Rui Ribeiro Lima and Miguel Arnaud examine the impact of land reclassification on Portugal’s reindustrialisation efforts

Rui Ribeiro Lima and Miguel Arnaud co-author the article "Portugal's Reindustrialisation Effort – Land Reclassification and Simplified Planning Modifications", published in Vida Imobiliária, in which they analyse the latest legislative measures aimed at relaunching industrialisation in Portugal.

The starting point is the Draghi Report — “The Future of European Competitiveness” — commissioned by the European Commission, which identifies Europe’s declining competitiveness compared to the US and China. The report highlights administrative burdens and delays in permitting procedures as critical obstacles to investment. Portugal is no exception, facing high context costs and slow processes that have hindered the implementation of major industrial projects.

In response to this challenge, the authors highlight recent amendments to the Legal Framework for Territorial Management Instruments (Decree-Law No. 80/2015), which now allow: i) faster changes to planning instruments such as Municipal Master Plans and ii) the reclassification of rural land for industrial, logistics, or storage purposes through simplified procedures with reduced administrative burden.

This new regime is already being applied by several municipalities, which have managed to complete reclassification processes in just three to five months — a significant reduction compared to previous timeframes that could exceed ten years. Moreover, investors are now able to select land outside areas traditionally designated as industrial, in coordination with municipalities, thus increasing flexibility in project location.

Rui Ribeiro Lima and Miguel Arnaud conclude that these mechanisms have the potential to reposition Portugal as an attractive destination for industrial and logistics investment, accelerating economic growth and strengthening the country’s competitiveness within the European context.

Read the full article in the attachment below.