How to Check if a Contractor Has an IMPIC License in Portugal
Hiring a construction company without checking if it holds a valid IMPIC license is one of the most common, and most expensive, mistakes people make in Portugal. According to IGAMAOT, 94% of urban planning operations inspected between 2020 and 2024 involved some form of irregularity (note: this refers to operations flagged for inspection, not a random sample of the sector). A significant portion of those situations starts right here: failing to verify the contractor's credentials before signing a contract.
This guide explains what the IMPIC license (alvará) is, why it's mandatory, how to verify it online, and what to do when a contractor simply doesn't have one.
What is the IMPIC license?
The construction license (alvará) is issued by IMPIC (Instituto dos Mercados Públicos, do Imobiliário e da Construção) and authorizes a company to carry out construction work in Portugal. Think of it as a driving license for the construction sector: without it, a company cannot legally perform contracting work.
The license defines two key things: the qualification class, which caps the maximum value of works the company can take on, and the categories and subcategories, which define the types of work it's authorized to perform. A contractor with a class 1 license for buildings, for example, can only do residential work up to a certain value and is not qualified for road infrastructure projects.
IMPIC regularly updates the status of licenses, which means a company that had a valid license 6 months ago may no longer have one today. Licenses get suspended, expire, or are revoked fairly often, usually due to unpaid mandatory insurance or tax non-compliance.
Why is it mandatory?
The license requirement is enshrined in Portuguese law, specifically Lei n.º 41/2015 and subsequent legislation. Any company performing construction work as a general contractor or subcontractor must hold a license appropriate to the nature and value of the works.
This isn't just bureaucratic red tape. The license guarantees that the company:
- Has proven technical capacity, with qualified technical directors
- Holds all mandatory insurance policies, including workers' accident insurance
- Is in good standing with the Tax Authority and Social Security
- Has commercial good standing, with no relevant convictions or active insolvency proceedings
When you hire an unlicensed company, you lose all of that protection. In case of a worksite accident, construction defects, or project abandonment, the property owner's legal position becomes much weaker. In some cases, the owner can actually be held liable for hiring an unauthorized entity.
How to verify online
IMPIC provides a public lookup tool on its website. The process is relatively straightforward:
- Go to the IMPIC company lookup page
- Enter the company's NIF (tax identification number) or registered name
- Check the result: license status (active, suspended, expired, revoked), qualification class, and authorized categories
In practice, the IMPIC website can be unintuitive, especially if you're not familiar with construction sector terminology. Results aren't always easy to interpret, and the platform doesn't automatically cross-reference the license data with other relevant information like court proceedings or detailed tax status.
That's exactly why tools like ObraXRAY exist: to run that verification automatically and cross-reference multiple data sources into a single report.
Verify a contractor for free on ObraXRAY - see 5 key risk categories and a visual shield indicator in seconds.
What the classes and categories mean
IMPIC's classification system is split into two axes: classes and categories.
Classes (1 to 9)
Classes define the maximum project value a company is authorized to take on. Class 1 is the lowest, suitable for small works, and class 9 is the highest, for large multi-million euro contracts. Each class has a value cap that IMPIC updates periodically.
A common mistake is hiring a company whose class doesn't cover the value of the project in question. If the project exceeds the license's class limit, the contract can be considered void, leaving the property owner in a very difficult legal position if problems arise.
Categories and subcategories
Categories define the type of work authorized. The main categories include:
- Buildings and built heritage - construction, rehabilitation, and demolition of buildings
- Roads, urbanization, and other infrastructure - roads, sewage systems, water networks
- Hydraulic works - dams, canals, maritime works
- Electrical and mechanical installations - HVAC, elevators, electrical systems
- Other works - special foundations, demolitions, restoration
Within each category there are more specific subcategories. It's important to check not just that the company has a license, but that its categories actually cover the type of work you need done.
What to do if the contractor doesn't have a license
If your check reveals the contractor doesn't hold a valid IMPIC license, that's a serious red flag. There are several possible scenarios:
- Expired license - the company failed to renew, possibly due to financial difficulties or non-compliance with requirements. It may be temporary, but it's a risk.
- Suspended license - IMPIC suspended the license due to irregularities, such as missing workers' accident insurance or tax non-compliance. The company cannot legally perform any works while the suspension is in effect.
- Revoked license - the most serious situation, usually linked to repeated violations or criminal convictions.
- Never had a license - the company is operating illegally in the construction sector.
In any of these cases, going ahead with the hire is strongly inadvisable. Beyond the legal risk, a company without a valid license almost certainly doesn't have its mandatory insurance up to date either, which means that in case of a worksite accident, liability could fall on the property owner.
There's also the matter of legal deadlines in case of insolvency. If the contractor enters insolvency proceedings, creditors have only 30 days after the CIRE ruling is published (Código da Insolvência e da Recuperação de Empresas) to file their claims. If you didn't check the company's financial health beforehand, you might find out about the insolvency too late to act.
Automated verification with ObraXRAY
Manually checking the license on the IMPIC website is a good first step, but it only gives you part of the picture. The license status alone doesn't tell the whole story. A company can have an active license and simultaneously carry tax debts, pending court cases, directors with personal insolvencies, or signs of financial distress.
With ObraXRAY, we cross-reference 9 official databases and run over 20 independent checks to assess the risk of any contractor. Just enter the NIF.
ObraXRAY cross-references IMPIC license data with court records (via CITIUS), commercial registry publications, tax and Social Security debtor lists, public execution lists, and director and shareholder history to generate a complete report. The free search shows 6 of 13 risk categories with a visual shield indicator, so you can immediately see if a company has insolvencies, debts, or court proceedings. The full report (€19.99) unlocks the exact score (0-100), all categories, and concrete recommendations.
If you're about to hire for a construction project, whether it's an apartment renovation or building from scratch, spend 2 minutes checking the contractor before signing anything.
Verify a contractor for free on ObraXRAY