Simplex urbanismo update-decreto lei 10/24
Introduction
As part of the ongoing process to reduce bureaucracy and simplify administrative processes in Portugal (known as Simplex) a series of alterations have been implemented at the start of 2024. Some of these changes came into force immediately, with the other alterations being phased in over time.
The law that relates to this is decreto-lei 10/24, and if you want some bedtime reading you can read it here: Decreto-Lei n.º 10/2024 | DR (diariodarepublica.pt)
Why did it have to change?
Anyone that works in architecture, construction or real estate in Portugal knows that the urban planning and approval system was inherently flawed, slow, unwieldy, complicated and operated within its own timescales. One of the results of this was uncertainty as to when construction could start and how long it would take to gain approvals. In turn this created stagnation in the property market, and a reluctance to take on new build projects from both investors and private owners. It was clear that something had to change, and the Portuguese government took the “go big or go home” approach, changing the entire planning process within the new law.
These alterations are being driven by a need to increase the amount of residential property for sale, and make the process of building or altering a residential property quicker and cheaper.
The different classifications of urban projects
One of the key aspects of the new legislation is to differentiate between different types of urban operation, and define different types of approval process for each one. In summary these are:
- Operations subject to licensing. These follow the process of a time defined period for approval, and at the end of this period (if the council has not replied) the project is deemed to be approved
- Operations subject to outline planning (comunicação prévia).
- Operations subject to outline planning with agreed timescale for approval (comunicação prévia com prazo)
- Operations that are exempt from control. These are minor works that are not subject to obtaining permission from the municipality. These include:
- Alteration to the interior of properties or apartments which improve the conditions of the property, as long as they do not affect the structure, do not alter the façades, do not alter the form and finish of the roofs
- As above, but when the works do affect the structure of the property a declaration is needed from a technician that confirms that the works will improve the structure or not reduce the integrity of the structure
- Works to rebuild or amplify properties which do not increase the height of the façade, even if the number of floors or useable area is increased. N.B. it is not permitted to alter the façade or increase the footprint of the property, all works must be carried out within the existing property
- Works to rebuild a property in areas that are subject to certain restrictions (servidão publica) as long as the façade is not altered
- Conservation works in relation to cultural properties and national heritage properties
- Demolition of illegal properties (this previously needed a license, which was a bizarre situation)
- Substitution of windows and doors for new ones that are visually the same and energy efficient
- Urban operations that have approved outline planning permission (PIP). Previously a license had to be obtained even though the project had been approved
There are some excellent alterations contained within this section of the new legislation. Being able to carry out internal alterations (including structural alterations) without the need for a project is a useful development that allows renovation of existing properties to be carried out in a much shorter timescale.
Phase 1-a bit of common sense and housekeeping
The first phase of the alterations came into effect on the 1st January 2024. The key parts were:
- It is no longer a requirement to present the “ficha técnica” or habitation license at the signing of the deed of sale (escritura)
- An increase in the scope of works that are considered of limited urban relevance (escassa relevância) and are therefore exempt from control.
- Alterations to the RGEU (outdated planning rules). Some examples:
- It is no longer mandatory to have a bathroom with a bath and bidet (showers are permitted and bidets are no longer required).
- Kitchenettes and open kitchens are now permitted
- Alterations to the procedures for fiscalisation (inspection and control of works). This control (by the municipality) is now in relation to ensuring that the legal requirements are complied with, and not the technical aspects of construction (amongst other things).
Phase 2-the planning revolution
The major changes commenced on the 4th March 2024. Key points are:
- Once a project has been submitted to the municipality for approval the municipality can only ask one time for additional information (previously multiple requests could be made which delayed the approval process)
- The municipality can not refuse the request on the basis of missing information once the initial information has been provided (one bite of the cherry)
- Outline planning permission will now be valid for 2 years (previously one year)
- The timescale to achieve approval of a process starts on the day it is submitted (not on the day that the municipality chooses to start reviewing the project)
- The timescales for approval of projects are FIXED and if the municipality does not give approval within the timescales then tacit approval is given, and the project is approved. Timescales are 120 days for projects with a built area of 300m2, 150 days for projects between 300m2-2.200m2 and 200 days for projects over 2.200m2 and urbanisations (loteamento).
- Elimination of the limits on extending construction licences (previously restricted to 1 year of extension, which could then be extended for another year)
- Allowing councils to sub-contract services to carry out fiscalisation (inspections) of ongoing projects
- Elimination of the “alvara de construção” which is the document needed to start construction works. This was a time consuming, administrative process that has been replaced by the need to pay the relevant taxes and obtain proof of payment
These are substantial changes that will have clear advantages as solid, immovable timescales exist and the councils will no longer be able to work to their own timescale. Historically we have measured approval times for projects in years, and that will no longer be the case.
Phase 3-the future
Not content with making sweeping changes to the planning system, the government has also made plans for the future
6th January 2025
From this date onwards pareceres (permissions given by various agencies/entities (not the municipality) will be issued using an online system.
This will streamline the current system which is inefficient and paper based.
5th January 2026
From January 2026 all processes of licensing and outline planning permission must be managed using a centralised online portal. This is an excellent step forward, and ensures transparency for all parties involved.
1st June 2026
The RGEU (general urban rules) will be revoked and not before time. At this point in time it is not known what will replace these outdated rules but it can only be an improvement.
1st January 2030
All projects must be submitted using BIM.
BIM is a centralised project management system that allows all parties to view the various parts of the project documentation. The technical challenges in relation to this are significant, so it is no surprise that this will not be obligatory for many years to come.
Other important points
There is an ongoing issue with the proliferation of wooden houses/mobile homes/modular houses being built in rural areas where no construction is permitted. This is driven by (in many cases) those desperate to have an affordable home, but sadly the construction is of poor quality, the properties are not able to be licensed and are often unsafe. Many vendors of these houses, and unscrupulous estate agents, trick people into investing their life savings into this type of property. There is a common myth that if a house is built out of wood/on wheels/raised off the ground then it does not need a licence, which is completely untrue.
The new legislation makes a point of stating that all of these types of structures, even if they are removable or transportable, are subject to licensing. It also reinforces the fact that any of these type of structures has to be built in accordance with the general construction requirements (RGEU)
Common questions and answers
I have already submitted a project to the council, how will my project be treated?
Existing projects will be dealt with using the new system. It seems that municipalities are using the start of the new legislation as the start date for the tacit approval phase. If this is the case then it means that existing projects should be released around September 2024.
Who controls the works during the construction?
The responsibility for the correct implementation of the construction project sits with the client´s architect. This means that the architect has increased responsibility, and architects will be paying closer attention to the construction works to ensure that they are in accordance with the approved project.
The municipalities still have some responsibilities, but these have been greatly reduced.
Are the approval periods guaranteed or will the municipality be able to delay tacit approval?
The legislation is very clear in relation to this. The council has one opportunity to request further information during the approval process, and whilst this request is ongoing the process does not stop. Therefore the periods defined within the legislation are rigid.
Do I still need to submit specialities projects?
Yes, but this process has been massively improved. Once the tacit approval process is complete, the specialities projects are submitted to the municipality. However the municipality simply receives the projects and archives them. There is no longer any approval process for specialities projects.
Where has my license gone?
The license (alvará) no longer exists, which is an attempt to reduce bureaucracy. When you are ready to start the construction of a project then a tax has to be paid, and you will receive a receipt for this payment. This receipt serves as proof that you may carry out the construction works.
So can I now build the wooden house/steel frame house/caravan on my rustic land now that there are no licenses?
No. There is specific reference to these types of properties in the new legislation, and a project is needed for all these properties
What on earth is escassa relevância urbanística?
This refers to construction works that have reduced importance in the eyes of the law, and are subsequently subject to minimal control.
My property/project is in REN/RAN. How does the new law affect me?
At this point in time there are no great differences, although the municipality can not pause the project whilst waiting for the relevant entities to give their permission. From the 6th January 2025 the pareceres (permissions) given by these entities will be co-ordinated using a central portal.
How are legalisation projects dealt with now?
This is not 100% clear at the moment, however our understanding is that legalisation projects will follow the same rules as construction projects.
My property does not have a license, but as I can sell it now is it legalised?
No. Just because you are able to conclude a sale, it does not mean that the property has magically been legalised.
How does this affect the purchase and sale of real estate?
More care needs to be taken when purchasing properties that do not have licenses, and due diligence is more important than ever. It is perfectly acceptable to sell a property that does not have a license, as long as the purchaser is fully aware of this and the implications.