Have you ever dreamed of owning a beach house in Portugal? With over 900 km of coastline, golden beaches and more than 300 days of sunshine a year, it’s no surprise that many foreigners dream of living by the sea. But how much does it actually cost to build a house on the coast, and what do you need to know before starting the process?
In this guide, we explain everything — from the permits and legal requirements to the average construction costs per square metre. We’ll also compare whether it’s better to build your own home from scratch or buy a ready-made villa by the beach.
What do you need to build a house by the sea in Portugal?
Building a home on the Portuguese coast is possible, but it requires careful planning. Before you start, you should consider the legal aspects, choose the right construction company, and prepare for additional costs. Here are the essentials:
- Choose the right plot of land: check the location, views, accessibility and surroundings. Visit at different times of the day to understand the light, noise levels and atmosphere.
- Check the Municipal Master Plan (PDM): this confirms whether construction is allowed on the land and what type of building is permitted.
- Land registry and property tax documents: these confirm ownership and the legal status of the plot.
- Taxes and fees: including IMT (property transfer tax), IMI (annual property tax), AIMI (additional property tax, if applicable) and urban planning fees.
- Project approvals: your project must be approved by the local council, covering utilities such as water, sewage, electricity, gas and telecoms.
- Licensed builder: always work with a construction company registered with IMPIC and holding a valid licence.
- Contracts and documentation: make sure you have a clear construction contract, bill of quantities, payment schedule and detailed quotations.
- Health and safety requirements: a safety plan and coordinator may be needed depending on the size of the project.
How much does it cost to build a beach house in Portugal?
Building near the coast is often more expensive than inland or in the city. Coastal land prices are higher, and construction must follow strict rules and use durable materials resistant to sea air, humidity and salt corrosion.
Project and documentation costs
- Architectural project: €5,000 – €8,000
- Engineering and speciality projects: €2,500 – €4,000
- Energy and acoustic certification: €500 – €1,000
Extras such as swimming pools, landscaping or outdoor living spaces can significantly increase the budget.
Licences and taxes
When buying a plot, you’ll need to pay:
- IMT (Municipal Property Transfer Tax) at purchase.
- Annual IMI (Property Tax).
- AIMI (Additional Property Tax) only applies if the taxable value of your property exceeds €600,000.
Construction costs per square metre
The average construction cost for a beach house in Portugal ranges from €850 to €1,500 per m², depending on materials and finishes.
Remember that:
- Finishes (interior and exterior) usually account for 20–30% of the budget.
- Premium finishes such as natural stone, hardwood floors or high-end kitchens will push the total cost higher.
- Future refurbishments, especially interior updates, should also be considered.
Landscaping and swimming pools
- A simple garden may start from around €200.
- A swimming pool with decking will cost at least €10,000, plus ongoing maintenance.
How much does land by the sea cost in Portugal?
The price of land near the coast varies significantly depending on the region, views and infrastructure:
- Ericeira (near Lisbon): a 405 m² urban plot costs around €450,000.
- Santa Rita, Funchal (Madeira): a 1,086 m² plot costs over €1 million.
In premium areas such as the Algarve, Cascais, Comporta and Madeira, plots with sea views can reach much higher prices.
If building feels overwhelming, many foreigners choose to buy an existing villa by the sea in Portugal — ready to move in without the complexity of managing a construction project.
Most common types of beach house construction
- Concrete blocks: durable and energy-efficient.
- Timber: natural look and quick construction, but requires regular maintenance.
- Light steel: modern, resistant and easy to assemble.
Before building, it’s essential to carry out topographical and geotechnical studies to confirm soil stability and feasibility.
How to protect a beach house by the sea
Living by the ocean is idyllic, but coastal homes face challenges such as strong winds, high humidity and salt exposure. To protect your investment:
- Use resistant materials such as treated aluminium, stainless steel or PVC.
- Consider elevated foundations and drainage systems to protect against flooding.
- Install renewable energy solutions, such as solar panels, to reduce costs.
- Budget annually for maintenance to deal with humidity and salt corrosion.
Ready to build your own beach house in Portugal?
Building a beach house in Portugal can be a dream come true — but it requires careful planning, the right location and a realistic budget. From land prices and council permits to construction costs per square metre, understanding the full picture will help you make an informed decision.
For some, buying a turn-key villa by the sea in Portugal may be the easier and faster option. For others, designing a bespoke home on a plot of land offers the chance to create a truly unique property.
Whichever you choose, Portugal’s coastline — from the Algarve to Cascais, from Comporta to Madeira — offers some of the most desirable real estate in Europe.
Modern new apartments with sea views in Sesimbra, Portugal
A new residential development in Sesimbra is redefining modern coastal living. Casalão offers 11 beautifully designed apartments, each featuring spacious living areas, generous bedrooms and suites, and private balconies or terraces – ideal for enjoying the stunning surroundings and the refreshing sea breeze.
Cheapest places to buy property in the Algarve in 2025
Latest idealista figures identify seven Algarve municipalities with average sale prices below €3,000 per square metre. These pockets of value across the Faro district offer a more accessible route into the region’s housing market, in comparison to places such as Lagos and Almancil, where property prices averaged 4,361 €/m² and 6,189 €/m² in August 2025, respectively.
Property below €700 per m²: Portugal’s cheapest places to buy in 2025
Portugal still hides pockets of real value away from the big‑ticket coasts. Across the country, there are municipalities where the average asking price is under €700 per square meter, with some edging close to €500. With Lisbon, Porto and much of the Algarve comfortably above €1,000 per m2, value clusters inland and in quieter districts where budgets stretch further.
Renovated properties for sale in Portugal
Renovated homes for sale in Portugal are in high demand, offering the perfect mix of traditional charm and modern living. From restored Lisbon apartments and townhouses to upgraded Algarve villas and farmhouses, these properties combine historic character with contemporary interiors and modern amenities.
British and American buyers driving demand for homes in Portugal
Portugal continues to attract strong interest from property buyers in the United Kingdom and the United States. Even after the end of the golden visa programme and tighter rules for non-habitual residents, both countries remain key sources of international buyers. idealista data shows that a large share of foreign listing visits now comes from the UK and the US, highlighting Portugal’s ongoing appeal as a destination for investment, holiday homes, and relocation.
Where foreigners are searching for homes in Portugal in 2025
Interest from international buyers in Portuguese property remains strong, despite the end of the golden visa programme, tighter rules for non-habitual residents, and changes to the foreigners’ law. According to idealista data, many visits to property listings come from France and the United Kingdom, with other countries like Germany, Switzerland, Spain, the United States, and Canada also showing significant interest.
