Legal alert no. 63

“Extraordinary and transitional regime for the protection of the elderly or disabled, who are tenants and have lived in the same lease for more than fifteen years”

On July 16^th, the Law no. 30/2018 was published in the Portuguese Official Gazette, which approved the extraordinary and transitional regime for the protection of the elderly or disabled, who are tenants and have lived in the same lease for more than fifteen years.

This law temporarily suspends the deadlines for opposition to the renewal and surrender, by the landlords, of the leases, provided that the following requirements are met: (i) it is a housing lease; (ii) at the date of entry into force of this law, the lessee has been resident for more than fifteen years; and (iii) the lessee, alternatively, is 65 years of age or older or has a proven a degree of incapacity of at least 60% (see articles 1 and 2 of Law no. 30/2018). 

From the date of entry into force until March 31^st, 2019, in leases that meet the aforementioned requirements, the landlord can only surrender the contract based on the need for housing by himself or his descendants in the first degree (see articles 3 (1) and 6, of Law 30/2018, and 1101 (a) of the Civil Code).

The law provides the suspension of the surrenders made before the entry into force of this law in the following situations: (i) the termination of the leases is based in the demolition or execution of a remodeling or deep restoration work that forces the lease to be vacated; or (ii) the surrender has been communicated to the lessee at least two years in advance of the date on which the termination is sought (see article 3 (2) Law no. 30/2018; article 1 (b) and (c) of the Civil Code).

The law establishes the suspension of the special eviction procedures and actions provided the respective decisions have not become res judicata, if the eviction is based alternatively on the cases described in subparagraph (b) and (c) of article 1101 of the Civil Code, or on the opposition by the landlord to the renewal of the lease (see articles 4 and 5 (b) of the Law no. 30/2018).

It should also be noted that this Law does not apply where compensation was paid to the lessee (including contracts involving such payment) for the failure to renew or surrender the lease, unless the lessee communicates, until March 31^st, 2019, to waive the compensation and refund the received amounts (see articles 5 (a) and 6 of Law no. 30/2018).

Finally, this Law comes into force on the day after its publication, on July 17^th, 2018, and expires on March 31^st, 2019.

To access the full version of Law no. 30/2018, please go here.