For many northern Europeans looking for a home with golf and the sea, the real choice is between two countries: Spain’s Costa del Sol or Portugal’s Algarve. Both offer coastal living, marinas and golf. The practical differences include local asking prices, purchase taxes and flight connections.
| Area | Asking price per m² | €300,000 buys about |
|---|---|---|
| Sotogrande | €3,984 | 75 m² |
| Lagoa, Algarve | €4,113 | 73 m² |
| Albufeira, Algarve | €4,168 | 72 m² |
| Algarve (Faro district) | €4,202 | 71 m² |
| Lagos, Algarve | €4,655 | 64 m² |
| Loulé, Algarve | €5,159 | 58 m² |
In August 2026, Sotogrande’s asking-price index was slightly lower than the Faro district’s (about 5%) and below each of the four Algarve municipalities compared, from Lagoa (€4,113) to Loulé (€5,159). The difference in price is modest; the difference in purchase tax can matter more.
The tax difference for non-residents
Since May 2026, Portugal has charged a flat 7.5% IMT on residential property bought by people who are not Portuguese tax residents, plus 0.8% stamp duty, subject to exceptions (Decreto-Lei 97/2026). Spain has no additional transfer-tax rate solely for being non-resident.
| On a €600,000 home | Sotogrande | Algarve, buyer subject to the 7.5% non-resident IMT rate |
|---|---|---|
| Resale | 7% ITP = €42,000 | 7.5% IMT + 0.8% stamp duty = €49,800 |
| New home from a developer | 10% VAT + 1.2% AJD = €67,200 | 7.5% IMT + 0.8% stamp duty = €49,800 |
For a buyer subject to Portugal’s 7.5% non-resident IMT rate, the illustrated €600,000 resale purchase carries €7,800 less purchase tax in Sotogrande; for an ordinary new home bought from a developer, the Portuguese purchase carries €17,400 less tax under the same assumptions.
What Sotogrande offers
Slightly lower asking prices than the Faro district average. Lower tax on a resale home. Two airports: Gibraltar, about 21 km away, and Málaga, with 26.76 million passengers in 2025 against about 10.4 million at Faro and direct flights to Riga, Tallinn and Vilnius. An IB school from 3 to 18 within the estate.
What the Algarve offers
Lower tax on an ordinary new home (8.3% against 11.2%), Portugal itself, a much larger choice of towns and coastline, and Faro airport close to Vilamoura and Albufeira. Buyers planning to become Portuguese tax residents should compare their individual position under the applicable exceptions.
Who each place suits
The Algarve suits buyers drawn to Portugal, those who want a wider choice of places, and new-build buyers for whom the illustrated purchase-tax treatment is favourable. Sotogrande suits buyers who want a resale home without a non-resident tax surcharge, a marina, golf and an IB school in one place, and two airports within reach.
Asking-price figures: idealista and idealista.pt, August 2026. Tax rules and destination lists: checked October 2026. Take advice on both sides of the border before committing.
