
The construction standards in Portugal are not on par as the standards in Scandinavian countries. The main concern here in Portugal is to build houses that will withstand an earthquake, so from that point of view, the basic structure is world class. The finishing and the insulation is where they fall short of the world class standard. They could not be compared to the Dutch standards, for example. Basically, Portuguese houses are cold in winter and hot in summer!
Some builders or contractors who have permits but do not have work, “rent” those permits up to other builders or contractors who don’t have permits. In a situation like that you have “cowboys” free to operate in the market. Fortunately, because of the severe recession in the building industry since 2007, most of these guys have run out of business.
In the US, you can rest assured that the home that you are buying met certain minimum standards because the contractors have to pull permits and the building gets inspected. That is not the case in Portugal. You don’t have to pull permits for electrical or any sort of requirement here in Portugal in order to build something. If you sell or rent a property, you have to get an Energy Certification, which is done by an engineer but it doesn’t really tell you much about the quality of the electrical installation of the building or the house.
It’s the local government that issues construction licenses and building permits, as opposed to the central government. Most of these guys are as corrupt as they come. You could find a builder who pays someone at the local municipality not to come around. If you are having an argument with your neighbor, you could probably go to the municipality and say, “Hey, look, these guys are putting this swimming pool in. Is this on the building permit?” It’s sort of like the “wild west.”
(Traditional houses in Algarve, Portugal, pictured.)