Reconstruction of old houses becomes simpler

New urban licensing regime reduces bureaucracy in certain reconstruction works of old properties

The new urban licensing regime has introduced relevant changes for those who intend to rebuild an old house. Decree-Law No. 108/2026, published in May and currently in force, has extended the situations in which certain works may be exempt from a license or prior communication.

This change comes in a period marked by strong pressure on the housing market. According to INE, house prices increased by 17.6% in 2025, the highest growth in the available series.

In order to benefit from this exemption, the reconstruction must restore the last legally valid state of the property. In practice, this means, in general terms, preserving the composition of the facades, the dimensions, the openings, the roof and the protruding or recessed elements.

Not all works are exempt

The exemption is no longer applicable when the intervention involves an extension of the property. Increasing the implantation or construction area, the height of the façade, the height or volume of the building may modify the framework of the work.

Improvements in materials, safety and health conditions can also be made, provided that the intervention remains within the limits set for reconstruction.

Another important change covers properties located in protection zones of classified properties or in the process of being classified. In these situations, certain reconstruction works can also benefit from the exemption.

The replacement of window frames with solutions with similar design and finishing, when aimed at improving energy performance, can also be included in works of little urban relevance.

Exemption does not mean absence of rules

Even when a license is not required, the owner remains subject to compliance with certain obligations. As a rule, you must notify the city council of the start of work at least five days in advance. Urban taxes may also continue to apply.

The responsibility for the compliance of the intervention remains. The property may be subject to inspection and, if the work exceeds the limits provided for the exemption, it may be subject to the rules applicable to urban operations that require licensing.

For this reason, before starting a reconstruction, it is important to confirm the legal history of the property, verify that the intervention respects the required characteristics and analyze the possible existence of patrimonial or urban constraints.

The main advantage of the new regime is thus the reduction of bureaucracy associated with certain works. Even so, rebuilding an old house without the need for a permit does not mean that it is possible to freely change the property.

Mira Real Estate | Algarve where dreams happen

At Mira Imobiliária we follow the legislative and urban changes with an impact on the real estate sector, seeking to provide owners, buyers and investors with current and relevant information for their properties and investments in the Algarve.