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With 7.3 percent of 15-to 64-year-olds reporting in 2001 that they had ever used an illicit drug, Portugal has historically had a moderate prevalence of illicit drug use. Since July 1, 2001, Portugal has received increasing international attention for its innovative drug policy, particularly its decision to decriminalize the use, acquisition and possession of all illicit drugs, when deemed for personal use. Use, acquisition, and possession have historically been criminal offenses punishable with up to one year's imprisonment, but with the introduction of Law 30/2000 such offenses have constituted public order offenses that are sanctioned through specially devised Commissions for the Dissuasion of Drug Addiction (CDTs). The new law applies to all illicit substances including heroin, cocaine, marijuana, and ecstasy, provided an offender has no more than a 10-day supply of that substance on them. In practice this amount is set very low at, for example, 2.5 grams of cannabis.

These changes did not legalize drug use in Portugal, and hence Portugal is not deemed in contravention of the United Nations Single Convention on Drugs, 1961. Possession remains prohibited by Portuguese law and criminal penalties are still applied to drug dealers and traffickers. The law formed part of a strategic approach to drug use that aimed to focus police resources on those people who profit from the drug trade, while enabling a public health approach to drug users. At the time of adoption the law had bipartisan support.

Under the new law eligible use/possession offenders are referred by police to CDTs, which are specially devised regional panels made up of three people, including lawyers, social workers, and medical professionals. The CDTs discuss with the offender the motivations for and circumstances surrounding their offense and are able to provide a range of sanctions, including community service, fines, suspensions on professional licenses, and bans on attending designated places. However, their primary aim is to dissuade drug use and to encourage dependent drug users to go into treatment.

The Portuguese decriminalization was introduced as part of a period of reflection and debate on the country's drug policy that led to the adoption of the first national drug strategy, known as the National Strategy for the Fight Against Drugs. The adoption of the national strategy marked a significant shift from an abstinence-based approach characterized by slogans and campaigns such as Project Life (Projecto VIDA) to the adoption of a more comprehensive and evidence-based approach to drugs and drug use in Portugal.

Key elements of the strategy were the specification of eight guiding principles, including humanism and pragmatism and the right of all people to receive drug treatment, and the nomination of 13 objectives, such as the decriminalization of illicit drug use and increased enforcement of laws prohibiting trafficking and distribution of drugs, increased efforts for social and vocational reintegration of drug users, and doubling the investment of public funds in treatment and prevention services. The strategy was followed up by an Action Plan—Horizonte 2004—detailing 30 objectives, funding of about $200 million and an implementation plan until 2004. Following internal and external evaluations in 2004, the decriminalization and national strategy have been extended. The current strategy, titled “A National Plan Against Drugs and Drug Addiction,” is set to continue until 2012.

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