.

What are the common mistakes when choosing a country?

Choosing from a ranking: the Australian comparison index and the UK search-budget data are measures of popularity and interest, not advice, and the weights are not always explained.
Comparing a headline price per square metre with no allowance for renovation, taxes and fees.
Treating a visa or tax regime as part of the property purchase.
Ignoring climate risks: wildfires and heat in Greece, extreme heat and seismic activity in Italy, drought in Cyprus, flooding and sea-level rise in Portugal.
Buying without asking whether you will want to sell, and how long it would take, which our guide on whether to buy abroad at all raises.
Relying on one source: our own sources disagree on Italian buying costs and on the Greek golden visa, and this guide shows the conflict instead of choosing a side.

What is the bottom line?

There is no single best country, only the best country for a stated purpose and budget. Spain is the safest first choice for most English-speaking buyers because of its depth of services and information, but it has the highest purchase taxes of the three large markets compared here. Portugal offers a different set of trade-offs, with a higher non-resident IMT of 7.5% and a clear residency route through the D7. Italy rewards patient buyers with low prices and punishes careless ones with paperwork, and Greece offers a low resale tax with more changing rules in 2026. Whatever you choose, the discipline is the same: independent legal advice before any deposit, a full cost calculation including yearly costs, and a visit in the low season.

Frequently asked questions

Which Southern European country is cheapest to buy in?

On national averages in one early-2026 guide, Portugal about €2,050 per m², Italy about €2,100 and Spain about €2,150, with Greece apartments about €2,700. Regional differences are far larger than these gaps, and Italy has very cheap villages in the south.

Which has the lowest purchase tax?

On the rates in these sources, Greece has a 3% transfer tax on resales, but new builds carry 24% VAT. Compare total costs, not one tax.

Can I get residency by buying a home?

Spain’s golden visa ended on 3 April 2025 and Portugal’s real estate route ended in October 2023. Greece still offers one from €250,000 in some areas, according to the sources, so verify the current rule.

What are the main risks?

Planning and licence problems, tax changes, holiday-rental rules and climate risks such as heat, drought, wildfires and flooding.

Where do most foreign buyers look?

In January 2026 A Place in the Sun’s searches ranked Spain first, then France, Italy, Cyprus, Greece and Portugal.

This is general information, not legal or tax advice. Rules and rates change, and your situation may differ. Confirm the figures with the tax authority and a qualified lawyer or tax adviser before you commit. Facts last checked on 16 October 2026.

Sources

Official sources (check these for the current rule):

Also cross-checked against published guides, because practice varies between notaries, registries and banks:

At a glance