This housing model offers an alternative to traditional ownership and leasing—a hybrid solution that provides long term stability without all the burdens of full ownership
2025/01/10
What is the Permanent Housing Right (DHD)?
The DHD allows one or more individuals to reside permanently and for life in a dwelling, in exchange for a security deposit (caução) and a monthly rent. It creates a mid‑way path between buying and renting, combining elements of both.
How is it constituted?
- Eligibility
Any property owner (individual or company) may create a DHD, provided the property is free of liens (such as mortgages) and is in at least “average” condition. Any individual may become a resident under a DHD. - Formalities
The DHD is established by public deed or by a private document with notarised signatures and must be registered at the Land Registry within 30 days.
Costs and duration
- Security deposit
Between 10% and 20% of the property’s median market value (according to INE data). It may be partially or fully refunded if the resident gives up the right within the first 30 years. - Monthly rent
Freely negotiated between the owner and the resident. - Duration
Lifelong real right of residence, although the resident may renounce it at any time.
Key advantages
For the resident
Lifelong housing security with a lower initial investment than a purchase, and the possibility of mortgaging the DHD right itself if financing is needed to pay the security deposit.
For the owner
Stable and predictable profitability, lower management costs (the resident is responsible for maintenance, municipal taxes, and IMI) and recovery of the property in good condition at the end of the DHD.
Rita Duarte | [email protected]