Expropriations: A Guide to the New Powers of Local Authorities

Local authorities will have more power in expropriation proceedings. Under Decree-Law No. 160/2026, the declaration of public utility for expropriations carried out by municipalities will now be decided by Municipal Assemblies. In practice, this means that the decision will no longer depend on central government and will instead be taken closer to the communities affected. Here’s what is at stake.

What is changing?

The Municipal Council will continue to prepare the process and justify the need for the expropriation, in accordance with the new legislation. The Municipal Assembly will then examine the proposal and make the final decision. As this body brings together different political forces and representatives of the municipality, the process will now involve greater debate and scrutiny from those who are closer to citizens and more familiar with the needs of the local area.

Approval requires a majority of all serving members of the Municipal Assembly, rather than just a majority of those attending the meeting. This requirement strengthens the legitimacy of the decision, but may also make approval more difficult in municipalities where the Assembly is divided among several political forces. In such cases, the lack of a clear majority could make the process slower and more dependent on political negotiations and consensus.

What are the advantages?

The main advantage of this new law, already published in the Official Gazette, is proximity. Decisions will now be made by those who have a better understanding of the local area, local needs and the impact of projects on the community. In addition, Government authorisation is no longer required. The decision only needs to be notified to the central administration.

What are the challenges?

Political debate may delay some proceedings, particularly when there is no consensus. For projects involving several municipalities, approval from all the Municipal Assemblies concerned will still be required. This may call for greater coordination and make the process more time-consuming.

What changes for property owners?

The rules on compensation and legal remedies remain unchanged. Property owners will continue to benefit from the safeguards provided for under the Expropriation Code. What changes is simply who makes the decision.

More local power, greater responsibility

This reform strengthens the autonomy of local authorities and brings decision-making closer to citizens. The challenge will be to ensure that this greater proximity also leads to greater speed, transparency and efficiency.