Portuguese legislation provides four principal routes through which a foreign company may regularize its activity in the construction sector and operate legally within Portuguese territory: (a) authorization as a public works contractor; (b) authorization as a private works contractor; (c) registration as a private works contractor; and (d) operation under the free provision of services regime.

Whilst all these regimes aim to uphold the legality and technical quality of construction activities, the first two — authorization to carry out public works and authorization to carry out private works — entail considerably more stringent legal, technical, and financial requirements.

In order to obtain authorization as a public works contractor in Portugal, a foreign company must submit an application to IMPIC – Instituto dos Mercados Públicos, do Imobiliário e da Construção (the Portuguese Institute for Public Procurement, Real Estate and Construction), accompanied by documentation evidencing: (i) its good standing, including criminal record certificates for the legal entity and its directors, issued by the competent authorities both in the home jurisdiction and, where applicable, in Portugal; (ii) its financial capacity, which is assessed in accordance with the value of the intended works and demonstrated through certified accounting documents; (iii) the existence of valid occupational accident insurance cover in Portugal; and (iv) the requisite technical capacity. This latter criterion is of particular importance and requires the company to employ suitably qualified professionals — notably engineers with appropriate academic training and proven experience — who must be duly registered with the Portuguese Order of Engineers (Ordem dos Engenheiros). Such registration is a mandatory legal requirement for carrying out public works in Portugal.

The authorization to carry out private works follows a similar legal framework and is likewise a formal and structured regime. It is designed for companies wishing to establish a permanent presence in Portugal to undertake large-scale private sector construction projects. Although less demanding than the public works regime in terms of technical capacity, it nonetheless requires compliance with a comprehensive set of documentary and formal obligations.

Alternatively, companies intending to carry out only private works in Portugal, without establishing a fixed presence and for a limited period, may opt for more streamlined regimes. Registration as a private works contractor, for example, is available to companies lawfully established in a Member State of the European Economic Area. This registration allows the company to carry out private construction works in Portugal, within the financial limits of the classification granted. Unlike the authorization regimes, this route does not require proof of technical capacity nor the registration of engineers with the Portuguese Order of Engineers.

Finally, companies wishing to operate on a temporary and occasional basis, with no intention of establishing themselves in Portugal, may choose to operate under the free provision of services regime. In such cases, it is sufficient to submit a valid commercial registration certificate (or equivalent document from the home country), along with a standard declaration form provided by IMPIC, available on its official website. This is the most accessible and least bureaucratic route, although it is strictly limited to private work and for a specified duration.

Belzuz Abogados SLP – Portugal Branch has a highly specialized and multidisciplinary legal team with extensive experience in assisting foreign companies throughout this process — from identifying the most appropriate authorization regime for the company’s intended activities, to the preparation and submission of the relevant documentation before the competent Portuguese authorities.