Second home in Portugal or England (2026): which costs more to buy?
A UK resident who already owns a home and buys a second one pays England's standard bands plus 5% of the price. The same buyer in Portugal is a non-resident there, so they pay a flat 7.5% IMT plus 0.8% stamp duty. On cheaper homes England usually takes the smaller share of the price; as the price rises England's share climbs past Portugal's flat rate. A buyer who moves to Portugal within two years can reclaim most of the IMT.
Key facts
- England: a buyer who will own another home anywhere pays 5% of the price on top of the SDLT bands.
- Portugal: since 25 May 2026 a non-resident buying a home pays a flat 7.5% IMT, plus 0.8% stamp duty.
- Portugal refunds the difference to a buyer who becomes tax resident there within two years.
- A home in Portugal counts towards England's 5% if its owner later buys in England.
- Pounds and euros are not converted: the comparison is by share of the price.
Is a second home cheaper to buy in Portugal or England?
It depends on the price. Take a buyer who lives in the UK and already owns a home there:
| Second home in England | Second home in Portugal | |
|---|---|---|
| Main tax | SDLT bands, from 0% | IMT, flat 7.5% for a non-resident |
| Surcharge for owning another home | 5% of the price | None |
| Stamp duty | Part of SDLT | 0.8% |
| Can it come back? | The higher rates, only if the new home replaces the main home | The IMT difference, if the buyer becomes resident in Portugal within two years |
England’s tax rises with the price through its bands. Portugal’s non-resident tax is the same share at every price. So England takes the smaller share on cheaper homes and the larger one on expensive homes. Amounts are in each country’s currency and never converted; compare the share of the price.
| Price | Taxes | Fees, typical | Total on top | Estimate range | Share of price |
|---|---|---|---|---|---|
| £150,000 | £8,000 | £1,450 | £9,450 | £8,850 to £10,050 | 6.30% |
| £250,000 | £15,000 | £1,500 | £16,500 | £15,900 to £17,100 | 6.60% |
| £400,000 | £30,000 | £1,500 | £31,500 | £30,900 to £32,100 | 7.88% |
| £600,000 | £50,000 | £1,645 | £51,645 | £51,045 to £52,245 | 8.61% |
| £1,000,000 | £93,750 | £1,645 | £95,395 | £94,795 to £95,995 | 9.54% |
| Price | Taxes | Fees, typical | Total on top | Estimate range | Share of price |
|---|---|---|---|---|---|
| €150,000 | €12,450 | €2,250 | €14,700 | €14,325 to €16,150 | 9.80% |
| €250,000 | €20,750 | €3,500 | €24,250 | €23,625 to €26,450 | 9.70% |
| €400,000 | €33,200 | €5,375 | €38,575 | €37,575 to €41,900 | 9.64% |
| €600,000 | €49,800 | €7,875 | €57,675 | €56,175 to €62,500 | 9.61% |
| €1,000,000 | €83,000 | €12,875 | €95,875 | €93,375 to €103,700 | 9.59% |
Why does Portugal charge a UK resident more?
Since 25 May 2026, a buyer who is not tax resident in Portugal pays IMT at a flat 7.5% on the purchase of a home, with no exemptions or reductions (Código do IMT, article 17(10), added by Decree-Law 97/2026). A tax-resident buyer of a second home uses the banded table for other housing instead, which starts lower. Residence, not nationality, decides it: a Portuguese citizen living in the UK pays the flat rate too.
The rule has three exits. A buyer who was tax resident in Portugal before pays the normal rates from the start. A buyer who becomes tax resident within two years, or who lets the home at a moderate rent for at least 36 months in the first five years, can ask for the difference back within 6 months (article 17(10) to (12)). See Portugal for non-resident buyers.
What if the buyer moves to Portugal?
Then the tax comes down. A buyer who becomes tax resident in Portugal within two years pays the flat rate at the deed and then asks for the difference from the normal rates back (article 17(11) and (12)). For a €300,000 home that becomes the buyer’s own permanent home:
| Portugal mainland, €300,000 | Taxes |
|---|---|
| Paid at the deed, before the move | €24,900 |
| Normal rates for a resident’s own home, after the refund | €12,942.04 |
Selling the English home on the move costs no English purchase tax: SDLT is a tax on buying, not selling.
What does a buyer from Portugal pay in England?
The rules mirror each other. A buyer living in Portugal who owns a home there and buys in England pays England’s higher rates, because the law counts homes anywhere in the world (Finance Act 2003, Schedule 4ZA, paragraph 17), and the 2% non-resident surcharge on top:
| Line | Kind | Amount | Estimate range | Share of price |
|---|---|---|---|---|
| SDLT higher rates for an additional home (+5%) | Tax | £15,000 | 5.00% | |
| SDLT non-resident surcharge (+2%) | Tax | £6,000 | 2.00% | |
| Stamp Duty Land Tax | Tax | £5,000 | 1.67% | |
| Conveyancing solicitor (market rate) | Fee, estimate | £1,000 | £500 to £1,500 | 0.33% |
| Local searches | Fee, estimate | £350 | £250 to £450 | 0.12% |
| HM Land Registry fee (Scale 1) | Fee | £150 | 0.05% | |
| Taxes | £26,000 | 8.67% | ||
| Fees, typical | £1,500 | £900 to £2,100 | 0.50% | |
| Total on top of the price | £27,500 | £26,900 to £28,100 | 9.17% |
The non-resident surcharge can be refunded if the buyer then spends 183 days in the UK within the time allowed. See the non-resident surcharge in England and moving to England.
What about Madeira and the Azores?
The flat 7.5% for non-residents applies in the islands too, so for a UK-resident buyer of a second home they cost the same in tax as the mainland. Residents get the islands’ own lower tables; see Madeira and the Azores compared with the mainland.
What this comparison does not cover
- Exchange rates and the cost of moving money.
- Annual property taxes (council tax in England, IMI in Portugal), income tax on rent and capital gains tax.
- Companies and other entities, including those based in a listed tax haven, which pay a different IMT rate in Portugal.
- Scotland and Wales.
Questions people ask
Is it cheaper to buy a second home in Portugal or England?
For a UK resident who owns a home, England charges the standard bands plus 5% of the price, and Portugal a flat 7.5% IMT plus 0.8% stamp duty as a non-resident. England's share is lower on cheaper homes and higher on expensive ones.
Do I pay UK stamp duty on a property in Portugal?
No. Stamp Duty Land Tax applies to property in England and Northern Ireland. A purchase in Portugal pays Portugal's IMT and stamp duty.
Does owning a home in Portugal affect stamp duty in England?
Yes. England's higher rates count homes anywhere in the world worth £40,000 or more, so a buyer who owns a home in Portugal pays the extra 5% on a purchase in England, unless it replaces their main home.
Can I get Portugal's 7.5% IMT back?
Yes, if you become tax resident in Portugal within two years of buying, or let the home at a moderate rent for long enough. The request is made within 6 months of becoming resident or signing the lease. Former Portuguese tax residents pay the normal rates from the start.
Sources
- Stamp Duty Land Tax: buying an additional residential propertyGOV.UK (HM Revenue and Customs)
- Stamp Duty Land Tax: residential property ratesGOV.UK (HM Revenue and Customs)
- Código do IMT, article 17 (rates, including the 7.5% for non-residents and its refund)Autoridade Tributária e Aduaneira (Portugal)
- Decreto-Lei n.º 97/2026, de 20 de maioDiário da República (Portugal)
Behind the figures
Every amount on this page is worked out by the engine from rule files that cite these pages.
- 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