For many northern Europeans, the choice is between Spain’s Costa Blanca and Portugal’s Algarve.
| Area | Asking price per m² | €300,000 buys about |
|---|---|---|
| Torrevieja | €2,553 | 118 m² |
| Lagoa, Algarve | €4,113 | 73 m² |
| Algarve (Faro district) | €4,202 | 71 m² |
| Loulé, Algarve | €5,159 | 58 m² |
Torrevieja asked about 39% less than the Faro district.
The tax picture
For residential property acquisitions by non-tax-residents, Portugal generally applies 7.5% IMT plus 0.8% stamp duty (8.3%), subject to exceptions, including for buyers who become Portuguese tax residents within two years. Torrevieja applies the Valencian 9% ITP on an ordinary resale home, or 10% VAT plus 1.4% AJD on a new home subject to the general AJD rate. On rates alone, Portugal is lower. On an illustrative 90 m² resale home, however, the totals are about €250,450 in Torrevieja (€229,770 plus €20,680 tax) against €409,570 in the Faro district (€378,180 plus €31,390), assuming the price is the taxable base and no exemption applies.
What Torrevieja offers
Much lower asking prices, a large international community, and Alicante-Elche airport, with 19.95 million passengers in 2025.
What the Algarve offers
Lower purchase-tax rates for many buyers, Portugal itself, and a wide choice of towns and coastline.
Who each place suits
The Algarve suits buyers drawn to Portugal. Torrevieja suits those for whom the budget comes first.
Asking-price figures: idealista and idealista.pt, August 2026. Tax rules checked October 2026.
General information, not advice. Rules change and each case differs. Confirm your position with a Spanish lawyer or tax adviser before you commit.
