Government measures in key jurisdictions 4th edition - Flipbook - Page 103
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 per
formance 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 nonresidential 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).
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 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 and 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)
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);
•
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); and
•
Restaurants and similar establishments (even if they keep operating for take-away services or
home delivery).
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Government measures in key jurisdictions