Updated: June 12, 2024

 

Porto Real Estate

Buying property in Porto, Portugal, has become an attractive option for international buyers worldwide. Following the stunning capital, Lisbon, Porto is Portugal’s second-largest city, located along the magnificent Douro River in the north of the country.

Porto’s unique architecture 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 luxury abodes to more affordable properties, making buying real estate in Porto much more affordable than in Lisbon and other Western European cities. Whether you are interested in purchasing commercial properties in Porto, Portugal, 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.

GC-ICON-102Can 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, Portugal, in addition to working with an experienced real estate lawyer. Working with a real estate agency or seeking buyer’s agent services will prove invaluable throughout the buying process, while a trusted lawyer will ensure you face no legal issues throughout the process.

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:

Key reasons to buy property in Porto

Along with the city’s beautiful beaches nestled along the Atlantic Ocean, scenic open green spaces, 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 property investment, with Lisbon and Porto both experiencing a real estate boom over the past few years. Despite this, property prices in Porto remain affordable, and properties can be rented out as long-term rentals or short-term leases. The city’s vibrant cultural scene draws in visitors, young professionals, students, and expats with its captivating charms. Plus, Porto tourism continues to flourish, boosting demand for commercial properties.
  • 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. You can find the best deals on good wine, dining out in the city is affordable, public transport is deemed reliable and relatively cheap, and entry fees to museums and attractions are fair.
  • High quality of life: Porto is a very safe city that offers residents a high quality of life. With 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, which is perfect for frequent international travelers.
  • 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 the Porto's Real Estate Market

Porto features a broad spectrum of property types and prices to suit every budget and need. You will find commercial properties, 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.

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.

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

Porto City Neighborhood

Price Per Square Meter (€)

Aldoar, Foz do Douro e Nevogilde

€5,678

Centro Histórico do Porto

€4,665

Lordelo do Ouro e Massarelos

€4,651

Bonfim

€4,404

Paranhos

€3,531

Campanhã

€3,520

Ramalde

€3,529

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.

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The Best Neighborhoods to Buy Property in Porto

Not only has Porto, Portugal, become an attractive investment option for investors and 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.

 

Look below to discover five of the best neighborhoods and areas to purchase property in or around Porto.

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, enhanced parking options, and more.

Matosinhos

Just a short twenty-minute drive northwest of Porto lies Matosinhos, a coastal gem 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 property 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 it a coveted neighborhood for property investment. Its vibrant streets showcase colorful waterfront 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.

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 property 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 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 property in Porto.

Step

Description

Step 1: Secure financing for your property

Assess your finances, explore mortgage options from Portuguese banks, and understand associated costs such as taxes, legal fees, and property registration expenses.

Step 2: Find the perfect property

Set a budget and research the Portuguese real estate market, focusing on location, amenities, and rental potential. Seek guidance from real estate professionals like buyer's agents or real estate agents.

Step 3: Make an offer

Once you find a suitable property, negotiate an offer with the seller, potentially facilitated by a real estate professional. Consider having a buyer's agent representing your best interests during negotiations.

Step 4: Reservation Agreement and CPCV

After an offer is accepted, a Reservation Agreement may require a refundable fee. The Promissory Contract (CPCV) finalizes the deal, often with a 10 percent deposit, signed in front of a Notary.

Step 5: Signing the Escritura

The Escritura, or Final Deed, officially transfers property ownership. Signed before a Notary, it involves paying remaining balances and fees. After signing, the buyer becomes the official owner, concluding the process.

Seek Professional Advice

Real Estate Agent

In Porto, you will find an array of modern apartments, luxury villas, and quaint townhouses to find your dream home, whether you want to buy in the city’s downtown district or by the coast. 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. Navigating Porto’s property market is much easier if you have an experienced real estate agent or buyer’s agent to guide you through the buying process. Their local 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. Buyer’s agents, on the other hand, work solely on behalf of the buyer, negotiating the best possible price for the buyer. 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 on securing the assistance of a real estate lawyer in 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.

Book a complimentary call to discuss your options with our team of experts today.

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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. 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 offer mortgages for international buyers.

Required Documents for Buying Property in Porto, Portugal

Documents required for the NHR ProgramOnce 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, Portugal’s Energy Performance Certificate Explained, 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.

Potential Pitfalls of Buying Property in Porto, Portugal

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 if you don’t enlist the services of a real estate attorney, agent, or buyer’s agent like Goldcrest, who has extensive experience with international property acquisition.

A few of the potential pitfalls you may encounter that you may need the help of an expert navigating include but are not limited to:

  • Legal complexities with property title 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 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 bring you the return on investment you hope for
  • Unforeseen issues, such as zoning changes or environmental concerns, can affect the property’s value or intended use.

Seeking the professional services of a buyer’s agent or experienced local real estate agent will help you understand the intricacies of Porto property purchases, navigate setbacks successfully, and avoid several potential roadblocks.

Financing Your Property in Portugal

Once you have decided how you will finance your property purchase, you can start your search for the perfect location and property in Porto real estate. In this section, we look at how to plan your budget and Portugal’s financing options for buying a home.

Get your budget straight

Creating a clear budget that considers the various costs, from initial application fees to property taxes, is crucial. This will help no end in providing clarity on what you need to pay and when. Also, having a ballpoint figure of your budget will help you approach the property with much more confidence, whereby you will be able to more easily scout out and select properties that fall into your price range.

Financing your property: Main options

If you have capital, one-off payments on your property purchase price will be possible. However, financial service providers offer various mortgage options, including BBVA, Santander, Banco Best, Bankinter, and Banco CTT.

Mortgages in Porto, Portugal

Getting a mortgage in Portugal involves approaching banks or mortgage agents for an initial estimate. The maximum amount you can borrow is determined by the loan-to-value (LTV) ratio, which is the ratio of the loan amount to the value of the property pledged as collateral. In Portugal, fiscal residents can have an LTV of up to 90 percent for their primary residence or permanent home and up to 80 percent for a secondary or holiday home. It is important to note that this ratio is based on the lower value of either the purchase price or the bank’s appraisal value.

In comparison, for non-residents in Portugal, the maximum loan-to-mortgage ratio is 60-70 percent of the property purchase price (or bank appraisal), but this can vary depending on the bank.

Types of mortgages

Fixed-rate mortgages come with a premium but offer stability, protecting against rate changes. However, non-residents face a capped LTV ratio of 75 percent. Variable-rate mortgages, tied to the Euribor, provide fluctuating rates; currently, mortgage spreads sit around 0.85 percent. Monthly payments fluctuate over time, and early repayments might incur a 0.5 percent charge on the repaid capital.

Cost and fees for mortgages in Portugal

Securing a mortgage in Portugal involves significant costs in addition to application and valuation fees. Navigating the mortgage landscape in Portugal demands a clear understanding of the available options, associated costs, and varying requirements for residents and non-residents. This clarity ensures a smoother path towards property ownership.

buy-to-let-mortgage-calculator-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 and up to 0.8 percent for rural properties.

Property Purchase Tax (IMT)   

The IMT (Municipal Tax on Onerous Transmissions of Real Estate) 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. There are three levels of taxation based on property value:    

  • 0.7 percent tax for properties valued between €600,001 and €1 million   
  • one percent tax for properties valued between €1 million and €2 million   
  • 1.5 percent tax applied to property worth more than €2 million 

Note that AIMI is calculated on the excess of the respective limits. For example, for 700,000, the rate is only applied to 100,000, which would result in a tax of 700 euros

Capital Gains Tax    

Capital gains refers 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.

Our article, Property Taxes in Portugal 2024: An Overview, is a comprehensive guide to property tax in Portugal that you may find beneficial. 

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 and registration fees, attorney 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.

Frequently Asked Questions about Buying Property in Porto, Portugal

There are no restrictions on foreigners buying a house in Porto Portugal. You will have the same rights as Portuguese citizens – whether you are interested in purchasing commercial properties in the city’s downtown district or modern apartments and luxury villas near lush green spaces and the Douro River. 

Before you begin your property search, remember that there are market challenges and risks to consider when investing in any country’s property market. These could include economic and market volatility impacts on property value, regulatory changes affecting property owners and landlords, or environmental and urban planning considerations in the Porto district.

Additionally, if you are looking to relocate, you must secure residency to move to Porto, Portugal. Therefore, it is advised to work with a real estate professional with local market knowledge who can assist with navigating property purchases as well as connect you to other professionals who can assist with the migration process and other legalities.

Working with a real estate lawyer is not a strict requirement for purchasing property in Porto. However, it is recommended that you have the professional services of a real estate agent, preferably a buyer’s agent, and a lawyer for a seamless and compliant purchase process.

Additional fees besides standard property prices include:

  • Notary and registration fees.
  • Attorney fees.
  • Transfer tax (IMT).
  • Stamp duty fees.
  • Potential expenses related to the land registry.

The deposit for the property usually lies between 10 to 25 percent of the purchase price based on the condition that the mortgage offer is accepted. However, non-residents and foreign buyers are encouraged to budget 30 percent of the property purchase price for the deposit payment on a property in Porto, Portugal.

This depends on the type of house you are interested in purchasing. However, real estate prices in Porto are generally lower than in Lisbon or other Western European cities. In 2023, the average house asking price in Porto city altogether stood at €4,296 per square meter, while the average cost for a house in the greater Porto municipality was €3,291 per square meter.

Regarding investment opportunities in Porto property, there are many properties to consider. The city offers an excellent quality of life and ease of living. Some of the best neighborhoods in Porto for real estate investment include Campanhã, Paranhos, and Bonfim, which offer substantial returns on investment.

The vibrant city of Porto attracts expats, students, and digital nomads from across the globe. Expat communities exist in Baixa, Bonfim, Foz do Douro, and Paranhos.

You will find many properties close to Porto with fantastic views of the Atlantic Ocean. Start looking for beachfront properties online by checking real estate websites and agencies. Once you know what you are looking for and the location you are interested in, you can contact a real estate agent for assistance. A buyer’s agent like Goldcrest will be of great value as they will have access to exclusive listings through their network and solely work on your behalf as the buyer.

You could encounter several potential pitfalls when buying property in Porto, which is why seeking the professional services of a buyer’s agent is highly recommended. Possible issues may include legal complexities with property title deeds or debts, issues understanding local regulations or tax laws, or unforeseen issues related to location, such as zoning changes that may impact your investment’s value.

Calculated based on the property’s value or declared amount in the deed, the IMT (Municipal Tax on Onerous Transmissions of Real Estate) is a property transfer tax that needs to be paid before the purchase is completed. The property transfer tax rate varies from 0 to 8 percent based on property type, location, purchase price, and intended use.

For expats buying property in Porto, prioritize understanding local regulations, working with a reputable real estate agent or buyer’s agent fluent in English, considering proximity to amenities, and seeking legal advice to ensure a stress-free buying process.

It would help if you also utilized expat groups. Countless expats live in Porto, and you can tap into their personal experiences, which will likely help you with your move and adjusting to life in Porto.

Yes, you will find affordable Porto houses for sale. Explore suburban areas, consider fixer-uppers, and engage with local real estate agents or buyer’s agents who can assist you in shortlisting affordable properties that meet your requirements. Properties in Vila Nova de Gaia, on the other side of the Douro River, are also worth exploring, as the average house price is lower than in Porto.

Discover beach houses for sale in or around Porto, Portugal, in sought-after places like Foz do Douro and Matosinhos, both of which have a very coastal town vibe. These coastal gems offer stunning views of the Atlantic Ocean and are close to spectacular beaches, making them ideal for those seeking a relaxed lifestyle by the sea. If you want to live in a coastal town, you will find several charming locations near Porto, whether you head north or south. If you buy outside the city, you can see the perfect quiet seaside town on the Silver Coast to get a glimpse of authentic Portuguese life.

In 2023, the average asking price for property in Vila Nova de Gaia stood at €2,989 per square meter. On the other side of the Douro River from Porto, Vila Nova de Gaia offers more affordable property prices than Porto. With all the amenities you need, fabulous beaches nearby, stunning views of the Atlantic Ocean, and top restaurants, the city could be an excellent option, whether working remotely or moving with a family.

The best neighborhoods to buy a house in Porto, Portugal, include the historic center and Ribeira for its bustling scene and stunning riverside location, Foz do Douro for its coastal town vibe and spacious properties, Cedofeita for a vibrant arts scene, and Boavista for business and cultural amenities. Each area offers unique lifestyle benefits and investment potential.

Vila Nova de Gaia, across the river from Porto, and Matosinshos, to the north of Foz do Douro, are also top locations to consider.

The average price for a house in Porto city center is €4,296 per square meter, whereas in the greater Porto municipality, the average price is €3,291 per square meter, as per the latest data in 2023. Note that these are avergae asking prices and the sales prices, although it can be higher, is usually considerably lower than this.

 

 

 

There are no restrictions on foreigners buying property in Porto or elsewhere in Portugal. Essential legal requirements include obtaining a Portuguese tax number (NIF), and it is recommended to open a Portuguese bank account to save on transaction costs. It’s advisable to work with a real estate lawyer in Portugal and a real estate agent to ensure a successful and stress-free buying process.

To buy property in Portugal, you will need to follow the below steps:

  • First, determine your financing options and define your requirements.
  • Next, find your ideal property and negotiate the price with the seller.
  • You can sign the Reservation Agreement, followed by the Promissory Contract.
  • Finally, complete the purchase by signing the Escritura (Final Deed), which transfers the property ownership over to you.

To find a reliable real estate agent in Porto, Portugal, look for agents with good reviews, local expertise, and certifications. Recommendations from friends, family, and expat communities are probably the best way to pinpoint the best real estate agencies, plus check out companies that have assisted expats in similar positions to your own.

Choosing between a new build or a renovated property in Porto depends on preferences and budget. New builds offer modern amenities and energy efficiency, while renovated properties provide charm and are often located in historical areas.

Porto’s property market is generally more affordable than Lisbon’s but offers similar – if not greater – growth potential and lifestyle benefits. It’s an attractive option for investors and homebuyers seeking a vibrant city with a rich cultural heritage and lower living costs.

Pros of buying a house in Porto include a vibrant cultural scene, historical charm, and a thriving property market. Cons may include a lack of insulation in some of the older buildings and difficulties in navigating through the buying process. Working with a real estate agent or buyer’s agent will ensure a smooth buying process.

Bear in mind that real estate agents in Portugal work on behalf of the seller and will get a higher commission for a higher sale, while buyer’s agents work solely on behalf of the buyer, protecting their needs.

There are more than fifteen banks in Portugal that provide mortgages for foreigners, including Millennium BCP, Novo Banco, Banco BPI, and Banco Santander Totta.

Foreigners buying property should be aware of taxes due at purchase and annually. Purchase-related taxes include the Property Purchase Tax/Property Transfer Tax (IMT) and Stamp Duty. Annually, you will need to pay the Municipal Property Tax (IMI). Additionally, consider the Capital Gains Tax if you plan to sell your property.

Family-friendly areas in Porto include Foz do Douro for its beaches and parks, Boavista for its schools and amenities, and Paranhos for its residential vibe and accessibility to educational institutions. Each offers a safe and pleasant environment for families.

For short-term rentals, you will need to get a local accommodation license (AL), and no new licenses are currently being issued in Porto, alongside other key locations in Portugal. On the other side, Porto remains a top place to rent out your proeprty in the long term, with students, digital nomads, and tech companies relocating to Portugal. For long-term rentals, you will not need to get an AL license.

You will need to follow the below steps to secure a mortgage in Portugal:

  1. Determine which bank and which type of mortgage is best suited to your requirements
  2. After the initial assessment, you will then receive a mortgage quote within 24-48 hours.
  3. Submission of application forms
  4. Formal mortgage offer
  5. Valuation report
  6. Completion arrangements, whereby the funds are transferred to the appropriate account before the completion date. Following this, the lender will proceed with the mortgage application and arrange a completion date.
  7. The Portuguese mortgage lender arranges the payment and, once the property and mortgage deeds are signed in front of a Notary, in addition to all fees and taxes being paid, you will become the new property owner.