Buying Property in Spain or Portugal Amid Housing Protests
Spain and Portugal remain two of the most popular places in Europe for foreign buyers, whether for a holiday home, a future retirement base or a rental investment. They are also two of the countries where housing protests have been loudest, and both governments have changed the rules for buyers and landlords in recent years. This guide walks you through what has changed, how the two countries compare and the due diligence steps that matter most before you sign.
Key takeaways
- Neither country now offers a golden visa through property purchases: Portugal ended its real estate route in October 2023 and Spain ended its program in April 2025.
- Portugal's 2026 tax package introduces a flat 7.5% IMT for non-resident buyers of residential property, plus 0.8% stamp duty, with some exemptions.
- In Spain, proposals to tax non-EU buyers heavily have been announced; treat them as proposals until you confirm they are law.
- Rental plans face tighter rules in both countries, from Spain's national registration number to Portugal's incentives for long-term lets.
- Build your purchase around current rules, independent legal advice and a conservative budget.
On 17 October 2026, cost-of-living protests took place in several European countries at once. In Spain, protests in Madrid and Barcelona focused on overtourism and soaring rents. In Portugal, thousands marched through central Lisbon at the call of the CGTP union over wages, pensions, housing and fuel costs. Euronews noted that these protests are not one Europe-wide movement and that demands differ by country, but in both Spain and Portugal housing affordability was a central theme.
For buyers, protests are a signal that housing policy is under pressure and likely to keep evolving. This article is general information, not legal, tax or investment advice. Check official guidance from the Spanish and Portuguese tax authorities and speak to an independent lawyer in the country where you buy.
What the protests mean for foreign buyers
Housing protests do not stop you buying a home, and most purchases go ahead without any connection to street politics. What they do is shape the policy environment. When residents feel priced out, governments tend to respond with measures that target the parts of the market seen as adding pressure, such as non-resident buyers, investors and short-term tourist rentals.
The wider cost of living explains much of the anger. EU food and non-alcoholic beverage prices rose about 34% between August 2021 and August 2026, according to Eurostat data analyzed by Euronews. When essentials take a larger share of income, housing costs become harder to bear, and calls for action grow louder.
For you as a buyer, the practical consequences fall into three areas: residency, taxes and what you can do with the property once you own it.
Spain and Portugal compared
The two countries have taken different paths, but the direction of travel is similar. Here is a side-by-side summary of the main points covered in this guide.
| Topic | Spain | Portugal |
|---|---|---|
| Golden visa through property | Program ended in April 2025 | Real estate route ended in October 2023 |
| Extra taxes on foreign buyers | Heavy taxes on non-EU buyers proposed; check whether they have become law | Flat 7.5% IMT for non-resident buyers of residential property (reported from September 2026), plus 0.8% stamp duty, with exemptions |
| Short-term rentals | National registration number required since 1 July 2025; Barcelona plans to end all tourist apartment licenses by November 2028 | Incentives favor long-term rentals over short-term tourist lets |
| Long-term rentals | 2023 Housing Law allows rent caps on new contracts in stressed areas; annual updates limited by an official index | Incentives for long-term rentals in the 2026 package |
| Local first-time buyers | Varies by region | IMT and stamp duty exemptions for buyers up to age 35 on a first home up to a value limit |
Treat the table as a starting point. Several of these measures face legal challenges or are still being implemented, and the details that apply to your purchase can differ from the headline.
Buying in Portugal: what to check
Portugal's golden visa route through real estate purchases ended in October 2023. If residency is part of your plan, buying a home no longer delivers it through that route, so take immigration advice separately.
The non-resident transfer tax
A 2026 housing tax package introduces a flat 7.5% property transfer tax (IMT) for non-resident buyers of residential property, reported to apply from September 2026, plus 0.8% stamp duty. There are exemptions for buyers who become tax resident within two years or who put the home into qualifying affordable rental. Lawyers have signaled legal challenges, so the rules could still change.
- Plan your residency status carefully. If you intend to move to Portugal, ask your adviser how the two-year residency exemption works in practice and what evidence you would need.
- Read the affordable rental conditions. If you plan to let the property, check whether qualifying affordable rental terms could fit your numbers.
- Get confirmation in writing. Ask your lawyer to confirm the tax due before you commit to a price.
Common mistake
Assuming that holding an EU passport means you are not a "non-resident" buyer. Tax residency is about where you live and pay tax, not your nationality. A German or French citizen living outside Portugal may still be a non-resident for IMT purposes. Confirm your status with the Portuguese tax authority or an adviser.
Buying in Spain: what to check
Spain ended its golden visa program in April 2025, so buying property no longer offers residency through that program. Proposals to tax non-EU buyers heavily have also been announced. Describe and treat these as proposals unless you or your lawyer confirm they have become law, and ask your lawyer to check the position again shortly before you sign, since rules can change between offer and completion.
If you plan to rent the property out
Spain's rental rules are layered and can change what a property is worth to you:
- Short-term lets: since 1 July 2025, short-term and seasonal rentals need a national registration number shown on platform listings, and listings without a valid number can be removed. In 2025 the government ordered Airbnb to remove almost 66,000 listings it said broke rules. Regional licenses and city rules apply on top.
- Barcelona: the city plans to end all 10,101 tourist apartment licenses by November 2028 and issue no new ones. Owners' groups have challenged the plan in court.
- Long-term lets: the 2023 Housing Law lets regions declare stressed housing areas where rents on new contracts can be capped, and annual rent updates on existing contracts are limited by an official index. Catalonia was the first region to apply it.
Never pay a premium for a property because of a tourist license unless your lawyer has confirmed that the license is valid, transferable and not due to be phased out.
Financing your purchase
If you plan to borrow in euros, interest rates matter. The European Central Bank raised its deposit facility rate by 25 basis points to 2.50% on 10 September 2026, its second hike of 2026, and its next monetary policy meeting was set for 29 October 2026. ECB rate changes pass through to variable-rate loans and new fixed-rate mortgages, usually with a lag.
- Compare fixed and variable options with a mortgage broker who works with non-resident buyers.
- Check currency exposure. If you earn in dollars or pounds, exchange rate moves change your purchase cost and your repayments.
- Leave a buffer. Budget for higher rates, repairs and running costs rather than stretching to your limit.
Pro tip
Use an independent lawyer who acts only for you, not one recommended by the seller or the estate agent. Ask them to send you a written summary of taxes, fees, rental restrictions and any pending legal changes before you pay a deposit.
Your due diligence plan: step by step
Whether you choose Spain or Portugal, a careful process protects you from expensive surprises. Follow these steps in order.
- Define your goal. Decide whether the property is a home, a holiday base or a rental investment. Each goal points to different rules.
- Confirm your tax status. Establish whether you will be resident or non-resident for purchase taxes and income taxes in that country.
- Hire an independent lawyer. Choose one who speaks your language and works only for you.
- Check the property's legal status. Confirm ownership, debts, planning permissions and building rules through official registries.
- Check rental rules. If you plan to let, verify licensing, registration, rent caps and building restrictions for that exact address.
- Calculate the full cost. Include transfer taxes, stamp duty, notary, registry and legal fees, plus renovation and running costs.
- Stress-test the numbers. Model higher interest rates, empty months and stricter rental rules.
- Recheck just before signing. Ask your lawyer to confirm no rule has changed since you made your offer.
Hypothetical example
Imagine Rachel, a US-based consultant, comparing a made-up €250,000 apartment in Lisbon with a similar one in Valencia. She plans to spend summers there and rent it out the rest of the year. Her lawyer in Portugal explains the non-resident IMT and the conditions for the residency exemption, which do not fit her plans. Her lawyer in Spain confirms the national registration requirements and checks the local rules for tourist lets at that address. Comparing full costs and rental limits side by side, Rachel decides that a long-term let with occasional personal use suits both her budget and the local rules better. The names and figures are invented for illustration.
Investment returns are never guaranteed
Iberian property has attracted many foreign buyers over the past decade, but past performance does not guarantee future results. Policy changes, interest rates, demand and currency moves can all affect values and rental income. This guide does not recommend buying or selling any property, and you should take independent financial advice if the purchase is a major part of your wealth.
Your Spain and Portugal buyer checklist
- Purpose of the purchase defined: home, holiday base or rental
- Tax residency status confirmed for the country you buy in
- Independent lawyer appointed and written tax summary received
- Property title, debts and building rules checked in official registries
- Rental licensing, registration and rent cap rules verified for the address
- Full purchase and running costs budgeted with a buffer
- Interest rate, vacancy and currency stress tests done
- Rules rechecked with your lawyer just before signing
Frequently asked questions
Can I get residency in Spain or Portugal by buying property?
Not through the old golden visa routes. Portugal ended its real estate route in October 2023 and Spain ended its golden visa program in April 2025. Other residency options exist with their own conditions, so speak to an immigration lawyer.
Is Spain taxing foreign buyers more heavily?
Proposals to tax non-EU buyers heavily have been announced. Unless you or your lawyer confirm they have become law, treat them as proposals, and recheck before you sign.
Who pays Portugal's 7.5% IMT rate?
It is reported to apply to non-resident buyers of residential property from September 2026, with exemptions for buyers who become tax resident within two years or put the home into qualifying affordable rental. Lawyers have signaled legal challenges, so check the Portuguese tax authority's current guidance.
Should I wait for the protests to calm down before buying?
Nobody can tell you the right time to buy. Protests are a sign that housing policy may keep changing, so focus on whether a property works under current rules and conservative assumptions rather than trying to time the market.
Related reading
The bottom line
Housing protests in Spain and Portugal reflect real affordability pressure, and both governments have already responded: property-based golden visas are gone, Portugal has introduced a higher transfer tax for non-resident buyers, and rental rules have tightened in both countries. Buying is still possible, but the rules that shape your costs and rental options are moving.
Start with a clear goal, hire an independent lawyer, confirm your tax status, verify rental rules for the exact address and budget conservatively. Recheck everything with official sources and qualified advisers just before you sign, and you will be buying on facts rather than assumptions.
