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.
The price difference
| Area | Asking price per m² | €300,000 buys about |
|---|---|---|
| Campo de Mijas | €2,943 | 102 m² |
| Mijas, municipality | €3,711 | 81 m² |
| Lagoa, Algarve | €4,113 | 73 m² |
| Albufeira, Algarve | €4,168 | 72 m² |
| Algarve (Faro district) | €4,202 | 71 m² |
| La Cala de Mijas | €4,593 | 65 m² |
| Lagos, Algarve | €4,655 | 64 m² |
| Loulé, Algarve | €5,159 | 58 m² |
In August 2026, Mijas’s asking-price index was €3,711 per m², about 12% below the Faro district’s €4,202 and below each of the Algarve municipalities in the table, from Lagoa (€4,113) to Loulé (€5,159), home of Vilamoura and Quinta do Lago.
The tax difference for non-residents
Since May 2026, Portugal has charged a flat 7.5% IMT (property transfer tax) on residential property bought by people who are not Portuguese tax residents, plus 0.8% stamp duty (CIMT, article 17 (opens in a new tab); Decreto-Lei 97/2026 (opens in a new tab); stamp duty table (opens in a new tab)). It depends on tax residence, not nationality, and applies to new homes as well as resales. Spain has no additional transfer-tax rate solely for being non-resident.
| On a €400,000 home | Mijas | 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 Mijas. For an ordinary new home bought from a developer, the Portuguese purchase carries €11,600 less tax under the same assumptions. The Portuguese surcharge does not apply to buyers who have previously been Portuguese tax residents, and buyers who become Portuguese tax residents within two years, or who let the home for housing at a moderate rent under the conditions of the law, can apply for the ordinary rate to be recalculated, subject to statutory deadlines (Portuguese tax authority, September 2026 (opens in a new tab)).
Portuguese tax rules changed in 2026 and are still being interpreted. If you are comparing the two countries, take advice on both sides of the border before committing.
What Mijas offers
Lower asking prices. Below the Algarve average and below Lagoa, Albufeira, Lagos and Loulé in August 2026.
Lower tax on a resale home. No additional transfer-tax rate for non-residents: on a €400,000 resale, €28,000 in Mijas against €33,200 in the Algarve.
A much bigger airport, close by. Málaga handled 26.76 million passengers in 2025, Spain’s fourth-busiest airport, against about 10.4 million at Faro (Aena (opens in a new tab); VINCI Airports (opens in a new tab)). Rome2Rio estimates checked in October 2026 put it around 18 minutes by car from Las Lagunas, 20 from Mijas Pueblo and 25 from La Cala de Mijas, and neighbouring Fuengirola offers the C1 train, about 34 minutes to the airport.
Direct flights to all three Baltic capitals. Málaga’s official destination directory, checked in October 2026, lists Riga, Tallinn and Vilnius, along with Copenhagen, Stockholm, Oslo and Helsinki; Faro’s lists Riga (Aena (opens in a new tab); Faro airport (opens in a new tab)). Check operating dates when comparing flights.
Village, beach and golf in one municipality. A white Andalusian village, five Blue Flag beaches in 2026 and twelve golf courses. See Which area suits you.
What the Algarve offers
Lower tax on a new home. On an ordinary new-build purchase, a non-resident buyer pays 8.3% in Portugal against 11.2% in Mijas.
Portugal. For buyers who prefer Portugal, its language, its food and its pace, the Algarve is the natural choice, with British-curriculum education such as A levels at Nobel Algarve Lagoa and private hospitals in Alvor and Faro.
Faro airport close to the central Algarve. Road-distance estimates checked in October 2026 put Vilamoura about 25 km from Faro airport and Albufeira about 37 km.
Who each place suits
The Algarve suits buyers drawn to Portugal and new-build buyers for whom the illustrated purchase-tax treatment is favourable; buyers planning to become Portuguese tax residents should compare their individual position under the applicable exceptions.
Mijas suits buyers who want an asking-price level below the Faro district average and below each of the four Algarve municipalities compared here, a resale home without a non-resident tax surcharge, Málaga airport close by with flights to all three Baltic capitals, and a choice of village, coastal and golf settings.
Asking-price figures: idealista and idealista.pt, August 2026. Airport passengers: calendar year 2025. Tax rules, destination lists and distances: checked October 2026. Prices and tax rules change; confirm current figures before deciding.
