Decree-Law no. 29/2020, of 20 June 2020, established the “Emparcelar para Ordenar” Program, aimed at promoting the increase of the rustic property’s size by the respective owners through “simple restructuring actions” as the correction of the parcel division of rural properties or of parcels belonging to two or more owners or to the acquisition of adjacent properties.

This program creates two types of incentives:

  1. Credit line to support land restructuring;
  2. Non-refundable grant for the purchase of rural properties.

As for the credit line to support land restructuring, the loan depends on the provision of a guarantee on the rural property and is granted for a period of 20 years, payable in annual instalments starting one year after the conclusion of the loan agreement.

Moreover, the interest rate for this loan is 0,5% in case of a loan up to EUR 100.000 and 1% in case of a loan greater than EUR 100.000.

Under the non-refundable grant for the purchase of rural properties the owner may receive an assistance up to 25% of the amount of the operation, as follows:

  1. Land restructuring for agricultural or forestry investment projects, supported by public incentive programs, from national or EU funds – 15%;
  2. Restructuring for an investment project part of an integrated management action of landscape – 15%;
  • Young farmer or young rural entrepreneur – 10%;
  1. Holder of family farming status – 10%;
  2. Purchasing owner resident or based in the municipality or in a neighbouring municipality, of the acquired property – 5%;
  3. Acquisition for conversion to agricultural purposes whose owners are resident or based in the municipality, or in a neighbouring municipality, of the acquired property – 5%;
  • Land restructuring linked to a project related to the specific objectives of the Landscape Transformation Program (“Programa de Transformação da Paisagem”) resulting in effective job creation – 5%.

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