What does the law in Portugal say about this subject? SUPERCASA responds.
Source: Freepik
Author: Redaction
The increase in house prices in Portugal has increased the demand for alternative solutions to the demand for decent housing, and there is an interest in converting shops into houses that has been, itself, gaining the adhesion of several aggregates. Changing
the use of a particular property is possible, but it is subject to a
set of legal and technical requirements that we explain to you.
Why convert a store into an apartment?
Nowadays
it is easier to buy a property affect the trade than a house for
housing, for the disparity of the values practiced and, therefore,
the owner of a store that intends to convert it into a property with
housing purpose can effectively do so, however, must follow a number of
requirements as well as ensure compliance with the law.
To create a residential space is not enough to have the building and the walls, being necessary structural interventions and to ensure compliance with the legal regime, which dictates, for example, aesthetic and architectural changes, as well as the consultation of the City Council of the locality where it operates, to verify the indispensable conditions of habitability.
For an investor, family or owner,
this conversion is advantageous from a monetary point of view, because
in addition to being taking advantage of a building that already exists,
entailing less intervention costs, will make an urban revitalization of
the same building, thus contributing to the revitalization of areas that may be degraded, abandoned or affected by services in cities.
What does the legislation say?
To
be able to move forward with the conversion of a space dedicated to
trade or services in a residential property, you must, to begin, consult
the decree-law 10/2024, of January 8, which has undergone a change. With
the new legislation, it is no longer necessary to seek advice from the
Assembly of Tenants for any intervention in horizontal property,
provided that it is intended for the conversion of the property into
housing, whether for rental, local accommodation or permanent own housing.
Once you know the legislation, there are two things you have to do:
1. It shall always consult the City Council to ascertain whether there is housing viability, that is, whether the conditions in the property which are indispensable to its habitability, are met;
2. If aesthetic or architectural changes are made to the common parts of the property, the condominium must approve.
With the entry into force of the Urban Simplex, in March this year, the
conversion of real estate for non-housing purpose into real estate to
live in was easier, having been defined the issue of the fall of the
mandatory authorization of the condominium for the contract, but maintaining the application for authorization to the city councils.
What do you need to do in practice?
After ensuring the opinion of the two entities, in relation to the points mentioned above, can effectively begin the process of converting the store into property for housing purposes. And, to begin with, you should try to change the title of the property, if it is inserted in a building.
The change in the title of the property must be formalized through a public deed or notarized document, and after this change, it is necessary an adjustment in the License of Use, with the City Council, which will determine the purpose of the property - housing or non-housing purposes.
The transformation process of the store begins effectively when the modification project is presented, which must encompass technical and safety requirements.
What do you have to do as an owner?
A process of converting a store to an apartment can be complex, time consuming and somewhat bureaucratic, so we always recommend consulting a specialized professional to advise and accompany you at all stages of this process. Not
only will it ensure compliance with the law and legal requirements, but
it will speed up the process, having on its side all the information
necessary for transformation.
However, as an owner, you must
update the description of the house in the official register, after
receiving the authorization from the Chamber and/ or assembly of tenants, for the conversion of the property. You must also
present to the tax authorities the document that proves that the
changes are in accordance with the laws and regulations in force.
The
rules changed, according to Decree-Law 10/2024, in the Code of Urbanism
and Spatial Planning, to facilitate these processes, which eliminated the requirement of the prior use license, which was previously necessary to change the use of the property, and streamline the process, as it provides for shorter deadlines.
So, you know, check with the competent authorities, requesting the services of a solicitor or lawyer, and carefully analyze whether or not this is the most viable option for you.
And if you’re looking for commercial spaces for sale, find them at SUPERCASA.
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