We are currently living in a time when real estate prices are very high. In this sense, many Portuguese are unable to afford the high cost of buying a house and are trying to find other options.
One of these is buying land to build on. This solution allows you to adjust the construction to your economic possibilities, as well as being able to decide all the details about the ideal house you are going to build.
Which plot to buy?
Buying land and building a house is a valid decision, but it requires a series of procedures, from the moment of purchase to the implementation of the project. It's a process that takes time, as there are many factors to consider. Before you decide to buy a plot of land and sign the promissory contract, you should take care to:
- Check whether it is feasible to build on. You can check this information at the Town Hall where the land is located;
- Consult the Municipal Master Plan (PDM), which has information on the plans and regulations;
- Check whether it is in an Urban Area of Illegal Genesis (AUGI);
- Identify whether you can easily access basic sanitation, water and electricity;
- If it is part of a subdivision, it is important to check the latest version of the subdivision permit to make sure everything is in order.
- Another aspect to pay attention to is the characteristics of the land you're buying. Depending on the location, topology and area, the cost of construction may be higher or lower. You should consider:
- Access to the land (including drainage, water and electricity);
- Whether it is flat, sloping or uphill. If you're looking for a cheaper option, you should look for a flat plot, as the other types involve more expense (cutting into the land, walls, stairs, water drainage, etc.);
- The boundaries of the plot, the permitted construction area and maximum implantation area.
Land with or without an approved project
When it comes to buying land, many questions arise, one of which may be whether to buy land with or without an approved project. Once again, before you make any decisions, you should know the differences between land with an approved project and land without an approved project. By being informed of the implications of each type, you can save money and hassle in the future.
If the land is not part of a subdivision, you will have to:
- Submit a licensing project to the town hall;
- Apply for a building permit at a later stage;
- Apply for a housing license at a later stage.
- It's important to bear in mind that in the case of land without an approved project, getting the license and complying with all the necessary requirements up to the construction phase can be a lengthy process, always depending on the Town Hall in question.
If you prefer to buy land with an approved project, probably:
- The land must have the licensing project authorized;
- The building permit must be ready to be picked up.
We say probably because sometimes the owners say that the project has been approved and what happens is that the land is only pre-approved, and authorization from the Town Hall is still required.
You should also bear in mind that when you buy land with an approved project, the house has to be built as it is in the project. In other words, if you want/need to make any changes, you may not be authorized to do so.
Types of land
- There are three types of land: urban, developable and rustic. Before you build, it's important to know all their characteristics, so you don't end up buying land you can't build on.
- Urban - This is land that is suitable for building, with all the basic conditions in place, such as water and electricity. It's usually in an area with a street, sidewalk and lighting;
- Urbanizable - This is land that hasn't yet been provided with the aforementioned conditions, but has the possibility of being urbanized. Before buying this type of land, you should find out how much it will cost to bring in water, electricity, etc.;
- Rustic - This is land that is incompatible with urban development, so it is not allowed to be built on.
- Documents needed to buy land
- Before you buy land, you need to gather a series of documents so that you can be sure of what you're buying. That way, if you're asked for any of these items later, you'll already have them in your possession.
- Municipal Regulation of Fees related to urban planning activities and related operations;
- Land registry certificate;
- Caderneta predial;
- Municipal Master Plan;
- Licensing project (if it's part of a subdivision);
- Building permit (if it applies to the land you're buying);
- Housing license (if applicable).
Taxes to pay
- Although the idea is to buy a plot of land to save money, there's no escaping the taxes you'll have to pay. You should be aware of these costs and count on them before you make the purchase.
- Municipal Regulation of Fees related to urban planning activity;
- Municipal construction fees;
- Urban planning fees and urban compensation fees;
- Municipal Transfer Tax (IMT) - Paid at the time of purchase;
- Municipal Property Tax (IMI) - Paid annually;
- Additional IMI (AIMI) - Charged annually when the property value exceeds 600 thousand euros.
Source: Idealista/News