What should I check before buying land to build a house in Portugal?

Can a mortgage pay for land in Portugal?

Yes, but the share depends on the bank. Some limit the loan to about half of the land's valuation, and others may lend more. Approval also depends on the project and your income. Our guide to construction loans explains how the money is released during the works.

How do I know if I can build on the land?

The city council gives the answer, based on the municipal master plan (PDM), which sets out what is allowed in each area. The advert, the seller's opinion and the property tax record (caderneta predial) are not enough.

Ask the city council or an architect to confirm:

• how the PDM classifies the land and what you can build;
• if the land is in the National Agricultural Reserve (RAN) or the National Ecological Reserve (REN), which limit building;
• if there are personal conditions, such as a minimum area or a minimum period of ownership;
• what road access and water, sewage and electricity networks are near the land.

What is a prior information request (PIP)?

A prior information request (pedido de informação prévia, PIP) is a formal question to the city council about whether a project is possible on the land. It gives you more certainty than a conversation at the counter, but it has costs, needs technical documents and does not replace the project. Portugal's planning rules were revised in 2026, so ask the council about the current procedure and how long a PIP is valid.

What is the difference between rural, urban and mixed land?

The classification changes the tax and may change what the bank accepts. In November 2026, Article 17 of Portugal's property transfer tax code (IMT) sets 5% for rural property and 6.5% for other urban property, which usually includes building land.

Mixed property has a rural part and an urban part. If you want to buy only one part, ask a lawyer or solicitor if it can be separated before you sign. Also check that the areas and property references match in the tax record and the land registry certificate.

If the land will be separated from another plot, check the certificate to see if it is already an independent property and if there are limits on dividing it. Also check that you will have your own access and connections: connections shared by a neighbour may not be accepted for the licence or by the bank.

Who may have the right to buy the land first?

It depends on the land and the situation. For rural land, Article 1380 of Portugal's Civil Code gives a right of first refusal to owners of adjoining land below the minimum farming unit (unidade de cultura), when the buyer does not own adjoining land. This means they can buy at the same price and on the same terms.

The seller must tell them about the planned sale, including the price and terms. A neighbour normally has 8 days to answer. If they were not told, they can go to court within 6 months of learning the main details of the sale.

Planning to build does not automatically remove this right. In a ruling of 23 May 2024, the Évora Court of Appeal asked the buyers to prove that the change of use was legally allowed. Ask a lawyer or solicitor to review your case.

This rule for neighbours is not the only one. The law also gives this right to co-owners, when one of them sells their share to someone else (Article 1409 of the Civil Code). In an urban regeneration area, the managing body may have this right when land is sold (Article 58 of Decree-Law 307/2009). For listed property, property being listed or property in its protection zone, the State, the Autonomous Regions and municipalities may have this right (Article 37 of Law 107/2001).

Which costs does the mortgage not cover?

Several costs come before the bank releases money for the works, and you usually pay them yourself:

• land survey and soil study;
• architectural project and engineering projects, such as water, sewage and electricity;
• licences and municipal fees, which vary by council;
• site preparation and utility connections;
• bank valuation and inspections, energy certificate, deed and registration costs.

As a guide, the quotes website Habitissimo showed in June 2026 about €6,500 for the architectural project of a house and about €400 for the energy certificate. These are estimates, and municipal fees vary widely. Ask for quotes and check the fees with the council.

An example with numbers

Imagine building land that costs €100,000, with that amount as the tax base. If the bank lends 50%, you need €50,000. At 6.5%, IMT is €6,500. Stamp duty at 0.8% is €800. In total, you need €57,300 of your own money before projects, licences and building work. These are example figures.

In what order should I do things?

1. Ask the city council if you can build and, if in doubt, submit a PIP.
2. Get the land registry certificate and the tax record to check the owner, any charges and the areas.
3. Ask for a mortgage feasibility check that covers both the land and the works.
4. Ask a lawyer or solicitor to make the promissory contract (CPCV) conditional on building permission, loan approval and any right of first refusal.
5. Pay the deposit only when the contract protects you on these points.

How FINOVA helps

We assess the mortgage for the land and the works, and take your case to suitable banks. Legal and planning questions stay with your lawyer, solicitor, architect and the city council. Our fee is paid by the bank.

Sources

• Portuguese Tax Portal — IMT Code, Article 17 (in Portuguese)
• Portuguese Civil Code, Article 1380 (in Portuguese)
• Évora Court of Appeal — Ruling of 23 May 2024, case 1804/20.3T8FAR.E1 (in Portuguese)
• Diário da República — Portuguese Civil Code, Article 1409 (in Portuguese)
• Decree-Law 307/2009 (urban regeneration), Article 58 (in Portuguese)
• Law 107/2001 (cultural heritage), Article 37 (in Portuguese)
• Portuguese Order of Architects — Summary of the 2026 planning rule changes (in Portuguese)
• Habitissimo — Architecture cost estimates, updated 10 June 2026 (in Portuguese)

Sources checked on 4 November 2026.