Spain vs. Portugal — where is it best to buy property?

Spain and Portugal are both popular destinations for those considering a property in the south. But they differ more than many think — and the right choice depends on your priorities.

Property prices

Portugal — particularly the Algarve and the Lisbon area — has seen sharp price rises over the past decade driven by foreign demand and tax-attractive schemes such as the NHR programme. Spain generally remains cheaper per square metre in comparable coastal locations, although prices have also risen markedly here.

Climate

Both countries have excellent climates, but with differences: the Costa del Sol and Costa Blanca generally have hotter summers and more sun than the Algarve, while Portugal's Algarve in turn has more comfortable summer heat (milder than southern Spain) and beautiful Atlantic coastal scenery that differs from the Mediterranean coast.

Taxes and the NHR programme

Portugal attracted many foreign residents with its NHR programme (Non-Habitual Resident), which previously gave 10 years of lower taxation. The programme has, however, been significantly changed and is now closed to new applicants. Spain, by comparison, has no equivalent scheme, but has double taxation agreements with most countries.

Expat community

Spain — and particularly the Costa Blanca and Costa del Sol — has a far larger and more established Northern European community than Portugal. In the Algarve the main expat scene is British and Northern European, but with far fewer Scandinavians than in Spain.

Flight connections

Spain clearly wins on direct flight connections from Northern Europe — Málaga and Alicante have numerous direct routes from many cities. Portugal is most commonly accessed via Lisbon or Faro, with fewer direct routes from regional airports.

Conclusion: Spain is better for those who want an established international network, direct flights and hotter summers. Portugal is better for those who prefer Atlantic scenery, a more international (but less Scandinavian) atmosphere and perhaps the specific city charm Lisbon and Porto offer.

Legal and practical differences

Both countries have fairly similar systems for foreign buyers, but with country-specific requirements. Portugal uses an equivalent ID number to the NIE called the NIF. Both require a local lawyer for a property transaction. Spanish property law is generally better documented by advisors serving Northern European clients, as far more buyers from the region have purchased in Spain over many decades.

Frequently asked questions about Spain vs. Portugal

Where is it cheapest to buy property?

Spain is generally cheaper than Portugal in comparable coastal locations, particularly compared with the Algarve and the Lisbon area, which have seen sharp price rises. It varies a lot by specific location and property type, though.

Is it harder to move to Portugal than to Spain?

As EU citizens, Northern Europeans have full rights to settle in both countries. The practical challenges are comparable — both require local registration, an ID number and local bank accounts.

Which country is most popular with foreign buyers?

Spain is clearly more popular — tens of thousands of foreign buyers own or live in property in Spain, against a far smaller number in Portugal. The long tradition and established network in Spain make it the obvious first choice for most.