Portugal, Spain, Italy: property taxes and costs

Portugal, Spain and Italy are the three Southern European markets most often shortlisted by buyers who live elsewhere in the EU. This comparison is only about taxes and buying costs for a non-resident owner, not about prices or lifestyle; for those see Spain vs Portugal and Italy vs Spain. It draws on our dated guides (October 2026) and a re-check of the main points. Tax rules change every year and depend on your residence and treaty, so the figures are for orientation, and the closing section says what to confirm with a tax adviser.

Tax when you buy

Portugal: since 25 May 2026 a flat 7.5% IMT (transfer tax) applies to residential purchases by buyers who are not Portuguese tax residents, replacing the progressive scale. Exceptions are reported for buyers who are already tax resident, who become tax resident within two years, or who let the property at a moderate rent (up to 2,300 euro a month, within six months and for at least 36 months in the first five years); the difference can be reclaimed within six months if an exception is met afterwards. Stamp duty is 0.8%. The deed date decides which rules apply, so confirm it with a lawyer. Notary and registry add roughly 1,200 to 2,000 euro and a lawyer roughly 3,000 to 4,500 euro. See Portugal property prices and buying costs.

Spain: a resale pays ITP, set by each autonomous community, on the higher of the price and the reference value: Madrid 6%, Andalucía 7%, Canarias 6.5%, Comunitat Valenciana 10% (a cut was reported from June 2026, confirm), Cataluña 10% to 13% by band, Illes Balears 8% to 13% by band. A new home pays 10% VAT plus stamp duty (AJD), typically about 1% to 1.5% depending on the region. Reduced rates for first homes or young buyers are usually not available to non-residents buying a second home. Add notary, registry and lawyer; roughly 10% to 13% on a resale in most regions. See Spain property prices and buying costs.

Italy: registration tax of 2% for a main home or 9% for a second home, calculated on the cadastral value rather than the negotiated price, with fixed mortgage and cadastral taxes of about 50 euro each on a resale. A new build from a developer is taxed with IVA instead. Notary roughly 1% to 3%, agency about 3% plus IVA, legal 1,500 to 3,000 euro; total roughly 10% to 15%, up to 20% in some guides. See Italy property prices and buying costs.

The pattern: Portugal is a single national rate for non-residents (with exceptions), Spain depends on the region, and Italy depends on whether the home is a main or second home and on the cadastral value. For a non-resident second home, check the exact rate for your case before you compare.

Annual taxes

Portugal: IMI, set by the municipality, roughly 0.3% to 0.45% of the tax value, which is often below the market price; AIMI, a surcharge, applies above about 600,000 euro of tax value per person.

Spain: IBI, set by the municipality between 0.4% and 1.1% of the cadastral value, plus waste tax. A non-resident owner who does not let the property is taxed on imputed income of 1.1% or 2% of the cadastral value, at 19% (EU, EEA) or 24% (others). Community fees come on top.

Italy: IMU on a second home, with a base rate of 0.86% that municipalities can raise to about 1.06% on a cadastral-based value, and TARI waste tax (about 340 euro a year for a typical family in 2025, more in big cities). The main-home exemption generally does not apply to non-residents.

Tax on rental income

Portugal: non-resident landlords are generally taxed at a flat 25% on net rental income. A reduced 10% autonomous rate exists for qualifying moderate-rent leases; whether a non-resident can use it should be confirmed with an accountant. See rental yield in Portugal.

Spain: EU and EEA residents pay 19% on net rental income after deducting costs; residents of non-EU countries pay 24% on gross rent with no deductions. A National Court ruling of 28 July 2025 may open a refund route for some non-EU owners; ask an adviser whether it applies. See rental yield in Spain.

Italy: a long-term lease can use the cedolare secca flat tax of 21%, or 10% on agreed-rent contracts in qualifying municipalities; short lets keep 21% on the first unit and 26% from the second under the 2026 Budget Law. We did not find a source confirming that a non-resident owner can opt for the flat tax, so ask an Italian accountant (commercialista). See rental yield in Italy and short-term rental rules in Italy.

Capital gains on sale

Portugal: since 2023 a non-resident includes 50% of the net gain in taxable income and is taxed at the progressive rates, after a currency-devaluation coefficient chosen by the purchase year; foreign income must be declared in the Portuguese return to set the rate. Reinvestment relief for non-residents is uncertain, with a 2026 ruling reported to exclude them. See Portugal capital gains tax on sale.

Spain: a flat 19% on the net gain according to the Tax Agency's non-resident guide, with a 3% retention of the price withheld by the buyer (Modelo 211) as an advance, the gain declared on Modelo 210, no inflation relief since 2015 and a municipal plusvalía on top. See Spain capital gains tax on sale.

Italy: a gain is taxed only if you sell within five years of acquiring the property; after that there is no Italian capital gains tax. Within five years you can choose a 26% substitute tax applied by the notary or ordinary IRPEF at 23% to 43% plus surcharges. See Italy capital gains tax on sale.

Wealth taxes

Portugal: AIMI above the threshold above; no general wealth tax that we found.

Spain: the regional wealth tax (Impuesto sobre el Patrimonio) applies to non-residents on their Spanish assets. According to law-firm sources the 700,000 euro allowance also applies to non-residents, but regional rules vary, so ask an adviser. A separate state solidarity tax on large fortunes applies to net wealth above 3 million euro (rates of 1.7% to 3.5% per the sources we saw), with wealth tax paid credited against it. Modelo 714 is the wealth tax return.

Italy: for a non-resident owner of Italian property we found no separate wealth tax beyond IMU. The IVIE tax on foreign property applies to Italian tax residents who own property abroad (reported at 1.06% since 2024), not to non-resident owners of Italian property. It matters if you later become an Italian resident.

Your home country

None of this replaces the tax of the country where you live. If you live in Poland or another EU country, your country of residence may tax the same rent or gain and credit or exempt the foreign tax under a treaty. See tax on foreign rental income for Polish residents and double taxation treaties for foreign property. Compare the all-in picture with total cost of ownership abroad.

Who should choose which

• If your priority is a predictable acquisition tax in one national rate, Portugal's flat 7.5% for non-residents is the simplest to model, subject to its exceptions.
• If you will buy in a specific region, Spain can be cheaper or dearer than Portugal or Italy depending on the ITP of that region; compare the region, not the country.
• If you plan to hold for more than five years, Italy's no-gain-after-five-years rule is a point in its favour, while its 9% registration tax on a second home and IMU weigh on the holding.
• If you will let the property, the rental tax gap is large between a 25% flat rate (Portugal), 19% net or 24% gross (Spain) and 21% (Italy, subject to eligibility); run your own numbers.
• If your wealth in the country is large, check Spain's wealth taxes and Portugal's AIMI first.

FAQ

Which of the three has the highest tax when buying? It depends: Spain ranges from 6% to 13% by region plus VAT and AJD on new builds, Portugal is a flat 7.5% plus 0.8% for non-residents, and Italy is 9% on a second home on the cadastral value. Do non-residents pay wealth tax? In Spain yes on Spanish assets (allowance reported at 700,000 euro), in Portugal AIMI above the threshold, in Italy not beyond IMU. Is there a tax on selling after a long time? Italy: none after five years; Spain 19% with no inflation relief; Portugal 50% of the gain at progressive rates. Do I pay twice, here and where I live? Possibly; the treaty and your home rules decide. Are these figures final? No, they are indicative, as of October 2026.

How we help

We are a trilingual platform (English, Russian, Polish) that finds properties and coordinates independent local lawyers and tax advisers; we do not give tax advice ourselves. See the calculators, all countries and the official sources: Portal das Finanças, Agencia Tributaria and Agenzia delle Entrate. This text is informational and is not legal, tax or investment advice; rates and thresholds change every year, so verify the current position with a qualified tax adviser in each country and in your country of residence.