Spain vs Portugal: a comparison for property buyers
Spain and Portugal are often weighed up together: mild climate, long coastlines and short flights from the UK, Ireland and the rest of Europe. But their taxes, their residence routes and the way they measure house prices differ. This page compares them point by point, and the table gives every figure with its source and date: Spanish figures come from our own tables, Portuguese ones from Portuguese public bodies.
Spain and Portugal, point by point
| Item | Spain | Portugal |
|---|---|---|
| Transfer tax on purchase | ITP, resale home: 3% – 13% depending on the regionPurchase-tax table by territory (each region's law) · checked 15/10/2026 VAT (IVA), new build: 10%Ley 37/1992 IVA, art. 91.Uno.1.7º · checked 15/10/2026 |
IMT, own permanent home: 0% – 7.5% of the price, by bandAT · Código do IMT (redacción Lei 73-A/2025), art. 17.º, n.º 1, a) · checked 17/10/2026 · flatin.pt IMT, other home: 1% – 7.5% of the price, by bandAT · Código do IMT (redacción Lei 73-A/2025), art. 17.º, n.º 1, c) · checked 17/10/2026 · flatin.pt IMT, non-resident buyer: 7.5%, single rateAT · Código do IMT, art. 17.º, n.os 10–12 · checked 17/10/2026 · flatin.pt |
| Stamp duty | AJD, new build: 0% – 2% depending on the regionPurchase-tax table by territory (each region's law) · checked 15/10/2026 |
Stamp duty (Imposto do Selo) on the purchase: 0.8%AT · Tabela Geral do Imposto do Selo, verba 1.1 · checked 17/10/2026 · flatin.pt |
| Annual municipal property tax | IBI: 0.4% – 1.1% of the cadastral value, set by the town hallRDLeg 2/2004 TRLRHL, art. 72.1 · checked 17/10/2026 |
Imposto Municipal sobre Imóveis: 0.3% – 0.45% of the taxable property value, set by the municipalityAT · Código do IMI, art. 112.º, n.º 1, c) · checked 17/10/2026 · flatin.pt |
| Wealth tax: exempt amount per person | Wealth tax, state exempt minimum: €700,000Ley 19/1991 Impuesto sobre el Patrimonio, art. 28.Dos y Tres · checked 17/10/2026 |
AIMI, the additional municipal property tax: €600,000 deduction per personAT · Código do IMI, art. 135.º-C, n.º 2, a) · checked 17/10/2026 · flatin.pt |
| Tax on rental income | IRNR, EU or EEA resident: 19% of rent minus expensesRDLeg 5/2004 TRLIRNR, art. 25.1.a · checked 17/10/2026 IRNR, other non-residents: 24% of gross rentRDLeg 5/2004 TRLIRNR, art. 25.1.a · checked 17/10/2026 |
IRS on residential rent: 25%, flat rateAT · Código do IRS (redacción Lei 56/2023), art. 72.º, n.º 2 · checked 17/10/2026 · flatin.pt |
| Residence without working locally | Non-lucrative residence: means of 400% of IPREM a monthRD 1155/2024 Reglamento de extranjería, art. 62.1.a · checked 17/10/2026 |
Residence visa for people living on their own income or a pensionMNE · Lei 23/2007 (documentação instrutória MNE), visto de residência: «Pessoas que vivem de rendimentos próprios» e «Reformados» · checked 17/10/2026 · flatin.pt Residence permit for investment: buying property no longer qualifiesAIMA · Lei 23/2007 (redacción Lei 56/2023), art. 90.º-A · checked 17/10/2026 · flatin.pt |
| Remote work | Digital nomad visa: work for companies in Spain up to 20%Ley 14/2013 de apoyo a los emprendedores, art. 74 bis.1 · checked 17/10/2026 |
Digital nomad visa: average income of at least 4 × the monthly minimum wageMNE · Lei 23/2007 (documentação instrutória MNE), visto de residência: «Nómada Digital» · checked 17/10/2026 · flatin.pt Residence permit for remote work for clients outside PortugalAIMA · Lei 23/2007, art. 88.º, n.º 1 · checked 17/10/2026 · flatin.pt |
| Tax regime for new residents | Posted-worker (Beckham) regime: 24% up to €600,000 of taxable baseLey 35/2006 IRPF, art. 93.2.e.1º · checked 17/10/2026 |
IFICI: 20% on income from qualifying activitiesAT · Estatuto dos Benefícios Fiscais (aditado Lei 82/2023), art. 58.º-A · checked 17/10/2026 · flatin.pt Non-habitual resident (NHR): closed to new applicantsAT · Código do IRS, art. 16.º, n.os 8–12 (revogados) · checked 17/10/2026 · flatin.pt |
We only show figures checked against each country's official source. Portuguese figures link to the public body and to the flatin.pt page on the topic.
Taxes when you buy
In Spain, a resale home pays transfer tax (ITP), at a rate set by each region (3% – 13%). A new build pays VAT (IVA, 10%) plus stamp duty on the deed (AJD, 0% – 2%).
In Portugal, a purchase pays IMT, a tax by price band that can reach 7.5% of the price, plus stamp duty (Imposto do Selo, 0.8%). The table gives the rate range for each case (own permanent home, other home, non-resident buyer) with its Portuguese source and date; the exact bands are in the linked law. For a purchase in Spain, work out the costs with our buying costs calculator.
Taxes every year
In Spain, owners pay IBI, the local property tax, at a rate each town hall sets on the cadastral value (0.4% – 1.1%). If you are not resident in Spain, you also declare an imputed income from the home even when it is not let: at 19% if you live in the EU or EEA and 24% otherwise. Our guide to taxes for non-resident owners explains how it works.
In Portugal you pay Imposto Municipal sobre Imóveis, the municipal property tax (0.3% – 0.45%), every year, and the additional AIMI once the value of your properties exceeds €600,000; the table shows the base (the taxable property value) and the AIMI deduction per person.
Residency
In Portugal, the D7 visa is for passive income and the D8 for remote work. Whether buying property gives access to any Portuguese permit today, and which tax regimes exist for new residents, is shown in the table with source and date; the detail is on flatin.pt.
Which suits whom?
There is no overall winner: it depends on your situation. Weigh up these factors:
- Language: where you and your family will get by more easily.
- Flights: which airports have direct routes to your home city.
- Residence route: whether you will live on passive income, work remotely or spend visa-free stays.
- Tax treaty: what the double tax treaty between your country and each of the two says.
- Budget: purchase taxes, annual taxes and prices in the areas you are looking at.
- Type of home: new build or resale, coast or city.
Set the figures in the table against your budget and run the numbers for your own case. This is general information, not tax or legal advice.
Portugal in detail on our sister site flatin.pt: a separate site with its own data and sources. If Spain is your choice, start with the new-build catalogue and our guide to buying property.