Buying Property in Porto: Your Complete Guide

Buying property in Porto, Portugal, is capturing the attention of more and more international property buyers each year. Perched on the banks of the Douro River in the north of the country, this vibrant city is Portugal’s second-largest, following the stunning capital, Lisbon. 

Porto’s unique architecture, winding cobblestone streets, and blend of modern and traditional charm attract digital nomads, retirees, and expats searching for their dream property or an investment in a Western European city with a growing property market. 

Often compared to beautiful cities like León in Spain, Bordeaux in France, and Bristol in the UK, Porto’s vibrant cultural attractions feature a unique selection of museums, theaters, and art galleries accompanied by authentic Portuguese cuisine and the region’s internationally renowned port wine. 

In this article on buying property in Porto, we will explore more than just the rich cultural heritage and the excellent investment opportunity of purchasing real estate in the Porto district.  

This comprehensive guide gives you vital insights into the essential steps of buying real estate, from creating a budget and outlining the best Porto neighborhoods to consider to working with real estate agencies or a buyer’s agent to help you navigate the buying process. 

Why Investing in Property in Porto, Portugal, is a Good Investment

Porto has a great selection of property types available and an assortment of price ranges, from new builds, modern apartments, and luxury abodes to more affordable properties, making buying real estate in Porto much more affordable than in Lisbon and other Western European cities.  

Looking ahead, a new report, Portugal’s Property Hotspots 2024/25 by Property Market-Index, revealed that the Portuguese property market is projected to grow by 5.8 percent in 2025, outpacing the broader European Union market. One of the key regions expected to drive this growth is Porto, solidifying its position as a standout performer in the real estate market. 

Whether you are interested in purchasing a property for investment purposes, looking for affordable housing in the city center, or searching for your dream home close to the coast, you can find the property that meets your requirements. 

Can foreigners buy property in Porto?

Foreign investors and expats are not restricted from buying property in Porto or Portugal in general. However, it’s highly recommended to seek the professional assistance of local real estate agencies or buyer’s agents when buying a house in Porto to guide you through the process, in addition to working with an experienced real estate lawyer to avoid any legal issues.

It is important to note that if you are a non-EU citizen looking to buy a house in Porto to live in permanently or visit Portugal frequently, you must secure one of Portugal’s valid visa options. Portuguese visa options for non-EU citizens include:

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

If you are an EU national, you will simply need to register at your local town hall after three months of living in Portugal.

Key reasons to buy property in Porto

Along with the city’s beautiful beaches nestled along the Atlantic Ocean, scenic open green spaces, historic neighborhoods, and the beautiful parks along the Douro River, buying property in Porto offers many significant benefits, which we explore in further detail below:

• Investment hub: The Porto city center and surrounding districts have become ideal hubs for investment in residential and commercial properties, with Lisbon and Porto both experiencing a real estate boom over the past few years. Despite this, property prices in Porto remain affordable and are a smart investment choice for the savvy investor. Plus, Porto tourism continues to flourish, boosting demand for residential and commercial properties as well.
• Captivating city: One of the oldest European centers with several historic neighborhoods, Porto was named a World Heritage Site by UNESCO in 1996.
• Waterfront properties: The gorgeous Douro River flows beside the city, providing riverside properties, lively bars, charming cafés, and excellent restaurants with a view.
• Low cost of living: The cost of living in Porto is generally considered inexpensive.
• High quality of life: Porto is a very safe city that offers residents a high quality of life. With easy access to modern amenities, quality healthcare, and four top-quality international schools, it is a top choice for many expats.
• Excellent public transport: It’s easy to get around Porto, as the city has an extensive public transportation network alongside an international airport.
• Blossoming tech scene: As Porto’s industrial and tech sectors grow, many international startups are moving to the city. The city has also become a hub for digital nomads, with top co-working spaces like CRU Creative Hub, Porto i/o, and Synergy popping up.

An Overview of Porto's Real Estate Market

Porto features a broad spectrum of property types and prices to suit every budget and need. You will find residential and commercial properties with excellent infrastructure, modern apartments with breathtaking views, modern villas in trendy neighborhoods with a swimming pool, and traditional houses with easy access to the broader Porto area.

Property for sale in Porto Portugal: Property prices

In 2023, the average house asking price in the Porto city center stood at €4,296 per square meter, while the average price for a house in the greater Porto municipality was €3,291 per square meter. If you are looking for more affordable options, buying property in Guarda is a lesser-known area with easy access to Porto.

The table below shows the average asking price per square meter for property in the different Porto neighborhoods in 2023.

Note that this is the average asking price. The transaction price is often significantly lower than this as sellers aim to sell their property by a set date.

Area map of Porto City neighborhoods 

Now that you have a better idea of what you can expect to pay when buying a house in Porto, you can use this map to help you explore the city’s key neighborhoods. 

The Best Neighborhoods to Buy Property in Porto

Not only has buying a house in Porto, Portugal, become an attractive investment option for expats ready to start a new chapter of their lives in a vibrant city, but Porto also offers an incredible selection of property types and amenities in its neighborhoods. 

Porto Portugal property for sale has become one of the most sought-after real estate markets in recent years and, along with the Algarve (including buying property in Lagos, Portugal), has been mentioned in Knight Frank’s The Wealth Report 2023 as being one of the top ten fastest-growing locations to invest in luxury real estate.

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 are an array of beautiful spots to consider.

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 coastal village. It is a modern yet quaint neighborhood that has a coastal town vibe and is situated just kilometers away from the hustle and bustle of Porto’s historic city center. Foz do Douro is the perfect quaint suburb for families or investors looking for a tranquil location with spacious properties. 

Matosinhos

Just a short twenty-minute drive northwest of Porto lies Matosinhos, a coastal city renowned for its pristine 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 have elevated the city’s livability, making it a prime choice for discerning buyers. From townhouses nestled in vibrant neighborhoods to luxurious modern villas and larger traditional houses, Matosinhos presents a diverse array of residential options. 

Ribeira

Nestled along the picturesque Douro River, Ribeira embodies Porto’s medieval essence, making this historic neighborhood a coveted spot for property investment. 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 historic charm and scenic beauty, making it an ideal choice for digital nomads and young professionals seeking a blend of culture and modern amenities. 

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 good wine, excellent gastronomy, a lively cultural scene, 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 Parque Biológico de Vila Nova de Gaia, making it ideal for outdoor enthusiasts. Its growing infrastructure and proximity to central Porto add to its appeal for both families and professionals. 

Bonfim

Situated in downtown Porto, Bonfim has transformed into a vibrant area and 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. What were once commercial properties are now unique living spaces presenting enticing investment opportunities and living experiences along the Douro River.

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 has become a prime investment location for international buyers wishing to rent their investment properties to students in the long term.

Campanhã

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

A Step-by-Step Guide to Buying Property in Porto, Portugal

Now that you know the range of property prices in Porto, Portugal, and the best neighborhoods and areas to search for your ideal property, we can delve into the buying process and the steps the journey entails. Below, we have created a concise step-by-step guide for buyers outlining the purchase and legal process for foreigners investing in real estate in Porto Portugal.

Seek Professional Advice

If you are on the hunt for property for sale in Porto Portugal, you will find an array of modern apartments, luxury villas, and quaint townhouses, whether you want to buy in the city’s downtown district or by the coast. You will also find several properties that come with a swimming pool or stunning ocean or river views.

However, while navigating the buying process in your home country can be difficult, buying abroad adds another layer of challenges. Seeking professional assistance can be a godsend to streamline the process, saving you time, hassle, and money in the long run and ensuring you don’t run into any legal difficulties.

Work with real estate professionals

You’ll find many Porto real estate agents for international buyers. While there are real estate portals that you can use to get to grips with the market, nothing beats local guidance and expert opinions. Plus, there is no one place to find all the property listings in Portugal, so a real estate professional will help you gain access to a wider range of properties than what you’d find online. 

Navigating Porto’s housing market is much easier if you have an experienced real estate agent or buyer’s agent to guide you through the buying process and who understands the local market. Their expertise aids in finding properties that match your requirements, and their local insights can significantly streamline the buying process. 

However, it’s important to note that real estate agents in Portugal work on behalf of the seller and will get a higher commission for a higher sale. A buyer’s agent like Goldcrest, on the other hand, works solely on behalf of the buyer, negotiating the best possible price for the buyer while ensuring full market access to all property listings for a wider selection. 

Whether you want to find spacious properties or a small house by the ocean, they can help you discover the very best properties that Porto offers. You can check out our article on how to find a real estate agent in Porto. 

Seek the assistance of a Portuguese lawyer

Engaging a proficient lawyer is crucial when investing in property in Porto, Portugal. Legal intricacies demand expert handling, safeguarding your investment, and ensuring a smooth transaction. A knowledgeable lawyer is essential for due diligence, contracts, and compliance, providing a secure and hassle-free acquisition. You can find out more in our article, Real Estate Lawyer Porto.

Other professional services to consider

• Construction companies: If you are purchasing land for building or renovating an existing property, ensure you work with a reputable building company you trust. Ask for prices upfront and a timeline for the construction work.
• Interior designers and architects: Whether you’re remodeling or designing a property, interior designers and architects can help you create your ideal space and turn your dream home into a reality.
• Property management companies: For those looking to rent out their purchased property, working with property management ensures seamless maintenance and financial management, safeguarding your property.
• Insurance companies: These companies offer comprehensive property insurance, shielding investments from unforeseen risks.
• Surveyors: Property surveyors in Portugal can provide an extra layer of reassurance, ensuring there are no structural issues to the interior or exterior of the property. 

Requirements for a Successful Property Purchase

Applying for a Portuguese NIF number and opening a bank account is essential when buying real estate in Porto and Portugal. These two items will also be handy for any other transactions you need to complete in Portugal.

Portuguese tax number

To open a bank account in Portugal, you will need an NIF, which is the Portuguese tax number. You can apply to have a fiscal representative (mandatory for non-EU nationals). You can also apply for your NIF number online to avoid visiting the local tax office. Our partner, Global Citizen Solutions, offers a comprehensive guide about how to get a tax identification number (NIF) in Portugal.

Portuguese bank account

When buying property in Portugal, it is recommended to open a Portuguese bank account to avoid transaction fees when making your purchase. There are a variety of Portuguese banks to consider, many of which also offer mortgages for international buyers. Some popular banks in Portugal include Millennium BCP, Novo Banco, Banco BPI, and Banco Santander Totta. 

Required Documents for Buying Property in Porto, Portugal

Once you start the purchase process, it is vital to have all the essential documents ready to ensure the property purchase journey is seamless and legally compliant with Portuguese real estate law. Working with a real estate lawyer will prove invaluable as they can assist you with getting the documents you need in order and completing due diligence checks on the property on your behalf.

To purchase property in Porto, you will need the following documents:

• Photo ID: A valid identification document that verifies your identity.
• Contrato Promessa de Compra e Venda (CPCV): The buying contract or property deed that outlines the terms and conditions of the property purchase.
• Energy Certificate: This document provides information about the property’s energy efficiency and must be presented to you by the seller. Read our guide on Portugal’s Energy Performance Certificate to learn more. 
• Imposto de Selo: The stamp duty payment is a tax required by the Tax Authority for property transactions.
• Caderneta Predial: The land register document contains information about the property, including its location, boundaries, and registered owner.

Property for Sale Porto Portugal: Potential Pitfalls

As with every kind of investment, there are a few potential pitfalls you may encounter when buying property in Porto, Portugal. You’re even more likely to encounter potential issues with Porto property purchases if you don’t enlist the services of a real estate attorney, agent, or buyer’s agent like Goldcrest, who has extensive experience with assisting international buyers with Portuguese property acquisition. 

A few of the potential pitfalls you may encounter include, but are not limited to:

• Legal complexities with property deeds or debts attached to the property may lead to lengthy legal battles.
• Unknowingly neglecting to account for additional expenses beyond the property’s listed price, such as mortgage costs for foreign buyers, property taxes, notary fees, and property registration expenses.
• Overlooking local regulations or tax laws may lead to fines or unexpected financial obligations.
• Investing in a location that does not meet your lifestyle needs or that does not bring you the return on investment you hope for can easily be remedied through research and speaking with experienced professionals.  
• Unforeseen issues, such as zoning changes or environmental concerns, can affect the property’s value or intended use.

Navigating Property Tax in Porto, Portugal

Navigating Portugal’s property purchasing process entails much more than the excitement of finding the perfect home. Here, we 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 the Portuguese state charges for real estate transfers. Regarding real estate, 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 of €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 property’s sale 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.

Property Purchase Costs

When you buy property in Porto, Portugal, it’s crucial to factor in the various one-off costs essential for the transaction. These include notary service fees and registration fees, legal fees, transfer tax (IMT), stamp duty fees, and potential expenses related to the land registry. Additionally, there might be fees associated with lawyers, especially if legal counsel is sought during the property purchase process.

Is it worth buying property in Portugal?

There are many good reasons for buying a house in Portugal. Some of these key advantages include:

• No restrictions on foreign property ownership 
• Investing in a dynamic market with a high return on investment potential  
• Low cost of living compared with other Western European cities
• Sublime climate with incredible summers and mild winters  
• Top-quality education and healthcare services  

Consider these benefits and the potential pitfalls you may encounter during the process, which we explored above, to decide if Porto is the right place for you.

Goldcrest: Our Expertise Can Help You Find Your Dream Property

Goldcrest is a buyer’s agent based in Porto, Lisbon, and the Algarve. Equipped with local knowledge, extensive networks, and international experience, we provide expert, impartial advice on real estate investments and how to buy property in Porto, Portugal. From scouting out the perfect property to property acquisition, we have you covered throughout the process. Our team of skilled experts can cater to all your real estate needs, offering insightful expertise and strategic advice. Book a complimentary call with us today.