The profound demographic, political, economic and spatial changes which occurred in Portugal during recent decades and the 2009 financial and economic crisis have made clear that the urban growth-dependency of municipal finances is no longer sustainable. Within this background, there seems to be a general growing interest in new (or renewed) revenue sources, including capturing land value increments created by public decisions or actions or by the general economic growth (e.g. Ingram & Hong, 2012). This chapter reviews the evolution of developer obligations and other public value capture tools in Portugal. A critical analysis of the legal framework and its practice is presented within a broader context of municipal financial sustainability and land policies efficiency. In the end, some conclusions are systematised about how value capture can contribute to a more equitable and sustainable redistribution of the benefits and costs of the urban development process along the life cycle of urban spaces.