Government Submits Proposal to Revise Portugal's Urban Licensing Regime
The Portuguese Government has approved a legislative authorization proposal to revise the 'Simplex Urbanístico' (Urbanistic Simplex), a framework designed to simplify building and renovation permits. The proposal, which seeks to amend the Legal Regime for Urbanization and Building (RJUE), was approved by the Council of Ministers on September 25 and has been forwarded to the Assembly of the Republic for debate and approval. This legislative action follows widespread calls from across the real estate and construction sectors for a more effective and streamlined licensing process.
The initial 'Simplex' program, while intended to accelerate project approvals, was widely criticized for failing to achieve its primary objective. Market operators, including developers and investors, along with municipalities and professional associations, reported that the system remained bureaucratic and slow. Fernando Santo, President of the Strategic Council for Construction, Real Estate, and Housing at the CIP (Confederation of Portuguese Business), had previously noted that “a true simplification was necessary to unblock the housing supply and attract sustained investment.” The government's new proposal is a direct response to this feedback, aiming to correct the flaws of the previous legislation.
The core of the revision is to eliminate ambiguities and reduce the administrative burden that has caused significant delays in development timelines. The proposed law is expected to introduce clearer rules and deadlines for municipal responses to licensing requests. João Pereira Reis, a partner at law firm Morais Leitão, commented that “the success of this reform will depend on its practical implementation at the municipal level. A clear, uniform, and binding set of rules is essential.” Investors often face uncertainty regarding legal issues when buying property, and this reform aims to mitigate some of that risk.
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The changes are part of a broader government strategy to tackle Portugal's housing crisis by increasing the supply of new and renovated homes. By making the licensing process more efficient, the government hopes to encourage developers to bring more projects to market more quickly. This is particularly relevant for urban regeneration projects in cities like Lisbon and Porto, where demand continues to outstrip supply. For foreign investors, a more predictable regulatory environment is a significant factor in making investment decisions. Engaging an English-speaking real estate lawyer can help navigate these complex changes.
The legislative proposal will now be discussed by Parliament, where further details and potential amendments will be debated. The real estate sector is watching closely, hopeful that the revised 'Simplex' will finally deliver on its promise of a faster, more transparent, and investor-friendly licensing system. The final text of the law will determine the true impact on the ground for developers and property owners across the country.
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