Government measures in key jurisdictions 3rd edition final - Flipbook - Page 99
Portugal
•
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.
: 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. The
Portuguese Government has approved a time schedule for lockdown release, in force since 3 May
2020. Under such schedule, business establishments, facilities and services have been progressively
reopened to the public (although with working time restrictions).
:
•
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.
: eligible tenants may defer rent payment falling due in the period from
1 April 2020 (i) up to the end of the month following the termination of the state of emergency, or (ii)
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, however the
deadline for payment of deferred rents is June 2021 in all cases. 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 Covid19 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).
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