# Portugal decentralisation of public assets

> Live situation record from CLSTR: https://clstr.news/situations/portugal-decentralisation-of-public-assets
> Updated: 2026-08-12T12:32:00.000Z. Sources: 6. Developments: 4.

In July 2026, the Portuguese government transferred the management of 21 public buildings to 16 municipalities, bringing the total number of state‑owned properties handed over since October 2024 to 95. The hand‑overs, valued at about €80 million for renovation, were presented as a step toward expanding affordable housing and revitalising local infrastructure.

Following this, the government implemented Decree-Law no. 160/2026, which amends the Expropriation Code to grant Municipal Assemblies the authority to declare the public utility of expropriations promoted by Municipal Chambers. This reform removes the requirement for prior validation by the central government, a process that previously caused delays of months or years for local projects such as schools, roads, and cemeteries.

The National Association of Municipal Assemblies (ANAM) welcomed the measure, with President Fernando Santos Pereira stating it reflects “state confidence in local authorities to manage matters of high public interest with territorial knowledge.”

Under the new regime, the declaration of public utility is deliberated by the Municipal Assembly based on a reasoned proposal from the Municipal Chamber. This applies to both standard and urgent expropriations and requires a majority vote from active members. While decisions must be communicated to the central government for informational purposes, the government retains inspection powers. If an expropriation affects multiple municipalities, all respective assemblies must deliberate on the matter.

However, the shift has prompted concerns regarding the balance of power and the protection of private property. Critics argue the measure may transfer significant responsibilities to local bodies without providing necessary resources. Additional concerns have been raised regarding potential local political pressure, a lack of transparency, and the capacity of municipal bodies to independently evaluate whether an expropriation truly serves the public interest.

## Timeline

### 2026-08-12: Portuguese Municipal Assemblies gain expropriation powers

Portuguese Municipal Assemblies can now declare expropriations for public utility without central government approval, a move intended to accelerate local infrastructure projects and increase decentralization.

2 sources. https://clstr.news/cluster/portuguese-municipal-assemblies-gain-expropriation-powers

### 2026-08-10: Portugal grants Municipal Assemblies power to declare expropriations

New Portuguese legislation grants Municipal Assemblies the power to declare expropriations for public utility, aiming to speed up local projects but raising concerns over oversight and political influence.

2 sources. https://clstr.news/cluster/portugal-grants-municipal-assemblies-power-to-declare-expropriations

### 2026-08-05: Portugal grants municipal assemblies authority over expropriation declarations

Portugal's new Expropriation Code amendment lets municipal assemblies declare public utility, speeding local projects and reducing central bureaucracy.

2 sources. https://clstr.news/cluster/portugal-grants-municipal-assemblies-authority-over-expropriation-declarations

### 2026-07-21: Portugal hands over 95 state-owned buildings to local municipalities

Portugal has transferred 95 state buildings to 64 municipalities, with recent deals including two properties for Ansião to boost affordable housing.

2 sources. https://clstr.news/cluster/portugal-hands-over-95-state-owned-buildings-to-local-municipalities

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Cite as: Portugal decentralisation of public assets. CLSTR, https://clstr.news/situations/portugal-decentralisation-of-public-assets
