FS48 - Land Purchase Rights

This factsheet was developed following the article “Direito de Preferência” (Pre-emption right), published in UPDATE magazine (February 2026), to provide further detail on this feature.

Buying Rural Land in Portugal – A Simplified Legal Overview for Foreign Buyers

When purchasing rural land in Portugal, there are specific legal rules that go beyond the usual checks made in standard real estate transactions. One of the most important — and often overlooked by foreign buyers — is the statutory right of pre-emption.

This right may allow another person to purchase the land under the same price and conditions, replacing the original buyer.

What is the right of pre-emption?

Under Portuguese law, certain persons — mainly owners of neighbouring rural land or co-owners — may have a legal right to acquire a rural property before a third-party buyer.

If this right is validly exercised, the pre-emptor replaces the buyer and becomes the owner of the property, with the buyer being reimbursed.

Purpose of this regime

The statutory pre-emption regime aims to:

• protect the national agricultural land structure

• promote economically viable agricultural holdings

• prevent excessive fragmentation of rural land

This is a mandatory legal regime. It cannot be excluded by contract, and any clause attempting to do so is null and void.

When does the right of pre-emption apply?

The right of pre-emption only applies if all of the following conditions are met:

• the transfer is for consideration (i.e. a sale, not a donation)

• the property is legally classified as rural land

• the properties are physically contiguous (they share a common boundary)

• the land being sold is smaller than the legally defined minimum agricultural unit applicable to that region and type of land

• the buyer is a third party who does not already hold a right of pre-emption.

Additionally, the neighbouring owner who wishes to exercise the right must not already own land exceeding the minimum agricultural unit, as such land is presumed to be economically viable on its own.

What is the minimum agricultural unit?

The minimum agricultural unit is the minimum land area considered necessary for sustainable agricultural use.

It varies depending on:

• the geographical location

• the type of agricultural activity

• whether the land is irrigated or non-irrigated

Examples:

In the Algarve area:

• 2.5 hectares (irrigated land)

• 8 hectares (non-irrigated land)

Certain areas of Alentejo:

• up to 4 hectares (irrigated)

• up to 48 hectares (non-irrigated)

For this reason, each property must be assessed individually before entering into a purchase agreement.

Legal exclusions

The right of pre-emption does not apply when:

• one of the properties is urban or intended for non-agricultural use

• the sale involves a group of non-contiguous properties that together form a family-type agricultural holding

Pre-emption rights of co-owners

If the property is held in co-ownership, any co-owner has a right of pre-emption when another co-owner sells their share.

This right prevails over all other statutory pre-emption rights.

Special regime: National Agricultural Reserve (RAN)

Where the land is located within the National Agricultural Reserve (Reserva Agrícola Nacional – RAN), a much stricter regime applies:

• neighbouring owners always have a right of pre-emption

• the size of the land and the existence of buildings are irrelevant

• the minimum agricultural unit is generally three times larger than outside the RAN

Duty to notify

Before selling, the seller must formally notify all holders of pre-emption rights, indicating:

• the identity of the buyer

• the agreed price

• the essential terms of the transaction

The pre-emptor has 8 days to decide whether to exercise the right.

If proper notice is not given, the pre-emptor may still bring a legal action within 6 months after becoming aware of the sale.

Practical advice for buyers

Before purchasing rural land in Portugal, buyers should always verify:

• whether the land area is below the applicable minimum agricultural unit

• whether the property is located within the RAN or another protected agricultural zone

• whether neighbouring owners or co-owners have statutory pre-emption rights

For foreign buyers, a prior legal assessment is essential to avoid unexpected outcomes and failed transactions.

The right of pre-emption is not a mere formality — it can determine whether a rural land purchase ultimately succeeds or fails. afpop strongly recommends that Members should seek for professional assistance.

Additional Information

Pre-emption right of Câmaras Municipais 

It should be pointed out that, under certain conditions, the Câmaras also have a pre-emption right and even the right of expropriation in urban areas. Buyers should therefore ascertain whether there is an urban development plan (Plano Diretor Municipal, PDM) for the property they intend to purchase or whether it is located in an Area de Reabilitaçao Urbana (ARU). In such cases, it is required to seek professional advice before making a purchase. 

Sources – Portuguese Civil Code

Article 1380 – Statutory right of pre-emption for neighbouring rural landowners

Article 1381 – Legal exclusions from the right of pre-emption

Article 1410 – Action for pre-emption and procedural requirements

(Complementary regulation: Ministerial Order (Portaria) No. 19/2019, of 15 January, on minimum agricultural units)

This information was provided by Dr Eduardo Serra Jorge of ESJ Advogados (esjorge@esjaadvogados.com)