The Latest Update: Converting Commercial Property Into a Home

19 February 2024
Joana Torres Fernandes

Joana Torres Fernandes | Partner

There have been important changes to Portuguese law regarding the modification of housing properties. Owners may now alter the intended use of their property fraction from commercial to residential without obtaining approval from other co-owners, as long as it is intended for residential use. 


This update is a result of a new Decree-law published on 8th January. The objective of this measure is to increase the housing availability through simplified changes of purpose, it is imperative that property owners fully understand the revised rules and approval processes to avoid any noncompliance issues that could negatively impact residents.


However, it is important to note that certain procedures and deadlines must still be observed. It is necessary to present and have a project approved by the respective municipality to ensure that any required works are carried out properly and obtain the appropriate use license.


Failure to comply with these procedures could result in properties being used for purposes that do not meet minimum standards or requirements for housing, such as storage or garage usage.


While co-owners no longer need to approve changes in purpose for residential use, any changes must be communicated to all co-owners through their respective administrations. Furthermore, if the change involves alterations to common areas that impact the building's aesthetics or architectural integrity, it still requires approval from a condominium meeting.


The Decree-law also mandates that any public deed or private document related to a change in constitutive title must be communicated to the administrator within 10 days.


It is imperative for property owners to understand that despite the recent legislative changes, compliance with existing local laws remains a critical factor. Any modifications should be aligned with the legal framework and structural guidelines outlined by the local authorities. As a measure of due diligence, professional consultation is advised prior to the initiation of any alterations to ensure that the changes meet the requisite safety and planning standards, thus safeguarding the owner against future legal discrepancies. 


Should you wish to further discuss this matter, don't hesitate to contact us. Our team is dedicated to providing comprehensive support to navigate these legal waters with the utmost diligence and precision.

11 July 2025
The Portuguese Parliament has decided to postpone the vote on the proposed amendments to the Nationality Law until September 2025. The decision was taken in a meeting of the Committee on Constitutional Affairs, Rights, Freedoms and Guarantees, following pressure from several political parties who requested more time to assess the implications of the proposed reform. The delay allows for additional hearings with legal experts, immigrant associations and civil society representatives before a final vote is held in plenary session. The proposed reform introduces significant changes to the current legal framework for acquiring Portuguese nationality. Among the most impactful measures is the extension of the minimum legal residence period required before applying for naturalisation. Under the new proposal, this period would increase from the current five years to seven years for nationals of CPLP countries (Community of Portuguese Language Countries), and to ten years for applicants from all other countries. Another major change concerns the introduction of mechanisms to revoke Portuguese nationality . According to the proposal, naturalised citizens who are convicted of serious crimes — defined as those resulting in prison sentences of five years or more , within ten years of acquiring nationality — could see their Portuguese citizenship revoked by a court decision, based on a proposal from the Public Prosecutor’s Office. In addition, the reform would tighten the requirements for acquiring original Portuguese nationality through birth in Portugal. For children born in Portuguese territory to foreign parents, it would become mandatory that at least one parent has been residing legally in Portugal for a minimum of three years , instead of the current two years. Although the government initially intended to approve these changes before the summer recess, political consensus has not yet been reached. Left-wing parties have raised concerns regarding the constitutionality of retroactive revocation of nationality and the potential impact on the rights of long-term residents and immigrant communities in Portugal. In response, the parliamentary committee agreed to postpone the process and schedule a new round of expert hearings in early September. A final vote on the reform is now expected to take place later that month. Until then, the current version of the Nationality Law remains in force , including the five-year legal residence requirement for naturalisation. Applicants who meet this requirement and wish to apply under the current rules may still do so in the coming weeks.
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