Portugal business licensing reform debate

In Portugal, there is a growing movement to reform the ‘Licenciamento Zero’ policy to protect traditional commerce and the identity of historical centers. The policy, originally implemented in 2011 to stimulate the economy through simplified entrepreneur declarations, has faced criticism for allowing an uncontrolled proliferation of souvenir shops and convenience stores that cater to tourists rather than local residents.

In Cascais, local advocates have gathered 11,000 signatures on a public petition calling for a revision of these rules to prevent essential neighborhood services from being replaced. In response to these concerns, the Portuguese government is preparing a new Business Licensing Code. Minister of Territorial Cohesion Manuel Castro Almeida announced that this reform will allow municipalities to designate specific urban areas—particularly those near national monuments—to be exempt from the simplified licensing regime, thereby restoring municipal control over commercial activities in sensitive zones.