Lagos, Albufeira, Vilamoura, Faro and Tavira compared: prices per m², the 7.5% IMT for non-residents, local-accommodation rules, seasonality and airports.
The Algarve is the part of Portugal people picture first: golden cliffs in the west, golf and marinas around Vilamoura, and quieter lagoons and old towns towards Spain. It is also where the largest share of foreign buyers look for a second home or a base for part of the year. This guide compares the main towns and explains what a non-resident should check, as of October 2026.
Prices in the Algarve
INE annual medians for 2025 (family housing) put the Algarve at about 3,139 euro per m², above the national figure of about 2,076. Loulé, the municipality that includes Vilamoura, Quarteira and Almancil, is about 3,993 euro per m², and Lagos about 3,801. We did not find a verified per-m² figure for Albufeira, Tavira or Faro, so we give none: ask your agent for recent sold prices in the exact street, not only asking prices. The full picture is in property prices in Portugal and buying costs.
Towns compared
- Lagos and the western Algarve (Praia da Luz, Carvoeiro, Portimão): beaches, a walkable old town, a strong international community, and the highest prices in the west.
- Albufeira: a large resort town with apartments in many price bands. Very busy in summer, quieter and cheaper to live in out of season.
- Vilamoura and the Loulé coast: golf, a marina, newer developments and gated communities. Expect higher community fees and a market aimed at second-home buyers.
- Faro: the regional capital with the airport, university and year-round life. Its asking-price rental yield for Q2 2026 is reported at about 4.8% gross (idealista).
- Tavira and the eastern Algarve: a calmer, more traditional area close to the Spanish border, with the Ria Formosa lagoon and island beaches.
For the national comparison of areas see best areas to buy property in Portugal.
Buying costs for a non-resident
Since 25 May 2026 a flat 7.5% IMT is reported to apply to residential purchases by non-residents, with exceptions such as becoming tax resident within two years or letting at a moderate rent for a minimum period. Another source gives 1 September 2026 as the start, so the deed date should be confirmed with your lawyer. Add 0.8% stamp duty and a few thousand euro for notary, registry and legal fees; as an illustration, expect roughly 10% on top of the price. IMI is set by the municipality, around 0.3-0.45% of tax value. Check the official simulator on the Portal das Finanças. A NIF is needed before signing, and buyers outside the EU/EEA generally need a fiscal representative; see tax numbers for foreign buyers.
Short-term rental (Alojamento Local) in the Algarve
Holiday letting is the main reason many people look here, but it is not automatic. The national framework changed in 2024, and municipalities can set containment areas where new registrations are limited. One industry source describes the Algarve as broadly open to new AL registrations compared with central Lisbon, but we could not confirm the rules of Lagos, Albufeira, Loulé, Faro or Tavira, so check each municipality's containment map for the exact address. Also check:
- The condominium rules and whether the owners' meeting has to approve tourist use.
- Whether the property has the right licence type (AL in an apartment, or a different category for a villa or rural tourism).
- Safety, insurance and tax registration obligations of the host.
See short-term rental rules in Portugal and rental yield in Portugal.
Seasonality and airports
The rental season is concentrated in late spring to early autumn, with the strongest demand in July and August; winter bookings are weaker, and some resort towns are quiet. Long-term rentals to residents and remote workers fill part of the gap, but rents and demand vary by town. Plan your numbers on a realistic occupancy, not the peak weeks.
The main airport is Faro, which serves the whole region. Lisbon airport is roughly a two-and-a-half to three-hour drive or train journey away, depending on the destination; check current flight and rail timetables from your home city, as routes change by season.
For Russian-speaking buyers and expats
There are Russian-, Ukrainian- and Polish-speaking agents, lawyers and accountants working with foreign clients in the Algarve, particularly around Lagos, Albufeira and Vilamoura; we found no reliable statistics on the size of the community, so we give no numbers. Practical points:
- Prepare passport, proof of address and income, and documents on the source of funds. Banks apply enhanced checks to some nationalities and transfers; lawful answer is full documentation, see bank checks for Russian citizens living in the EU.
- A Portuguese bank account helps with utilities and tax; see opening a bank account abroad as a non-resident owner.
- Ask for the sales contract and key documents in a language you read fluently, and use an independent lawyer, not the agent's. Our checklist: Portugal resale checklist.
- Residence routes are separate; see the golden visa today and retiring in Portugal.
FAQ
How much does property cost in the Algarve? INE medians for 2025 are about 3,139 euro per m² for the region, about 3,993 in Loulé and about 3,801 in Lagos. Current asking prices are higher.
Is the Algarve good for holiday rental? It has strong summer demand, but income is seasonal and licensing is not guaranteed. Check the AL rules for the exact address and model realistic occupancy.
Which airport serves the Algarve? Faro airport is the main one; Lisbon is the alternative for some routes. Check current timetables.
Do non-residents pay more tax when buying? A flat 7.5% IMT is reported to apply from 25 May 2026, with exceptions. Confirm the deed date and your case with a lawyer.
Can I live there year-round? Only with a legal residence basis, such as a visa. Owning a property does not give residence.
How we help
We are a trilingual platform in English, Russian and Polish. We find properties in the Algarve and coordinate independent local lawyers and tax advisers for the NIF, due diligence and the deed. See the listings in Portugal and the calculators. This text is informational and is not legal, tax or investment advice; rules change, so verify the current position before you act.