How to Renovate Your Algarve Home From Abroad

F&S Constructions · Updated: October 2026

Many of our clients own a villa or holiday home in the Algarve but live in the UK, Ireland or elsewhere in Europe. Renovating at a distance is completely possible. It just needs good preparation, the right paperwork and a builder you can trust. Here is how it works, step by step.

1. Define what you want and gather the documents

Start with a simple list: which rooms or areas, what you want changed, your rough budget and when you would like the work done. Photos and a few measurements help a lot.

It is also worth collecting the property documents early, because a builder or architect may ask for them:

• Caderneta predial (the property's tax record)
• Certidão permanente (land registry certificate)
• The licença / autorização de utilização and any approved plans you have
• The condominium rules, if the property is in a development

2. Check whether your works need a permit

In Portugal, many interior works (a new kitchen or bathroom in the same place, floors, painting) do not need a licence, while façade changes, extensions and pools usually need some form of approval from the council (Câmara Municipal). The rules were simplified in 2024 and updated again in 2026.

We explain this in detail in our guide Do I need a permit for building works in Portugal?

3. Choose a licensed builder

In Portugal, any company carrying out construction works must be authorised by IMPIC, the public construction regulator, through an alvará or a certificado. You can check a company's licence on IMPIC's website before hiring, and the licence number must be displayed at the site entrance.

Before you sign, make sure you have:

• A written, itemised quote after a site visit
• Clear payment stages linked to progress, not a large payment up front
• An agreed start date and timeline
• A written warranty (at F&S: 5 years on full construction and 3 years on repairs and small works)

4. The site visit (without you being there)

You do not need to fly over for the first visit. You can leave a key with a neighbour, a property manager or the builder, and join by video call. The builder measures up, checks the existing condition and then sends the quote by email.

If the property is in a condominium, let the administrator know before work starts. This is required even for interior works, and the condominium must formally approve anything that affects the exterior or common areas.

5. VAT: you may pay 6% instead of 23%

Portuguese VAT law (List I, item 2.27 of the VAT Code) allows a reduced 6% rate on renovation and repair works on homes. It applies to the labour; materials are charged at the normal rate, unless the materials are less than 20% of the total value of the works.

Some works are excluded, such as pools, saunas and tennis courts. Ask your builder to separate labour and materials in the quote, and confirm with your accountant how it applies to your case.

6. Follow the works remotely

A good builder keeps you updated without you having to chase. Agree from the start:

• One contact person who answers your questions
• Regular photo and video updates, for example weekly or at each milestone
• How decisions on finishes (tiles, colours, fittings) will be made: samples, photos or video calls
• WhatsApp or email for quick questions

7. Plan around the season

For holiday homes and rentals, the best time to renovate is usually outside the busy summer season, so the property is ready when you or your guests arrive. Book early: good builders in the Algarve plan their calendar months ahead.

8. Handover and warranty

At the end, do a final walkthrough, in person or by video. Make a list of any small details to fix (the "snag list"), make sure they are closed, and keep your written warranty and invoices together with the property documents.