Overview: Building in Portugal

Legal basis, municipal regulations and legal practice

Portugal is considered an attractive location for builders and property investors. At the same time, the legal requirements for construction projects are complex and strongly influenced by local conditions. Anyone wishing to build in Portugal must familiarise themselves not only with national building law, but also with municipal spatial planning regulations and their practical implementation by local authorities.

Legal basis

The legal basis for construction and urbanisation measures is provided by Portuguese Decree-Law No. 555/99 of 16 December (Regime Jurídico da Urbanização e da Edificação – RJUE) in its currently valid version. It was most recently supplemented by Decree-Law No. 10/2024 of 8 January, which aimed to comprehensively reform and simplify the approval procedures in the areas of urban development, spatial planning and industry.

As part of the SIMPLEX government programme, Portugal is pursuing a policy of ‘Licenciamento Zero’ – i.e. the abolition of licensing requirements and administrative acts that do not offer any relevant added value for the public interest.

Municipal Regulations

The specific developability of a plot of land is regulated at municipal level by three key planning instruments:

• Plano Diretor Municipal (PDM): Defines higher-level usage zones such as residential, agricultural or nature conservation areas.

• Plano de Urbanização (PU): Contains detailed regulations for urban areas with high building density.

• Plano de Pormenor (PP): Sets precise specifications for individual plots of land, including road profiles, building materials and building structures.

In addition, there are so-called Unidades de Execução (UE) – instruments for implementing the development goals defined in the regional planning scheme within a clearly defined spatial area.

The two main procedures: building permit and prior notification

1. Licença de Construção – the Classic Building Permit

A building permit is required for:

• Construction projects in areas without sufficiently detailed regulations from which building rules can be clearly derived (except for pure reconstruction measures).

• Work on listed buildings or buildings undergoing protection procedures, as well as on buildings in corresponding protected areas.

• Reconstruction measures that result in an increase in the height of the façade.

• Demolition work, unless an approved reconstruction measure is in place.

• Construction, extension or demolition measures in areas with special public restrictions or usage requirements.

• Construction projects that result in the removal of façade tiles.

Procedure:

• Submission of a complete building application with all project documents.

• Review by the municipality and, if necessary, obtaining opinions from the relevant external authorities.

• Public announcement and participation of third parties (e.g. in the case of parcelling measures that exceed certain parameters).

• Granting of approval, with conditions if necessary.

After the application has been submitted, the local authority checks that the documents are complete and may ask the applicant to correct or supplement them once within 15 working days.

Specialist projects (e.g. structural engineering, water and wastewater technology, electrical installation) can be submitted directly with the building application. However, this usually takes place in a second phase after the architectural project has been approved. In this case, the deadline for subsequent submission is six months.

The statutory deadlines for review and decision by the local authority are between 120 and 200 working days, depending on the building area. If the applicant is requested to make corrections, this deadline may be suspended. This deadline is also suspended while the deadline for submitting the specialist projects is still running.

If the deadline for deciding on the building application is exceeded, the application is deemed to have been tacitly approved. Caution: Even such an approval can be subsequently declared null and void if it violates applicable urban planning law.

2. Comunicação Prévia – Prior Notification

This simplified procedure applies to:

• Construction projects in areas with sufficiently detailed regulations that adequately specify the applicable building requirements.

• Construction, exterior alteration or extension measures in already built-up urban areas, provided that they comply with regional planning regulations and the building height does not exceed the usual façade height of the adjacent houses – measured between the two nearest cross streets.

• Construction of swimming pools connected to the main building.

 Procedure:

• Submission of complete project documentation.

• Payment of fees.

• Immediate start of construction possible, provided all documentation is complete.

If opinions from authorities external to the municipality are required, these must be submitted together with the project documentation.

The municipality checks the completeness of the submitted application and may request the applicant to make corrections once within 15 working days.

No formal approval is granted in the case of Comunicação Prévia – responsibility for legality lies with the builder and the experts.

All applicable building regulations must also be observed here. The responsible experts must confirm compliance with the regulations in writing. The municipality may carry out subsequent checks.

Important: If a building project is legally designated for the Comunicação Prévia procedure, the builder may not voluntarily apply for the more complex approval procedure. The aim of this rule is to reduce bureaucratic hurdles and standardise procedures in the interests of efficient administration.

Conclusion of construction work

Upon completion of a construction project requiring approval, a declaration signed by the site manager or supervisor must be submitted to the local authority confirming that the work has been completed and carried out in accordance with the approved project.

If changes have been made to the original project, the final plans must also be submitted, clearly marking the changes.

Once these documents have been submitted, the building can be used immediately.

Other procedures under Portuguese Construction Law

Prior Notificaton With Deadline

In addition to the traditional procedures for building permits (Licença de Construção) and prior notification (Comunicação Prévia), Portugal has another simplified procedure:

Comunicação Prévia com Prazo – Prior Notification With Deadline

This procedure applies in the following cases:

• Change in the use of a building or part of a building – or of details in a usage permit that has already been granted – provided that no structural measures requiring approval have been carried out beforehand.

• First-time use of new buildings or parts of buildings following construction work that did not require approval.

A statement of responsibility needs to be submitted by a person who has the authority to be a project manager, confirming :

1. That the intended use complies with applicable legal and regulatory requirements, in particular with regard to permitted types of use;

2. That the building or the relevant building unit is suitable for the intended purpose – even in the case of mixed use.

Upon receipt of the declaration, the municipality has the right to order an inspection within 20 days. This may either result in a formal declaration of conformity or lead to the ordering of adjustment measures.

If no inspection is ordered within the specified period, the use is deemed to be approved and may commence immediately. 

Construction work not requiring planning permission in Portugal

What can be done without a building permit or prior notification

Decree-Law No. 10/2024 significantly expanded the list of construction projects that do not require approval.

Examples of measures not requiring approval:

• Maintenance work such as repairs or servicing without structural alterations.

• Interior alterations that do not affect the stability of the building, as well as exterior work that does not change the height of the building, the shape of the façade or the shape of the roof, and does not remove any façade tiles.

• Reconstruction or interior extensions, provided that the height of the façade remains unchanged – even if additional floors or more usable space are created.

• Construction measures with a positive opinion as part of a detailed preliminary building application (Pedido de Informação Prévia – PIP) – in this case, the municipality has already checked the urban planning permissibility as part of the PIP.

• Demolition of illegally constructed buildings.

• Construction of small buildings or extensions, directly attached to the main building or detached, with a maximum height of 2.2 m (alternatively as high as the ground floor of the main building) and up to 10 m² in area – provided they do not border public roads.

• Construction of enclosure walls up to 1.8 m high (e.g. garden walls), provided they do not border public roads, and retaining walls up to 2 m high, provided they do not significantly alter the terrain.

• Small greenhouses in the garden with a height of less than 3 m and an area of up to 20 m².

• Play or leisure facilities that belong to the main building and are smaller than it.

In addition to the nationally regulated exceptions, each municipality is free to define further building measures that do not require approval by means of municipal regulations.

Important: Even building projects that do not require approval must comply with all applicable building regulations. For relevant construction projects, especially those affecting the building structure, it is advisable to consult an architect or civil engineer who can provide technical support for the project and confirm compliance with the regulations in writing. It should also be noted that the local authority must be notified of the construction project before work begins.

Definitions of terms in Portuguese construction law

Reconstruction, Alteration and Extension

To correctly classify a construction project, it is essential to understand the following terms:

• Reconstruction: Construction work following the complete or partial demolition of an existing building, resulting in the restoration of the façade structure. There is some debate as to how many and to what extent the exterior walls need to be reconstructed – the interpretation varies depending on the municipality.

• Alteration: Construction work that changes the physical characteristics of a building or part of a building – such as the load-bearing structure, the number of residential units or interior rooms, the type or colour of the exterior cladding – without increasing the floor space, total area or façade height.

• Extension: Construction work that leads to an enlargement of the floor space, total building area, façade height or volume of an existing building.

The Preliminary Building Application – Pedido de Informação Prévia (PIP)

The preliminary building application is a tried and tested instrument for clarifying the admissibility of a specific building project under Portuguese building law. In particular, it serves to avoid uncertainties in the interpretation of municipal regulations and to create planning security at an early stage.

If a ‘detailed’ preliminary building application is submitted – i.e. with all the necessary documents – a positive opinion from the local authority may make it unnecessary to submit a building application at a later date.

It is noteworthy that a preliminary building application can also be submitted by persons who are neither the owners of the property in question nor have any other rights in rem to it. In such cases, the owner and any holders of other rights in rem are informed of the application.

Procedure:

• Submission of a general or detailed preliminary building application

• Review of completeness by the local authority; within 15 working days, a one-time request for additional information may be made

• If necessary, obtaining statements from the relevant authorities external to the municipality

• Decision by the local authority within

  • 20 working days for a general application

  • 30 working days for a detailed application

• The period begins with:

  • Receipt of the revised application by the local authority

  • Receipt of the opinions or approvals from the specialist authorities

  • Expiry of the period for the external authorities to issue their opinions or approvals

The municipality's decision on the preliminary building application is binding on the competent authorities – both in the context of a subsequent building application and in the subsequent inspection of the construction work carried out. This binding effect is generally valid for two years and can be extended for a further year upon request, provided that the legal and factual conditions on which the positive opinion was based remain unchanged.

Modular Construction in Portugal

Modular, prefabricated or transportable buildings of a permanent nature are also subject to the same approval requirements as conventional structures.

Modular or prefabricated buildings of a permanent nature are defined here as structures consisting of modular building components or systems – structural or non-structural – manufactured entirely or partially in a factory and either connected in advance or assembled on site, regardless of whether they are mobile or transportable.

Mobility or construction method does not exempt them from compliance with building regulations and the possible need to obtain a building permit or prior notification, depending on the individual case.

Conclusion: Three steps for legally compliant construction planning in Portugal

Every construction project in Portugal should be carefully reviewed in advance to avoid later conflicts with authorities or neighbours. The following three levels of review are crucial:

1.      Check admissibility

Is the planned construction project permissible under the applicable regulations?

2.      Clarify permit requirements

Does the construction project require an approval? If so, which procedure should be used – the classic Licença de Construção, the simplified Comunicação Prévia or the Comunicação Prévia com Prazo?

3.      Observe regulations

Which building regulations must be observed during planning and execution – for example, regarding statics, fire protection, energy efficiency or monument protection?

Furthermore, strategic decisions must be made – for example, does it make sense to submit a preliminary building application?

It is also crucial to work with the right experts who are familiar with the regulations and practices of the respective municipality.

This article provides general information about the legal framework for construction projects in Portugal. Individual cases must always be assessed on a case-by-case basis.

The information provided reflects the current legal situation as to the date of publication and is intended to serve as a guide for the legal planning of construction projects in Portugal. Local particularities and future changes in legislation must always be taken into account.