In Portugal, the law allows tenants to deduct the cost of certain conservation works from their monthly rent through a compensation mechanism provided for under Article 22-D of the legal framework for works on leased properties. However, this possibility is not a general authorization to stop paying rent, being limited to specific situations provided for by law.
The tenant may only carry out works and deduct the cost when the contract permits it, when they have written authorization from the landlord, or when they are covered by exceptional situations. One such situation occurs when the works have been the subject of an order from the competent authorities and the landlord has not started or completed them within the set deadlines. The law also covers urgent repairs, even without the landlord being in default, when the urgency does not allow for any delay.
In cases where the law requires prior notification, the tenant must inform the landlord by registered letter at least 15 days in advance, including the estimate, expected dates, and any need for temporary rehousing. After the works are completed, they have 30 days to notify the landlord with proof of expenses, the total compensation amount, and the chosen payment method. The compensation may include the works expenses, interest, an additional 5% for administration costs, and temporary rehousing expenses.
The Guimarães Court of Appeal has ruled that a tenant who does not properly notify the landlord of the works, amounts, and form of compensation cannot simply deduct expenses from the rent, risking that the unpaid amounts will be considered late rent. Thus, when the legal conditions are met, the expenses are documented, and all notifications are properly made, the cost of certain works can be compensated through subsequent rents, or the tenant may opt for direct payment by the landlord within a period of no less than 60 days.
