What Comes Next After Buying Land in Algarve?

Discover what comes after buying land in the Algarve. From understanding zoning rules to setting up utilities and hiring professionals, here's how to turn your plot into a successful project.

By LiveAlgarve on 11th April 2025 - 3-4 m. reading time 

Now that the paperwork is signed and the land is officially yours, you might be wondering, what’s next? Buying land in the Algarve is just the beginning of an exciting journey, but it isn’t always straightforward. It can be a complex process, especially if you're new to it. You probably have plenty of ideas, but there are just as many things to consider.

This guide walks you through the next steps after your purchase, helping you make the most of your land while avoiding common setbacks.

Understanding Zoning and Land Use Regulations

Not all land in Portugal can be freely developed. Not all land in Portugal can be freely developed. Local regulations determine what can be built, where and how. These rules help maintain sustainable growth, protect the environment and ensure properties are used appropriately.

Before making any plans, check the zoning classification:

• Urban land – Usually ready for construction but still requires permits.
• Rustic or agricultural land – May have strict limits on building, often only allowing small structures.
• Protected or ecological zones – Development is heavily restricted or even prohibited.

To confirm what’s allowed, visit the local Câmara Municipal (Town Hall) and review the PDM (Plano Diretor Municipal), which outlines land-use rules for the area.

Obtain the Necessary Permits

If you plan to build, you’ll need a Licença de Construção (Building Permit). This process involves submitting architectural plans to the local council for approval. A registered architect or engineer must prepare these plans and approval can take several months. Once granted, you’ll receive an Alvará de Construção, which is the final permission to begin construction.

It’s crucial not to start building without the necessary permits, as this can lead to legal issues or fines.

Setting Up Infrastructure

Many plots don’t come with immediate access to essential services, so setting up infrastructure is one of the first steps after buying land. Depending on the location, you may need to arrange for the following:

• Water & Sewage – If your land is in an urban area, you can usually connect to the municipal water and sewage system. In rural areas, you might need to install a borehole for water and a septic tank for waste management.
• Electricity – Portugal’s main electricity provider, EDP, can arrange a connection, but remote plots may require additional work, such as installing poles or transformers.
• Internet & Gas – Availability depends on the location. Fibre-optic internet is expanding, but some rural areas still rely on satellite or mobile networks. Gas connections are less common outside urban zones, so bottled gas or private tanks might be needed.
• Tidying Up Your Land – Before construction begins, it’s also important to clear and prepare the land. Overgrown vegetation, uneven terrain, or hidden obstacles like old wells and buried pipes can cause delays. 

Before finalising your building plans, it’s worth checking with local providers to understand what’s available and what will need to be installed.

Hiring Professionals

If you’re building on the newly acquired land, it is critical to ensure the process is done legally and efficiently.

• Architect or Engineer – Essential for designing your project and ensuring it meets local regulations. A professional will help navigate zoning laws, maximise land use, and obtain the necessary permits.
• Builder/Contractor – When choosing a builder, make sure they are licensed, experienced, and familiar with Portuguese construction laws. Poor workmanship or legal issues can lead to costly setbacks.
• Contracts & Agreements – Always have a clear contract outlining costs, timelines, responsibilities, and penalties for delays before work begins. This prevents misunderstandings and keeps the project on track.

Understand Taxes and Ongoing Costs

Owning land in Portugal comes with ongoing financial responsibilities. The main tax to be aware of is IMI (Imposto Municipal sobre Imóveis), an annual tax based on the land’s value. Some municipalities may also charge infrastructure fees, especially if roads or utilities are being developed nearby.

If you’re looking at land for sale in the Algarve, Live Algarve can help.