On a €250,000 resale home, the purchase tax is €15,000 to €25,000 in Spain depending on the region, from 6% in Madrid to 10% in Cataluña, and about €20,750 in Portugal for a non-resident, which is 7.5% IMT plus 0.8% stamp duty. Spain adds notary, registry and legal fees, which bring the total to roughly 10% to 13% of the price. Neither country now gives residence for buying a home. The costs are closer than most guides suggest, and the best choice starts with the place, not the country. This comparison covers the purchase taxes, the yearly taxes, the residence options and the policy risks. It is general information, not financial advice.
How do the purchase taxes compare on €250,000?
| Place | Tax | Amount | Approx. in £ / $ |
|---|---|---|---|
| Spain, Madrid | ITP 6% | €15,000 | ≈ £12,700 / $16,800 |
| Spain, Andalucía | ITP 7% | €17,500 | ≈ £14,800 / $19,600 |
| Spain, Murcia | ITP 7.75% | €19,375 | ≈ £16,400 / $21,700 |
| Spain, Valencia region (from 1 June 2026) | ITP 9% | €22,500 | ≈ £19,000 / $25,200 |
| Spain, Cataluña (up to €600,000) | ITP 10% | €25,000 | ≈ £21,100 / $28,000 |
| Portugal, non-resident buyer | IMT 7.5% + stamp duty 0.8% | €20,750 | ≈ £17,500 / $23,200 |
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 figures are for a resale home. New homes in Spain pay VAT and stamp duty instead of ITP; see the ITP, VAT and stamp duty guide. In Portugal, the rate depends on whether you are a resident, whether it is a main home and the price; the 7.5% rate applies to non-residents under the rules described in our IMT guide, with exceptions for buyers who become residents within two years or who let the home long term.
What do the other costs look like?
In Spain, the notary, land registry and legal fees bring the total cost of buying to roughly 10% to 13% of the price, as explained in the Spain buying costs guide; on €250,000 that is €25,000 to €32,500. For Portugal, read the Portugal property taxes guide, because I do not give a single total here. In both countries you need a tax number before you buy: the Spanish NIE and the Portuguese NIF. Model your own price with the Spain and Portugal calculators.
What about the yearly taxes?
Both countries tax the ownership of property every year. In Spain, non-residents pay the yearly tax explained in the non-resident property tax guide, plus the local property tax and community fees. In Portugal, municipal property tax applies, as set out in the Portugal taxes guide. If you rent the home, the income is taxed in the country where the property is; the Spanish rules are in renting out property in Spain.
How do the contracts and process compare?
| Spain | Portugal | |
|---|---|---|
| Preliminary contract | Reservation, then arras contract | CPCV |
| Registry check | Nota simple | Property registry certificate |
| Tax number | NIE | NIF |
| Mortgage for non-residents | Spain guide | Portugal guide |
| Step-by-step | 12-step guide | Portugal guide |
Does buying give you the right to live there?
No, in either country. Spain closed its golden visa for property on 3 April 2025 (details), and Portugal closed its real estate route in October 2023 (details). The remaining routes depend on income. Spain’s non-lucrative visa needs €2,400 a month in 2026 (≈ £2,000 / $2,700), and Portugal’s D7 visa needs €920 a month (≈ £800 / $1,000), with more for family members in both cases. Portugal’s Organic Law 1/2026 of 18 May 2026 also lengthened the period needed for naturalisation, so do not plan a citizenship timeline from older guides.
What is the policy risk?
- Spain: a proposed tax of up to 100% on non-EU buyers is still a proposal; see what is actually law. The national registry for tourist lets was annulled by the Supreme Court on 19 May 2026, but regional and local licence rules still apply; see the holiday rental guide.
- Portugal: the 7.5% non-resident IMT is recent, and sources differed on the date it took effect. Ask your lawyer to confirm the rate for your signing date.
How should you choose?
- Start with the region or town you like, not the country.
- Compare the total purchase tax for that place using the calculators.
- Add the yearly taxes and, if you plan to rent, the net rental yield.
- Check your own residency status, because it changes the outcome.
- Test your finances with a mortgage quote and a currency transfer plan; see how to move money.
What are the common mistakes?
- Comparing a Spanish regional rate with the Portuguese rate without checking the region.
- Forgetting that Spain’s total costs include notary, registry and legal fees.
- Assuming that buying gives residence.
- Using old IMT or golden visa information.
- Choosing the country from a price headline rather than the town.
What does an all-in budget look like?
For a €250,000 resale home, the Spanish total of 10% to 13% means €25,000 to €32,500 (≈ £21,100 / $28,000 to ≈ £27,400 / $36,400) on top of the price, so the cash you need is €275,000 to €282,500 before a mortgage. In Portugal the tax alone is about €20,750, and you should add the notary, registration and legal costs listed in the Portugal guide. The point of the example is the method: compare the total cash for the same town type, not the headline tax rate.
Which buyer suits which country?
- A buyer who wants the widest choice of coasts, cities and prices will find it in Spain, but the tax depends on the region, so choose the region first.
- A buyer who wants a smaller market and a single national tax rate for non-residents may prefer Portugal, as long as they confirm the current IMT rule at the date of signing.
- A buyer who plans to live there should compare the income tests of the visas before the property, because the property does not give a right of residence.
- A buyer who plans to let the home should compare the licence rules of the specific town, which matter more than the national rules.
What should you check before you decide?
- The tax for your exact price and region, using the calculators.
- The legal status of the property; see illegal builds in Spain, and in Portugal the registration and boundary checks.
- Your tax residency and what your home country taxes.
- The cost of a lawyer; for Spain see the lawyer fees guide.
- The coast or area; for Portugal see Algarve vs Silver Coast and for Spain Costa del Sol vs Costa Blanca vs Costa Cálida.
Does timing matter?
Yes. Both countries changed rules recently: Valencia raised its resale tax to 9% from 1 June 2026, and Portugal’s non-resident IMT changed in May 2026. A guide written a year ago may give a different number, so check the date of every figure and ask your lawyer to confirm the rate that applies on the day of the deed, not the day you reserve.
What is the short verdict?
There is no cheaper country in general. The cheaper option is the specific town and region where the price, the tax and your plans line up, so compare two or three real places in each country with the same budget before you decide.
Who should you ask?
Talk to an independent lawyer in the country and region you choose, and to a tax adviser in your home country, before you pay a deposit. Cross-border cases often depend on residency, double tax treaties and the way your home country taxes foreign property, which no comparison can settle for you.
Frequently asked questions
Is it cheaper to buy in Spain or Portugal?
It depends on the region. On a €250,000 resale home the Spanish tax runs from €15,000 in Madrid to €25,000 in Cataluña, and the Portuguese tax for a non-resident is about €20,750, before other fees.
Does buying a home give me residence in either country?
No. Spain closed its golden visa on 3 April 2025 and Portugal closed its real estate route in October 2023.
Which has the higher yearly tax?
It depends on the property and your status. Read the non-resident tax guide for Spain and the property taxes guide for Portugal.
Which country has the lower income requirement for residence?
The D7 in Portugal asks for €920 a month in 2026 and the Spanish non-lucrative visa €2,400 a month, with extra for family in both.
What changed in Portugal’s IMT in 2026?
A 7.5% rate for non-resident buyers, under Decreto-Lei 97/2026 and Lei 9-A/2026; sources differ on the exact start date, so confirm it with your lawyer.
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:
- See the sources of our IMT guide and Spain buying costs guide.
