The rent moratorium regime applied to rents falling due from 1 April 2020 until the month following the end of the State of Emergency
2020/04/14
Following the declaration of the State of Emergency on 18 March and the resulting loss of income for many tenants, Law no. 4‑C/2020 of 6 April created an exceptional regime for late payment of rent, commonly known as the rent moratorium.
What does this regime provide?
It grants flexibility in rent payments to residential tenants who can demonstrate a reduction in income directly caused by the restrictions imposed during the State of Emergency.
Conditions for residential leases
The regime applies where both conditions are met:
- A drop of more than 20% in household income compared with the previous month or the same period of the previous year.
- A household effort rate (housing costs / income) above 35%.
Effects of the moratorium
- Residential leases – The landlord cannot terminate the contract on the grounds of arrears. Deferred rents may be repaid in monthly instalments over the 12 months following the end of the moratorium period.
- Non‑residential leases – Tenants may defer rents due during the State of Emergency and the following month, to be paid in 12 monthly instalments thereafter, without late‑payment penalties.
Notice requirement
Tenants must inform the landlord in writing at least five days before the due date of the first rent they intend to defer
Rita Duarte | [email protected]