Buying Guide Details
Buying Property in Porto (Oporto)
Where to buy property in Porto (Oporto)
Porto is Portugal’s second city, a working port to the north of the country. The gateway to the Green Coast (Costa Verde) and the Douro Valley, it has not featured much on the overseas property radar up to now. However, with a long-term investment plan in place, and with the help of a tourism push from the government for Portugal’s “undiscovered” north, prospects for the city are good for the future.
This sophisticated and cultural city has been awarded UNESCO World Heritage status, recognising and protecting centuries of history. In property terms, the waterside district (‘zona ribeirinha’) is a desirable area, and properties in Porto (Oporto) are in general terms cheaper than in Lisbon, though it’s almost as easy to get here from the UK as the capital, with several low-cost flight options. There is an established UK expat community thanks to the historic port wine industry.
It is well connected to Lisbon and the rest of Portugal thanks to good motorway links. There are many cruises available up the river to the vineyards of the Douro Valley, a lush and dramatically scenic region in Portugal’s northern hinterland. Equally appealing is the train journey through this wonderful area, linking Oporto to Pinhao and following the river for half its length.
The Process of Buying Property in Porto (Oporto)
- The first step is usually a verbal agreement between the property buyer and seller, after which the property buyer’s lawyer should carry out all necessary checks – title, building licence, etc
- A preliminary contract is then signed, which lays out the terms of the sale, including the completion date. At this point a deposit is paid, usually of 10%. This deposit is forfeited if the property buyer backs out, and if the seller withdraws he/she must pay the property buyer double the value of the deposit, i.e. 20%
- On completion both parties sign the deeds (escritura) in front of a notary and ownership is transferred. The balance of the purchase price plus all fees and taxes must be paid before the escritura can be signed
- As soon as possible after signing the deeds, the transfer of title should be lodged in both the land registry and the local tax office
- If buying property in Porto (Oporto) off-plan a smaller deposit is usually required, followed by stage payments. This depends entirely on the developer
- When buying property in Porto (Oporto) that is resale property, make sure a survey is carried out in addition to usual checks.
Homes Overseas Property Club
Homes Overseas has joined forces with a collection of IFA specialists to form the Homes Overseas Property Club (HOPC), designed for existing and prospective overseas property homeowners.
The Club – which has access to international lawyers in no fewer than 43 different countries - has been set up in order to guide people through some of the various issues relating to buying and maintaining a property overseas. It offers advice on a range of topics, including financial, legal, insurance, taxation, property management and foreign currency matters.
For further information please telephone 0845 838 7142 or email info@homesoverseaspropertyclub.com
Fees & Taxes
- Transfer tax can be anything up to 8% depending on the value of the property in Porto (Oporto. This must be paid before the final documents are signed
- Legal fees tend to be around 2%
- Agents’ fees can be anywhere between 1% and 10%, although the average is around 3%
- Allow around 2.5% for notary and land registry fees and up to 0.8% for annual local taxes
- Fees and taxes can vary greatly depending on the municipality, so be sure to get your lawyer to check out the relevant legislation thoroughly
- VAT at the current rate of 19% may apply. Get your lawyer to find out what fees this affects