Spain
vs Portugal.
The Iberian neighbours offer distinct investment profiles. Spain provides a deeper, more liquid market with higher rental yields on the costas, while Portugal counters with its NHR tax regime, faster EU citizenship path, and strong English proficiency. Spain's Golden Visa closed to real estate in 2024, while Portugal restructured its programme around investment funds. Both markets show robust capital appreciation headed into 2026, but differ significantly in tax treatment for non-residents.
| Metric | 🇪🇸 Spain | 🇵🇹 Portugal |
|---|---|---|
| Avg Coastal Price/m² | €2,800 | €3,200 |
| Gross Rental Yield | 5.2–7.8% | 4.5–6.5% |
| Golden Visa | Closed (real estate) | €500k (investment funds) |
| Non-Resident Income Tax | 24% (19% EU) | 25% (NHR: 0–10%) |
| Capital Gains Tax | 19–26% | 28% (NHR exemptions possible) |
| Annual Property Tax | 0.4–1.1% IBI | 0.3–0.45% IMI |
| Stamp Duty / Transfer Tax | 6–10% | 6–8% IMT |
| EU Citizenship Path | 10 years residency | 5 years residency |
| Digital Nomad Visa | Available (2023) | Available (2022) |
| Tourism Volume (2025) | 90M+ arrivals | 30M+ arrivals |
| English Proficiency | Moderate | High |
| New-Build Supply | Growing rapidly | Limited, rising |
| Mortgage Rate (avg, 2026) | 3.2% variable | 3.5% variable |
| Property Price Growth (YoY) | +7.2% | +6.8% |
Sources: INE, Eurostat, DBRS, national tax authorities, Avena Terminal research. Q1 2026 data.
Higher gross yields on the costas (5–8%) driven by massive tourism volume and established short-let infrastructure.
The NHR regime can reduce pension and foreign income tax to 0–10%, unmatched anywhere in the EU.
Still offers an investment-based residency route; Spain closed its programme to real estate buyers.
Deeper market with more listings, faster sales cycles, and broader buyer pool across multiple costas.
Both markets showing ~7% YoY growth; Spain's costas and Lisbon metro are neck-and-neck.
Higher English proficiency, smaller and more welcoming expat communities, strong digital nomad scene.
Is Spain or Portugal cheaper for property?
Spain's coastal average is lower at €2,800/m² compared to Portugal's €3,200/m². However, Portugal's Silver Coast offers values from €2,200/m², below many Spanish costas.
Which country has better rental yields?
Spain generally offers higher gross rental yields (5.2–7.8%) due to its massive tourism infrastructure. Portugal yields range from 4.5–6.5% but can be enhanced by NHR tax savings.
Can I still get a Golden Visa in Spain?
No. Spain closed its Golden Visa to real estate investment in April 2024. Portugal restructured its programme around €500k investment fund contributions.
How long until I get EU citizenship?
Portugal offers citizenship after 5 years of legal residency. Spain requires 10 years (2 years for citizens of certain Latin American and former colonial nations).
Which is better for retirees?
Portugal's NHR regime historically offered 0% tax on foreign pensions, making it extremely attractive for retirees. Spain taxes worldwide income for residents, though non-resident pension taxation can be managed with proper structuring.