Coronavirus - Government measures in key jurisdictions - Flipbook - Page 65
Portugal
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5
Property
Likewise, it should be considered that there is a provision on the Portuguese Civil
Code that allows contracts to be reviewed or terminated whenever the circumstances
in which the parties based their decision to contract have suffered an abnormal
change. However, it should also be noted that Portuguese courts tend to apply this
provision very cautiously and the impact on the performance of each contract should
always be examined on a case-by-case basis. In the specific case of the impacts
generated by the COVID-19 outbreak we are witnessing several cases but no judicial
decisions have been issued yet.
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Prohibition of termination of lease contracts by the landlords due to the mandatory
closure of establishments and facilities: mandatory closure of establishments and
facilities and suspension measures determined by the Portuguese Government
cannot be invoked as grounds for the termination, early break or other forms of
terminating lease contracts for non-residential purposes or other atypical forms of
occupational agreements regarding real property, nor as grounds for the eviction
from the properties where such establishments or facilities are installed.
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Suspension of termination of lease contracts and evictions:
Have any changes
been made to
the laws around
property, rent and
enforcement?
– the duration of lease contracts (residential or non-residential) that would normally
expire before the 60th day following the termination of the exceptional measures is
extended until such date (except if the tenant agrees to the expiry of the lease at an
earlier date),
– the effects of all notices for termination, revocation or opposition to renewal/
extension already served by the landlord are suspended until the 60th day following
the termination of the exceptional measures,
– eviction proceedings (either judicial or otherwise) are suspended in the cases
where, as a consequence of a potential final eviction decision, the tenant could be
put in a “vulnerable situation due to the lack of a place for permanent residence or
to another overriding social reason”, and
– the obligation of the tenant to return the premises to the landlord following the
termination of the lease is also suspended until the 60th day after the termination of
the exceptional measures.
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Deferral on payment of rents: eligible tenants may defer rent payment falling due
in the period from 1 April 2020 up to the end of the month following the termination
of the state of emergency and will be bound to pay the deferred rental payments
in monthly instalments (which shall accrue to the monthly rents due and payable in
the same period), with no interest or penalties, within 12 months after the deferment
period lapses. Landlords shall not be entitled to terminate leases or evict tenants
for default on the payment of rents during the deferment period. These measures
will apply to standard lease agreements (residential and non-residential), shopping
center leases and other atypical forms of occupational agreements regarding real
property and limited to the following tenants:
– certain residential tenants whose household income has been reduced as a result
of the COVID-19 outbreak (they shall prove that they have suffered a decrease of
more than 20% in their household income, as compared to the preceding month or
the equivalent period of the previous year; and that the payable rent represents an
effort rate above 35% of the reduced monthly household income),
Government measures in key jurisdictions
65