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Prefabricated, modular and container Homes: What are the required permits in Portugal

3 April, 2025 Legislation

Prefabricated, modular and container houses have become increasingly popular in Portugal due to their greater simplicity and speed of construction compared to traditional masonry.

These homes are an affordable & sustainable alternative in the real estate market, especially in urban areas where traditional housing prices are high.

But please note, in Portugal, these homes also require a "building” permit & licensing, that must comply with each municipal council planning regulations.

The legal framework of modular, prefabricated or container houses is similar to that of traditionally built dwellings, so licencing of this type of construction is compulsory.

 

If you're looking for an affordable home without compromising on quality, these homes could be your best option.

The real estate market is currently challenging for those looking to buy a home. Prices are extremely high, even for older properties, and newly built homes are even more expensive.

This is particularly evident in urban areas, where high demand and financing restrictions make homeownership difficult. In this context, these type of homes (prefabricated, modular and container) emerge as a great alternative. 

 

Before going ahead with this type of work, which is quicker and cheaper, it is important to secure necessary permits, including land usage approval and compliance with zoning laws  and taxes:

 

From a legal point of view, the Legal Regime of Urbanisation and Building (DL no. 555/99, of 16 December) defines "Building" as "(...) the activity or result of construction, reconstruction, extension, alteration or conservation of a building intended for human use, as well as any other construction that is incorporated on the land on a permanent basis." It does not make any distinction between traditional masonry buildings and modular and prefabricated houses, so that the legal criteria to be applied when selecting a plot of land for construction will be similar to those applied in a traditional construction.

Thus, from the outset, any land that lies within the National Agricultural Reserve (RAN), the National Ecological Network (REN), protected areas or coastal areas should be excluded, given that the construction limitations in these areas condition or even make any project impossible.

Subsequently, the Municipal Master Plan (PDM) of the municipality where the land is located must be consulted, as this will be the instrument that will qualify the land (urban land, urbanisable land, rural land, natural and agricultural spaces, etc.).

 

What Permits are required:

 

1) Licencing Process: 

  a) Before going ahead with the construction, one should request prior information from the Municipal Council where the house will be built, in order to guarantee the viability of the project. Subsequently, the architectural project - descriptive memory, plans, sections, elevations, and other elements - must be presented to the City Council of the municipality where the house will be built, and this process must take place before the assembly and construction of the work begins.

Once the architectural project is approved, the technical projects must be presented - sewage, power supply and electrical distribution and gas installation - so that the City Council can consult the entities that must issue an opinion, authorisation or approval, analyse the building and issue the building permit.

Once the building permit is issued the construction work can proceed, and there must be a contractor responsible for the work and the site book.

 

  b) After construction is complete, you must request a use license from the City Council's urban planning services, which will be issued after the inspections confirm that the work carried out/built complies with the approved projects, water certifications and sewers.


2) TAXES - You must pay municipal property tax (IMI) annually on the taxable value of your property.

Regardless of the type of construction - masonry, wood, prefabricated or modular - municipal property tax (IMI) is levied on the taxable asset value of urban and rural buildings located in Portuguese territory. So, when the property is registered with the tax authority and the respective caderneta predial (legal description) issued, this tax must be paid annually.

 

NOTE:

It is also important to bear in mind that obtaininghousing credit for this type of construction is more difficult and, generally, the rates applied are higher and with shorter payment periods than for traditional construction or the purchase of a property that has already been built.

 

What Are they: 

Prefabricated or modular homes - These houses are either pre-built buildings in sections or houses assembled from multiple modules. They are produced in a factory and transported to the site, where they are assembled into a single house and the final finishes carried out.

Container homes - are residential structures built from shipping containers. Contrary to common misconceptions, they are not just metal boxes lacking aesthetic appeal. These steel structures are durable, versatile, and increasingly popular in modern architecture. However, they require proper insulation, ventilation, and climate control to be comfortable living spaces.

 

Advantages of these Homes

 - Faster Construction – the construction time depends on several factors, including the characteristics of the land to built, the type of foundation, the complexity of the project and the desired finishes. However it is built in a fraction of the time compared to traditional homes.  

 - More Affordable – can be a cost-effective option. Lower costs due to reduced labor and material expenses.

 - Modular and Transportable – Can be relocated or expanded easily.

 

Disadvantages of these Homes

 - More Labor-Intensive Process – Requires careful modifications and expert handling.

 - Needs Specialized Professionals – Architects, engineers, and builders with experience in modular homes are essential. 

 - Maintenance Required – on all opf them specially containers are prone to rust if not properly maintained.

 - Limited Architectural Flexibility – specially the containers homes- The fixed dimensions of containers can limit design creativity.

 - Poor Thermal Insulation – specially the containers homes -(Steel conducts heat and cold, requiring high-quality insulation).

 

Extra Note regarding Mobile homes:  

Depending on the case, any prefabricated, modular and container homes require foundations. If they do not require foundations, they can be considered mobile prefabricated homes and, for example, can be placed on rural land, as long as the legislation allows it, (if you put a house on wheels or use a mobile home, it might be considered «wild camping» and town hall might require you to remove it).

 

In conclusion: 

Although the construction of modular and prefabricated houses may be faster in terms of construction method and technology, the same does not apply for legal procedures, which have response times and costs similar to those of a traditional construction. 

 

* Esta notícia foi escrita com informação recolhida do site idealista

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