Legal alert no. 109
Notice No. 15225/2019, of October 1st, which establishes the updated coefficient applicable for the various types of urban and rural leasing foreseen for the year 2020
On October 1st, 2019, was published in the Portuguese Official Gazette the Notice No. 15225/2019 of the National Institute of Statistics (Instituto Nacional de Estatística, I.P.), establishing at 1,0051 the updated coefficient applicable for the various types of urban and rural leasing foreseen for the year 2020.
In accordance with the law, rent values are generally subject to annual updates that are applied automatically based on inflation.
The New Urban Lease Regime (Novo Regime do Arrendamento Urbano) establishes that the National Institute of Statistics is the entity responsible for calculating the updated annual coefficient applicable for the various types of urban leasing (housing lease, free rent regime, conditional or supported lease, commercial, industry, for the exercise of liberal profession and other non-housing purposes) as well as rural leasing, which must be included in a notice to be published in the Portuguese Official Gazette by October 30th of each year in order to become effective.
The application of the aforementioned annual rental update coefficient is supplementary, only being applicable if the parties have not agreed otherwise, and may only be required 1 (one) year after the date of commencement of the contract or its last update.
In light of the above, after the publication of this Notice, the updated coefficient and the resulting new rent may be communicated to the lessee through registered letter with acknowledgment of receipt and at least thirty (30) days in advance.
To access the full text of the Notice No. 15225/2019, of October 1st, please click here.