Government Confirms Imminent Review of Urban Licensing to Reduce Construction Delays
The Portuguese government is preparing to launch a comprehensive review of its urban licensing framework, a measure intended to significantly shorten approval times for construction projects. The announcement was made by Gonçalo Matias, the Minister for State Reform, as part of a wider government initiative to modernize and reduce bureaucracy within the public administration. This reform is a critical component of the government's plan to make life easier for individuals and businesses operating in Portugal.
The review of urban, industrial, and environmental licensing is a priority for the new ministry, with the urban component described as being “in the pipeline for very soon.” Minister Matias highlighted the current system's lack of predictability as a major impediment to development. “With aspects as important as the shortening of deadlines, the certainty of deadlines. Today, when someone asks me how long it will take to license this construction, nobody knows,” he stated during a recent event.
The proposed changes aim to introduce more certainty and speed into the process. A key element of the reform will be the transition of many procedures from a full licensing requirement to a simpler 'prior communication' (comunicação prévia) system. Furthermore, the government intends to enforce the principle of tacit approval, meaning a project is automatically approved if the responsible public entity fails to respond within the legally stipulated deadline. This measure is based on what the minister called a “principle of trust” in citizens and developers, while ensuring accountability for non-compliance.
This initiative is part of a broader state reform agenda. The government also announced the creation of a new “one-stop shop for businesses,” which will serve as a single, centralized point of contact for entrepreneurs dealing with the public administration. This is intended to streamline the process of starting and running a business in Portugal, which the minister noted is currently hampered by excessive bureaucracy. He cited studies indicating that entrepreneurs can spend nearly 750 hours on administrative tasks in their first year.
Minister Matias acknowledged that the reform process will take time, given the decades of accumulated bureaucracy. “We inherited a slower country, a country that steals opportunities,” he said, criticizing the previous administration's legacy. He also reiterated the government's commitment that the reforms would not involve any public sector layoffs, but would rather focus on making the state more efficient.
The real estate and construction sectors have long advocated for such reforms. The current licensing bottlenecks are widely seen as a major contributor to the slow delivery of new housing supply and increased project costs. By creating a more agile and predictable licensing environment, the government hopes to stimulate construction, attract investment, and ultimately help alleviate the housing shortage in key urban centers like Lisbon.
The specific details of the revised urban licensing decree are expected to be presented in the near future. Developers, investors, and legal experts will be scrutinizing the proposal to assess its potential impact on the real estate development landscape in Portugal. The government's ability to effectively implement these changes will be a key test of its reformist agenda.
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