Is Buying Property in Porto Worth It in 2025? (Ultimate Guide)

Is buying property in Porto, Portugal, a good idea?

Yes, buying property in Porto remains a good choice for many foreign investors. The city offers a range of property types for sale, from affordable modern apartments in up-and-coming areas to luxurious villas along the stunning beaches of the Atlantic Ocean.

The Portuguese Trade & Investment Agency (AICEP) reported that foreign direct investment reached €13.2 billion in 2024, with €3.5 billion of that amount allocated directly to real estate. During that period, international buyers made up around 27 percent of the total foreign direct investment (FDI) in the country.

Here are several other reasons why buying property in Porto, Portugal, is a smart move.

• Affordability: Porto’s property market provides a lower entry point than Lisbon city and other Western European cities, such as London, Paris, and Madrid. You can save on utilities, rent prices, and overall monthly expenses while enjoying life in a big city. For example, rent prices in Porto are 24.3 percent lower than in Lisbon, and groceries are 7.2 percent cheaper than in the Portuguese capital.
• Strong demand: In 2024, house prices in Porto went up by 7.8 percent. The city center and surrounding districts offer buyers the opportunity to benefit from capital appreciation in both residential and commercial properties.
• High quality of life: Porto is a very safe city that offers residents a high quality of life. A property owner enjoys easy access to all the amenities, quality healthcare, and many international schools in Porto.
• Different options: The city and the surrounding area have different types of properties, from contemporary apartments, luxury villas, affordable houses, to new buildings, and renovation projects. You can find a suitable property based on your budget.
• Rental income: Proto is a popular tourist destination and a key location for expats and digital nomads. The average rental yield of 6.6 percent provides buy-to-let property owners with a steady source of income.

Best Places to Buy Property in Porto

Discover some of the best neighborhoods and areas to purchase properties in or around Porto. From the winding cobblestone streets in the center to Foz do Douro on the coast, there is an array of beautiful spots to consider.

1. Foz do Douro

Foz do Douro is the perfect neighborhood for expats who prefer scenic walks on stunning beaches like Praia da Luz and property buyers seeking luxury apartments and homes in a quiet area. It is a modern yet quaint neighborhood with a coastal town vibe, situated just a few kilometers away from the hustle and bustle of Porto’s historic city center.

Foz do Douro is the perfect quaint suburb for families or property buyers looking for a tranquil location with spacious properties. It is also one of the most popular locations for retirement homes in Portugal, due to the variety of facilities available.

2. Matosinhos

Just a short twenty-minute drive northwest of Porto lies Matosinhos, a coastal city renowned for its stunning beaches like Praia de Matosinhos and Praia de Leça da Palmeira. Matosinhos offers an enticing blend of accessibility and affordability in its housing market.

Recent investments in urban renewal in Matosinhos have elevated the city’s livability, making it a prime choice for families and retirees. From townhouses nestled in vibrant neighborhoods to luxurious modern villas and traditional homes, Matosinhos offers a diverse range of residential options.

3. Ribeira

Ribeira is a great choice for both residential and commercial properties due to its massive tourist appeal. Nestled along the picturesque Douro River, Ribeira embodies Porto’s medieval essence, making this historic neighborhood a coveted spot for property buyers. Its vibrant streets showcase colorful waterfront homes, historic buildings, and quaint alleyways leading to hidden squares and traditional eateries.

With iconic landmarks like the Dom Luís I Bridge and Porto Cathedral nearby, Ribeira offers a unique blend of historic charm and scenic beauty, making it an ideal choice for housing for digital nomads and young professionals seeking a combination of culture and modern amenities.

4. Vila Nova de Gaia

Home to Porto’s most iconic wine houses on the waterfront of the Douro River, Vila Nova de Gaia offers residents excellent wine, fine gastronomy, rich cultural heritage, and properties for rent or sale with scenic views of the Atlantic Ocean. Vila Nova de Gaia is the perfect area for a property investment opportunity or expats seeking a relaxed lifestyle, offering Porto-style coastal luxury.

Vila Nova de Gaia is also home to several excellent beaches and green spaces, such as the Parque Biológico, making it an ideal destination for outdoor enthusiasts. Its growing infrastructure and proximity to central Porto add to its appeal for both families and professionals.

5. Bonfim

Situated in downtown Porto, Bonfim has transformed into a vibrant area, making it the perfect spot to purchase properties in Porto for long-term rentals and short leases, thanks to the lively town’s cultural attractions.

Although not a very central location, Bonfim is an excellent place to consider buying Portuguese property. What were once commercial properties are now unique living spaces presenting enticing investment opportunities and living experiences along the Douro River.

6. Paranhos

A parish in northern Porto, Paranhos, is a vibrant community with one of the city’s most prominent university campuses, the Pólo Universitário da Asprela. Paranhos is a prime location in Porto’s property market. International buyers often prefer to rent their properties to students for a steady income.

7. Campanhã

Campanhã is found in downtown Porto and has become sought-after amongst property buyers despite not being the most desirable neighborhood. Campanhã offers opportunities for those seeking affordable house prices and promising returns, with a great selection of old houses and commercial spaces available for restoration.

The table below can help you compare prices and rental yields in the best areas of Porto.

How much does property cost in Porto?

Real estate investment in Porto shows strong capital appreciation across various property types.

The average asking price for a house is €4,883 per square meter in Porto City and €3,937 in the Greater Porto Area. The Porto metropolitan area offers purchase prices that are more than 30 percent lower than those in Lisbon.

When it comes to rental properties, a one-bedroom apartment costs around €788 per month in the outer areas or €1,039 per month in the city center. You can expect to spend about  €1,420 to €1,865 a month on a three-bedroom apartment. Studios are more affordable compared to the capital city, costing about €850 to €1,000 per month in central Porto or €680 to €800 in the outer areas.

If you want to become a property owner, you can consult with a property professional to research the local area and find a property to suit your needs. The table below provides a general overview of the average costs in the Porto, Portugal, property market.

Source: Numbeo

Additional property purchase costs

When buying property in Portugal, buyers should consider various one-off costs. The associated costs include property registration expenses and expert fees. Here’s a quick breakdown:

• Legal fees: €2,000 to €5,000, depending on factors such as the type of property, its price, the complexity of the purchase, and the lawyer’s level of experience.
• Land registry fee: A fee of €200 to €250 is usually required.
• Notary fees: Budget around €500 to €1,000 for notary fees.

How to Buy Property in Porto as a Foreigner: Your Step-by-Step Guide

The legal requirements for foreigners buying property include obtaining a Portuguese tax number (NIF). It is also recommended to open a Portuguese bank account to avoid transaction fees.

When possible, it is highly recommended to work with a real estate lawyer in Portugal to ensure a successful and stress-free buying process. To find properties in Porto, a local real estate agent or a buyer’s agent can scour the market and negotiate the best deals.

Here is a step-by-step guide that works for EU, non-EU, and US buyers:

• Step 1: Sort out your finances. Before you start looking at properties, get a clear picture of what you can actually afford. Check your savings, calculate how much you can comfortably borrow. Portuguese banks offer mortgages to international buyers at different rates.
• Step 2: Find your dream property. Look at neighborhoods, compare prices, and consider what matters to you, such as access to schools, transportation, monthly costs, or rental potential. You can work with a real estate agent or a buyer’s agent to save time researching properties for sale in Porto, Portugal.
• Step 3: Make your offer. Submit your offer to the seller and be ready to negotiate. A buyer’s agent can protect your interests and secure better rates.
• Step 4: Reserve the property and sign a CPCV. When the seller accepts the offer, you typically sign a Reservation Agreement by paying a small, refundable deposit. The seller temporarily removes the property from the market. The next is the CPCV (Promissory Contract), which outlines the conditions of the sale. It is highly recommended to sign the CPCV in front of a Notary.
• Step 5: Sign the final deed. The final deed of sale (Escritura) officially transfers ownership to you. At this stage, you settle the remaining balance, outstanding fees, and finalize the contract in front of a Notary. Once it is yours, it’s time to register the property at the Land Registry (Conservatória do Registo Predial).

How much tax do I pay when buying a property in Porto?

It’s essential to understand property taxes when buying property in Porto. Below, we will briefly explain the applicable property taxes for property acquisition and ownership in Portugal.

Municipal Property Tax (IMI)

The IMI (Municipal Property Tax) is an annual tax whose amount is determined by the municipality where the property is located. The rates range from 0.3 to 0.45 percent of the Tax Asset Value (VPT) for urban properties (sometimes going as high as 0.5 percent) and up to 0.8 percent for rural properties.

Property Purchase Tax (IMT)

The IMT (Municipal Tax on Onerous Transmissions of Real Estate), also referred to as the Property Transfer Tax, is a transfer tax levied over the purchase price of the Portugal property. This tax ranges from 0-10 percent.

The 0-8 percent range varies based on the price, location, property type, and intended use of the property (whether it is for permanent residence or secondary housing). A fixed rate of 10 percent applies if the buyer is associated with territories benefiting from favorable tax schemes, known as blacklisted jurisdictions.

Our Portugal property tax calculator can help you calculate your potential property’s IMT (property transfer tax).

Stamp Duty

The Stamp Duty (Imposto do Selo) is an additional transaction tax that the Portuguese state charges for real estate transfers. Regarding property, this amounts to 0.8 percent of the deed’s total value and must be paid at the time of purchase.

AIMI (Additional to IMI)

Additional to IMI (AIMI) is a post-purchase tax that applies to property worth more than €600,000. AIMI can be calculated as follows:

• For property values of €600,001 to €1 million, a 0.7 percent tax rate is applied.
• For property values above €1 million to €2 million, a 1 percent tax rate is applied.
• For property values above €2 million, a 1.5 percent tax rate is applied.

Capital Gains Tax

Capital gains refer to the profit from the sale of property that may be subject to taxation. When you sell your Portuguese property, you must submit the property’s purchase details to the tax authorities for a capital gains assessment. You may be exempt from capital gains tax if you reinvest the total selling price in a new home.

House for Sale Porto Portugal: Seek Expert Advice

Many foreign buyers struggle to navigate Portugal’s property market. Compared to other countries, like the United States, Portugal doesn’t have a single website listing every property available for sale. Instead, buyers should check multiple websites to get a better picture of what’s on the market. Seeking professional assistance can streamline the process, save you time, hassle, and money in the long run.

Real estate agent or buyer’s agent: Navigating Porto’s housing market is much easier if you have an experienced real estate agent in Porto or a buyer’s agent to guide you through the buying process. A real estate agent often works for the seller. They can offer marketing services, help find properties, and provide local market insight. A buyer’s agent, representing the buyer, can negotiate prices, find off-market properties, and navigate the entire buying process. They work on behalf of the buyer.

Real estate lawyer: Engaging a proficient lawyer is crucial when buying property in Porto, Portugal. They are instrumental in safeguarding your Porto property and ensuring a smooth transaction. An experienced lawyer is crucial for conducting thorough due diligence, drafting contracts, and ensuring compliance, thereby facilitating a secure and hassle-free acquisition process.

Living in Porto

Living in Porto comes with both benefits and challenges. It offers rich culture, beautiful scenery, good healthcare, and a growing expat scene. The cost of living is reasonable compared to other Western European cities.

On average, a single person’s monthly costs in Porto without rent are estimated to be about €680, while for a family of four, this would be €2,460 per month. But, housing prices are rising, the weather can be rainy in winter, and Portuguese bureaucracy can be slow.

For international buyers, it is crucial to note that owning property does not give you legal residency. To live in the country permanently, you will need a Portuguese residency visa or a permit.

EU/EEA/Swiss citizens can live freely in Portugal. They do not require a visa, but if they intend to reside in the country for more than three months, they must apply for a Registration Certificate (Certificado de Registo) at their local town hall. If you are an EU national, you will simply need to register at your local town hall after three months of living in Portugal.

The most popular visas are:

• D7 Visa (retirement or passive income visa)
• D8 Visa (Digital Nomad Visa)
• Portugal Golden Visa program

Although the option to obtain a Golden Visa through property purchases was abolished, the visa still exists. You can choose from various eligible routes, including investment funds, scientific research, business ventures, or company capitalization. The most affordable routes are job creation or investing in arts and cultural heritage.

Goldcrest: How We Can Help You 

Goldcrest is a buyer’s agent that is based in Lisbon. We provide expert, impartial advice on real estate investments and how to buy property in Portugal. From scouting out the perfect property through to property acquisition, we have you covered throughout the process.

If you are looking to purchase property in Portugal, don’t hesitate to get in touch. Our team of skilled experts is available to solve all your real estate doubts, helping you with the property search and offering insightful expertise and strategic advice.

Why choose Goldcrest?

• Local knowledge: With offices located across Portugal, our presence nationwide allows us to assist you personally across the country.
• Independent service: As an independent buying agent, we do not represent any development or project. Our service is entirely tailored toward each individual client, providing you with everything you need to secure the perfect property at the best possible price. As an impartial advisor on the market, we work solely on behalf of our client and provide a service tailored to your needs and requirements.
• Streamlined process: Our real estate agents speak English and Portuguese, and our service is completely focused on providing you with a hassle-free buying experience, saving you time.
• Experienced team: Our expert real estate team has a vast local knowledge of the Portuguese property market. We have cutting-edge technology and metasearch tools at your disposal to provide full market coverage, ensuring the best investment choices and negotiated prices.
• Network of partners: We have a close network of partners, including lawyers, property management services, builders, architects, designers, and landscape gardeners, again saving you time and hassle by providing you with trusted experts in their field of work.