Buying a property off-plan (em planta) can be an attractive opportunity, whether you want a home of your own or an off plan investment. Off plan property is a home you commit to buy before it is finished, on the basis of plans, specifications and a contract. Before you reserve, it is essential to understand the advantages, the risks and the legal protections of buying off-plan in Portugal.
We are a developer, so this is what we would want a careful buyer to check, including with us. It is general information, not legal advice: use an independent lawyer for your own purchase.
Buying early may secure a more competitive price and a wider choice of homes within a project. Appreciation up to completion is possible, but not guaranteed.
One of the main advantages of buying off-plan is the chance to secure a more competitive price at an early stage of the project. As construction progresses, demand may increase, availability may decrease and the developer may adjust the prices of the units still available. Those who buy earlier may therefore benefit from a possible appreciation up to the completion of the works.
The early stages usually offer a wider choice of layouts (tipologias), floors, sun orientations and views, and there may be some room to customise finishes, depending on the construction stage and the agreed terms. For a family, floor and orientation decide how light moves through the home. For an investor, they shape who the home will suit.
A rise in the prices the developer announces does not necessarily mean the property has appreciated in the same proportion. Market trends, actual demand, location and the final quality of the project are the deciding factors. For any off plan property investment, that is the honest frame: a possible advantage, never a promised return.
Statutory liability periods for defects are an important protection for anyone buying a new home in Portugal. They protect the building, not the money you pay while it is being built. Many of the risks of buying off plan sit in the gap between the two, so check each separately.
Properties covered by the consumer protection regime in Decree-Law No. 84/2021 benefit from statutory liability periods for lack of conformity: 10 years for structural building elements and 5 years for other lack of conformity. It has applied since 1 January 2022 to consumers buying a home from a professional seller. Remedies are repair or replacement, a price reduction or termination. Report any defect in writing as soon as you find it.
Portugal has no NHBC-style new build warranty insurance by default; the legal regime is what you rely on.
Off-plan purchases normally run on the promissory contract Portugal uses for property sales, the Contrato-Promessa de Compra e Venda (CPCV). It sets out the terms, the price, the payments, the completion deadlines and the consequences of default. For a home still being built, it must be in writing, with signatures recognised in person and certification that the use or construction licence exists.
The law gives you real remedies. Any sum you pay is presumed to be a deposit (sinal). If the developer defaults, you can claim double what you paid; if you default, you lose it (art. 442 of the Civil Code). You can instead ask a court for specific performance (art. 830), a right that cannot be waived for buildings. A court can complete a sale. It cannot finish a building.
Even so, the CPCV does not, on its own, guarantee the immediate recovery of the sums paid in every circumstance, particularly if the developer faces financial difficulties or insolvency. The double-deposit claim is only as good as the developer’s solvency: in an insolvency, a buyer who doesn’t yet have the property can find it hard to recover. Ask your lawyer.
Before signing, check:
Know the payment schedule and the developer’s obligations in detail, check the tolerance margins for area, and read the schedule of finishes with its substitution rules.
Ask whether payments are linked to construction stages, what the expected deadlines are and what consequences are set for delays. There is no legal payment schedule for off-plan in Portugal; the contract sets it.
Typical market practice, not any particular developer’s terms (ours included), runs from a reservation fee to a CPCV deposit, commonly around 10% and sometimes 20–30%, then stage payments tied to construction milestones and the balance at the deed (escritura). Banks lend at the deed, so stage payments come from your own funds. If the plot carries a developer’s mortgage, as is common, the deed normally depends on its release for your unit (distrate).
Small differences in areas or measurements may occur during construction. The CPCV and its annexes may set limits for these variations and define price adjustments, for reductions and increases alike, according to the agreed terms.
The schedule identifies the materials, equipment and features the home is to include. Confirm when substitutions or changes may occur, and make sure the rules are clear and compatible with the developer’s legal obligations. If you see “or equivalent”, ask what “equivalent” means. At handover, check the home against the schedule and put any differences in writing.
None of these clauses allows arbitrary changes to the project or automatically makes a price increase legitimate. Contractual clarity avoids disputes and protects both parties.
To buy off plan property with confidence, check the developer’s track record, the documentation and the contract before you make any financial commitment.
Check the developer’s completed projects and look for references on construction quality and on meeting deadlines: visit finished buildings, speak to past buyers and learn how to judge construction quality. Then the formal checks: the builder’s licence (alvará) on IMPIC’s website, the developer’s commercial registry certificate and an insolvency search on Portal Citius.
Confirm the land and project documentation, the planning status and the applicable licences. The Land Registry certificate (certidão permanente) for the plot shows the owner and any mortgages.
Since 1 January 2024 (Simplex reform, DL 10/2024), the use licence (licença de utilização) no longer has to be shown at the deed. The home still has to be authorised, so checking the habitation licence, Portugal’s authorisation for residential use, now falls to the buyer; banks generally still ask for proof. Ask for the design-stage energy rating too.
For an investment, these are the documents a buyer should ask to see.
Ask your lawyer to look closely at the clauses on:
Pressure to pay quickly, missing documentation, or unclear answers about licences and guarantees are warning signs. So are a CPCV with no licence reference, a refusal to discuss any guarantee, and payments tied to dates rather than progress. Each is a reason to pause and ask more.
Off-plan may suit buyers looking for a potentially favourable entry price and a new home, who can wait for the works to be completed. Possible appreciation and the chance to choose certain features can be an advantage. Resale lets you visit the property, assess its state of repair and know better what you are buying, and may suit those who need to move in within a predictable timeframe. The choice depends on your goals, financial capacity and risk tolerance. Either way, budget for taxes, financing costs, maintenance and any adaptation or renovation.
The new build vs old house question comes down to what you need to see before you commit, and when you need the keys.
Off plan property vs resale in Portugal at a glance
Off-plan | Resale | |
|---|---|---|
Entry price | Potentially more competitive at an early stage | Market price of an existing home |
Appreciation | Possible during construction, not guaranteed | Depends on the market |
What you can see before buying | Plans, schedule of finishes, documentation | The property itself and its state of repair |
Choice and customisation | Wider choice of layout, floor, orientation and views; some room on finishes, depending on stage and terms | What exists |
Timing | You wait for the works to be completed | Suits a predictable move-in timeframe |
Typical payments | Deposit and stage payments from own funds; mortgage at the deed (typical) | Deposit at the CPCV; balance and any mortgage at the deed |
Legal protections | CPCV rules and remedies; a bank guarantee only if negotiated | The same CPCV rules and remedies, plus your lawyer’s checks |
Warranty | Statutory: 10 years structural, 5 years other (professional seller) | No consumer warranty from a private seller |
Purchase taxes | IMT + 0.8% stamp duty; no VAT on the price | Same |
Costs to plan for | Taxes, financing costs, maintenance | Taxes, financing costs, maintenance, adaptation or renovation |
Suits | A favourable entry price and a new home, if you can wait | Certainty and a predictable move-in |
Note: These rules are new and may be refined, so please check the latest legislation (Decree-Law 97/2026) before relying on them for a purchase decision.
Resale has its own checks, because you inherit the property’s history: the certidão permanente and caderneta predial, whether every built element matches the licensed plans, and the condominium’s declaration of debts. Waive it and you take on the seller’s condominium debts.
If you are working out how to buy off plan property, start with three fundamental questions you should be able to answer before going ahead:
Buying off-plan can be an opportunity to secure a competitive price and benefit from possible appreciation during construction. But a good investment does not depend on price alone. It requires a reliable developer, proper documentation, a well-structured CPCV and transparent rules on payments, guarantees, finishes and variations in area.
Buying early can be an advantage; buying well-informed is essential.
If you are considering new developments in the Algarve, you are welcome to ask us these questions directly, or to ask to see a project’s documentation
It can be. Buying early may secure a more competitive price, a wider choice and possible appreciation up to completion. That appreciation is not guaranteed: market trends, demand, location and the project’s final quality decide it.
Delays, changes to what was contracted, and the developer’s financial difficulties. Each has a check: delay clauses in the CPCV, clear substitution and tolerance rules, and a guarantee protecting the sums you pay.
No. Bank guarantees, insurance bonds and escrow are negotiated in the CPCV. Before signing, check whether one exists, the conditions for calling on it and which situations it covers.
The CPCV alone does not guarantee the immediate recovery of sums paid in every circumstance. In an insolvency, a buyer without the property can find the double-deposit claim hard to recover, which is why a bank guarantee matters. Ask your lawyer.
For a consumer buying from a professional seller, DL 84/2021 sets liability for lack of conformity of 10 years for structural elements and 5 years for the rest. Report defects in writing as soon as you find them.
Yes, but the bank lends at the deed, so earlier payments come from your own funds. For buyers from abroad, see our guide to mortgages for non-residents.
