Buying & Selling

Building and renovating a house in Portugal

Two real estate experts provide tips on building and renovating a house in Portugal.

Renovating a house in Portugal

By Gaifem Ramos Lda

Updated 8-1-2024

You’ve made the main decision to live in a foreign country. Having chosen Portugal, it’s clear that you’ve made an excellent choice. In our architectural and building practice, we have worked for several foreign clients and assisted them with the problems and difficulties they usually face when building or renovating a house. We share our advice and experience here.

Advice on building and renovating in Portugal

Before you buy, get advice from someone who has been through the same process and can guide you. You may also want to hire a dependable real estate agent.

Once you’ve obtained such advice, here are some further in-depth points to consider.

Think carefully about the location: if you’ve found a nice property or ruin/old house and you want to build/renovate, it is absolutely crucial to familiarise yourself with the legal implications of that region. Make sure you’ll be permitted to build.

Don’t end up with a piece of rural land where you can do nothing but plant vegetables! Most places can be checked fairly easily through a contact in the local town council or checking out the official documents. Valid building licenses or official plans or maps prove the location is in a buildable area.

Are any projects already approved?

Occasionally previous owners have already developed projects that have been approved by local authorities, in which case you should verify that they are valid and official. Approved projects are usually valid for a year (although the period can be prolonged).

If you decide to build/renovate yourself, you will have to obtain the relevant council permit.

Small interior works and certain outside works that don’t change the exterior shape and look of a structure don’t require a paid license, but you will always need a declaration of legality from the authorities.

Hiring an architect

For other major works, you should hire an architect to develop a project to present to local authorities. To choose this crucial partner in the whole process, rely on other people’s experiences. Visit other completed projects to see what and who suits you best. During this phase, make sure that the project you are developing accurately represents what you want. This prevents making alterations in future works, which can lead to costs spinning out of control.

Typically, the architectural project is approved first. To obtain a building license, you must order several other technical and engineering projects (e.g., structural, electrical, hydraulics, communications). They also need to be approved by local authorities and independent organizations.

This process can be somewhat complex and slow, depending on a variety of factors. The complexity of the project and the number of local authorities involved are some potential hurdles. In some councils, the details required can be incredible and the whole process can become very difficult at one point or another for everybody involved. Don’t lose hope–this is not abnormal.

How long will the development take?

It is difficult to give an estimate of the total time necessary as it depends on which council is responsible for where you are developing your house. Be prepared to wait for several months.

Make sure that your architect keeps you informed of all the steps involved in the process. After approval, you must pay a variable amount for the building license, which in some councils is still very low.

In the meantime, you can start contacting construction firms to get a total budget for the works in question. You can also decide to order separate quotes for individual parts of the project (which can lower costs). In this case, you must absolutely know someone whom you trust completely to assist you.

Always get at least three budgets (again from recommended and trusted firms whose previous projects you’ve seen), and make sure that all aspects of the construction are included and previewed–technical aspects and building methods as well as materials and finishes. Don’t always go for the cheapest quote, because this choice can turn out to be the most expensive in the long run. Choose the firm that gives you the most confidence through previous works and information from friends.

During construction try to be present as much as you can, because this will help you to control all aspects of the process much better.

When you should pay

Payments should be agreed on beforehand, and although a first payment is usually at the beginning of construction, don’t make any more payments after that until the work is done. Be very careful with extra works–sometimes construction firms rely on that to make some profit after giving cheap estimates!

After construction, all is not quite yet over! You must obtain the necessary water, electricity, communications and gas supplies and also pay for the respective connections.

Finally, don’t forget that you have to register your new house and, of course, pay the respective tax!

Despite the long list of things to think about, don’t be alarmed!  These are just general warnings that should be taken into account no matter where you are. The whole process can run very smoothly and you’ll have your brand new dream home, just like you imagined, in our beautiful country!