Evicting a Non-Paying Tenant in Portugal: What Landlords Need to Know
Margarida Tempera| Lawyer
One of the most challenging situations faced by landlords in Portugal, particularly those residing abroad or unfamiliar with the local legal landscape, is dealing with tenants who fail to pay rent. While Portugal offers a number of legal protections to tenants, landlords are also provided with clear legal remedies to regain possession of their property and recover unpaid rents. Whether or not there is a formal written and registered lease agreement, the law provides procedures to remove a tenant and secure overdue payments. Understanding these mechanisms is essential for anyone letting property in Portugal, especially those who rely on rental income as part of their financial planning or property investment strategy.
Where there is a valid written lease agreement that has been properly registered with the Portuguese Tax Authority, landlords benefit from a simplified and expedited eviction process. This is known as the Procedimento Especial de Despejo (Special Eviction Procedure), and it allows landlords to evict tenants quickly through a procedural means, rather than a full court action. This special eviction procedure was introduced more than 10 years ago to streamline landlord-tenant disputes and reduce the burden on civil courts. It enables landlords to initiate eviction proceedings online via the Balcão Nacional do Arrendamento (BNA), an electronic judicial secretariat with the power to process special eviction procedures throughout Portuguese territory.
To use this mechanism, the landlord must prove that there is a valid lease contract, for which stamp duty has been paid or for which income has been declared for IRS or IRC purposes, that the tenant has defaulted on rent payments, that the amounts in debt where notified to the tenant, and that proper prior notification of the breach has been given to the tenant. This typically takes the form of a formal letter or registered notice informing the tenant of the unpaid rent and demanding payment within a set period. If the tenant fails to regularise the situation within that period, the landlord may proceed to submit a requirement for eviction to the BNA. This application must include evidence of the lease agreement, proof of the tenant’s breach, and documentation confirming that notice was properly given.
Once submitted, the BNA notifies the tenant and provides them an opportunity to oppose the eviction within fifteen days. If the tenant opposes to the eviction, the case does not continue at the BNA, as it is referred to the competent judicial court of the property area, if the tenant does not contest the request, or if their opposition is found to be unfounded, the BNA will issue an enforceable order authorising the eviction. This can then be handed to a judicial enforcement agent who will carry out the physical eviction, ensuring that the landlord regains possession of the property. This entire process, if uncontested, may be concluded in as little as two to three months, making it significantly faster and more cost-effective than ordinary judicial proceedings. Importantly, this process also allows landlords to request payment of overdue rents and legal interest, potentially recovering outstanding amounts alongside regaining the property.
However, in some situations, the landlord may not have a written contract, or the contract may not have been registered with the Tax Authority. This is often the case where properties are let informally, or where the landlord is unaware of the legal requirement to declare the tenancy for tax purposes. In these cases, the Procedimento Especial de Despejo cannot be used, and the landlord must instead initiate an ordinary judicial eviction process known as a declaratory action.
While more time-consuming, this action still provides a reliable legal route for landlords to evict non-paying tenants. The process begins with the filing of a lawsuit in the local civil court, setting out the facts of the tenancy, the tenant’s breach, and the landlord’s right to repossession. The landlord must demonstrate that the property was occupied under an agreement to pay rent, even if that agreement was verbal or informal. Supporting evidence may include bank transfers, email correspondence, witness testimony or any other material indicating that the tenant was residing in the property under an obligation to pay rent.
The court will then serve the tenant with notice of the claim, and the tenant will be allowed to contest the action. If the tenant fails to respond, the court will issue a judgment ordering the tenant to vacate the premises. This judgment may also include an order for payment of outstanding rent and interest. Once the judgment is final, the landlord may request enforcement through a judicial enforcement agent, who will serve notice on the tenant and arrange for the eviction if they fail to vacate voluntarily.
Although this procedure may take several months, it is still an effective and legally sound mechanism for landlords to regain possession of their properties. In particularly urgent situations, such as where the tenant has abandoned the property or where the non-payment has been ongoing for several months, landlords may also request interim measures from the court, including precautionary eviction orders or seizure of the tenant’s assets to secure payment of the debt.
Regardless of whether the eviction is carried out through the BNA or the civil courts, landlords must comply strictly with the procedural requirements laid down by Portuguese law. Attempting to remove a tenant by force, changing locks or cutting utilities without legal authorisation constitutes a criminal offence and may result in serious legal consequences for the landlord. Legal eviction is the only proper and safe route to resolving tenancy issues.
In all cases, landlords are also entitled to claim the outstanding rents as a separate or combined claim within the eviction procedure. This may include not only the unpaid rent itself but also interest and legal costs. Portuguese law allows interest to accrue on unpaid rent from the moment it becomes due, typically at a statutory rate, unless a different rate was agreed in the contract.
The best course of action will always depend on the specific facts of each case, including whether a written lease exists, whether it was registered, the period of non-payment, and the tenant’s behaviour. For this reason, it is strongly recommended that landlords seek legal advice as soon as rent arrears begin to accumulate. Early intervention can make a substantial difference in the speed and success of the eviction process.
In addition, foreign landlords should ensure that all lease agreements are properly drafted and registered in accordance with Portuguese law. A legally compliant lease not only facilitates the recovery of rent and possession in the event of default but also strengthens the landlord’s position in any legal dispute. A lawyer can assist in drafting or reviewing lease agreements, registering them with the Tax Authority, issuing proper notices of default and initiating eviction proceedings when necessary.
The rental of property in Portugal, whether for long-term residents or as part of a buy-to-let investment strategy, can be a rewarding and profitable venture. However, it is not without risk. Understanding your legal rights and obligations as a landlord and having access to swift and reliable legal remedies when tenants fail to pay are crucial to safeguarding your investment. Where difficulties arise, seeking experienced legal support ensures not only compliance with local regulations but also the most efficient path to resolution.
