Portugal or Spain (2026): which costs less to buy a home?
For a tax-resident buyer of a main home, Portugal usually costs less: its IMT starts at 0% and rises in bands, while Spain's regions charge 6% to 10% or more on a resale from the first euro. For a non-resident who will not move there, Portugal's flat 7.5% IMT plus 0.8% stamp duty makes Madrid and Andalusia cheaper. On a new build, Spain's 10% VAT makes every Spanish region the dearer choice.
Key facts
- Portugal charges IMT (a banded transfer tax) and 0.8% stamp duty, on new and resale homes alike.
- Spain charges a regional transfer tax (ITP) on resales, from 6% in Madrid to 10% and more in Catalonia, and 10% VAT plus a regional stamp duty on new builds.
- Since 25 May 2026 a non-resident buying a home in Portugal pays a flat 7.5% IMT, refundable if they become resident within two years.
- Spain sets the same purchase taxes for residents and non-residents.
- Buyers aged 35 or under get IMT Jovem in Portugal; in Spain only some regions have young-buyer rates.
Is it cheaper to buy a home in Portugal or Spain?
For a buyer who is tax resident and buying their main home, usually Portugal. Both countries use the euro, so the same price can be compared directly. A resale home at €300,000:
| 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 (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% |
| 3 | 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% |
| 4 | 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% |
| 5 | 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% |
| 6 | Spain, Catalonia | Resale, price €300,000 | €30,000 | €4,148.54 | €34,148.54€32,348.54 to €36,248.54 | 11.38% |
The order changes with the buyer. The sections below take each situation that moves it: the price, residence, a new build and the buyer’s age.
How do the purchase taxes differ?
| Portugal | Spain | |
|---|---|---|
| Main tax on a resale | IMT, in bands, lower for the buyer’s own permanent home | Transfer tax (ITP), set by each region |
| Main tax on a new build | IMT, the same as a resale | VAT (IVA) at 10% plus a regional stamp duty (AJD) |
| Stamp duty | 0.8% on every purchase | AJD, on new builds only (and on mortgages) |
| Non-resident buyers | Flat 7.5% IMT since 25 May 2026 | Same rates as residents |
| Young buyers | IMT Jovem: own home, age 35 or under | Varies by region |
| Charged on | The higher of the price and the tax value | The higher of the price and the reference value |
Portugal’s IMT for an own permanent home starts at 0%, then rises with the price in bands (CIMT article 17). Spain’s transfer tax is a flat or near-flat rate from the first euro: 6% in Madrid, 7% in Andalusia, 9% in Valencia and from 10% in Catalonia, before any regional reductions. For the detail see IMT in Portugal and transfer tax in Spain by region.
Where is each cheaper as the price rises?
Portugal’s bands make IMT a small share on cheaper homes and a larger one higher up, while Madrid’s rate stays flat. So the gap narrows as the price rises, and at high prices Madrid can come out lower:
| Rank | Place | Buyer | Taxes | Fees, typical | Total on top | Share of price |
|---|---|---|---|---|---|---|
| 1 | Portugal (mainland) | Main home, tax-resident, price €150,000 | €2,208.98 | €2,250 | €4,458.98€4,083.98 to €5,908.98 | 2.97% |
| 2 | Spain, Madrid | Resale, main home, price €150,000 | €8,100 | €2,596.68 | €10,696.68€9,696.68 to €12,046.68 | 7.13% |
| 3 | Spain, Andalusia | Resale, main home, price €150,000 | €9,000 | €2,596.68 | €11,596.68€10,596.68 to €12,946.68 | 7.73% |
| 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 (mainland) | Main home, tax-resident, price €750,000 | €51,000 | €9,750 | €60,750€58,875 to €66,700 | 8.10% |
| 3 | 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% |
Madeira and the Azores have their own IMT tables with higher band limits, so they stay cheaper than the mainland for an own home. See Madeira and the Azores compared with the mainland.
Which is cheaper for a non-resident?
Spain, in Madrid and Andalusia. Since 25 May 2026 Portugal charges a non-resident buyer of a home a flat 7.5% IMT with no exemption or reduction, plus stamp duty (CIMT article 17(10), added by Decree-Law 97/2026). Spain’s national and regional laws set the same purchase taxes for residents and non-residents. A second home bought by a non-resident at €300,000:
| 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 | 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% |
| 5 | 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 rule has exceptions. A buyer who was tax resident in Portugal before pays the normal rates. A buyer who becomes tax resident within two years of buying, or who lets the home at a moderate rent for long enough, can ask for the difference back (CIMT article 17(11) and (12)). The Portugal non-resident guide explains each one.
What if the buyer will move to Portugal?
A non-resident 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, within 6 months of becoming resident (CIMT article 17(11) and (12)). Once refunded, Portugal is usually the cheaper of the two again:
| €300,000 home that becomes the buyer’s main home | Taxes |
|---|---|
| Portugal, paid at the deed before the move | €24,900 |
| Portugal, after the refund (resident’s own home) | €12,942.04 |
| Madrid, resale main home | €18,000 |
| Andalusia, resale main home | €21,000 |
Which is cheaper for a new build?
Portugal, at every price. A Spanish new home bought from the developer pays 10% VAT plus the region’s stamp duty (AJD) instead of transfer tax, so the tax is higher than on a resale in every region. In Portugal the buyer pays IMT and stamp duty on a new build as on any other home:
| Rank | Place | Buyer | Taxes | Fees, typical | Total on top | Share of price |
|---|---|---|---|---|---|---|
| 1 | 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% |
| 2 | 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% |
| 3 | 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% |
| 4 | 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% |
| 5 | Spain, Catalonia | New build, price €300,000 | €34,500 | €4,148.54 | €38,648.54€36,848.54 to €40,748.54 | 12.88% |
See VAT and AJD on new builds in Spain.
Which is cheaper for a buyer aged 35 or under?
Usually Portugal. IMT Jovem exempts a first own permanent home from IMT up to €330,539 on the mainland, for buyers aged 35 or under who have not owned a home in the previous three years (CIMT article 9). In Spain, Andalusia has a reduced rate for young buyers on cheaper homes, and other regions’ young-buyer rates depend on income and are not all in the calculator.
| Rank | Place | Buyer | Taxes | Fees, typical | Total on top | Share of price |
|---|---|---|---|---|---|---|
| 1 | Portugal (mainland) | Main home, tax-resident, first-time buyer, aged 30, price €250,000 | €0 | €3,500 | €3,500€2,875 to €5,700 | 1.40% |
| 2 | Spain, Madrid | Resale, main home, price €250,000 | €13,500 | €3,631.29 | €17,131.29€15,581.29 to €18,981.29 | 6.85% |
| 3 | Spain, Andalusia | Resale, main home, aged 30, price €250,000 | €17,500 | €3,631.29 | €21,131.29€19,581.29 to €22,981.29 | 8.45% |
What this comparison does not cover
- Regions of Spain other than Madrid, Catalonia, Valencia and Andalusia.
- Annual property taxes, income tax on rent and capital gains tax.
- Large-family, disability and income-tested rates, which the calculator does not apply.
- Mortgage costs, including Spanish AJD and Portuguese stamp duty on the loan.
Questions people ask
Is it cheaper to buy a house in Portugal or Spain?
For a resident buying a main home, Portugal is usually cheaper, because IMT starts at 0% and climbs in bands while Spanish transfer tax is a flat 6% to 10% or more from the first euro. At high prices Madrid's flat 6% can come out lower. For non-residents and new builds the answer changes.
Do non-residents pay more tax when buying in Portugal than in Spain?
Yes, since 25 May 2026. Portugal charges non-residents a flat 7.5% IMT on homes, with no reductions, plus 0.8% stamp duty. Spain charges non-residents the same rates as residents.
Can I get Portugal's 7.5% IMT back if I move there?
Yes, if you become tax resident in Portugal within two years of buying. The tax office refunds the difference from the normal rates on request, made within 6 months of becoming resident. Buyers who were tax resident in Portugal before pay the normal rates from the start.
Is a new build cheaper to buy in Portugal or Spain?
Portugal, at every price. In Spain a new home from a developer pays 10% VAT plus a regional stamp duty instead of transfer tax. In Portugal the buyer pays IMT and stamp duty, the same as on a resale.
Which is better for young buyers, Portugal or Spain?
Portugal's IMT Jovem removes IMT on a first own home up to €330,539 on the mainland for buyers aged 35 or under. Spain's young-buyer rates vary by region and some depend on income.
Sources
- Código do IMT, article 17 (rates, including the 7.5% for non-residents)Autoridade Tributária e Aduaneira (Portugal)
- Decreto-Lei n.º 97/2026, de 20 de maioDiário da República (Portugal)
- Código do IMT, article 9 (IMT Jovem)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)
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