Lisbon Land for Sale: Your Complete Guide

 

The bustling city of Lisbon is legendary. From the incredible gastronomy, vibrant festivals, and sweeping views of the Tagus River, if you’ve visited Lisbon’s capital, you’ll know what the hype is about.

While Lisbon city itself presents an array of attractive real estate options, for those seeking to build from the ground up – perhaps you’d like to construct your dream home from scratch to meet your specific requirements – you’ll find reasonably priced Lisbon land for sale close to the city.

In this article, we’ll provide you with a brief overview of Lisbon’s property market, before delving into how you can go about securing land for sale, in addition to practical information that is sure to come in handy if you venture down this route.

Introduction to Lisbon's Real Estate Market

Lisbon’s property market has moved from strength to strength in recent years, establishing itself as a top contender for investors seeking a stable country with plenty of investment potential and a high quality of life.

The average asking price for property in the Lisbon Municipality stood at €4,061 per square meter in 2024, with strong rental yields standing at 6.7.

While buying land is the more affordable option than buying a new property, you will find the Lisbon area to be more expensive, given the high demand amongst property buyers in this highly sought after part of Portugal. However, given the allure of Lisbon, it is highly likely that the value of property and land here will increase in the future as demand continues to rise.

Exploring Land for Sale in Lisbon, Portugal

While Lisbon is known as the stunning capital of the country, where tradition and modernity fuse perfectly together and where the intricate architecture makes it one of the most unique capitals in Europe, you will find stunning countryside and land for sale in the Lisbon municipality.

Prime locations for Lisbon land for sale

Where you buy land around Lisbon will completely depend on your specific requirements. It can be a good idea to spend some time in the region to get to grips with the different areas and to see which part could be a good option for you.

Below, we delve into some of the top locations to consider snapping up property close to Lisbon.

Sintra

The cultural landscape of Sintra is a UNESCO World Heritage Site.

This part of Portugal and one of the best to live in should you like to be surrounded by nature.

With the Sintra-Cascais Natural Park the perfect spot to enjoy hiking, biking, or relaxing on one of the many beaches close by, such as Praia das Maçãs.

Cascais

For luxury lifestyle buyers, Cascais is the perfect spot. With a wide range of fine dining spots, beautiful beaches, and a high-quality life guaranteed, it is difficult to find a better location than this charming seaside town, just a 30-minute drive from Lisbon’s city center.

Here you are also close to some of the very best international schools in Portugal, such as St Dominic’s and IPS Cascais.

Setúbal

With a high number of expats, incredible landscapes, and close proximity to some of the best ocean views in Europe, Setúbal is perfect for those looking to absorb the magic of Portugal.

The Reserva Natural do Estuário do Sado is nearby, as is the luxury resort of Tròia and, further south still, Comporta and Melides, for those seeking unrivaled luxury splendor in the midst of nature.

Sessimbra

Looking for some of the very best beaches in Portugal?

In Sessimbra, you’ll be spoilt for choice, with beaches such as Praia das Bicas and Praia dos Galapinhos top options.

Should you buy land here, you’ll also be next door to Setúbal, so you can enjoy the perks of city life. Lisbon is also less than an hour away.

Mafra

For easy access to the stunning locations on the Silver Coast, such as Ericeira, consider buying property in Mafra, to the northwest of Lisbon. This charming city and municipality is home to the famous Mafra Cathedral and Mafra Palace. For those seeking a quiet countryside abode, plus excellent transport links to both Portugal’s Silver Coast and Lisbon, Mafra is a solid option.

Almada

To the south of the River Tagus, you have Almada, where you’ll find property prices – and land – to be very affordable. With quick access to top beaches, such as Costa da Caparica, and stunning views of Lisbon, Almada is coming into its own as a top investment location as more investors check out the perks of buying on this side of the river.

Quite a few terrific restaurants serving delicious seafood can also be found here, attracting Lisbon residents seeking out an unforgettable dinner with a view.

Lisbon Land for Sale: What You Need to Know

If you are considering buying property in Portugal, investing in land can be a very economical option. Plus, you’ll be able to create a space completely to your preferences. With this said, there are certain factors that you’ll want to bear in mind.

From outlining costs to risks, in this section of our article on Lisbon Land for Sale: Your Complete Guide, we’ll delve into crucial information that you should bear in mind when investing in land in Lisbon.

Cost of land in Lisbon

Generally, the price of land is much more affordable than if you were to buy a new property. The biggest advantage, however, comes with the ability to literally build your dream home from scratch, creating the perfect property for you and your family.

To give you some ballpoint figures, prices can reach as low as €100-€300 in interior parts of the country, but in the Lisbon municipality, expect to find prices a little higher. And, in terms of construction, costs will set you back around €2,000 to €2,500 per square meter.

Construction costs will obviously vary depending on the type of property you want to construct, the amenities you want the property to have, the outdoor space, and, most importantly, the level of “luxury” you want to achieve.

Also, bear in mind that there may be unexpected costs that could eat into your budget, such as additional building materials that may be required. We recommend adding 5-10 percent to your construction budget to account for additional construction costs that could creep up on you.

Take the timeframe into account

When buying land in Portugal, it is crucial to think about the timeframe. It can take time to build a property from scratch, usually more than three years. Incorrect timing estimates, changing the scope of the nature of the construction, and delayed permits and approvals can also cause the project to take longer. Keeping up to date with developments and being aware of any delays is crucial to keep things on track.

If you want to move into the property in the short term, then you should maybe reconsider. But, if you be looking to move into the property in a few year’s time, then building from scratch can be perfect, as you can build the perfect home based on your own preferences, putting your unique stamp on it.

Obtaining a building permit

In order to build in Portugal, you will need to get a construction permit (Licença de Construção) from your local municipality. To get a building permit in Portugal, you’ll need to draw up a contract for your project and, for this, we highly recommend having a lawyer by your side to make sure you include all the required information.

The contract is then signed by a certified construction company of your choice. They will need to be registered with the Institute of Public Markets, Real Estate and Construction (Instituto dos Mercados Públicos, do Imobiliário e da Construção ,IMPIC) and construction will need to be supervised by an architect or engineer.

To make sure the building process runs as smoothly as possible, you should have a project manager by your side to overview the process and advise on any delays that could crop up. They will be able to give you regular updates and, particularly if you don’t speak the language or are unfamiliar with the process, will be invaluable.

Zoning and planning regulations

You should bear in mind that Portugal has zoning laws that can dictate how land can be used. This is to ensure that any planned development and urban expansion preserves the natural beauty of Portugal. If you are contemplating buying land in the country, make sure to take this into account so that you can actually construct on the land you have purchased.

In addition to this, make sure that there are no environmental restrictions. If there is a designated area of natural beauty, for example, then you may not be able to construct there. Working with a lawyer will ensure you face no issues on this front.

Challenges and risks

Perhaps the greatest risk with buying land in Lisbon, as with investing in any type of property in the country, is related to due diligence. Make sure that you thoroughly research the legal status of the land and the seller to make sure that they have the right to sell. Also, make sure to check boundaries, planning permissions, and potential restrictions.

While not a legal requirement, we highly recommend seeking the assistance of an experienced real estate lawyer in Lisbon who will be able to check both the property and the land and make sure you will face no issues or unexpected costs further down the line.

Property taxes in Portugal

Alongside the property cost, you will need to pay property taxes in Portugal. Taxes will fall either at the time of purchase – Property Purchase Tax (IMT) and Stamp Duty – or on an annual basis, which will include Municipal Property Tax (IMI).

You can find out more about the taxes that you will be required to pay in our article, Property Taxes in Portugal 2024: An Overview.

Step-by-Step Guide to Buying Land in Lisbon

It can be daunting to know where to begin when buying property or land in your own country, let alone in a country where you may be unfamiliar with the language, the real estate market, and the buying process.

To provide you with a brief overview of the key steps to the process when it comes to buying land in Portugal – and keep things as simple as possible – we’ve broken this down for you.

To buy property in Portugal, you will need to have a NIF number (Portuguese tax identification number) and we highly recommend opening a Portuguese bank account to save on transaction costs. If you are a non-EU citizen, you will need to have a fiscal representative to get your NIF number.

Step 1: Financing

The first step is to consider financing and, if needed, get in touch with a mortgage broker to determine what type of mortgage in Portugal you will need. There are more than 15 banks in the country that provide mortgages to foreign buyers, but make sure you take the time to research and understand which is the best option for your personal situation. When you have determined your budget, this will also help you to filter properties, in this case land, more easily to find land that fits in with your budget.

Step 2: Finding land that meets your requirements

The next step is to research the market to get a rough picture of what you can expect to purchase and ballpoint prices. Following this, we highly recommend seeking the assistance of a real estate agent who will be able to pinpoint specific properties that meet your requirements. There is no one place to find all the real estate listings, so working with local experts is the only way to get a comprehensive picture of the market.

Step 3: Negotiating

Once you’ve found your ideal plot of land, the next stage is the negotiation phase. Again, a real estate agent will be able to assist you here, striking the right balance so that you can secure the property at the best price. It’s worth bearing in mind that real estate agents work on behalf of the seller, which can lead to a conflict of interest. Buyer’s agents, meanwhile, work on behalf of the buyer, protecting your interests.

Step 4: Reservation Agreement and Promissory Contract

The next step is often to sign a Reservation Agreement, which basically means that the property is taken off the market while you make your final decision. Usually, a fee of €5,000- €15,000 is paid, although this is usually deducted from the property price.

Following this, the Promissory Contract or Contrato Promessa de Compra e Venda (CPCV) is signed. The CPCV solidifies the transaction, formalizing the sale agreement and contains information such as the property purchase price, payment schedule, and any conditions that need to be completed before the final deed signing can take place. We recommend that the CPCV be signed in front of a Notary.

Step 5: Final deed signing

The final part of your property-buying journey is to sign the final deed, known as the Escritura, where you will make the remaining payment. Signing the Escritua is transfers the ownership of the property over to you and is signed in front of a Notary.

Investment Potential of Investing in Land in Lisbon

If you are looking to invest in land for sale in Lisbon Portugal, you’ll find great potential for it to be a profitable venture. The real estate market in and around Portugal’s capital is booming and has been growing at a rapid rate over the past few years.

Sintra, for example, has average rental yields of 6.3 percent, while Almada – which is set to increase in popularity in the coming years – has rental yields of 6.2 percent.

As demand continues to grow, you will also find strong potential for your property, once built, to increase in value over time.

Is buying land in Lisbon right for you?

As we’ve mentioned, if you are considering buying property in Lisbon, investing in plots of land is generally a more affordable move than investing in a new build, even with the construction costs. The only factor to bear in mind when contemplating looking into Lisbon land for sale is the timeframe, as it can take some time to build from scratch.

Ultimately, though, buying land to build from the ground up provides you with the unique ability to create your dream property completely to your requirements.

While building your own property from scratch can be challenging, it is a rewarding endeavor and offers personalization that you will not be able to obtain otherwise. So, is buying land in Lisbon the right option for you? Only you will be able to answer this as it will depend completely on your current situation and what you want from your property.

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.