PORTUGAL LAW AND PRACTICE Contributed by: João Gonçalo Galvão, Carolina Cardoso Alves and Miguel Paquete, CS’Associados
4. Planning and Zoning 4.1 Legislative and Governmental Controls Applicable to Strategic Planning and Zoning The planning and zoning controls applicable to regions are determined through sectorial, special or regional programmes. Sectorial programmes are, in essence, a specification of public policy. Special programmes envisage the fulfilment of objectives deemed indispensable for the protec - tion of public interest in national natural resourc - es. Regional programmes establish a territorial development strategy for the relevant region. All these programmes are binding exclusively on public entities and may apply to one or more regions or municipalities. 4.2 Legislative and Governmental Controls Applicable to Design, Appearance and Method of Construction At time of writing, the design, appearance and method of construction for new buildings or refurbishment of existing buildings is regulated by the General Regulation for Urban Construc - tions (approved by Decree-Law 38382 of 7 August 1951), by specific legislative and gov - ernmental acts regarding engineering projects, and by municipal plans. The General Regulation for Urban Construc - tions shall be deemed revoked from 1 June 2026 onwards. Until said date, the Portuguese Gov - ernment is mandated to prepare a Construction Code that will contemplate all technical rules applicable to construction projects. 4.3 Regulatory Authorities The municipalities set the regulation for develop - ment and designated use of individual parcels of real estate through municipal plans, namely master plans, urbanisation plans or detailed
which the debtor provided in rem guarantees for pre-existing obligations or other obligations replacing them, or simultaneously with incurring new guaranteed obligations, respectively within six months or 60 days prior to the commence - ment of insolvency proceedings, may be settled in favour of the insolvency estate. Secured creditors cannot enforce their security during insolvency proceedings, but may provide input on the type of sale and minimum price of the encumbered asset, having also the right to request to acquire the real estate. Creditors that benefit from statutory liens rank before secured creditors, which otherwise retain priority over the secured asset, above common and subordinated creditors. Security interests granted as part of new financ - ing during insolvency proceedings are generally upheld to encourage business recovery. 3.10 Taxes on Loans Both lenders and borrowers involved in real estate mortgage loans are subject to stamp duty, levied on the value of the loan (tax rates vary - ing as per loan maturity) or, if the mortgage is not granted simultaneously with the loan being entered into, on its maximum secured value (rates also varying as per mortgage duration). Furthermore, notarial/authentication fees will apply in respect of the deed or private docu - ment titling the mortgage incorporation, as well as LRO fees for registration. At time of writing, there are no publicly available indications of pending or proposed changes to the existing tax regulations concerning mort - gage or mezzanine loans in Portugal.
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