Spain or Portugal: where is it more advantageous to buy real estate?

Tourism in Spain and Portugal

Spain has established itself as one of the leading destinations for tourism on a global scale, attracting huge masses of travelers from all over the world. Many foreign guests who have visited this amazing country often consider purchasing real estate here. While Spain dominates the tourism market, Portugal cannot boast the same level of popularity, although in 2019 it welcomed around 27 million tourists, compared to Spain's 83.7 million. Despite the challenging position of being neighbors with such a well-known country, Portugal still impresses with excellent living conditions and opportunities for buying property.

Advantages of Spain

As for Spain, there is a significant variety of options for affordable real estate, as well as a high standard of medical care. The country impresses with its diverse regions, each with different climate conditions and a range of price categories for housing.

• Favorable conditions for investing in real estate
• Attractive loan offers
• High level of infrastructure and comfort
• Sunny climate and good ecology

One should not forget about comfort and safety, as well as the culinary delights of Mediterranean cuisine and the friendly attitude towards visitors.

Advantages of Portugal

Portugal can offer milder climate conditions, lower tax rates, and reduced costs for maintaining real estate. Additionally, the cost of additional transaction support and housing prices here are significantly lower than in Spain.

Average price per square meter:About 1500 euros. You can find apartments priced from 60 to 70 thousand euros, while houses start at 200 thousand euros. In popular cities and resort towns, prices are usually higher. The most expensive regions are considered to be the Catalonia province, including places like Barcelona and the Costa del Garraf coast, where the cost per square meter can reach 3500 euros.

Visual examples of housing prices

In northern Catalonia, in the picturesque Costa Brava area, apartments can be purchased for prices ranging from 100,000 to 120,000 euros, while plots in gated cottage complexes or chalets in Lloret de Mar start at 200,000 euros. Prices for country houses can vary from 700,000 euros to several million for luxury villas.

Spain also boasts lesser-known but charming regions, such as the Basque Country and Asturias. In the Basque Country, the cost per square meter is around 2600 euros, while in Asturias it is approximately 1400 euros.

Real estate in the province of Alicante

In the resorts located in the province of Alicante, secondary housing is available at prices ranging from 60,000 to 70,000 euros, while primary real estate starts at 100,000 euros. Overall, the real estate offerings in Spain are much more diverse due to the active construction of new projects.

For example, in the Costa Blanca area, it is currently advantageous to purchase new properties, which is due to the high activity of developers and the large number of new locations along the coast. This situation creates numerous opportunities for both investors and those dreaming of their own home by the sea.

Buying real estate in Spain and Portugal

Spain has established itself as one of the most attractive countries for foreigners looking to obtain a mortgage. The situation for purchasing real estate here is quite favorable.

Ksenia Kolesnikova, who works in the UAE and heads the sales department, is based in the picturesque Altea, located in the Costa Blanca region.

Popular destinations in Portugal

When it comes to Portugal, Lisbon, the Lisbon Riviera, and the Algarve region are considered the most sought-after areas for real estate investment. The dreams of many foreigners are tied to housing in Madeira, where they can enjoy not only stunning landscapes but also a comfortable mild climate with temperatures ranging from 16 to 25 degrees Celsius throughout the year.

Real estate prices

Despite the fact that life in Portugal is relatively affordable, property prices here cannot be considered low. The cost of houses in the country can vary from180 thousandto600 thousandeuros, while for apartments you will have to pay starting from70to350 thousandEuros.

• At resorts such as Vilamoura, Vale do Lobo, and Quinta do Lago, particularly high price categories are observed, reaching millions of euros.
• In Lisbon, apartments in renovated buildings cost on average about4000 euros per square meter.
• Housing on the Lisbon Riviera ranges in price from200 thousandup to several million euros.
• In popular Algarve resorts like Albufeira, Portimão, and Faro, apartments can be purchased for around2500 euros per square meter.
• In Madeira, the starting price for housing is approximately1600 euros per square meter.

Interest in Camara de Lobos

The city of Câmara de Lobos on the southern coast of Madeira is also of interest to investors looking to preserve their investments.

The process of buying and оформления real estate

When it comes to buying and registering real estate, it is worth noting that additional payments in Spain are generally significantly higher than in Portugal. To complete a transaction in Spain, it is necessary to set aside12–15%from the total cost of the property. In Portugal, these expenses amount to approximately10-15%and depend on the region, type of property purchased, and mortgage conditions.

For example, legal services in Spain can cost you anywhere from1000 to 2000 euros...which should also be taken into account when calculating the total costs of purchasing real estate.

When purchasing property in Spain and Portugal, it is important to be mindful of a number of additional expenses that can significantly increase the overall costs of the transaction. In Spain, there are several mandatory payments. For example, notary services can cost between 600 and 1000 euros, while obtaining an individual taxpayer number (NIF) costs about 7.5 euros. Registering the property in the land registry requires approximately 300 to 650 euros, and importantly, the property transfer tax can vary from 1% to 10% depending on the type of property being purchased. Don't forget about the stamp duty, which for new properties can range from 0.5% to 1.5%.

Offers in the Spanish real estate market

The Spanish real estate market offers a variety of attractive properties. For example, in Vilanova i la Geltrú, a recently renovated five-room apartment is for sale, located just 20 meters from the sea, priced at 540,000 euros. This apartment has an area of 171 square meters and includes four bedrooms. In Eixample, you can find a new penthouse with four bedrooms and a total area of 175 square meters, priced at 1,796,000 euros. There is also a unique offer in Les Corts — a 58 square meter apartment with two bedrooms for 320,000 euros. Investors will also be interested in a rental apartment offer with a guaranteed income of 4% of the value, located in Eixample, where a three-room apartment costs 480,000 euros.

Real estate market in Portugal

Portugal has a lot of interesting offers in the real estate market. For example, three-level townhouses in Lisbon, located in a fully restored building near the Tagus River, start at €1,300,000. In São Pedro do Sul, new apartments suitable for obtaining residency are available, with a guaranteed return of 4% at a price of €1,100,000. There is also an attractive selection of modern properties with terraces and pools in Belém, where prices start at €1,200,000.

• Apartments in Cascais starting from 500,000 euros.
• Modern new buildings in Lisbon starting from 481,000 euros;
• Properties with sea and river views in Oeiras starting from €616,000.

Overall, the mortgage lending conditions for foreigners in Spain and Portugal are quite similar, which makes the purchasing process easier and less complicated for foreign investors.

Conclusion

Thus, the housing market in Spain and Portugal offers extensive opportunities that can meet various buyer requirements. However, before making a final decision, it is essential to familiarize yourself with the complete list of costs and conditions to avoid unpleasant surprises in the future.

Buying real estate in Portugal and Spain: mortgage and requirements

Obtaining a mortgage in Portugal can be a more challenging process than in Spain. Financial institutions in Portugal have stricter requirements for potential borrowers, especially when it comes to opening bank accounts.

In both countries, an invisible mandatory requirement for obtaining a mortgage is the presence of insurance on the purchased property.

Comparison of mortgage conditions

If we compare the conditions for obtaining a mortgage in Spain and Portugal, several key points can be highlighted:

• Initial payment:In Spain, it is about 30%, while in Portugal, this figure can vary from 30% to 50%.
• Interest rates:In Spain, they range from 3% to 3.5%, while in Portugal they start at 1.7% and can reach up to 3.3%.
• Monthly payments:In both countries, they should not exceed 35% of the borrower's income.

Minimum and maximum loan amounts

The minimum loan amount in Spain is 50,000 euros, while in Portugal it is at least 60,000 euros. The maximum loan amount in these two countries is also similar: lenders are willing to provide up to 70% of the appraised value of the property.

The terms for granting a loan have their own specifics:

• Spain:The terms can reach up to 25 years.
• Portugal:It is possible to arrange a mortgage for a term of up to 40 years.

As for the borrower's age, the maximum age in Spain is 65 years, while in Portugal it is 75 years.

Expenses for property maintenance

It is also important to consider the costs of maintaining the property, which include taxes, insurance premiums, management company fees, and utility payments.

• Annual maintenance costs:In Portugal, the average is around 2000 euros, while in Spain it ranges from 2000 to 2500 euros.
• Utilities:In Spain, they cost between 80 to 120 euros per month, while in Portugal, they range from 70 to 100 euros.
• Maintenance of the residential complex:In Spain, it costs between 40 to 100 euros per month, while in Portugal, this range varies from 40 to 200 euros.
• Property insurance:It amounts to approximately 200-400 euros per year in both Spain and Portugal.

Tax aspects

Speaking of taxes, it can be noted that they are generally lower in Portugal than in Spain. Although some payments in Portugal may be higher, this country does not have certain taxes that exist in Spain, such as the tax on the increase in value of urban land.

Inheritance taxes in Portugal are also significantly lower. The total amount of tax payments can vary depending on a number of factors, including the location and type of property.

Comparison of taxes and fees

• VAT rates:In Spain, they range from 10% to 21%, while in Portugal, they are 23%.
• Tax on income for non-residents:In Spain, it is 24%, while in Portugal it is 25%.
• Wealth tax:In Spain, it ranges from 0.2% to 2.5% for homes valued over 700,000 euros, while in Portugal, this tax is between 0.4% and 1% for properties worth more than 600,000 euros.

Additional taxes

There are other types of taxes as well, for example, tax on rental income:

• Spain:is 24% (19% for EU residents).
• Portugal:is 28%.

The capital gains tax on the sale of real estate in Spain is 19%, while in Portugal it is 28%. The tax on the increase in the value of urban land in Spain is paid by the seller, and its rate varies depending on the location.

Schengen Area and visa programs

Both countries are part of the Schengen Area, which creates similar conditions for obtaining visas for non-residents.

Conditions of investment programs in Europe

The conditions for investment programs vary in different European countries. For example, in Portugal, the minimum amount for investment is500 thousand eurosfor any type of real estate or350 thousand eurosIf we are talking about houses older than 30 years that need renovation. Spain has similar requirements as well.500 thousand eurosWhen purchasing real estate in these countries, investors and their relatives can obtain“golden visa”which allows them to move freely across all countries of the European Union, as well as to reside in Portugal and Spain without time restrictions.

Suspension of the visa program through investment

Moreover, it should be noted that for large cities such as Lisbon and Porto, as well as for various coastal areas, the visa program through investment has been temporarily suspended until further notice.2022Therefore, those who wish to take advantage of this program are advised not to delay. As Ksenia Kolesnikova, head of the sales department in the United Arab Emirates, explains, afterfive yearsAfter obtaining a "golden visa" in Portugal, it is possible to apply for permanent residency, and after a year, you can apply for citizenship. In Spain, the process of obtaining permanent residency is similar and also requires you to have spent time in the country.five yearsHowever, to obtain citizenship in Spain, it is necessary to have an average presence in the country for at least10 years.

Climate conditions

The climate and environmental conditions in these countries are quite attractive for living and vacationing. Spain and Portugal are known as some of the sunniest countries in Europe, where you can enjoy sunny weather from2500 to 3000 hoursper year. While in Moscow this figure is only1700 hoursIn the past December, there were only eight hours of sunny days in a year.

The geographical location of Spain also creates a variety of climatic conditions:

• Northern regionsAsturias, the Basque Country — a green and mild climate.
• Southern regionsValencia, Andalusia, Murcia — it's hot.
• Central part— sharply continental climate with cold winters and scorching summers.

Climate of Portugal

Portugal, in turn, also offers a pleasant climate in its coastal areas, influenced by the Atlantic Ocean. The summer months here are not too hot thanks to the refreshing ocean breeze, while winters are generally mild and wet. The summer season on the Lisbon Riviera and in the Algarve region lasts almostsix months— from May to October. Lisbon is considered one of the warmest capitals in Europe, as even in winter the temperature rarely drops below+5 °C.

State of the environment

As for the state of the environment, according to a reputable index of environmental performance assessment conducted in2020Spain took14th linewhile Portugal is located on27th position, which is a little lower.

Recreation infrastructure

The infrastructure for recreation in these countries also deserves special attention.2015 to 2019Spain has been recognized as the most attractive country for tourists globally according to the World Economic Forum's ranking.

The diversity of Spain

In Spain, everyone can find an activity that suits them, whether they are a fan of artistic creativity, a nature lover, or a connoisseur of culinary delights. This country generously offers a variety of museums and architectural masterpieces in major cities like Madrid, Barcelona, Granada, and Valencia.

The breathtaking natural landscapes leave no one indifferent — Spain is home to 15 national parks, and the picturesque resorts along the Mediterranean and Atlantic coasts attract tourists. Spanish cuisine sparkles with a wealth of flavors and forms a harmonious unity of traditional recipes, while the nightlife is full of vibrant colors and emotions.

Carnivals and cultural festivals, which attract tourists from all over the world, will also leave you captivated. Spain ranks among the leaders in Europe for the number of Blue Flag beaches, which symbolize the highest standards of cleanliness, and it rightfully holds the second place in the world for the protection of UNESCO World Heritage sites.

The Charm of Portugal

Portugal, while also an interesting country for travelers, may be less known than Spain, but it offers its audience a wide range of options for a wonderful vacation. Here you will find impeccably clean beaches, impressive waves that surfers love, as well as picturesque trails for hiking and biking both along the ocean coast and in the surrounding mountain ranges.

Every historical building, ancient castle, and museum seems to tell a story about the unique heritage of this country. Moreover, Portugal boasts Michelin-starred restaurants, stylish clubs for evening entertainment, and modern spa resorts.

Every year, tourists come here to enjoy the stunning natural landscapes of the Azores and Madeira, as well as to appreciate the historical architecture of Lisbon, Coimbra, and Sintra.

Resort infrastructure

In terms of resort infrastructure, Portugal holds a respectable fifth place in Europe for the number of Blue Flag beaches, which is an indicator of high standards of cleanliness and service. The nature here is truly mesmerizing, and the beaches meet the strictest environmental criteria, such as the stunning Sete Cidades Lake in the Azores.

Quality of local products

Both locals and foreigners who have chosen to live in Spain and Portugal often note the high quality of local products, most of which are produced without the use of chemical fertilizers. In these countries, glyphosate is rarely used, which contributes to the creation of eco-friendly products that are gaining popularity.

• Fresh seafood
• Various fruits and vegetables

This is one of the factors contributing to the longevity of the local residents. The concept of the "Mediterranean diet" is becoming well-known among researchers due to its positive impact on health. Spanish and Portuguese wines consistently receive recognition at international competitions for their excellent taste qualities.

Standard of living

When it comes to the standard of living, many people from the UK, Germany, the USA, France, and Northern European countries choose Portugal as their retirement destination. This is due to the affordable cost of living and favorable climate.

On average, monthly living expenses in Portugal amount to about 1400 euros per person. For example, an elderly couple moving to Lisbon from the USA with an annual income of 25,000 euros will be able to enjoy life without any problems, regularly visiting local establishments and entertainment with friends, without worrying about their financial situation.

This atmosphere of tranquility and the opportunity to enjoy life's moments are just some of the many reasons why Portugal attracts retirees from all over the world.

The affordability of life in Portugal and Spain

Portugal confidently holds high positions in terms of living affordability in Western Europe. Although the average income level of foreigners in this country is similar to that of other countries on the continent, the prices for everyday goods, medical services, and education are significantly lower here. For example, the cost of dinner for two in a restaurant ranges from 20 to 30 euros, while in Spain, a similar meal would cost at least 40 euros.

Ksenia Kolesnikova, who works as a sales department manager in the UAE and lives in Spain, emphasizes that the overall cost of living in Spain is somewhat higher than in Portugal. For a single person, monthly expenses can reach up to 1,600 euros, while a family with a child will need between 2,500 and 3,000 euros.

Comparison of prices for essential goods and services

According to statistics from the Numbeo portal, consumer goods prices in Portugal are 12% lower than in Spain, and restaurant expenses decrease by a full 32%. Nevertheless, Spain still remains more affordable compared to several other European countries.

So, in Spain, consumer prices are 21% lower compared to Germany and the UK, and dinner at a restaurant in Barcelona costs 38% less than in London.

• Dinner for twoSpain - 40 euros, Portugal - 30 euros
• Bottle of waterSpain - 1.1 euros, Portugal - 0.9 euros
• Taxi ride (1 km)Spain - 1.1 euros, Portugal - 0.5 euros
• Monthly internet subscriptionSpain - 40 euros, Portugal - 33 euros
• Movie ticketSpain - 8 euros, Portugal - 7 euros
• Monthly gym membershipSpain - 37 euros, Portugal - 33 euros

Healthcare in Spain and Portugal

From the perspective of the healthcare sector, Spain ranks first in the world in terms of the quality of medical care according to Bloomberg's 2019 report, based on data from the World Health Organization. Portugal is in 22nd place, while Russia is at the bottom of the list in 95th place. According to the Organisation for Economic Co-operation and Development, the average life expectancy in Portugal is 81 years, while in Spain it is 83 years.

These impressive figures confirm the effectiveness of advanced healthcare systems in both countries.

The health index in Spain, according to Numbeo data from 2020, was 78.9, while in Portugal this figure was lower at 71.9. In Russia, however, it stands at only 57.6, highlighting the differences in the quality of healthcare. Life expectancy in Spain and Portugal exceeds 80 years, indicating a good overall state of health among the population.

Medical and spa tourism

Spain is also known as one of the leading destinations for medical and spa tourism. The country is home to over two thousand thermal and mineral springs, where healing water treatments are offered. Portugal is not far behind Spain, attracting tourists with opportunities for relaxation and medical services, as prices here are more affordable while the quality of services remains high.

The attitude of local residents towards foreigners

Speaking about how locals view foreigners, it can be noted that Spaniards and Portuguese are traditionally considered some of the most hospitable people in the world. Overall, life in these countries has its pros and cons, but the friendliness of the residents and the availability of various services make them attractive for both permanent living and tourist vacations.

Conclusion

In conclusion, after analyzing the opportunities for purchasing real estate in Spain and Portugal, I have come to the conclusion that both countries have unique advantages, each of which can meet different preferences and needs of potential owners. Spain, with its rich selection of affordable properties and highly developed living conditions, offers foreigners numerous benefits, includingaffordable pricesfor housing andfavorable conditions for mortgage lending.

On the other hand, Portugal, although less popular among tourists, offersmilder climate,low taxesandsmaller additional costsWhen buying real estate. Each region of these countries is unique, whether it's the sunny beaches of Costa Blanca or the picturesque landscapes of the Algarve, which makes the choice between them not easy.

Key advantages of Spain:

• A wide selection of budget real estate
• Affordable housing prices
• Developed living conditions
• Favorable conditions for mortgage lending

Advantages of Portugal:

• Mild climate
• Low taxes
• Lower additional costs when purchasing

It's important to understand that the decision to buy property abroad is not just a financial one, but also an emotional step. It's an opportunity to integrate into a new culture, enjoy an alternative way of life, and discover incredible horizons.

As a result, regardless of whether you prefer Spain or Portugal, I am confident that your decision will be justified, as both countries offerbeauty,cozyand a multitudeprosperous opportunitiesfor life. Just be sure to thoroughly analyze all aspects and perhaps consult with specialists to make your experience as comfortable and enjoyable as possible.