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It's decriminalized. That's literally the word. It's still illegal to possess controlled substances, but not a crime right away.

There's a published list [1] of illegal substances and what quantities constitute as "personal use" (like 25g of weed or 5g of hash - translated in "individual doses"). More than that you can be trialed for drug dealing, which is a fair trade-off.

Yes it's still illegal to possess any of these substances, but what happens is that if you're below the "criminal" threshold, you get a doctor/shrink appointment and usually pay a small fine (around 25 euros). Nothing gets written to your criminal record. Repeated offenders might have more several penalties like community service.

Recently there's been a surge in homelessness and harder drug consumption, analog to the rest of Europe, due to a huge housing crisis, very stagnant salaries and overall poor quality of life here (in Portugal).

[1]: https://dre.pt/dre/legislacao-consolidada/decreto-lei/1993-5...