LEGAL & INVESTMENT UPDATE

Download PDF

This month, immigration and urban planning both moved up a gear. August will be remembered for two structural reforms: one affecting the Foreigners Law and another concerning urban planning and licensing, alongside the first draft legislation to transpose the Pay Transparency Directive.

GOLDEN VISA & IMMIGRATION

This month, immigration and urban planning both moved up a gear. August will be remembered for two structural reforms: one affecting the Foreigners Law and another concerning urban planning and licensing, alongside the first draft legislation to transpose the Pay Transparency Directive.

TAX

Investors and professionals who became Portuguese tax residents in 2026 should note that applications for IFICI, the successor to the NHR regime, must be submitted by 15 January 2027, with no extension available. The regime provides a flat 20% personal income tax rate on eligible income for a period of ten years.

REAL ESTATE & LEASING

The Rental Market Reform Bill formally entered Parliament on 16 August, opening a wider debate that notably includes protections for vulnerable tenants with leases dating from before 1990.

On 17 August, Law 49/2026 authorised the Government to create, within 180 days, an urgent judicial procedure for the sale of real estate held in an undivided inheritance. The proposed procedure would allow any heir or the surviving spouse to force a sale, typically through an electronic auction, when the co-heirs cannot reach an agreement. This development is particularly relevant for clients who jointly inherit Portuguese property, although the enabling decree-law has not yet entered into force.

URBAN PLANNING

Decree-Law 108/2026 entered into force on 3 August, introducing further changes to the Legal Regime for Urban Development and Building, known as the RJUE, and the Legal Regime for Urban Rehabilitation, known as the RJRU, while replacing the RGEU.

The principal structural change is that prior notification, or “comunicação prévia”, becomes the default procedure wherever the applicable urban planning parameters have already been established. In these circumstances, prior notification replaces licensing and shifts public control primarily to an ex-post model.

In parallel, the range of urban planning infringements has been expanded and enforcement strengthened. This places greater technical responsibility on developers and designers and creates increased litigation risk for parties proceeding without appropriate professional advice.

The new framework applies both to new procedures and to pending cases that remain at an early stage. It is therefore particularly relevant for clients with applications that have already been submitted.

BUSINESS SETUP

On 5 August, the Government published a draft bill partially transposing the Pay Transparency Directive and amending Law 60/2018. The proposal was open for public consultation until 25 August and was subsequently submitted to Parliament with a request for priority and urgency.

Until the legislation receives final approval and is published, the new national rules are not yet in force. However, the applicable European Union obligations that have been in effect since June remain in place.

IN FOCUS

THE NEW LAW ON FOREIGNERS AND ASYLUM

Having cleared Constitutional Court review, the reform signed on 31 August introduces stricter rules for people staying irregularly in Portugal, extends detention periods and updates the asylum system, while preserving specific protections for children, families and refugees.

For clients with pending AIMA cases, the central point is that, at the time of writing, the law has not yet entered into force. It will only take effect following publication in the Diário da República, with the current legal framework remaining applicable until then.

Particular caution is recommended for anyone considering decisions related to family reunification or residence permit renewals. Clients should avoid acting on provisions that have not yet been formally published and entered into force.

GOLDEN VISA SPOTLIGHT

“THE SENSE OF EVERY MEMORY”

An open cultural investment opportunity in Castelo de Vide, Alto Alentejo, focused on the requalification of the Museum of Tiflology, operated by Fundação Nossa Senhora da Esperança. The proposed investment starts at €200,000 per applicant, with eight investment positions available.

LUIS DE BRITO FOUTO

INVESTMENT