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New Rules for Simplifying Urban Planning Licensing

The Decree-Law No. 10/2024, part of the Portuguese Program ‘Mais Habitação”, brings significant changes to urban licensing.

Key amendments include the elimination of construction permits and the introduction of tacit approval for licenses, streamlining procedures. Furthermore, there‘s no longer a requirement to present the housing technical data sheet at the time of property purchase contracts, reducing bureaucracy.

What has changed?

1. Elimination of Construction Permits

Construction permits will now follow a process of tacit approval, eliminating the need for a construction permit license. The construction permit document will be replaced by a receipt of payment for the required fees.

2. Elimination of Utilization Authorization

The old legal frame required that for a new construction or renovation works that required a project to be submitted, the Utilization Authorization would need to be issued by the municipality in order to have the property transacted and inhabited.

This process was simplified an the Utilization Authorization is not an essential document for a closing.

3. Changes in Property and Selling

It will no longer be necessary to deliver the housing technical data sheet or utilization authorization, for a property transaction, although these documents may be requested by financial institutions in order to provide mortgages.

4. Change of Use in Residential Fractions

The change of purpose or use of any residential fraction no longer requires authorization from the other condominium owners.

These changes come into effect on March 1st 2024, with retroactivity to January 1st 2024 in some areas.


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