Spain vs Portugal Property Investment

Foreign buyers and the property register

Foreign buyers can purchase Spanish property and need a NIE identification number for the transaction. Obtain the land-registry extract and check the owner's title, charges and the property's legal status. Non-EU nationals can require a military permit in designated defence zones; exemptions depend on the exact location.

Reviewed: 2026-09-07UK Foreign Office — buying property in SpainRegistradores de España — international land-registry service

Nonresidents can buy; transaction checks still apply

UCI's published nonresident purchase guidance confirms that foreign and nonresident buyers can buy a home in Portugal, including through a remote process. Confirm the title and property documents, obtain the required tax identification and establish the buyer's tax residence before calculating taxes.

Reviewed: 2026-09-07UCI Portugal — nonresident mortgage productAutoridade Tributária — buying a home: IMT and stamp duty

Resale and new-build tax follow different rules

Used housing is subject to the relevant autonomous community's transfer tax; Madrid's general property-transfer rate is 6%. New housing normally attracts 10% VAT, with specific reduced-rate exceptions. Registration, notarial and professional costs sit on top, and the rate varies by community.

Reviewed: 2026-09-07Agencia Tributaria — VAT or transfer tax on home purchaseComunidad de Madrid — property transfer tax

The 2026 nonresident IMT rule

CIMT Article 17(10) states a 7.5% rate for nonresident purchases of urban residential property, subject to its exceptions. These include previous Portuguese tax residence, becoming tax resident within the specified period, and qualifying capped-rent letting. Some relief requires an application and evidence. Check the effective provisions and your exact circumstances before signing.

Reviewed: 2026-09-07Autoridade Tributária — CIMT Article 17

Stamp duty and other completion costs

The tax authority lists purchase stamp duty of 0.8%, generally on the same higher-of-price-or-tax-value base as IMT. Mortgage borrowing also has stamp-duty treatment. Registration, legal work and mortgage expenses are separate.

Reviewed: 2026-09-07Autoridade Tributária — buying a home: IMT and stamp duty

Nonresident rental income depends on tax residence

AEAT lists a 19% nonresident income-tax rate for residents of the EU, Iceland, Norway and Liechtenstein, and 24% for other taxpayers. Tax-base and expense-deduction rules also differ. Nationality alone does not determine the category; use the applicable tax residence, treaty and current deduction rules.

Reviewed: 2026-09-07Agencia Tributaria — nonresident rental income

IMI is charged on taxable value

Municipalities normally set urban IMI between 0.3% and 0.45% of taxable property value (VPT), with exceptional cases up to 0.5%. This is not a percentage of current market price. AIMI can additionally apply to relevant residential property and building-land holdings; allowances and ownership structure matter.

Reviewed: 2026-09-07Autoridade Tributária — annual IMI and AIMI

A real nonresident mortgage application route

Banco Santander advertises a mortgage product for people living outside Spain. That is an application route, not a guarantee for any applicant, foreign income or investment property.

Reviewed: 2026-09-07Banco Santander — mortgages for nonresidents

UCI: up to 70% for eligible nonresident applicants

UCI publishes financing of up to 70% of the lower of purchase price and valuation, subject to borrower profile and security, with terms up to 30 years and age limits. Its stated purpose is a main or second home, so check that letting is acceptable. One lender's criteria, not the market's.

Reviewed: 2026-09-07UCI Portugal — nonresident mortgage product

Barcelona is a local regulatory example

Barcelona's municipal housing publication records the plan not to renew its tourist-flat permissions, with a phase-out intended for November 2028. This is a city-specific policy. Before underwriting any Spanish holiday let, verify municipal and regional permissions and condominium rules for that address.

Reviewed: 2026-09-07Barcelona City Council — The New Housing Law

Alojamento Local needs registration

Portugal's government service requires registration before operating Alojamento Local and proof of liability insurance after registration. Municipal restrictions and the permitted use of the building can affect a particular property. Confirm the current local position before relying on tourist revenue.

Reviewed: 2026-09-07gov.pt — Alojamento Local registration

New investor visas ended in April 2025

Spain's consular guidance states that investor visas were abolished from 3 April 2025. A new property purchase should not be presented as a route to an investor visa. Existing applications or authorisations require review under their transitional rules.

Reviewed: 2026-09-07Spanish Ministry of Foreign Affairs — investor visa notice

Property acquisition is no longer a new ARI route

Law 56/2023 stopped new applications under the former real-estate investment categories. Buying a home should not be marketed as automatically qualifying for Portugal's ARI or Golden Visa. Legacy permits and other qualifying investment or residence routes have separate rules.

Reviewed: 2026-09-07Diário da República — Law 56/2023, Article 42