Within the context of the State of Emergency first declared on March 18, and renewed until 17 April, the National Assembly has approved Law no. 4-C/2020, of 6 April 2020, which establishes (i) an exceptional moratorium regime for the payment of rents specific for both housing and commercial leases, (ii) financial support measures applicable to tenants and landlords and (iii) new rules on the termination of lease agreements.

The National Assembly also approved Law 4-A/2020, of 6 April 2020, which complements the protective measures awarded to tenants pursuant to Law 1-A/2020, of 19 March 2020 (with backdated effects to 13 March 2020), restricting termination of leases and preventing evictions and the execution of mortgages on real estate property used for housing purposes.

The relevant measures approved up to date include:

• Moratorium regime for the payment of housing rents in cases where tenants have lost income, and for commercial lease tenants which activity has been ordered to close or suspended following the state of emergency.
• Financial aid to tenants and landlords whenever certain thresholds of decrease in income and other conditions are met.
• Suspension of the effects of any termination of lease operated by landlords, and foreclosure of mortgages on real estate property used for housing purposes for a period up to 60 days after the end of the epidemic conditions, as stated by the National Health Authority.
• Limitations to the cause for termination, prevention of renewal or any other form of cancellation of commercial leases agreements or of other contractual arrangements for the use of a commercial space and to grounds for eviction or vacancy from such properties.

Should you wish to receive additional information on this alert, please contact:

Rita Lufinha Borges - [email protected]
Luís Borges Rodrigues - [email protected]