Newsletter February 2020

Legal Updates

The property right in remof long-term occupation

Last January 9th, the Decree 1/2020 was approved, foreseeing the property right in rem of long-term occupation (PRLO), an alternative to the classic solutions of home ownership acquisition or rental housing.

This PRLO tends to be a perpetual right granted to the resident and allows him to live at the owner’s property for permanent housing, through the payment of an initial pecuniary guarantee and periodic compensations.

This contract can be executed both by public and private deed, in fact it is only required that the signatures are authenticated. The amount of the previously mentioned pecuniary guarantee should be settled by agreement and should be between 10% and 20% of the average family housing sales’ value (calculated per square meter) by local parish, and accounting for external factors such as location and the corresponding land registry area.

This security shall be provided for a period of 30 years, and its amount shall be reduced 5% per year starting at the beginning of the eleventh year until the last year of the contract’s duration. Furthermore, in addition to the security, the contract shall stipulate the payment of a periodic compensation for each month of the contract’s duration.

This PRLO is extinguished by resolution of the contract, in the event of definitive breach by any of the parts, or relinquishment by the resident.


Driving licenses: The end of the lines

The endless waiting to deal with matters related to the drivers’ license is almost over. The recently published the Decree-law nº 2/2020 of January 14th expands to the “Espaço Cidadão” the emission, revalidation and replacement, duplicate and exchanges of national and international driving license services. Up until now, all the previously mentioned services were exclusively provided by the Institute for Mobility and Land Transport (IMT).

Although it is still foreseen that foreign citizens who intend to exchange the drivers’ license non-subject to practical evaluation (those who  have drivers’ licenses from acceding countries of the Vienne Convention on Road Traffic), will now be able to do so within a period of two years since the establishment in our territory, when previously the deadline was merely 90 days.

Due to the well-known fact that the IMT service’s efficiency is highly conditioned by a large affluence, which translated in a truly time-consuming process and an insufficient 90 days term, these measurements adopted by the Portuguese government are particularly welcome and agreeable.


Business Updates

Companies financing furthered by investement organisms

The Decree nº 144/2019, published on the 23rd September 2019, regulates several matters, among which we highlight the alteration to the venture capital legal framework through the creation of the Alternative Specialized Investment Entities (ASIE). These entities, which can be credit societies or credit funds, will allow natural and legal persons’ financing, by granting credit. Also, these entities can be self-financed by contracting credits with other entities.

The creation of this new legal figure is aimed at eliminating market flaws of financing demand and supply, as well as diverse capitalization sources. In such a way, people and companies will not be bank’s or credit securitization’s (in the case of companies) “hostages” when searching for funding.

It is estimated that ASIE´s will have a truly positive impact in the Portuguese economy, as they are allowed to grant credit to companies and acquire credits from the banks, including default credit, which will allow the banks to focus on their main activity, which is granting credit.


Portuguese domain .pt reaches historic record of new registries in 2019

During 2019 the internet’s domain .pt, the domain which corresponds to Portugal, broke a new record with 121.359 new registries. Luísa Ribeiro Lopes Gueifão, chairman of the domain .pt board, says that “.pt growth over the last years reflects a bigger national projection in the digital world”.

According to the DNS.PT association press release, the evolution of the .pt registries was highlighted and referred as notable since January, with 13.906 new domains, in February, with 11.887, in March 11.137, May 10.320, November 10.228 and October 18.429.

Quoting CENTR´s data, the association of the best European internet domains, it´s Portuguese officer said that .pt domain is growing more than the European average, with the number of new domains increasing exponentially over the last years.