Property in central Portugal

Understanding Portugal’s Dwelling License (Licença de Habitação) and Usage License (Licença de Utilização) Exemptions

1. Legal Framework: When is a Habitation License Required?

Under Decree-Law No. 68/2004 (March 25), it became mandatory to provide a Technical Record of the Building (Ficha Técnica de Habitação) when transferring ownership of a residential property. However, this requirement applies only to new constructions, with key exemptions:

Properties Exempt from Habitation License Requirements

✅ Buildings constructed before August 7, 1951 (prior to the General Regulation of Urban Construction).
✅ Buildings completed before 2004 that either:

Already have a Usage License (Licença de Utilização) issued by the local council (Câmara Municipal), or
Had a license request submitted before March 30, 2004 (when the law came into force).

2. Habitation License (Licença de Habitação) in Portugal

What is a Habitation License?

A Habitation License is an official document issued by the local municipality (Câmara Municipal) confirming that a residential property:
✔ Complies with urban planning and building regulations.
✔ Has been inspected and approved for safe and legal habitation.

When is it Required?

Mandatory for all residential properties built after 1951.
Not required for pre-1951 buildings (unless significantly renovated).
Necessary for property transactions (sale, rental, or financing).

3. Usage License (Licença de Utilização)

What is a Usage License?

This document certifies that a property (residential or commercial) aligns with its original building permit (e.g., residential, commercial, industrial use).

Key Requirements

Residential properties: Must have a Habitation License.
Commercial/industrial properties: Require a Commercial/Industrial Usage License.
Must be presented at the promissory contract stage (Contrato de Promessa de Compra e Venda).

4. New Construction: Dwelling Permit (for Post-2004 Buildings)

A Dwelling Permit for new constructions covers:
✔ Structural integrity (foundation, load-bearing walls).
✔ Electrical installations (except temporary power).
✔ Plumbing and mechanical systems.
❌ Does not cover:

Public works permits (water, sewer connections).
Right-of-way or land use permissions.

5. Practical Implications for Buyers & Sellers

Pre-1951 properties: No license required, but due diligence is advised.
Post-1951 properties: Must verify Habitation License or Usage License exemption.
Post-2004 properties: Full Technical File (Ficha Técnica) required for transactions.

Why Compliance Matters

Bank financing: Most lenders require a valid Habitation License.
Legal security: Avoid disputes over illegal constructions.
Resale value: Licensed properties have higher marketability.

6. How ProDirecta Can Help

We assist with:
🔍 Verifying license status (historical research at local councils).
📑 Obtaining missing documentation (for legalization if needed).
⚖️ Legal guidance on exemptions and compliance.

📩 Need clarification? Contact us for a consultation tailored to your property’s specifics.

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