Illegal Occupations: changes in the Law and the strengthening of the protection of property owners

Contencioso em Foco is a segment by Caiado Guerreiro, featuring partner Sandra Jesus and lawyers Micaela Ribeiro Roque and Maria Beatriz Pereira da Silva, in which doubts and questions in this area of Law are clarified. This week’s article explains the new criminal-law framework applicable to cases of illegal occupation of properties (frequently referred to as “squatters”).
Articles 27/11/2025

In recent years, the phenomenon of the illegal occupation of properties (frequently referred to in media discourse as “squatters”) has gained new visibility and has become an intense part of public debate. What was previously perceived mainly as an occasional problem — associated with contexts of social vulnerability — has, in many cases, become a space of organised activity, where specialised groups systematically occupy properties, exploiting legal loopholes, procedural delays, and weaknesses in oversight. This phenomenon, widely reported in other European countries, has also begun to affect Portuguese property owners: from second homes and vacant properties to newly acquired units intended for rental or investment. The consequences are often severe: prolonged loss of possession, deterioration of the property, increased costs, lengthy litigation, and, above all, a sense of legal insecurity that undermines confidence in the real estate market.

At the same time, public opinion has oscillated between concern over criminality associated with organised occupations and sensitivity towards situations of genuine social deprivation. It is precisely within this balance — between the protection of the right to property and the need for adequate social responses — that Law no. 67/2025 was approved in the Assembly of the Republic on 28 October 2025, introducing significant amendments to Article 215 of the Penal Code and to Articles 200 and 204 of the Code of Criminal Procedure, strengthening the protection of property rights and accelerating mechanisms for the restitution of properties subject to illegal occupation.

To address this scenario, Article 215 of the Penal Code was revised, now punishing the occupation of another’s property without legitimate title with a prison sentence of up to 2 years or a fine of up to 240 days. The applicable penalty increases to up to 3 years when there is violence, serious threat, or when the occupied property corresponds to the owner’s own permanent residence.

One of the most relevant innovations is the aggravation of the penalty to up to 4 years’ imprisonment in cases where the occupation is carried out professionally or with lucrative intent. This measure seeks to curb situations in which the invasion of properties ceases to be an isolated act and becomes an organised activity.

Relevant changes also arise at the procedural level: the Court may now order the immediate restitution of the property when there is strong evidence both of the crime and of legitimate ownership. This mechanism helps prevent lengthy litigation and returns possession of the property to the owner much more swiftly. For properties belonging to the public housing stock, the Law also introduces a differentiated approach, requiring an assessment of the occupants’ socio-economic conditions and the activation of social support measures when appropriate. If voluntary vacation occurs, the filing of a complaint may even be waived.

These amendments — which entered into force last Tuesday, 25 November — represent a clear reinforcement of the criminal protection of the right to property and seek to balance the need for legal certainty with the social dimension that is sometimes associated with illegal occupations. The new legal framework provides property owners with faster and more effective instruments to react, preventing and resolving situations that, until now, could be prolonged for extensive periods due to the lack of explicit legal support.

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The content of this information does not constitute any specific legal advice; the latter can only be given when faced with a specific case. Please contact us for any further clarification or information deemed necessary in what concerns the application of the law.

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  • Litigation

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