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An IMPIC license is mandatory for anyone executing construction works in Portugal. Confirm the company has a valid license before signing a contract.
WHAT IS IT
About the IMPIC license
The alvará is a credential issued by IMPIC (Instituto dos Mercados Públicos, do Imobiliário e da Construção) that legally authorises a company to execute construction works in Portugal. IMPIC issues two types of credential: the alvará, organised in classes according to the contract value, and the certificado, the lower-capacity title, for works up to €40,000. Both come in public-works and private-works versions. Any works that require a municipal construction permit need one of them.
Each alvará has a class that defines the maximum authorised value per contract: class 1 (up to €200,000), class 2 (up to €400,000), class 3 (up to €800,000), class 4 (up to €1,600,000), class 5 (up to €3,200,000), class 6 (up to €6,400,000), class 7 (up to €12,500,000), class 8 (up to €19,000,000), and class 9 (above €19,000,000). Hiring a class 2 contractor for a €1M project is not legal, regardless of the company's reputation.
A valid alvará means the company is registered and meets IMPIC's minimum requirements at the moment of issue. It does not mean the company is financially healthy, has no ongoing lawsuits, no tax debts, or no directors linked to previous bankruptcies. For those checks, you need a full contractor report.
How to interpret the result
- Valid — the contractor can legally execute works, up to the authorised value of its class.
- Expired — the company had a credential but didn't renew it. Can mean financial trouble, ceased activity, or a renewal oversight. Confirm before signing.
- None on file — no IMPIC alvará or certificado was found. This isn't always a problem: the works may be executed by another company in the group or by the main contractor. Confirm which company holds the contract and ask for the credential.
COMMON QUESTIONS
Frequently asked questions
- What is the IMPIC license?
- It's the authorisation issued by IMPIC (Portugal's Institute for Public Markets, Real Estate and Construction) that allows a company to execute construction works. Without it, a construction company cannot be legally hired in Portugal.
- What does an expired license mean?
- It means the company had a license but didn't renew it. This can indicate financial difficulties, ceased activity, or simply a renewal oversight. Confirm the reason before hiring.
- Can I hire a company without a license?
- It depends. For works that require a municipal permit, whoever executes them needs an IMPIC credential (alvará or certificado, depending on the value). But “not found” doesn't always mean the company is irregular: the works may be executed and invoiced by another company in the group or by the main contractor, who is the one that must hold the credential. Confirm which company the contract and invoice are in the name of, and ask for the credential covering those works.
- Is a valid license enough to trust a company?
- No. The license confirms they can legally build, but not whether they have insolvencies, tax debts, civil proceedings, or directors linked to failed companies. That's what the full report adds.
- What's the difference between alvará and certificado IMPIC?
- Both are credentials issued by IMPIC, and both come in public-works and private-works versions. The essential difference is capacity: the alvará is organised in classes that set the maximum authorised contract value (class 1 up to €200,000, up to class 9, above €19,000,000), while the certificado is the lower-capacity credential, for works up to €40,000, with simpler access requirements.
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