Portugal suspends the termination of rental contracts until June 2021

COVID-19 leads to a further suspension in the termination of rental contracts in Portugal
Photo by Simon Couball on Unsplash
7 January 2021, Redaction

The Portuguese government has decided once again to extend the law that bans the termination of rental contracts which are due to expire to continue to protect families during the coronavirus pandemic in Portugal. The 6-month extension was approved by MPs in Portugal, and pending final approval in Parliament, this measure, which was due to expire on 31st December 2020, will be in place until 30th June 2021.

The Portuguese Government stated that the law "does not affect the regular payment of rent," meaning that tenants must continue to pay the agreed amount stated in the rental agreement in order to benefit from the measure.

As the COVID-19 pandemic continues in Portugal, this measure to protect rental tenants in Portugal results in the following actions being suspended

  • the denunciations of residential and non-residential leases made by landlords;
  • the expiry of residential and non-residential leases, unless the tenant does not object to their termination;
  • the effects of the revocation or of the opposition to the renewal of housing and non-housing lease contracts carried out by the landlord;
  • the period indicated in Article 1053 of the Civil Code, if the end of that period occurs during the period of time in which those measures are in force;
  • the foreclosure of a mortgage on a property that is the property of the foreclosed party's permanent residence.

This proposal does not cover the creation of rent subsidy for commercial establishments that have suffered a sharp reduction in turnover due to the effects brought about by the COVID-19 pandemic, a measure that was also approved last week, but which will be included in an autonomous law.

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