How to buy land in Portugal: a guide for UK buyers

Disclaimer: The information in this article is for reference purposes only. All information on this page should not be considered financial or tax advice. You are also solely responsible for calculating and paying your tax liabilities depending on the applicable law. All tax saving strategies or decisions should be made after thorough research and consultation with a qualified financial advisor.

Buying land in Portugal as a foreigner can come with many benefits. Portugal’s stunning beaches, intriguing culture, security and stable economy make it an appealing choice if you want to build a home, farm or are just looking for a safe investment.

However, if you intend to buy land from a non-EU country like the UK, there are a few things you need to keep in mind.

In this article, we'll provide a step-by-step guide on how to buy land in Portugal as a UK buyer. We’ll cover average prices, additional costs, and any legal requirements you need to know about.

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Can foreigners buy land in Portugal?

Yes, foreigners from anywhere in the world can buy land in Portugal. Portugal has a thriving international land economy that's open to residents and non-residents. In fact, according to a 2024 Engel & Völkers report, more than 50% of all property investments in the Algarve were made by international buyers, with UK citizens making a significant portion of the buyers.¹

As a UK citizen, you can buy land in Portugal to build, farm or hold as an investment without any restrictions as long as you have a local tax number (Número de Identificação Fiscal or NIF).

However, note that since Brexit, buying land no longer guarantees UK citizens residency in Portugal. If you hope to become a resident, you’ll need to get a visa or a residence permit through a different process. You can only stay in Portugal for 90 days in any 180-day period without a visa.

What to consider before buying land in Portugal

Buying land in Portugal as a foreigner can be an exciting journey with many advantages. However, there are a few things you need to consider to make sure the process is as smooth and secure as possible.

1. Usage flexibility: Land in Portugal is generally grouped into Urban (Terreno Urbano) and Rustic lands (Terreno Rústico). Urban land is buildable while rustic land is strictly for agriculture and is often cheaper. If you don’t yet have a clear idea of what to use the land for, it’s safer to choose land that you can use for both building and farming.
2. Lifestyle factors: If you intend to build on the land or live in Portugal, you should consider factors such as the cost of living, proximity to the UK, accessibility, and urbanisation. This ensures you end up with land that best aligns with your needs.
3. Local restrictions and planning permissions: Even if you purchase a buildable piece of land, there are still restrictions on the kind of building structure and construction you can carry out on the land. It’s always safer to consult the local planning guide before you buy land in Portugal.
4. Additional fees and taxes: The cost of buying land in Portugal extends beyond the land price, as you’ll need to pay taxes and other fees. For example, you could face currency exchange risks when buying land in Portugal as a UK citizen. Currency fluctuations, currency conversion fees and even transfer fees can significantly increase the total cost of buying land.
5. Legal background: Conduct a thorough legal check before you buy land in Portugal to avoid additional costs or legal issues down the line. If possible, hire an independent lawyer to verify the seller's identity and confirm that there are no debts, mortgages, or legal claims on the land.
6. Taxation: Keep in mind that UK inheritance tax also applies to Portuguese land. Additionally, you may need to pay capital gains tax in the UK or Portugal when you sell the land, depending on where you are resident when you sell it. Consider hiring a tax expert to avoid double taxation both in Portugal and the UK when you buy or sell the land.

How to buy land in Portugal from the UK

Buying land in Portugal from the UK doesn't have to be complicated. Here’s a step-by-step guide:

Get your finances in order

Budget how much you’re willing to spend on the land and any additional costs. Make sure you have the money readily available and already have a safe way to transfer large amounts across borders.

Get an NIF

You need a Portuguese tax number (Número de Identificação Fiscal) to buy any property or open a bank account in Portugal. You can get one from the Portuguese tax authority or, if you’re abroad, by appointing a fiscal representative.

Choose land you like

Check verified online real estate portals or work with trusted local agents to find a piece of land that meets your needs and is within your budget. Do your homework and consider factors like legal restrictions, returns on investment, and usage flexibility.

Get a surveyor

A surveyor can expertly assess the land and confirm details such as boundaries, land size, and accessibility. They will also check for flood, fire, and drainage risks.

Sign a reservation agreement

Negotiate the land price and make an offer. Once you and the seller agree on an amount, you can make a deposit (a percentage of the total amount) and sign a reservation agreement. This ensures the land isn’t sold to anyone else while you complete your purchase.

Sign a promissory contract

A promissory contract (Contrato Promessa de Compra e Venda) includes the terms of your purchase, and it’s often recommended to sign it in the presence of a notary.

Hire a lawyer

A lawyer can help you review the land's legal history and status, identifying any debts, legal disputes or restrictions.

Sign the Public deed

All land purchases in Portugal are finalised before a notary or another authorised official. After making the full payment, sign the public deed (*Escritura de Compra e Venda), *and the land is officially yours.

You don't necessarily need to open a Portuguese bank account to pay the land costs. Sign up with Wise online and you can send money worldwide for low fees* and mid-market exchange rates.

Register your land

Register your land at the local land registry (Conservatória do Registo Predial) to finalise the process.

Is land expensive in Portugal?

Land is relatively affordable in Portugal, though average land prices can vary significantly by region. Algarve, Lisbon and Porto are some of the most popular and expensive areas, while rural areas are much cheaper.

However, the land price is only a fraction of your total spend, as there are often other fees and costs when buying land in Portugal as a foreigner.

Here are some fees to look out for:

• (IMT) Property transfer tax: usually 0-10%²
• Municipal property tax: usually 0.3-0.5%²
• Stamp duty: 0.8% of land value³
• Notary fees: typically cost between €500 and €1,000³
• Registration fees: typically cost around €250³
• Legal fees: can cost 1-2% of the land price⁵
• Agency fees (if using one): 6% of the land price³

How much does a square metre of land cost in Portugal?

The average cost of buildable land in Portugal is about €1,800 per square metre, with prices as low as €100 per square metre in inland areas and as high as €3,500 per square metre in coastal areas.⁴

Where is the cheapest place to buy land in Portugal?

Rural areas usually offer the most affordable land in Portugal, and agricultural land is often cheaper than buildable land. Here are some areas with the cheapest land in Portugal:

Make your investment go further with Wise

Whether you need land to build, farm or simply hold as an investment, buying land in Portugal as a foreigner doesn’t have to be difficult. By hiring professionals and conducting due diligence, you can easily find a land that aligns with your needs.

Need a secure, convenient and low-cost way to pay for your land purchase in Portugal? Take a look at the Wise account from the money services provider Wise. It's not a bank account but offers some similar features and your money is safeguarded.

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**Investments in funds are never guaranteed and your capital can be at risk. In the UK, Interest and Stocks are provided by Wise Assets — this is the trading name of Wise Assets UK Ltd, a subsidiary of Wise. Wise Assets UK Ltd is authorised as an investment firm and regulated by the Financial Conduct Authority (FCA). Our FCA number is 839689. We do not give investment advice, and you may be subject to pay tax. If you're not sure, seek qualified advice. You can find more information about the funds on our website.

Sources used:

1. Idealista - Foreign property investment in Algarve
2. BeGlobalProperties - Property taxes in Portugal
3. BeGlobalProperties - Land for sale in Portugal
4. Portugal Buyer’s Agent - Land for sale in Portugal
5. Idealista - The real cost of buying property in Portugal

Sources last checked on: 26 January 2026.