PORTUGAL TRENDS AND DEVELOPMENTS Contributed by: Francisco Lino Dias, Ricardo Reigada Pereira, Sofia Nogueira Leite and Tamara Martins da Fonseca, PLMJ
that (i) the property generating the income has been used as the taxpayer’s or their household’s own permanent residence for at least 12 months prior to being leased out; (ii) the taxpayer has moved their own permanent residence to a loca - tion more than 100 kilometres from the location of the property generating the income; and (iii) both lease agreements are registered at the tax authority website ( Portal das Finanças ). Lease Rent updates for 2025 The legal annual update coefficient for 2025, determining the limit of the annual variation of rents payable under the different types of leases (both urban and rural) was set at 1.0216 (2.16%) (Notice No. 23099/2024/2 published in the Offi - cial Gazette). Special eviction procedure The Tenant and Landlord Desk ( Balcão do Arren - datário e do Senhorio – BAS) was created in the last quarter of 2023, with a view to concentrating in a single desk the competency for receiving and processing the special eviction procedure and the injunction procedure in lease agreement matters. The regulations governing the opera - tion of BAS were approved in 2024, along with certain measures that impose an obligation on public entities to prevent housing deprivation as a result of the special eviction procedure in the event of non-payment of rent. Local lodging Significant changes were recently approved to the local lodging regime, including the following. Assignability Local lodging establishments are no longer per - sonal and non-transferable. The registration of a local lodging establishment will now remain in place upon (i) transfer of ownership of the
property, (ii) lease or any other change in the operation of the establishment; or (iii) transfer of any part of the share capital of the local lodging holding company. However, municipalities may impose restrictions on the transferability of new registrations to be installed in containment areas for the ‘single- family dwelling’ ( moradia ) and ‘apartment’ cat - egories. Condominium objection to local lodging If a local lodging establishment is located in a condominium, the condominium owners may resolve to: (i) forbid the operation of local lodging in the building, requiring the approval of a major - ity representing two-thirds of the building; and/ or (ii) object to the maintained operation of local lodging in a specific autonomous unit in case of repeated and proven incidents that disturb the normal use of the building or cause nuisance to the other residents. This could result in the can - cellation of the registration of the local lodging establishment. Municipal regulatory powers Municipalities may adopt regulation to limit the activity of local lodging establishments in their area, namely establishing (i) containment areas, where there is an oversupply of local lodging establishments; and (ii) sustainable growth are - as, where monitoring and control measures are justified to prevent a future oversupply. Within such areas, municipal regulations may limit new registrations. Up until the entry into force of municipal regulations, the municipal assembly meeting may opt to suspend new registrations in specially designated areas for a maximum period of one year.
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