Portugal Costa Rica or Spain where should British buyers look in 2026
Buying property abroad used to be a retirement decision. You would sell the family home, move somewhere warm, and live off the proceeds. That model still exists, but the buyer profile has shifted dramatically over the past five years. Remote workers in their 30s, semi-retired couples in their 50s, and small-scale property investors are all entering overseas markets they would never have considered a decade ago. Three countries come up in conversation more than any others: Portugal, Costa Rica, and Spain. Each has genuine appeal. Each has catches that the marketing materials will not mention. Here is how they actually compare when you strip away the sales pitch.
Spain averages around 2100 euros per square metre for property nationwide. In the popular regions like the Costa del Sol, the Balearics, and the Barcelona coast, that rises to between 3000 and 5500 euros per square metre. Coastal Spain has not been affordable since around 2018. Portugal averages 1700 euros per square metre. The Algarve and Lisbon push higher at 2800 to 4000, but central Portugal, the Silver Coast, and the Alentejo region still offer properties at 800 to 1300 euros per square metre. A renovated three bedroom villa on the Silver Coast might cost around 220000 euros. The same property in coastal Andalusia would run 350000 euros or more. Costa Rica sits in a different bracket entirely. While inland properties can be found for 100000 to 150000 dollars, coastal and popular areas like Guanacaste or the Central Valley run 250000 to 600000 dollars for comparable quality. Import costs on building materials push construction prices up, and the secondary market is thinner than in Europe.
Spain operates through notaries and the land registry in a system that British solicitors and conveyancers understand. The main risk in Spain is the legal complexity around older properties, particularly on the coast. Illegal extensions, unlicensed builds, and land classification issues have caught foreign buyers before. Due diligence matters more in Spain than almost any other European market. Portugal runs through a similar notary and registry structure but has its own specific requirements. You will need a NIF tax number, a fiscal representative if you are a non-EU national, and a Portuguese bank account before anything can proceed. The promissory contract is binding once signed with a 10 percent deposit at stake. For anyone considering buying property Portugal is well set up for foreign purchasers, with no ownership restrictions for non-EU nationals and a well documented legal process. Transaction costs add 7 to 10 percent on top of the purchase price. Costa Rica presents a different challenge. Foreign nationals can buy property with the same rights as Costa Rican citizens in most cases. The major exception is maritime zone land within 50 metres of the high tide line, where non-residents cannot hold title directly. Title insurance is not standard and properties outside the capital may have incomplete records.
Spain taxes worldwide income for tax residents at rates from 19 to 47 percent. Portugal reformed its Non-Habitual Resident tax regime in 2024 but still offers favourable conditions for certain types of foreign income. Property taxes in Portugal run 0.3 to 0.8 percent of the tax valuation annually which is typically well below market value. Costa Rica taxes only Costa Rican sourced income, not worldwide income. Property tax is just 0.25 percent of the registered value annually. On paper Costa Rica looks like the clear winner for tax, but public services, infrastructure, and healthcare quality vary more widely than in either European option.
Spain wins on infrastructure with excellent roads, public transport, and healthcare. English is widely spoken in tourist areas. Portugal offers a quieter pace of life outside Lisbon and Porto. The food is exceptional and healthcare through the public SNS system is available to residents. Costa Rica offers natural beauty that neither European country can match with rainforest, dual coastlines, and volcanic landscapes. But the distance from the UK matters at 11 plus hour flights that are expensive to book regularly.
Most British buyers in 2026 are choosing Portugal. The combination of affordable property, manageable bureaucracy, direct flights from most UK airports, and a genuine welcome for foreign buyers makes it the lowest friction option. Spain is the safe established choice. Costa Rica is the adventurous one. Portugal sits between them, accessible enough to be practical and different enough to feel like a genuine change. The right answer depends on what you are optimising for.