Thinking about converting your shop into an apartment? Or turning a commercial unit into housing?
Portugal’s new Urban Simplex reform makes it easier than ever to change how your property is used legally and efficiently. Here’s everything you need to know.
What Is the Urban Simplex?
The Urban Simplex is a recent initiative by the Portuguese government aimed at simplifying and accelerating urban planning and licensing processes. It's part of the broader Simplex Program, a long-term effort to modernize public services that’s been active since 2006.
This branch focuses on urban development, land use, and construction licensing, with a goal of cutting down on red tape while making public administration more digital, transparent, and efficient.
Why Was It Introduced?
Portugal is facing a serious housing shortage. Demand is high, supply is limited, and prices are soaring. Urban Simplex is one of the government's responses, designed to unlock more housing opportunities by making it easier to repurpose underused commercial spaces into homes.
What Does It Aim to Do?
Urban Simplex is all about making things easier and faster for property owners, developers, and local authorities. Its key goals include:
- Speed up licensing for urban development
- Cut down bureaucracy and paperwork
- Move services online and automate processes
- Make planning procedures more predictable and transparent
- Encourage investment by reducing administrative hurdles
Want to Convert a Property for Housing?
If you own a shop, office, or industrial unit and want to turn it into a residential space, Urban Simplex makes that possible and easier than before.
Legal Requirements
Before you start, you’ll need to check a few things:
- Zoning: Verify that your property’s location allows for residential use. You can do this by checking your municipal master plan or local land-use regulations.
- Technical Standards: Your property needs to comply with building codes, safety standards, and habitability requirements.
No More Condo Approval Needed
Previously, if your property was part of a condo, you’d need permission from the other owners to make changes.
Now, that requirement has been removed.
You no longer need consent from other condo owners to convert your unit for residential use.
Step-by-Step: How to Convert a Property
- Get a certificate from your local municipality confirming the use change is allowed
- Sign a public deed (or authenticated private document) to update the property’s official title
- Notify the condominium administration within 10 days of the change
- Register the change with the land registry and tax authority
Do You Need an Architect?
Only if you plan to do construction or structural modifications.
In those cases, a licensed architect can prepare necessary plans, handle submissions, and ensure compliance with regulations.
Should You Talk to a Lawyer?
It’s not mandatory, but it’s strongly recommended. A lawyer can:
- Help prepare and review documents
- Confirm your project complies with local rules
- Represent you in dealings with municipal authorities
- Help you avoid legal pitfalls
Partnering with an architect or lawyer will help ensure your project is smooth, compliant, and built for success.
What Does This Mean for Investors?
Urban Simplex is a major opportunity for real estate investors and developers in Portugal:
- Easier path to converting underused properties
- Faster project approvals and execution
- Lower overhead and admin costs
- More flexibility in property development strategies
Urban Simplex is more than just a legal update, it’s a gateway to real estate innovation in Portugal. For property owners, developers, and investors, it offers a streamlined way to adapt, build, and grow within the housing market.
