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Decree Law No. 88/2017

Publication: Republic Diary No. 144/2017, Series I of 2017-07-27
  • Issuer: Environment
  • Diploma Type: Decree Law
  • Number: 88/2017
  • Pages: 4259 - 4260

Summary in plain english

What is it?

This decree-law clarifies the rules that apply to urban rehabilitation societies whose majority shareholders are municipalities.

What will change? Clarification of the rules for municipality-owned urban rehabilitation companies

The following are not subject to some of the rules of municipal business activity, but are subject to the rules of urban rehabilitation:

  • urban rehabilitation societies created to rehabilitate historic areas and critical areas, whose majority shareholder is no longer the State and is a municipality
  • local companies that manage urban rehabilitation operations.

Municipal business activity is the activity carried out by municipalities through municipal services (water, cleaning, transport, etc.) and municipal companies.

These urban rehabilitation companies:

  • are exempt from demonstrating their economic and financial viability
  • can receive subsidies from municipalities and the State without the need to enter into a contract programme
  • do not have to be subject to an annual performance evaluation by their governing bodies reported to the Inspectorate-General for Inland Revenue
  • are closed down when:
    • they complete all urban rehabilitation operations allocated to them
    • an urban rehabilitation operation has not been initiated in the area in which they operate.
What are the advantages?

This decree-law aims to clarify in which situations the rules of urban rehabilitation or local business activity apply to urban rehabilitation societies majority-owned by municipalities.

When does it come into effect?

This decree-law comes into effect the day after being published.

Original Version


  • Legal translator is the translation of texts within the field of law


Legislative consolidation integrates the various amendments and rectifications made into an original legal diploma in order to make its consultation more accessible to the citizen.