Victoria Serviços Imobiliários, Cascais

Navigating Recent Changes to Property Purchases in Portugal

In January 2024, Portugal’s real estate landscape witnessed a significant transformation through the implementation of Decreto-Lei N.º 10/2024, a law aimed at creating more housing throughout the country. This legislative revision aims at simplifying bureaucratic processes in property transactions, fostering both opportunities and risks.

Notably, one impactful change involves the elimination of the mandatory presentation of the habitation and usage license during property acquisition. This alteration, effective since the beginning of the year, simplifies formalities during the purchase and sale contract signing, it also allows for the sale of properties under construction, which has been incredibly difficult up to this point.

However, caution is crucial in this evolving scenario. While the new law streamlines processes, potential risks for buyers emerge. Purchasing a property without a usage license could lead to complications, including the risk of demolition, non-compliance with regulations, and challenges in securing housing credit from banks. While a habitation license may not be required for buying a property, it’s crucial to note that it is still essential for residing in it.

To safeguard your investment, it is recommended to demand all available documentation about the property, ensuring certainty about safety and habitability conditions. Although no longer mandatory, a habitation or usage license remains a valuable aspect of due diligence.

For those unfamiliar with the intricacies of Portuguese real estate, seeking guidance from a qualified professional, such as a lawyer or solicitor, can be instrumental. By staying informed and taking necessary precautions, buyers can navigate the evolving landscape with confidence and secure their real estate investments effectively.

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