If you are looking at the eastern Algarve, Ayamonte is on the other side of the bridge. Two things are worth putting side by side.
The price difference
| Area | Asking price per m² |
|---|---|
| Ayamonte, municipality | €2,065 |
| Isla Canela | €2,806 |
| Vila Real de Santo António, city | €3,105 |
| Tavira, city | €3,545 |
| Tavira, municipality | €3,574 |
| Vila Real de Santo António, municipality | €3,784 |
The tax difference for non-residents
In May 2026 Portugal introduced a flat 7.5% IMT on residential property bought by people who are not Portuguese tax residents, through Decreto-Lei 97/2026, written into article 17 of the IMT Code and in force from 25 May 2026. It removes the progressive bands, reductions and main-home exemptions that residents keep, and it depends on tax residence rather than nationality.
The surcharge can be undone in two cases: if the buyer becomes a Portuguese tax resident within two years of the purchase, or if the property is let for housing at a moderate rent under a contract signed within six months and maintained for at least 36 months in the first five years. In September 2026 the Portuguese tax authority clarified that the conditions are assessed for each buyer individually, so within a couple one partner may be caught and the other not. (Sources: Decreto-Lei 97/2026 (opens in a new tab) and Ofício-Circulado 40131/2026.)
Spain has no equivalent. A non-resident buying in Ayamonte pays the same 7% ITP on a resale, or 10% VAT plus 1.2% stamp duty on a new build, as anyone else.
Annual property tax also differs. In Portugal, IMI is set by each municipality: Tavira applies 0.30%, the legal minimum, while Vila Real de Santo António applies 0.45%, the maximum. Portugal additionally charges AIMI on higher-value holdings, above €600,000 per individual. In Ayamonte, IBI is reported at 0.790% of the cadastral value, which is calculated on a different basis from the Portuguese taxable value, so the two rates cannot be compared directly.
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 Ayamonte offers
Considerably more space for the money: Ayamonte asks €2,065 per m² across the municipality, against €3,105 in the city of Vila Real de Santo António and €3,545 in the city of Tavira (August 2026). No purchase-tax surcharge for non-residents. A working Spanish town rather than a resort, Blue Flag beaches at Isla Canela and Punta del Moral in 2026 (ADEAC (opens in a new tab)), and the option of using both countries.
What the Algarve offers
The eastern Algarve has international schools on its own side of the border, a larger and longer-established English-speaking community, an airport that is closer, and more services delivered in English as a matter of course. If your children need an English-curriculum school, the nearest to Ayamonte is in Tavira and lists a taxi arrangement to Ayamonte.
General information, not advice. Rules change and each case differs. Confirm your position with a Spanish lawyer or tax adviser before you commit.
