Portugal is undergoing significant transformations in its urban planning and property management frameworks, thanks to the recent enactment of Decree-Law No. 10/2024.

Elimination of Traditional Permits

Gone are the days of navigating through complex permit applications. Urban planning operations now require only proof of fee payment, eliminating the need for specific construction licenses. Additionally, the introduction of a "tacit approval" mechanism means that if authorities do not respond within the stipulated deadlines, your application is automatically approved. This change significantly shortens project timelines, allowing for faster initiation and completion of real estate developments.

Prior Communication Process

The decree-law expands the scope of the "prior communication" process, making it simpler and more inclusive for various urban interventions. This reduces the necessity for extensive pre-approvals for certain types of works, thereby lowering barriers for property owners and developers to undertake modifications and improvements.

Standardized Procedures Across Municipalities

Uniformity is key to reducing administrative hurdles. The new law mandates standardized licensing procedures across all municipalities, ensuring consistent practices and minimizing discrepancies that previously caused delays and confusion. This standardization facilitates smoother transactions and enhances predictability for investors and homeowners alike.

Introduction of the Electronic Platform (PEPU)

• Online submission of requests
• Real-time tracking of application status and deadlines
• Electronic notifications and updates
• Access to certificates of exemption from urban planning procedures

The PEPU enhances efficiency, transparency, and accessibility, making the licensing process more user-friendly and less time-consuming.

Flexible Deadline Extensions

The new legislation offers more flexibility in extending deadlines for project approvals and completions. Unlike previous regulations that limited extensions to once and for no more than half of the initial deadline, the current framework allows for more accommodating extensions without the need for repeated submissions. This adaptability supports developers in managing unforeseen challenges without jeopardizing project timelines.

Simplified Change of Property Use

Previously, altering the use of an autonomous unit (e.g., converting a commercial space to residential) required unanimous consent from all condominium owners. The new law abolishes this requirement, allowing property owners to change the use of their units unilaterally once municipal approval is obtained. This simplification empowers owners to make necessary adjustments without prolonged negotiations or unanimous agreements, fostering a more dynamic and adaptable property market.

Modernized Property Management Procedures

The reform aligns property management rules with updated construction and licensing practices, enhancing the flexibility and functionality of urban spaces. This modernization ensures that property regulations are in tune with contemporary urban development needs, promoting sustainable and efficient use of real estate assets.