Licensing Costs: Urban Planning Fees and Payment Obligations

When undertaking construction, extension, or licensing of urban operations in Portugal, understanding the system of urban planning fees is essential. These fees constitute a legal obligation designed to compensate municipalities for the costs of creating, maintaining, and upgrading infrastructures required for urban development.

The Legal Framework for Urbanisation and Building (RJUE) defines, in Chapter  V, the legal provisions governing these fees, determining that certain urban operations are subject to specific payments depending on the type of intervention and its location.

Operations subject to urban fees

Licensing and Prior Communication

Urban planning fees mainly apply to:

• Construction in non‑subdivided areas: The issuance of a construction licence or prior communication permit for construction or expansion in an area not covered by a land subdivision operation is subject to an infrastructure fee.

• Partial permits: The issuance of a partial building licence is also subject to payment, with no additional settlement required when the definitive permit is issued.

• Land subdivision operations: As determined by applicable legislation.

Urban infrastructure covered

The concept of urban infrastructure includes:

• Roads and pedestrian pathways.

• Sewerage and water supply networks.

• Electricity, gas, and telecommunications systems.

• Green spaces and other public-use areas.

Fee assessment process

Authority and procedure

The mayor is the competent authority to assess these fees in accordance with the regulation approved by the municipal assembly. This occurs upon the approval of the licensing request.

Payment options

• Instalment payments: The municipal council may allow fees to be paid in instalments until the project completion date set in the licence, provided sufficient financial guarantee is given.

• Self-assessment: In specific cases, such as prior communication procedures, municipalities must provide the regulations and relevant data to enable payment through self-assessment.

Basis for fee calculation

Elements considered

Municipal fee regulations must be supported by a technical and financial justification reflecting:

• The municipality’s multiannual investment programme for the development, maintenance, and reinforcement of general infrastructures, which may differ by geographical zone.

• Differentiation of rates according to building type, usage, and location, proportionate to the infrastructures involved.

Transparency

This ensures that fees accurately reflect municipal costs, promoting fairness and transparency in the assessment process.

Rights of property owners

Appeals and objections

Owners may file administrative or judicial appeals against fee assessments under the Code of Tax Procedure and Proceedings. This right allows individuals to contest incorrect or disproportionate values.

Protection against unlawful charges

Any fees or compensations not provided for by law entitle the licence holder to:

• Recover overpaid amounts.

• Obtain restitution of in-kind contributions.

• Receive compensation when applicable.

Municipal regulation

Municipal responsibilities

Each municipality must approve its own regulation defining:

• The amounts to be charged.

• The deposit account details for payments.

• The competent authority in charge of collection.

Regulatory limits

Municipal regulations must comply with national law and follow principles of proportionality, aligning the fee amounts with actual municipal costs.

Enforcement and collection

Tax enforcement

If payment is not made after notification, municipalities may initiate tax enforcement procedures to recover outstanding amounts.

Priority of claims

Credits arising from urban planning fees carry a property lien on the plot or land in question, safeguarding municipal recovery.

Practical guidance

Before licensing:

• Review the relevant municipal regulation.

• Request preliminary information on applicable fees.

• Plan for payments within established deadlines.

During the process:

• Track billing and payment deadlines.

• Verify correct fee application.

• Request instalments when appropriate.

In case of disagreement:

• File an administrative complaint.

• Seek professional legal or technical advice.

• Keep comprehensive records of all correspondence.

Final consideration

Urban planning fees are a key balance mechanism between development and municipal sustainability. Proper understanding enables property owners and developers to plan effectively, avoid unexpected costs, and ensure full legal compliance. Transparency and fairness in applying these fees underpin a just and efficient land‑use system. It remains crucial for both municipalities and citizens to be aware of their respective rights and obligations within this framework.

Need clarification on urban planning fees or assistance with licensing procedures?

Experienced professionals in licensing and urban law can support your project from start to finish, ensuring compliance and optimal cost management. Contact us for a personalised consultation and learn how to make your project a reality with legal and procedural efficiency.