Decree-Law 160/2026, published August 4 and in force since August 5, amends Portugal's Expropriations Code by transferring one key responsibility from central government to municipal assemblies.
Municipal assemblies can now declare a local expropriation to be of "utilidade pública" (public interest), the legal step required before a municipality can proceed with expropriating property for a local project.
The measure was approved by the Council of Ministers on June 25, following a parliamentary authorization passed on April 24 with support from PSD, PS, Livre, PCP, CDS-PP, Bloco de Esquerda, and JPP. PAN abstained, while Chega and Iniciativa Liberal voted against.
Where this came from
Economy and Territorial Cohesion Minister Manuel Castro Almeida first previewed the change in May, at a conference of Portugal's National Association of Municipal Assemblies at the University of Aveiro, responding directly to a challenge from Aveiro's mayor, who'd publicly asked central government to "trust the municipalities." Castro Almeida said he'd introduced the draft decree-law into the government's legislative pipeline the day before. As an example of what the change covers, he cited ordinary local projects like expanding a school, a health center, or a market.
Municipal assemblies already had this authority, but only in limited situations, for expropriations tied to urbanization or detailed development plans, and for projects funded under the EU Recovery and Resilience Plan (PRR) or Portugal's Economic and Social Stabilization Program, a special regime that applied only through June 30, 2026. Two recent examples illustrate the previous system: in February, Aveiro's municipal assembly approved urgent expropriation of 487 parcels for a planned road connecting Aveiro and Águeda, and Portalegre's assembly had separately approved expropriations for a multi-purpose hydraulic project. This decree-law extends that same authority to the general regime, covering any expropriation a municipality initiates.
What actually changes, and what doesn't
Under the new rule, the municipal assembly of the territory where the property sits decides on the public-interest declaration, based on a justified proposal from the city council (câmara municipal). If an expropriation crosses the boundary of two or more municipalities, all the relevant assemblies have to approve it. Decisions require a majority of sitting members, and the declaration is formally dated to whenever the last required vote takes place. Central government is still informed of the decision, but only for information purposes, not approval, though the government retains its separate inspection and oversight powers.
What the decree-law does not touch is the substance of the expropriation process itself. Property owners should not expect the compensation process or their legal protections to change because of this decree-law. The legislation changes who authorizes the declaration of public interest. It does not change how compensation is determined or the legal rights available to property owners once an expropriation begins.
In practice, if a municipality wants to widen a road, build a school, or expand a health center onto land it does not own, it now seeks approval from its own municipal assembly, rather than waiting on a declaration from central government.