Buying Land to Build a House in Portugal | Complete Guide

🏡 Buying Land to Build a House in Portugal: What You Need to Know

Buying land to build a house in Portugal is an excellent alternative to purchasing a ready‑built property. Although the process involves more steps, technical requirements and municipal approvals, it can be more cost‑effective and allows you to design a home fully tailored to your lifestyle and budget.

From the architectural project to the construction phase, building a house gives you full control over design, materials, energy efficiency and layout. But before moving forward, it’s essential to analyse the building feasibility, the documentation, the urban planning regulations, and the taxes associated with buying land in Portugal.

✅ Key Points to Consider Before Buying Land

1. Confirm Building Feasibility

Before purchasing, verify:

• Whether construction is allowed on the plot

• If the land is located in an illegal urban area

• Whether it is part of an approved subdivision (loteamento)

• If the subdivision permit (alvará) is up to date

• Any municipal restrictions defined in the Municipal Master Plan (PDM)

2. Analyse the Physical Characteristics of the Land

The terrain itself has a major impact on construction costs. Check:

• Whether the land is flat, sloped or elevated

• Soil quality and composition

• Presence of groundwater

• Sun exposure and wind orientation

• Surrounding factors such as noise, access roads or servitudes

Flat land is generally more economical to build on, while sloped plots often require additional structural work.

3. Check Whether a Project Is Already Approved

✅ Land with an approved project

• The architectural project has already been approved by the municipality

• A construction licence may already be issued

• The process is faster, but the house must be built exactly as approved

• Any changes may require new approval

✅ Land without an approved project

• You must submit an architectural project to the municipality

• Only after approval can you request the construction licence

• The process can take time depending on the municipality

• After construction, you must request the habitation licence

✅ Required Documents to Buy Land in Portugal

Before completing the purchase, ensure you have:

• Land Registry Certificate

• Tax Registration (Caderneta Predial)

• Municipal Master Plan (PDM)

• Subdivision permit (Alvará), if applicable

• Construction licence, if applicable

• Habitation licence, if applicable

• Municipal regulations related to urban development

Having all documents in order ensures legal security and avoids delays later.

✅ Taxes You Will Pay When Buying Land

When purchasing land in Portugal, the following taxes apply:

• IMT – Property Transfer Tax

• IMI – Municipal Property Tax

• AIMI – Additional Property Tax (when applicable)

• Urbanisation fees

• Compensation fees for urban development

Even with these costs, buying land is often more economical than purchasing a completed home, especially for those seeking a personalised project.

✅ Is Buying Land to Build a Good Option?

Yes — especially if you want:

• Full customisation

• Better cost control

• Higher energy efficiency

• A home designed for your lifestyle

• More privacy and freedom in choosing the location

Building from scratch can be one of the most rewarding and financially efficient ways to create your home in Portugal.

🌟 Ready to Move Forward?

Explore exceptional land opportunities available through OUR HOME PORTUGAL and start building the home you’ve always imagined.