Starting in September, the rules for building and renovating homes in Portugal will change. A new government decree will simplify the process and, in many cases, it will no longer be necessary to obtain a building permit from the local municipality.
In practice, this means less bureaucracy and faster decisions, while also placing greater responsibility on those carrying out the construction work.
What’s Changing?
Until now, almost all construction work required approval and a building permit from the local municipality before work could begin. Under the new rules, this will no longer always be mandatory.
Some procedures are being simplified:
- In certain cases, neither a building permit nor prior notification will be required.
- Greater responsibility will be placed on architects and site managers.
- Reconstruction works that do not alter the building’s façade will no longer require a permit.
- Projects that already comply with established planning parameters will be able to move forward more quickly.
- Local councils will have less direct involvement before construction begins.
How Will the New System Work?
Instead of every project depending on prior approval from the local authority, the new framework places greater trust in qualified professionals and those responsible for the construction project.
This means:
- Construction work can begin sooner.
- However, developers and construction professionals will assume full responsibility for any errors or non-compliance with the applicable regulations.
What Is Behind This Change?
The main goal is to help address Portugal’s housing shortage by speeding up the construction of new homes.
The Government aims to:
- Reduce waiting times for planning approvals.
- Increase the supply of housing.
- Simplify the Legal Framework for Urban Planning and Building (RJUE).
- Reduce bureaucracy in both construction and urban rehabilitation projects.
Important Rules Still Apply
Although the process is being simplified, the new rules do not remove all planning requirements. For example:
- It will not be possible to build freely on any plot of land.
- Urban planning parameters must still be defined, including building height, number of floors, land use, and other applicable requirements.
- Historic and protected areas will continue to be subject to specific restrictions.
- Projects that alter the building's volume or footprint will still require planning permission.
Expected Impact
- These changes could have a significant impact on Portugal's property market:
- Faster delivery of new housing developments.
- Increased value of land with approved development projects.
- More renovation and rehabilitation of older buildings.
- A potential increase in housing supply over the medium term.
- Shorter approval timelines should also provide greater certainty for construction projects, making construction mortgages an increasingly attractive option for those planning to build their own home.
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