What is and how to Obtain a Certificate of Occupancy in Portugal?
- Equipe Caravelos
- Jan 30
- 7 min read
Updated: Feb 12
I hope you enjoy reading this article. If you want my team to help you obtain a Certificate of Occupancy in Portugal, click here .
Obtaining a Certificate of Occupancy in Portugal is the best way for individuals and investors to ensure the appreciation of their assets. To do so, it is necessary to know the current legislation and follow a strategy appropriate to each particular case.
This article will help you do just that: learn about recent legislative changes and find a way to obtain a Certificate of Occupancy to your property.
If you have a property that has already been built and you would like support in obtaining or changing your Certificate of Occupancy, find out how we can help you.
Licença de utilização (LU), autorização de utilização, alvará de utilização ou, ainda, Alvará de autorização de utilização, are all terms commonly used in the real estate sector in Portugal to describe the same reality: the legitimacy provided to individuals or entities to use a property under specific conditions.
Licença de Utilização is the equivalent to:
Certificate of Occupancy (CO) - in USA;
Certificat de Conformité - in FRance;
Habite-se - in Brasil;
Nutzungsgenehmigung - in Germany.
Each of the terms has nuances that justify it. However, in our artichles we use the most common translation for "Licença de Utilização" in English that is "Certificate of Occupancy".
Contents:
Why are there so many properties without a Certificate of Occupancy in Portugal?
What has changed in the Certificate of Occupancy requirements in 2025?
How to Obtain a Certificate of Occupancy in Portugal?
What is the Certificate of Occupancy?
The Certificate of Occupancy (Licença de Utilização) or use license or authorization for use are administrative acts that aim to certify that a given property complies with the legal and regulatory conditions for use.
Therefore, as a prerequisite for obtaining a Certificate of Occupancy, any work subject to authorization may only be used if, at least once, it has been subject to an inspection or survey by municipal works inspectors, either during its execution or after its completion.
This short paragraph above helps us understand what the Certificate of Occupancy is as well as prepares us for the discussion regarding the new SIMPLEX Housing policies ( DL No. 10/2024, of January 8) in which, among other changes, the conclusion of a purchase and sale contract without presentation of the Certificate of Occupancy is no longer prohibited.
Find out, for your specific case, what procedures are needed to obtaining a Certificate of Occupancy in Portugal after the changes to the SIMPLEX Housing Code .
How important is the Certificate of Occupancy?
Historical curiosity:
The second half of the 19th century was a period of great industrial advances that gave rise to an intense process of urbanization. The effects of these accelerated transformations on urban areas generated: poor sanitary conditions and degradation of urban areas, excessive population densities, lack of housing, precariousness of existing buildings, among others.
In this sense, new legislation was introduced which introduced the determination that no urbanisation work shall be carried out that is not an integral part of a general urbanisation plan. This overall vision reflected a more integrated view of planning and no longer as a one-off response to a specific need.
It was in this context that the need arose for local authorities to monitor that constructions were being carried out in accordance with the plans provided for in terms of structural safety, spatial organization, free movement, the comfort and safety of residents and public health.
The Certificate of Occupancy therefore aims to guarantee:
Compliance of the work with the projects approved by the competent entities;
Compliance of use with current legal and regulatory standards (such as, for example, structural safety, safety against fire risks, health, among others);
Suitability of the property for its intended purpose.
Although the Certificate of Occupancy can now be replaced by proof of Communication of use (comunicação de utilização) or receipts of payment of fees (Decree-Law No. 10/2024), the truth is that, for the citizen, this title continues to be essential for:
Ensure that the property is legal and complies with all legislation
Ensure the safety of its occupants
Ensure the legal security of transactions
Ensure that the property can be used for its intended purpose
Allow access to housing credit
Access tax benefits
Ensure asset appreciation
Allow for easier selling
Accept or inherit real estate
Renting properties
Avoid misdemeanors
Why are there so many properties without a certificate o ocupancy in Portugal?
There are 5 main reasons why we still find properties without a Certificate of Occupancy in Portugal today.
Because construction works were carried out that do not comply with the projects presented and approved by the City Council;
Because alteration, expansion or reconstruction works were carried out which, although not exempt, were carried out without the appropriate prior control acts;
The current use of the property is not in accordance with the authorization given to it by its license;
Lack of knowledge or extensive interpretation of the law by local authorities.
Properties of illegal origin;
If you have a property that falls into one of the situations mentioned above, find out how to regularize your situation following the changes in Decree-Law No. 10/2024.
What has changed in the Certificate of Occupancy with the approval of Decree-Law No. 10/2024 on January 8, 2024?
We have moved from a situation in which we were obliged to request authorization for use to a situation in which we are required to communicate the use (sustained use by submitting documents).
With the reform and simplification of licensing in the context of urban planning through Decree-Law No. 10/2024, of January 8, measures are adopted aimed at simplifying the process of obtaining a Use License.
In this way, the Certificate of Occupancy is eliminated when there has been work subject to prior control, replacing this authorization with the mere delivery of documents, without the possibility of refusal, but, naturally, maintaining all inspection powers during and after the work.
Thus, we moved from a situation in which we were obliged to fill out an application to obtain a Use License to a situation in which we Communicate the Use by submitting documents (and when Prior Control - Controlo Prévio - had taken place).
In short, the administrative act of attesting that a certain property complies with the legal and regulatory conditions for use remains, the form of the title that configures this right of use is what may be replaced.
How to obtain the Certificate of Occupancy in 2025?
See the link to see how my team can help you obtain the Certificate of Occupancy.
Currently, there is no specific requirement to obtain a Certificate of Occupancy, but rather a Communication of Usage. This procedure differs depending on whether the use is carried out after works subject to Prior Control or not.
Therefore, the use of a building or fraction after carrying out an urban operation subject to prior control depends on the submission of the following documents to the municipal council:
Term of responsibility signed by the works director or the works inspection director, in which they must declare that the work is completed and that it was carried out in accordance with the project;
The final screens, but only when there have been changes to the project, and these must be duly marked.
The building or its independent units may be used for the intended purpose immediately after submission of the documentation .
The use without prior urban operation (change of use) or use following works exempt from prior control is subject to prior communication with a deadline.
The prior notice with a deadline for use of the property must include a term of responsibility that states:
a) The compliance of the intended use with the legal and regulatory standards that establish the admissible uses and utilizations; and
b) The suitability of the building or its independent section for the intended purpose, which may include mixed uses.
The liability waiver is sent prior to the use of the building or its independent units, via the electronic platform.
The building or its independent units may be used for the intended purpose after 20 days from the submission of the prior notification with a deadline referred to in the previous article, except in one of the following situations:
a) The submission of the liability waiver is not complete; or
b) There are serious indications that the building is not suitable for its intended purpose.
What document replaces the Certificate of Occupancy in 2025?
Although banks may continue to require as a guarantee a document that legally titles the property, the truth is that after Decree-Law No. 10/2024, of January 8, the title that configures this right of use is:
Receipt of payment of legally due fees - in urban operations subject to licensing
Proof of presentation of prior notification - in urban operations subject to prior notification.
All legal and regulatory references to the building permit and the use permit must therefore be understood as references to the receipt of payment of the legally due fees.
In conclusion:
Despite the changes in Decree-Law No. 10/2024, the use of real estate remains dependent on a process that guarantees:
Compliance of the work with the projects approved by the competent entities;
Compliance of use with current legal and regulatory standards
Suitability of the property for its intended purpose.
This process requires that any work subject to authorization can only be used if, at least once, it has been subject to an inspection or survey by municipal works inspectors.
The title that configures the right of use ceases to be the License and becomes:
Receipt of payment of legally due fees - in urban operations subject to licensing
Proof of presentation of prior notification - in urban operations subject to prior notification.
Still have questions about the best way to obtain a Certificate of Occupancy to your property? See how we can help you.
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