The TOL Legal Flash is a weekly publication by TOL Legal Team summarising the most relevant legislative, case law and EU doctrinal developments from the preceding week.
1. ASSEMBLY OF THE REPUBLIC
New Foreigners and Asylum Law — Promulgated Following Constitutional Court Scrutiny
The President of the Republic promulgated, on 31 August 2026, the Assembly of the Republic's law amending the legal regimes for the reception of foreigners and stateless persons, their entry, residence, removal from Portuguese territory, and the granting of asylum. Promulgation followed the Constitutional Court's ruling of non-unconstitutionality of the norms previously referred for preventive review — notably those concerning administrative detention of non-criminal foreigners and the expulsion of children born in Portugal. The Court also issued binding interpretive guidance for courts and administrative authorities regarding family separation and the expulsion of refugees entitled to international protection. The law represents the most far-reaching reform of immigration law since Law No. 23/2007. Relevant for: European Law, International M&A and corporate advisory to companies employing immigrant workers.
Assembly of the Republic | Presidential promulgation, 31 August 2026 | Following Constitutional Court ruling
2. COUNCIL OF MINISTERS
New EU Emissions Trading System (EU ETS 2) — Buildings, Road Transport and Other Sectors
The Council of Ministers approved the Decree-Law partially transposing Directive (EU) 2023/959, establishing a new EU Emissions Trading System (EU ETS 2) regime applicable to the buildings, road transport and other sectors previously outside the carbon trading system. The law was promulgated by the President of the Republic on 2 September 2026. ETS 2, due to begin operations in 2027, introduces a carbon price on diffuse sectors — housing, construction, road mobility and small industry — with direct impact on construction and renovation costs, real estate asset values and fleet operators' business models. Relevant for: Real Estate, Urban Planning, European Law and Tax.
Decree-Law | Partial transposition of Directive (EU) 2023/959 | Presidential promulgation, 2 September 2026
3. COUNCIL OF MINISTERS
Promotion of Energy from Renewable Sources — Transposition of Directive (EU) 2023/2413 (RED III)
The President of the Republic promulgated on 2 September 2026 the Decree-Law amending DL No. 89/2008 of 30 May, partially transposing Directive (EU) 2023/2413 (Renewable Energy Directive, RED III revision). The law accelerates licensing procedures for renewable energy projects, reduces maximum approval timelines and strengthens renewable energy obligations for heating/cooling networks and new buildings. Portugal commits to 47% renewable energy in gross final consumption by 2030. Relevant for: Real Estate, European Law and energy projects (M&A).
Decree-Law | Partial transposition of Directive (EU) 2023/2413 (RED III) | Presidential promulgation, 2 September 2026
4. COUNCIL OF MINISTERS
Public Administration Data Interoperability — 'Once Only' Principle Made Mandatory
The Council of Ministers of 20 August 2026 approved the legislative authorisation Bill for the legal regime of data and document interoperability in the Public Administration, submitted to Parliament. The law makes mandatory the use of the iAP (Public Administration interoperability platform) for data sharing between public entities, implementing the 'once only' principle and eliminating the need for citizens and businesses to repeatedly submit documents already held by the State. It establishes security, traceability and personal data protection rules for information exchanges between services. Directly impacts the administrative simplification of licensing, public procurement and investment procedures. Relevant for: Administrative Law, Real Estate and M&A.
Bill — Council of Ministers, 20 August 2026 | Pending approval by the Assembly of the Republic
5. COUNCIL OF MINISTERS
Sectoral Programme for Renewable Energy Acceleration Zones (PSZAER) — Priority Areas for Solar and Wind
The Council of Ministers of 20 August 2026 approved the PSZAER, defining areas in mainland Portugal suitable for solar photovoltaic and onshore wind energy projects. The PSZAER accelerates the energy transition and strengthens energy security, balancing simplified licensing procedures with the protection of environmental, landscape and heritage values. Projects located in a PSZAER acceleration zone benefit from simplified procedures and reduced timelines. Relevant for: Real Estate, Environmental Law, Urban Planning and energy projects.
Council of Ministers Resolution | CM of 20 August 2026
6. COUNCIL OF MINISTERS
'Resilient Territories' Programme Reinforced to €80 Million — Extended to Additional Municipalities
The Council of Ministers of 20 August 2026 approved a Resolution increasing the 'Territórios Resilientes' programme allocation to €80 million, for the recovery and resilience reinforcement of riverside and coastal areas affected by the January–February 2026 storms and floods, including Storm Kristin. The measure also extends the programme to additional municipalities, enabling more affected communities to access reconstruction support for housing, infrastructure and public facilities. Relevant for: Real Estate Law, Urban Planning, Public Funds and Public Procurement.
Council of Ministers Resolution | CM of 20 August 2026
7. COUNCIL OF MINISTERS
Update to the Late Payments Regime for Public Entities — Strengthened Expenditure Control
The President of the Republic promulgated on 2 September 2026 the Decree-Law updating DL No. 127/2012 of 21 June, in light of Law No. 24/2026 of 1 June, which sets rules on the assumption of commitments and late payments by public entities. The law reinforces the public debt and arrears control framework, with material impact on treasury management and compliance with contractual obligations by contracting authorities. Relevant for: Tax Law, Public Procurement and Public Finance.
Decree-Law | Updates DL No. 127/2012 | Presidential promulgation, 2 September 2026