Comparison · ES vs PT
Spain vs Portugal — two Iberian markets, very different buys.
On a map they look interchangeable. In a dossier they look nothing alike.
Last updated:
| Topic | ESSpain | PTPortugal |
|---|---|---|
| Purchase tax | ITP 4-11% by region (Madrid 6%, Catalonia 10-11%) | IMT 0-8% sliding + IS 0.8% |
| Average all-in cost | 9-13% of price | 5-8% of price |
| Annual property tax | IBI 0.4-1.1% of cadastral | IMI 0.3-0.45% of VPT |
| Imputed-income tax (empty home) | IRNR ~0.5% of cadastral annually | None — only IMI |
| Wealth tax | Patrimonio 0.21-3.5% (Madrid 100% bonificado) | AIMI 0.4-1.5% on > €600k |
| Rental income tax (non-EU) | 24% on gross — no deductions | 25% on net (long-term) |
| Empty-property risk | Okupa (12-24 mo eviction) | Low — squatter risk minimal |
| Short-term rental | Barcelona PEUAT freeze + Mallorca moratorium | AL frozen in central Lisbon/Porto |
| Rent controls | Catalonia zonas tensionadas — CPI cap | None (national) |
| Residency from purchase | Golden Visa abolished April 2025 | Golden Visa real-estate route abolished Oct 2023 |
| Average summer temp (coast) | 28-32°C | 24-28°C |
| English in legal context | Variable — Catalonia OK, smaller cities limited | Generally widespread |
The big one for UK buyers: post-Brexit, UK owners of Spanish rental property are taxed at 24% on gross rental — no deductions for mortgage, repairs, agent fees, or IBI. On a €1,400/month Spanish flat, that’s €4,032/year in tax before any costs. The same flat in Portugal pays roughly €2,800/year (25% on net after €5k of deductions).
When Spain makes sense
- You want a primary residence in a specific city and have residency lined up
- You’re buying in Madrid (Patrimonio bonification + lower ITP)
- You’re buying outside Catalonia (no zonas tensionadas rent caps)
- You can hold the property mostly occupied (no okupa exposure)
- You qualify for Beckham law (24% flat on Spanish income for new tax residents working in Spain)
When Portugal makes sense
- You want lifestyle + lower all-in tax burden
- You’re buying outside the AL containment zones (Algarve outside Lagos / Albufeira; Setúbal; Cascais periphery)
- You can model rental returns conservatively — AL upside is gone in central Lisbon
- You qualify for IFICI (the replacement for NHR) through a scientific/innovation role
- You want to leave the property partially empty without major tax penalty
Run both addresses side-by-side. Outpost generates full dossiers for both countries — Local Intelligence flags the specific zone-level risks (PEUAT for ES, AL containment for PT) so you can compare like for like.