Where buying costs are lowest: Portugal, Spain or England (2026)
For a tax-resident buyer of a main home, Madeira and the Azores have the lowest buying taxes of the euro places on cheaper and mid-priced homes, then mainland Portugal; on expensive homes Madrid comes first. Catalonia has the highest. For a non-resident, Madrid comes first, because Spain has no non-resident surcharge and Portugal charges a flat 7.5% IMT. For a new build, Portugal is cheapest. England, in pounds, takes a small share of the price for a resident home mover, but a large one for a buyer who already owns a home.
Key facts
- Resident main home: Madeira and the Azores, then mainland Portugal, on cheaper and mid-priced homes; Madrid on expensive ones; Catalonia is the dearest.
- Non-resident: Madrid first and Andalusia second; Portugal's flat 7.5% IMT puts it behind them.
- New build: Portugal first; every Spanish region adds 10% VAT plus stamp duty.
- Madrid has the lowest transfer tax of the four Spanish regions, at 6% on a resale.
- England is shown by share of the price and not ranked, because its prices are in pounds.
Where are buying costs lowest for a resident buying a main home?
The seven euro places at the same price, for a buyer who is tax resident there and buying a resale home to live in, ranked by the share of the price paid in taxes and fees:
| Rank | Place | Buyer | Taxes | Fees, typical | Total on top | Share of price |
|---|---|---|---|---|---|---|
| 1 | Portugal, Madeira | Main home, tax-resident, price €300,000 | €10,327.52 | €4,125 | €14,452.52€13,702.52 to €17,027.52 | 4.82% |
| 2 | Portugal, Azores | Main home, tax-resident, price €300,000 | €10,327.52 | €4,125 | €14,452.52€13,702.52 to €17,027.52 | 4.82% |
| 3 | Portugal (mainland) | Main home, tax-resident, price €300,000 | €12,942.04 | €4,125 | €17,067.04€16,317.04 to €19,642.04 | 5.69% |
| 4 | Spain, Madrid | Resale, main home, price €300,000 | €18,000 | €4,148.54 | €22,148.54€20,348.54 to €24,248.54 | 7.38% |
| 5 | Spain, Andalusia | Resale, main home, price €300,000 | €21,000 | €4,148.54 | €25,148.54€23,348.54 to €27,248.54 | 8.38% |
| 6 | Spain, Valencian Community | Resale, main home, price €300,000 | €27,000 | €4,148.54 | €31,148.54€29,348.54 to €33,248.54 | 10.38% |
| 7 | Spain, Catalonia | Resale, price €300,000 | €30,000 | €4,148.54 | €34,148.54€32,348.54 to €36,248.54 | 11.38% |
Portugal’s IMT starts with a zero band for a buyer’s own home, and Madeira and the Azores have higher band limits, so they lead on cheaper and mid-priced homes. Spain’s transfer tax applies from the first euro. On expensive homes Portugal’s higher bands overtake Madrid’s flat rate:
| Rank | Place | Buyer | Taxes | Fees, typical | Total on top | Share of price |
|---|---|---|---|---|---|---|
| 1 | Spain, Madrid | Resale, main home, price €750,000 | €45,000 | €8,786.59 | €53,786.59€49,736.59 to €58,136.59 | 7.17% |
| 2 | Portugal, Madeira | Main home, tax-resident, price €750,000 | €48,795.78 | €9,750 | €58,545.78€56,670.78 to €64,495.78 | 7.81% |
| 3 | Portugal (mainland) | Main home, tax-resident, price €750,000 | €51,000 | €9,750 | €60,750€58,875 to €66,700 | 8.10% |
| 4 | Spain, Andalusia | Resale, main home, price €750,000 | €52,500 | €8,786.59 | €61,286.59€57,236.59 to €65,636.59 | 8.17% |
| 5 | Spain, Valencian Community | Resale, main home, price €750,000 | €67,500 | €8,786.59 | €76,286.59€72,236.59 to €80,636.59 | 10.17% |
| 6 | Spain, Catalonia | Resale, price €750,000 | €76,500 | €8,786.59 | €85,286.59€81,236.59 to €89,636.59 | 11.37% |
Where does England fit?
England’s prices are in pounds, so it is not ranked against the euro places. Its share of the price for a resident home mover who owns no other home, at its own prices:
| Price | Taxes | Fees, typical | Total on top | Estimate range | Share of price |
|---|---|---|---|---|---|
| £150,000 | £500 | £1,450 | £1,950 | £1,350 to £2,550 | 1.30% |
| £300,000 | £5,000 | £1,500 | £6,500 | £5,900 to £7,100 | 2.17% |
| £500,000 | £15,000 | £1,500 | £16,500 | £15,900 to £17,100 | 3.30% |
| £750,000 | £27,500 | £1,645 | £29,145 | £28,545 to £29,745 | 3.89% |
| £1,000,000 | £43,750 | £1,645 | £45,395 | £44,795 to £45,995 | 4.54% |
Because its bands start at zero, England’s share for this buyer stays low until the price reaches its 10% and 12% bands. For a buyer who already owns a home anywhere, England adds 5% of the price, which puts its share among the highest; see second homes and buy to let.
Where are buying costs lowest for a non-resident?
The order changes. Since 25 May 2026 Portugal charges a non-resident a flat 7.5% IMT with no reductions, plus 0.8% stamp duty, while Spain charges residents and non-residents the same:
| Rank | Place | Buyer | Taxes | Fees, typical | Total on top | Share of price |
|---|---|---|---|---|---|---|
| 1 | Spain, Madrid | Resale, second home, price €300,000 | €18,000 | €4,148.54 | €22,148.54€20,348.54 to €24,248.54 | 7.38% |
| 2 | Spain, Andalusia | Resale, second home, price €300,000 | €21,000 | €4,148.54 | €25,148.54€23,348.54 to €27,248.54 | 8.38% |
| 3 | Portugal (mainland) | Second home, not tax-resident, price €300,000 | €24,900 | €4,125 | €29,025€28,275 to €31,600 | 9.68% |
| 4 | Portugal, Madeira | Second home, not tax-resident, price €300,000 | €24,900 | €4,125 | €29,025€28,275 to €31,600 | 9.68% |
| 5 | Portugal, Azores | Second home, not tax-resident, price €300,000 | €24,900 | €4,125 | €29,025€28,275 to €31,600 | 9.68% |
| 6 | Spain, Valencian Community | Resale, second home, price €300,000 | €27,000 | €4,148.54 | €31,148.54€29,348.54 to €33,248.54 | 10.38% |
| 7 | Spain, Catalonia | Resale, price €300,000 | €30,000 | €4,148.54 | €34,148.54€32,348.54 to €36,248.54 | 11.38% |
England adds 2% for a non-resident; see non-resident buyers.
Where are buying costs lowest for a new build?
Portugal, because it charges IMT and stamp duty on a new home as on a resale. Every Spanish region charges 10% VAT plus its own stamp duty on a new build from a developer:
| Rank | Place | Buyer | Taxes | Fees, typical | Total on top | Share of price |
|---|---|---|---|---|---|---|
| 1 | Portugal, Madeira | Main home, tax-resident, price €300,000 | €10,327.52 | €4,125 | €14,452.52€13,702.52 to €17,027.52 | 4.82% |
| 2 | Portugal, Azores | Main home, tax-resident, price €300,000 | €10,327.52 | €4,125 | €14,452.52€13,702.52 to €17,027.52 | 4.82% |
| 3 | Portugal (mainland) | Main home, tax-resident, price €300,000 | €12,942.04 | €4,125 | €17,067.04€16,317.04 to €19,642.04 | 5.69% |
| 4 | Spain, Valencian Community | New build, main home, price €300,000 | €30,300 | €4,148.54 | €34,448.54€32,648.54 to €36,548.54 | 11.48% |
| 5 | Spain, Madrid | New build, main home, price €300,000 | €32,250 | €4,148.54 | €36,398.54€34,598.54 to €38,498.54 | 12.13% |
| 6 | Spain, Andalusia | New build, main home, price €300,000 | €33,600 | €4,148.54 | €37,748.54€35,948.54 to €39,848.54 | 12.58% |
| 7 | Spain, Catalonia | New build, price €300,000 | €34,500 | €4,148.54 | €38,648.54€36,848.54 to €40,748.54 | 12.88% |
Which Spanish region has the lowest transfer tax?
Of the four regions on this site, Madrid: 6% on a resale, with a further reduction on a buyer’s main home up to €250,000. Andalusia charges 7%, Valencia 9% and Catalonia from 10%.
| Rank | Place | Buyer | Taxes | Fees, typical | Total on top | Share of price |
|---|---|---|---|---|---|---|
| 1 | Spain, Madrid | Resale, second home, price €300,000 | €18,000 | €4,148.54 | €22,148.54€20,348.54 to €24,248.54 | 7.38% |
| 2 | Spain, Andalusia | Resale, second home, price €300,000 | €21,000 | €4,148.54 | €25,148.54€23,348.54 to €27,248.54 | 8.38% |
| 3 | Spain, Valencian Community | Resale, second home, price €300,000 | €27,000 | €4,148.54 | €31,148.54€29,348.54 to €33,248.54 | 10.38% |
| 4 | Spain, Catalonia | Resale, price €300,000 | €30,000 | €4,148.54 | €34,148.54€32,348.54 to €36,248.54 | 11.38% |
The transfer tax guide has the full table for every region, including the reduced rates for young buyers and main homes.
What this ranking does not cover
- Places outside Portugal, Spain and England, and Spanish regions other than the four in the calculator.
- House prices: a lower tax share on a dearer home can still cost more.
- Annual property taxes, income tax on rent and mortgage costs.
- Exchange rates: England is never converted into euros.
Questions people ask
Where is it cheapest to buy a home: Portugal, Spain or England?
It depends on the buyer. For a resident buying a main home, Portugal's islands and mainland usually have the lowest taxes of the euro places, and England takes a small share of the price too. For a non-resident, Madrid. For a buyer who already owns a home, England's 5% surcharge makes it one of the dearer choices.
Which Spanish region has the lowest property transfer tax?
Of the four regions on this site, Madrid, at 6% on a resale home, with a further reduction on a main home up to €250,000. Andalusia charges 7%, Valencia 9% and Catalonia 10% to 13%.
Why is England not in the ranking?
England's prices are in pounds and the others in euros. Ranking them at the same number would compare different amounts of money, and converting would need an exchange rate. England is shown by the share of the price paid, which can be compared without one.
Is Portugal still cheap for foreign buyers?
For buyers who are tax resident in Portugal, yes. Since 25 May 2026 a non-resident pays a flat 7.5% IMT plus 0.8% stamp duty, which costs more than Madrid or Andalusia. The difference is refunded to a buyer who becomes resident within two years.
Sources
- Código do IMT, article 17 (rates, including the 7.5% for non-residents)Autoridade Tributária e Aduaneira (Portugal)
- Real Decreto Legislativo 1/1993, Impuesto sobre Transmisiones Patrimoniales y Actos Jurídicos DocumentadosBoletín Oficial del Estado (Spain)
- Ley 37/1992, del Impuesto sobre el Valor Añadido (VAT on new homes)Boletín Oficial del Estado (Spain)
- Stamp Duty Land Tax: residential property ratesGOV.UK (HM Revenue and Customs)
Behind the figures
Every amount on this page is worked out by the engine from rule files that cite these pages.
- Agència Tributària de Catalunya: ITP ratesOfficial source
- Which?: Conveyancing, what it is and what it costs (29 May 2026)Secondary source
- The Land Registration Fee Order 2024 (SI 2024/931)Official source
- GOV.UK: Stamp Duty Land Tax, residential property ratesOfficial source