Coronavirus: Impact on lease agreements and store use agreements

On 11 March 2020, the World Health Organization declared a public health emergency of international concern (PHEIC) following the spread of SARS-CoV2 (Coronavirus) and disease it causes, Covid-19. Subsequently, on 18 March 2020, a state of emergency was declared in Portugal.

Against this background, a legislative package has been approved and published, and this package has established exceptional and temporary measures relating to the spread of COVID-19.

In the short and medium-term, the measures introduced will have consequences for the vast majority of sectors, and they will have a particular impact on trade in non-essential items and affect all market players (landlords, tenants, and store owners, etc.)

The aim of this note is to address the impact of the current situation on commercial lease agreements and other contracts for the use of commercial premises.