For many northern Europeans looking for a home in the sun, the real choice is between two countries: Spain’s Costa del Sol or Portugal’s Algarve. Both offer coastal living, beaches and golf. The practical differences include local asking prices, purchase taxes and flight connections.
| Area | Asking price per m² | €300,000 buys about |
|---|---|---|
| Manilva, municipality | €3,035 | 99 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, Manilva’s asking-price index was €3,035 per m², about 28% below the Faro district’s €4,202 and below each of the four Algarve municipalities compared, from Lagoa (€4,113) to Loulé (€5,159).
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 €400,000 home | Manilva | Algarve, buyer subject to the 7.5% non-resident IMT rate |
|---|---|---|
| Resale | 7% ITP = €28,000 | 7.5% IMT + 0.8% stamp duty = €33,200 |
| New home from a developer | 10% VAT + 1.2% AJD = €44,800 | 7.5% IMT + 0.8% stamp duty = €33,200 |
For a buyer subject to Portugal’s 7.5% non-resident IMT rate, the illustrated €400,000 resale purchase carries €5,200 less purchase tax in Manilva; for an ordinary new home bought from a developer, the Portuguese purchase carries €11,600 less tax under the same assumptions.
What Manilva offers
Lower asking prices, about 28% below the Faro district average. Lower tax on a resale home. Two airports: Málaga, with 26.76 million passengers in 2025 against about 10.4 million at Faro and direct flights to Riga, Tallinn and Vilnius, and Gibraltar, about 33 km from Manilva village.
What the Algarve offers
Lower tax on an ordinary new home (8.3% against 11.2%), Portugal itself, 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 and new-build buyers for whom the illustrated purchase-tax treatment is favourable. Manilva suits buyers who want asking prices well below the Algarve’s, a resale home without a non-resident tax surcharge, 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.
