Government measures in key jurisdictions 2nd edition final pages - Flipbook - Page 73
Portugal
•
5
Property
Have any changes
been made to
the laws around
property, rent and
enforcement?
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.
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.
Suspension of termination of lease contracts and evictions:
•
The duration of lease contracts (residential or non-residential) that would normally
expire before 30 September 2020 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 30 September 2020.
•
Eviction proceedings (either judicial or otherwise) are suspended until the termination
of the exceptional measures, 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”.
•
The obligation of the tenant to return the premises to the landlord following the
termination of the lease is also suspended until 30 September 2020.
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 (tenants who have their “permanent residence” in the
property and student tenants who have their permanent residence more than 50 km
away from the let property) 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).
•
Retailers and services open to the public who have been forced to shut down or
to suspend activity as a result of the state of emergency, or by any other legal or
administrative order (including if they keep trading online or through distance sales).
Government measures in key jurisdictions
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