Can you sell a Portuguese property with an unlicensed pool, extension or no habitation licence?

What is the licença de utilização?

The licença de utilização (also called autorização de utilização or alvará de utilização) is the câmara’s (town council’s) confirmation that a building can be used for a given purpose, such as housing. It is the “habitation licence” British buyers hear about. It covers the building as licensed. A pool, extension, converted garage or annexe built later without approval is not covered by it.

Under the planning law (RJUE) as revised by Decree-Law 108/2026, the old permit is being replaced by a notice to the câmara (comunicação prévia) for use after licensed works (article 62-A), or a notice with a deadline that allows an inspection where there was no prior approval (article 62-B). Whatever the name, lawyers now talk about the property’s título urbanístico (planning title): the licence or notice that proves the building and its use were approved.

When is no licence needed?

Buildings constructed before 7 August 1951, when the General Urban Buildings Regulation (RGEU) came into force, did not need a use licence. This only holds if the building has not since had extensions or alterations that required approval. The câmara issues a certificate confirming the construction date, which buyers’ lawyers will ask for. Outside urban areas the licensing rules began later, on dates each council set, so some rural houses built after 1951 may also be exempt. Ask the câmara for a certificate rather than assuming.

What changed in 2024 with the Simplex Urbanístico?

Decree-Law 10/2024 (the Simplex Urbanístico, published 8 January 2024) revoked Decree-Law 281/99 and article 9 of Decree-Law 68/2004 with effect from 1 January 2024. In plain terms:

Before 1 January 2024	From 1 January 2024
Notary had to see the use licence, or proof of exemption, and mention it in the deed	No legal requirement to show the licence at the deed
Deed had to record delivery of the ficha técnica da habitação (the home’s technical file) for homes licensed after 30 March 2004	No requirement to show or record it at the deed

Myth: “the licence was abolished”. It was not. The obligation to have one stayed. Only the notary’s check at the deed went. The ficha técnica also still has to exist for homes built after March 2004; it is simply no longer checked at the deed. Unlicensed works remain unlawful, and the câmara can still order them to be legalised or demolished.

What changes on 1 October 2026?

Decree-Law 108/2026 (29 May 2026) partly reverses the 2024 approach. It was due on 3 August 2026 but Decree-Law 155-B/2026 moved the start to 1 October 2026.

For any deed signed from that date, the new article 4-A(14) of the RJUE requires the notary, lawyer, solicitor or registrar to record one of three statements, or the sale can be annulled:

1. that the planning title was shown to them;
2. that the seller declares they have the planning title, though it was not shown; or
3. that the seller declares they do not have the planning title.

This does not bring back the obligation to present the licence. A sale can still go ahead under option 3. But the buyer now signs a deed that says in writing whether the property is licensed. The law’s preamble describes this as ensuring an “informed” purchase. A seller who declares option 2 falsely takes on a clear legal risk.

Why do buyers’ lawyers and banks still care?

• Banks: lenders can still insist on seeing the licence before granting a mortgage, whatever the deed rules say. That can remove buyers who need finance.
• Buyers’ lawyers: they compare the registry, tax record and licence with the actual building. Unlicensed works become a reason to cut the price, delay or walk away.
• Enforcement: the new owner inherits the building as it is. The câmara can order legalisation or demolition.
• Annulment: a buyer who proves they were misled about something decisive can seek to annul the sale.
• Resale: the buyer knows they will face the same questions when they sell.

Why do the registry, caderneta and the house not match?

Three records describe your property, and they often disagree:

Record	What it shows	Typical mismatch
Land registry (certidão permanente)	Legal description and areas	Old areas; no pool or extension
Tax record (caderneta predial)	Areas and features used for IMI	Pool or extension never declared
Câmara licence and approved plans	What was approved	Works built without approval

The tax record should be updated within 60 days of finishing works that can change the tax value (IMI Code, article 13), using the Modelo 1 IMI return. An individual pool adds 0.06 to the quality coefficient in the tax value of a house (IMI Code, article 43). Declaring works to Finanças does not legalise them. It only corrects the tax record. Buyers’ lawyers know this.

What are your options?

1. Legalise before selling

The RJUE sets out a legalisation procedure (article 102-A). In outline:

1. Hire an architect (and an engineer where structure is involved) to survey what was built and check it against the municipal master plan (PDM).
2. Ask the câmara how the legalisation should proceed. It must reply within 15 days (article 102-A(6)).
3. Submit the plans and technical statements. Where modern technical rules cannot reasonably be met, the câmara can accept the rules in force when the works were done, if you prove the date (article 102-A(5)).
4. Pay the municipal fees, then file the use notice so the title covers the whole property.
5. Update the caderneta and the land registry.

Costs and timings vary widely by council and case. As a rough guide only, owners and architects commonly report professional fees of a few thousand euros for a simple pool or annexe, and €5,000–€15,000 or more where extensions need engineering. Many cases take 4–12 months. Get quotes and ask the câmara early.

Legalisation fails where the works break the PDM, for example building on protected agricultural or ecological land, beyond permitted floor area, or too close to a boundary or the coast.

2. Disclose and accept a discount

Sell with full disclosure in the CPCV and the deed (option 3 above). The price reflects the buyer’s cost and risk of legalising.

3. Sell as is to a cash buyer

Cash buyers do not need bank approval, so they are the natural market for unlicensed property. They usually expect a larger discount.

4. Demolish

For small unlicensed works that cannot be legalised, removing them can be cheaper than the discount. Demolition may itself need the câmara’s approval, so ask first.

Is an unlicensed pool in the Algarve a special case?

Pools are the most common problem in the Algarve. Under the RJUE as revised in 2026, building a pool next to a main house requires a comunicação prévia to the câmara (article 4(4)(j)). Many older pools were built without one. Check three things:

• whether the câmara has any approval on file for the pool;
• whether the caderneta shows it (a pool that shows up in the tax record but not in the licence file is a red flag for buyers’ lawyers);
• whether the land’s zoning in the PDM allows a pool at all. On rural land this is often the deciding question.

What should the CPCV say?

If anything is unlicensed, the promissory contract (CPCV) should:

• list each unlicensed element (pool, extension, annexe, change of use) and the planning status of the rest;
• record which of the three deed statements will be used;
• state that the price reflects these facts and the buyer accepts them;
• if you are legalising first, set out who pays, the deadline, and what happens if the câmara refuses (a longer deadline, a price cut, or return of the deposit);
• avoid any promise that legalisation is possible unless you have it in writing from the câmara.

Remember that under Civil Code article 442, a seller who pulls out usually has to return double the deposit. Do not sign a CPCV with a completion date you cannot meet.

Worked example: legalise or sell as is?

An Algarve villa has an unlicensed pool and a 30 m² extension. Assumptions for illustration only: legalising costs €12,000 and takes six months, with €3,000 of running costs; the licensed sale price is €650,000; a cash buyer offers €610,000 as is. Commission is 5% plus 23% VAT.

	Legalise first	Sell as is
Sale price	650,000	610,000
Commission (5% × 1.23)	−39,975	−37,515
Legalisation fees	−12,000	0
Six months’ running costs	−3,000	0
Net before tax	595,025	572,485

Here legalising is worth €22,540 more, if it succeeds. If the câmara refuses, you have spent money and time and still sell at a discount. Test your own numbers in the selling calculator.

Which option suits your situation?

Situation	Most sensible route
Pre-1951 house, no later works	Get the câmara’s pre-1951 certificate; sell normally
Minor works that clearly comply with the PDM	Legalise before listing
Works that comply, but you need to sell quickly	Disclose, sell with a price reflecting legalisation cost
Works that break the PDM	Demolish, or sell as is to a cash buyer
Whole house has no title	Take legal advice; target cash buyers; expect a larger discount
Unsure what is licensed	Ask an architect to compare the licence file with the house before listing

For the rest of the selling process, see selling as a non-resident and costs of selling.

Key points

• Since 1 January 2024 no licence or ficha técnica has to be shown at the deed, but both obligations to exist remain.
• From 1 October 2026 every deed must state whether the property has its planning title, or the sale can be annulled.
• Pre-1951 buildings without later works need no use licence; get the câmara’s certificate.
• Declaring a pool to Finanças does not legalise it; only the câmara can.
• Legalise when the works comply with the PDM and you have time; otherwise disclose, discount or demolish.
• Put every irregularity in writing in the CPCV.