Buying land to build on can be an alternative to buying a house

Buying land to build on can be an alternative to buying a house, traditionally already built and ready to move into. In this situation, you'll have to realise that it's a lengthy process and involves some bureaucratic procedures, but that in the end, once it's done, it's advantageous and even more economical.

From the conception of the project to the execution of the work, building a house can be the most viable option for those who want a tailor-made house within the limits of their available budget, and the first step to achieving this is to buy a plot of land on which to build a house. In this step, you need to take into account aspects such as the feasibility of building and the characteristics of the land.

First of all, you need to check whether it is possible to build on the land you are interested in and whether it is located in an Urban Area of Illegal Genesis. If it's on an allotment site, you should consult the most recent allotment licence, check that everything is in order and pay attention to the characteristics of the land, namely whether it's sloping or uphill. It's best to look for flat land, as other types will always involve more costs.

Key points to look at before going ahead with the purchase
Check the land's documentation and consult the Municipal Master Plan to validate its plans and regulations;
Pay attention to the morphological characteristics of the land - check for water tables, check the characteristics of the soil and check the slopes of the land;

Confirm whether or not the land is part of a subdivision (you can consult the latest version of the licence and the detailed plans);
Check whether or not there is already an approved project;

Analyse the location, solar orientation, whether there are any derogatory factors around the land or whether it will not serve as a passageway for others.

Approved projects vs. unapproved projects
It is essential that you analyse all the variants explained above, as you will obtain crucial information on whether or not you can go ahead with the construction of your property. In this case, one of the most important is to understand whether or not the land is part of a subdivision.

If it isn't, it means there won't be an approved project, which means you'll have to submit a licensing project to the town hall and, at a later stage, apply for a building licence. Once these documents are in place, you must apply for a housing licence for the property so that you can live in it.

In the case of land without approved projects, you have to fulfil all the stipulated requirements in order to get the licence and, until the construction phase, it will take time and patience, depending on the pace of work of the town hall where your land is located.

On the other hand, if you buy land with an approved project, it will most likely already have an authorised licensing project and a building permit ready to go. However, you should be aware that if you buy a plot of land with an approved project, the property has to be built exactly as it is designed in the project, so if you want any changes or rectifications, you may not be authorised to make them.

What documents do I need to buy a plot of land?

Habitation licence, if applicable;
Building licence, if applicable;
Licensing project, if part of a subdivision;
Municipal Masterplan;
Land registry;
Land registry certificate;
Municipal Fees Regulations for urban development activities and operations related to the municipality.
If you have these documents together, you'll have more security when you go ahead with the purchase of the land, as they are documents that can be requested at a later stage.

What taxes will you pay?

Although it's a cheaper option, there's no escaping the taxes involved in buying a property. In the case of a plot of land, these are as follows:
Municipal building taxes;
Urbanisation fees and urbanisation compensation fees;
Municipal transfer tax (IMT);
Municipal Property Tax (IMI);
Additional IMI (AIMI).

Are you ready to move forward? Check out the unmissable opportunities available for sale at OUR HOME PORTUGAL !