Buying Land in Portugal: The 2025 Ultimate Guide

Why buy land in Portugal?

In recent years, Portugal’s property market has proven to be one of the most resilient and fastest-growing in Europe. It provides economic stability, lifestyle value, and development potential, with more properties than ever being snapped up by investors and expats.

Benefits of buying land in Portugal

There are many advantages to buying property or land in Portugal. Land and inland properties are a smart investment because they are more affordable than new builds or properties in coastal areas and city centers, like Lisbon.

Here are the benefits of buying land in Portugal.

The stability of the Portuguese real estate market

Investing in land in Portugal offers the advantage of tapping into a stable and well-regulated real estate market. According to Eurostat, in the second quarter of 2025, Portugal showed one of the highest annual increases in house prices at +17.2 percent, confirming its position as the fastest-growing property market in the European Union.

Besides, there are no restrictions on foreigners buying property, which makes the buying process much easier. This stability, paired with the high demand from both domestic and foreign investors, suggests that purchasing land can offer a secure and low-risk property investment.

Potential for capital appreciation and investment returns

The Portuguese real estate market presents an exciting prospect for capital appreciation and favorable investment returns. Property prices in Portugal, especially in comparison to other European countries, allow you to enter the market at a relatively affordable cost.

The return on investment for land comes not just from buying low, but from adding value to the property over time. For investors who buy a strategically located plot and simply wait for infrastructure or residential demand to expand into the area, the land itself increases in value without ongoing costs, other than minimal annual Municipality Property Tax (IMI).

The strategic location of Portugal, coupled with its thriving tourism industry and ongoing infrastructure development, ensures a steady demand for properties. From mainland Portugal to the autonomous islands of Madeira and the Azores, the Portuguese real estate market offers many attractive locations.

If you want to compare the property prices in Spain vs Portugal, read our investment guide on buying property in Spain or Portugal.

Affordability of land for sale in Portugal

Purchasing land is much more affordable than buying a built property (prédio urbano). When you buy bare land, you are investing in the raw commodity.

For example, you are buying land for sale in the Algarve. The price of land in the interior parts of the Algarve varies from €100 to €300 per square meter. While construction costs often fall between €2,000 and €3,000 per square meter.

If you are looking for cheap land for sale in Portugal, buying land in rural areas in the north or central Portugal will likely be even more affordable. The autonomous islands also offer attractive prices. The cost of land will depend on the land area.

Note: You will need to get a construction permit (Licença de Construção) from the local municipality to build in Portugal on the land you buy. You can use the total cost of ownership estimation as a means to understand the potential costs of the project, from preconstruction to improving energy efficiency.

How much does land cost in Portugal?

The cost of land in Portugal depends on the location, size, and zoning. However, even the most expensive urban land is significantly cheaper than a finished home, a modern apartment in the Lisbon city center, or luxury properties in Portugal.

For example, the average price for a land for sale in Portugal varies from €1,500 to €3,500 per square meter or more for prime urban plots. Mid-range rural plots in the Algarve can cost €100 to €300 per square meter.

If you go deeper inland, you can find cheap land for sale in Portugal. For example, vast areas of Alentejo and central Portugal offer rustic land for as little as €1 to €10 per square meter. However, in most cases, this is rustic land and you cannot use it to build residential properties, unless you receive approval from the municipality office.

Plots in regional cities like Leiria, Coimbra, or Braga typically range from €150 to €500 per square meter. Lisbon land for sale commands much higher prices, often exceeding €3,500 per square meter.

After buying land in Portugal, the construction costs can vary from €2,000 to €3,000 per square meter for mid-range projects. At the same time, a finished home in the Algarve can cost well over €3,400 per square meter.

The table below offers a general guideline of the cost of land in Portugal in urbanized locations versus undeveloped agricultural land.

To find out more about property prices, check our Portugal real estate investment guide.

Additional costs to consider when buying land in Portugal

When buying Portuguese land, either a building plot or rural land, you should budget for one-off fees and taxes. They often add up to 6 percent to 10 percent to the purchase price, plus additional construction costs. Here is a detailed guideline.

Property taxes

As a potential land owner, you will need to understand property taxes in Portugal. You pay both at the time of purchase and on an annual basis. During the process, taxes include Property Purchase Tax (IMT) and Stamp Duty, while taxes that you will be required to pay annually include Municipal Property Tax (IMI).

Notary and registration fees

The notary is a private entity responsible for providing you with the official certified documents that prove you are the owner of the property. You will sign both the Promissory Contract and the final deed (Escritura) in front of the notary. Notary fees usually cost around €1,200. Legal fees will depend on the lawyers you work with, but will usually cost between €2,000 and €5,000. After you sign the final deed, you must register the property with the Land Registry, where you pay a public fee of €250.

Other potential expenses

Alongside the costs of buying the land and construction, you’ll also want to consider other expenses, including legal fees, potentially hiring a surveyor, notary fees, real estate agent fees, and taxes. Additional costs may also occur, such as the builder needing more materials, etc. You can consult with the builders beforehand to develop a transparent agreement.

What types of land can you buy?

In Portugal, a diverse array of land types is available, offering opportunities for varied investments and development. These are rustic, urban, and agricultural types of land.

Urban land

Urban land is a type of land that is already developed or designed for you to build residential, commercial, or industrial properties. This is the type of land that is usually the most expensive. You can use it to build a house or a villa, and it is closest to roads, water, and electricity. Feel free to consult with a real estate agent in Braga to research the local market.

Rustic land

Rustic land is land for agricultural, forestry, or other purposes. It is often subject to zone restrictions. It is the least expensive, but lacks access to public utilities. You can often use it to build small structures, like barns or tool sheds. But, in most cases, you can’t use it to build houses or rural properties unless you get municipal approval.

For example, some rustic lands can be used to build an equestrian property in Portugal. But, you must secure a zoning and permit check with the local city hall (Câmara Municipal), so you can expand or build the facilities.

Agricultural land

Agricultural land is a sub-category of rustic land. You can use it to build properties for agricultural activities, such as a farmhouse that collects income from the land. Farmhouses for sale in Portugal can be found across the country, which can be relatively affordable. The goal of this land type is to protect the country’s farmland and natural resources.

Top Regions to Buy Land in Portugal

If you are considering buying land in Portugal as a foreigner but are unsure where to purchase it, this section is for you. We will cover key areas on the mainland of Portugal for purchasing land.

Algarve

Southern Portugal is perhaps the best place to consider when thinking about buying land in Portugal as a foreigner. With splendid views of the Atlantic Ocean and a sublime climate, it’s no surprise that so many retirees, families, and even celebrities have headed to the glorious Algarve region, one of the most stunning parts of Southwestern Europe.

From an economic perspective, a project located in the Algarve offers favorable cost-effectiveness, as land prices are generally more budget-friendly compared to major urban centers such as Lisbon or Porto. The cost will also depend on the location. For example, if you buy close to the Spanish border, which is less developed, or away from the Atlantic Ocean, you should find prices drop, whether you are looking for a house or land to buy.

Alentejo

If you thought property in the Algarve was good for the wallet, in the Alentejo, just north of the Algarve, you’ll find even more cheap land for sale in Portugal. Whether you are looking to build a country home from scratch or are looking to invest in agricultural land for sale with a total area large enough to foster wine cultivation, the Alentejo is your go-to.

The region is known as the breadbasket of Portugal, making it the ideal place to buy if you are looking to grow your own produce. Some of the best wines in the world also hail from here. From green rolling hills to hidden beaches, this region in Southern Portugal has much to offer. Should you be looking for land for sale in Portugal by the sea, then the Alentejo, along with the Algarve and Silver Coast, should certainly be on your radar. Working with a buyer’s agent or a real estate agent in Alentejo can come in handy when researching the local market.

Northern Interior

While northern Portugal has a milder climate than Southern Portugal, buying here provides excellent value for money. Much of the north of the county remains undeveloped, with stunning mountains, the Douro River flowing through the heart of the region, and the Gerês National Park, making it the perfect location for nature lovers. You’ll find many stunning river beaches here, as you also do in central Portugal. The Douro Valley is another stunning location to consider, where you can enjoy unrivaled views and get to grips with the very best of Portugal’s natural world. There is also a wide array of vineyards in this region.

If you are looking for land for sale in Portugal, this is another affordable part of the country to consider buying in. Buying property in Guarda, or land in this part of Portugal, can be an exceptional value for money.

Central Portugal

Buying land in central Portugal offers a unique blend of natural beauty, affordability, and cultural richness. Places to consider include Santarém, land close to Coimbra, and along the Silver Coast. The region boasts a temperate climate, picturesque landscapes, and a slower pace of life.

With a lower cost of living compared to many Western European countries, Portugal presents an enticing opportunity for investment or relocation, and the center of the country is particularly affordable. Additionally, its central location allows for convenient exploration of Portugal’s historic cities, including Lisbon and Porto, as well as charming villages nearby and the Silver Coast, which boasts staggering sea views to rival those in the Algarve.

The Islands: Azores and Madeira

Buying property in Azores or Madeira can be a smart idea, as property prices here are generally very affordable. If you want a unique lifestyle, these autonomous islands can be the perfect space for you. Both have incredible nature, top food choices, and a high quality of life.

Madeira is the more populous of the two, and Funchal, the island’s capital, has a distinctly cosmopolitan feel. The climate of Madeira is a key selling point, with the temperature remaining warm throughout the year. Meanwhile, the Azores, with its green rolling hills, hot geothermal springs, and viewpoints offering stunning views, is the perfect escape for those seeking a more relaxed pace of life.

If you are looking for land for sale in Madeira or the Azores, you’ll find prices to be quite affordable, with options to buy land close to the ocean.

Working with a buyer’s agent or real estate agent in the Azores and Madeira who is well-versed in the market can make the process of finding your ideal property much more straightforward.

Essential Documents for Buying Land in Portugal

When purchasing land in Portugal, you will need the following documents:

• Valid ID or passport
• Portuguese Tax Number (NIF)
• Proof of address (such as utility bills, bank statement, or driver’s license)
• Licensing & building permit
• Land registry certificate (Certidão do Registo Predial)
• Tax registry document (Caderneta Predial)
• Zoning & planning (PDM/Master Plans)
• Certificate of pre-payment
• Promissory Contract (CPCV)
• Final deed of sale (Escritura Pública)

Note: Additional documentation may be required depending on your specific situation.

How to buy land in Portugal?

The process to buy land in Portugal is relatively simple. As a foreigner, you must apply for a Portuguese tax identification number (Número de Identificação Fiscal or NIF), which is required for opening a bank account, signing contracts, buying or renting property, and paying taxes in Portugal.

Residents and non-residents can apply for a NIF at a local tax office (Finanças), a Citizen’s Shop (Loja do Cidadão), or through a fiscal representative. Below are the main steps for buying property in Portugal.

1. Work with professionals

When searching for land for sale in Portugal, you may want to hire a real estate professional and a real estate lawyer before you start making offers. Real estate agents or buyer’s agents can research Portugal’s property market, while legal assistance is critical to ensure you abide by local regulations and avoid any hidden debts. They can assist you with the property buying process from start to finish.

2. Where will you buy

Every investor looks for something different. Whether you are interested in real estate purchases by the sea, in rural areas, or near the city, you should choose a suitable location. Finding the right property depends on your needs and goals.

For example, if you want to move with your family, the land should be close to international schools, healthcare services, and local shops. The location for your property investment should have transportation nearby.

But, if you can afford more expensive land with access to Portugal’s nightlife and proximity to coastal resorts, then you can focus your property investment in areas like Lisbon, Porto, or the Algarve.

3. Do your due diligence

Although the market is stable, buying land requires meticulous due diligence. You must research the land’s legal status, including the seller’s details, boundaries, planning permissions, and any potential restrictions. This step prevents you from inheriting a debt or buying the property from someone who isn’t the rightful owner.

The primary challenge you may face when purchasing land plots in Portugal is the country’s zoning laws. Zoning & Planning (PDM/Master Plans) are regulatory instruments that define what can and cannot be built on every square meter of Portuguese territory.

Zoning laws affect the price of the land, your right to build a house, and the maximum size, height, and architectural style of any potential construction. They also determine whether the land is legally and financially viable for your investment goal.

A real estate lawyer in Portugal can offer valuable advice for performing due diligence on the land you want to buy and the seller.

4. Negotiating

Skilled negotiation can work in your favor, whereby you can secure a more favorable price. It can be wise to seek the help of a buyer’s agent to assist you with the negotiation phase of the property purchase.

5. Reservation agreement

To secure Portuguese land, you will often need to sign a Reservation Agreement and pay a deposit. This document outlines the terms of the purchase and takes the land or property off the market while you make your final decision.

6. Promissory Contract

The next stage is the Promissory Contract, also known as the Contrato Promessa de Compra e Venda. This contract formalizes the sale agreement. It includes details such as the purchase price, payment schedule, and any conditions that must be fulfilled before the final deed signing. It is often recommended to sign this document in the presence of a notary, although it is not mandatory.

7. Escritura (final deed signing)

The Escritura de Compra e Venda is the final step, where the property’s ownership is transferred over to the new owner. Both parties sign the deed in front of the notary, and the remaining payment is made.

Reselling Land in Portugal

In this section, we’ll delve into some key points to be aware of if you are considering reselling land in Portugal.

Market trends and potential for appreciation

The Portuguese land resale market is dynamic, driven by growing tourism and foreign investment. When buying land, coastal regions attract buyers seeking vacation homes, as well as tourists looking to rent out properties.

If you are looking to buy land to rent out, ensure that wherever you buy, there are good transportation links to encourage tourist footfall. There is also the potential for capital appreciation if you purchase land in Portugal, as its value is likely to increase over time. Commit to market research; it will pay off in the long run.

Factors affecting land resale value

Land’s proximity to urban centers, scenic beauty, accessibility to transportation, and potential for development significantly impact resale value. Zoning regulations, infrastructure projects, and nearby amenities such as schools and shopping centers play crucial roles in determining a land’s desirability and subsequent pricing.

Legal considerations and procedures

Reselling land in Portugal requires adherence to specific legal protocols, making it advisable to work with an experienced lawyer. Additionally, capital gains rax in Portugal will also apply when reselling property, although certain exceptions apply.

Finding the Land You Want

There are certain steps that you can follow to ensure the property buying process runs as smoothly as possible, whether you are looking to buy land to create a stunning country home in central Portugal or a beach house with sweeping views of the Atlantic Ocean. Here are some tips:

Online real estate platforms

The real estate market is fragmented in Portugal, meaning that there is no one-stop shop to find land or properties for sale. However, there are a few good ones that you can use as a starting point to get a sense of land and property prices and to learn more about the real estate market. However, bear in mind that online real estate websites can only get you so far, and nothing beats getting insights from local real estate experts. Word of mouth can also be a good way to get an idea about potential land for sale at a reasonable price, but be sure to consult with experts in the field.

Local real estate agencies and agents

You can use a property finder in Portugal to narrow down your search. They will also be able to provide you with properties that meet your needs and arrange viewings for you so that you are one step closer to finding the perfect strip of land to build your dream home.

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.