Coronavirus outbreak
Contingency and support measures

Considering the recent coronavirus outbreak, the Portuguese Government adopted several contingency measures to support and protect individuals and businesses. Please find below a brief outline of the most relevant measures.

For further information, please contact us at jcg@ccsllegal.com and msb@ccsllegal.com

Companies and Employees

NEW MEASURES PUBLISHED – PEES PROGRAM  

Measures to support the economic recovery

A. Recovery support

  • These measures are applicable from August onwards to a) companies closed by legal requirement and b) to all other companies with a drop of at least 40% in billing;
  • Prohibition of employement contracts suspension, being the employers only authorized to reduce the normal working periods due to a drop of at least 40% in billing.

Regime

August and September

  • Companies that have at least 40% but less than 60% of billing drops will be able to reduce the normal working periods by 50%;
  • Companies with 60% or more of billing drops will be able to reduce working hours by 70%.

October and December

  • Companies that have a drop of at least 40% but less than 60% will be able to reduce the normal working periods by 40%;
  • Companies that have billing drops of at least 40% but less than 60% will be able to reduce the normal working periods by 60%.

Under these new measures, Social Security will support 70% of the unworked hours and the employer 30%. This scheme will be in force between August and December.

B. Extraordinary support for companies with a billing drop of 75% or more

  • Regime applicable to companies with a billing drop of 75% or more;
  • Social Security will support in 35% the period related to the hours worked;
  • Social Security will support 70% of the unworked hours and 30% will be paid by the employer;
  • The request for renewal is monthly and there is no obligation to be sequential;
  • This support will be in force from September, with retroactive effects to August.

C. Simplified Lay-off

  • Companies that remain subject to the duty of closure may continue to benefit from the extraordinary support for the maintenance of an employment contract, as well as its extension, as long as this duty is maintained, in which case the limits of duration previously provided for shall not apply;
  • Extension of the simplified lay-off scheme until 30 September 2020;
  • Companies who did not benefit from the extraordinary support for the mantainance of employment contracts in a business crisis may only submit their initial applications with effects until 30 June 2020, in which case they may extend the application of the measure on a monthly basis up to a maximum of three months;
  • Companies that have reached the limit of renewal of this extraordinary support until June 30th may benefit from an exceptional extension until the end of July;
  • The employees covered by this regime will continue to receive two thirds of their remuneration, 70% supported by Social Security and 30% by the employer.

Employment protection measures under the Economic and Social Stabilisation Programme

1. Creation of a stabilization supplement for employees whose basic pay in February 2020 was equal to or less than twice the RMMG and who, between the months of April and June, were covered for at least one full calendar month by the support for maintaining the employment contract;

The stabilization supplement corresponds to the difference between the amounts of basic remuneration declared for the month of February 2020 and the full calendar month in which the worker was covered by one of the two measures referred to where the greatest difference was found;

The complement has a minimum limit (euro) of 100.00 and a maximum limit (euro) of 351.00 and is paid in the month of July 2020, being considered for this purpose the values in the remuneration declarations submitted until July 15, 2020;

The support is paid by the social security and granted automatically and unofficially.

2. Creation of an extraordinary incentive to standardise business activity for employers who have benefited from the extraordinary support for maintaining an employment contract or the extraordinary training plan;

The extraordinary incentive for the normalisation of business activity is granted in one of the following ways:

a) Support in the amount of one RMMG per worker covered by the measures referred to in the previous paragraph, paid in one lump sum; or

b) Support in the amount of two RMMG per worker covered by the measures referred to in the previous paragraph, paid in a phased manner over six months.

Contributions scheme – in the form provided for in point b)

In the case of this method, there is also the right to partial remission of 50 % of the employer’s social security contributions in respect of workers covered by the extraordinary training plan or by the extraordinary support for maintaining an employment contract;

Where the period of application of the extraordinary support for the maintenance of an employment contract has been longer than 30 days, the partial exemption of 50 % of the payment of social security contributions at the employer’s expense refers to the workers covered in the last month of application of that support;

The partial waiver of 50 % of the payment of employer’s social security contributions shall apply as follows:

a) during the first month of the granting of the support provided for in this point, where it is granted following implementation of the measures for a period of one month or less;

b) during the first two months of the granting of the support provided for in this point, where it is granted following implementation of the measures for a period of more than one month but less than three months;

c) during the first three months of the granting of support provided for in this point, where support is granted following implementation of the measures for a period of three months or more.

Where there is net job creation through the conclusion of employment contracts of indefinite duration within three months of the end of the support provided for in this point, the employer shall be entitled to two months’ total exemption from the payment of social security contributions payable by the employer;

For this purpose:

a) Net job creation is considered to occur when the employer has more employees at his service than the average number observed in the three homologous months;

b) The total exemption from the payment of social security contributions payable by the employer refers to jobs created in net terms through an employment contract of indefinite duration;

c) The employer is subject to the duty to maintain the level of employment achieved for a period of 180 days.

The following criteria shall be taken into account when determining the amount of support envisaged:

a) where the period of application of the measures has been longer than one month, the amount of support shall be determined according to the simple arithmetic mean of the number of workers concerned by each month of application of that support;

b) where the period of application of measures has been less than one month, the amount of support provided for in point (a) above shall be reduced proportionally;

c) where the period of application of the measures has been less than three months, the amount of support provided for in point (b) of the previous point shall be reduced proportionally.

Employer’s Duties

Employers who benefit from the extraordinary incentive to normalise business activity may not terminate contracts of employment under the terms of collective dismissal, dismissal for termination of employment, dismissal for maladjustment;

Employers covered by the support must maintain the level of employment observed in the last month of implementation of the measures;

When the last month of implementation of the planned measures took place in July 2020, the month immediately preceding the implementation of these measures shall be considered;

Compliance with the obligations set out in the preceding paragraphs shall be observed during the period for which support is granted within 60 days thereafter.

Cummulation of supports

The employer may not benefit both from the support provided for maintaining employment contracts and from the support for gradual take-over;

The employer who makes use of the extra support for the maintenance of the planned employment contract may, at the end of this support, make use of the take-over support;

The employer that makes use of the extraordinary support for the maintenance of an employment contract may, at the end of the support, resort to the application of the reduction or suspension measures in the general lay-off regime provided for in the Labour Code;

The employer that makes use of the extraordinary incentive to normalise the planned business activity cannot access the gradual recovery support.

MEASURES ADOPTED DURING THE PANDEMIC 

Simplified Lay-Off Process

  • Simplified ‘lay-off’ procedure providing a financial support towards the maintenance of employment contracts, with or without training, in case of temporary reduction of the normal working period or suspension of the employment contract, ensuring social security 70% of the employees remuneration;
  • This measure is applied to companies with verification of i) 40% drop in the period of thirty days prior to the request from the competent social security services, with reference to the monthly average of the two months prior to that period, or compared to the same period in the previous year, or even for those who started the activity less 12 months, the average of that period; ii) cessation of the activity resulting from interruption of global supply chains, the suspension or cancellation of orders or to companies or establishments whose total or partial closure has been enacted by decision of the political or health authorities;
  • Companies in this situation may benefit from an additional temporary exemption from the social security contribution payments and an extraordinary financial incentive to support the normalization of the company’s activity, granted by IEFP, IP, corresponding to the value of RMMG (635 €) per worker;
  • Possibility of accumulate the support measure with IEFP vocational training, on which a grant of EUR 131.64 will be paid, half of which is allocated to the employee and the other half to the employer;
  • During the period of reduction or suspension, as well as within 60 days of its application, the employer cannot terminate employment contracts by means of collective dismissal or extinction of job post;
  • To access these measures, companies shall have their tax and contributory situation regularized. For this purpose, until April 30, 2020, debts incurred in March 2020 won’t be considered;
  • Possibility for lay off employees to engage in paid activity provided that in the areas of food production, social support, health, logistics and distribution;
  • In the context of extraordinary support for the maintenance of employment contracts, the calculation of retributive compensation considers the remuneration benefits normally declared for social security and usually received by the employee, relating to basic remuneration, monthly premiums and regular monthly allowances;
  • The inclusion of new employees during the period of extraordinary support for the maintenance of employment contracts, which are in addition to those identified in the initial application, is made through the delivery of a new attached file;
  • Payments of uncertain or variable nature, as  commissions are not considered in the calculation of the illiquid monthly remuneration in the simplified lay-off scheme;
  • Suspension of labour accident insurance in the event of suspension of the employment contract under the simplified lay-off scheme. In the event of a reduction in the normal working periods, the obligation to insurance is maintained;
  • Companies with establishments whose activities have been subject to the lifting of closure restrictions after the end of the state of emergency or of restrictions imposed by legislative or administrative determination continue, from that moment onwards, to be able to access the simplified lay off mechanism, provided that they resume the activity within eight days;
  • The extraordinary financial incentive to support the normalisation of the company’s activity is regulated by an ordinance of the member of the Government responsible for the area of work, namely as regards the procedures, conditions and terms of access;
  • For the purposes of non-compliance and restitution of the extraordinary support for the maintenance of an employment contract in a company in a situation of corporate crisis, paragraph e) of no. 1 of article 303 of the Labour Code is not applicable in the part concerning contract renewals;
  • Applications submitted upon declaration by the employer together with a certificate from the certified accountant, in which the starting date of the extraordinary support measure for the maintenance of employment contract in a situation of business crisis is subsequent to March 16, 2020, are accepted.

Measures to protect employees and job positions

A) Support for dependents

  • Justified absences to employees and self-employed workers, without any except regarding retribution,  motivated by undeterable assistance to children or other dependents under the age of 12, or, regardless of age, with disabilities or chronic illness, resulting from suspension of presential classes and non-school activities in school. The employee is entitled to receive exceptional monthly or proportional support corresponding to two thirds of his basic remuneration, paid in equal parts by the employer and social security. To this end, it will be considered the basic remuneration declared in March 2020 for February 2020 or, in the absence of basic remuneration declared in that month, the amount of the minimum monthly remuneration guaranteed. In situations where the employee has more than one employer, the ceiling is applied to the total basic remuneration paid by the various employers, with the support payable distributed proportionally, depending on the value of the basic remuneration declared by each employer;
  • Justified absences for family assistance, when there is a need to assist the spouse or person who lives in registered partnership or common economy with the employee, relative or similar in the straight upward line that is in charge of the employee and who frequent social facilities whose activity is suspended by an health authority;
  • Justified absences motivated by the provision of assistance or transportation, within the scope of the COVID-19 disease pandemic, by volunteer firefighters with an employment contract with a private or social sector employer, evidently called by the respective fire department;
    Justified absences do not result in the loss of any rights, except with regard to remuneration;
  • Exceptional financial support for employees who have to stay at home with their children up to 12 years of age in the amount of 66% of the basic remuneration. From April, this support is equivalent to 100% of the basic remuneration of the employees who have to accompany their sick or in prophylactic isolation children;
  • Exceptional financial support for self-employed workers who have to stay at home with their children up to 12 years old, amounting to 1/3 of the average remuneration;
  • Self-employed workers obliged to pay for at least 3 consecutive months for at least 12 months, who are unable to continue their activity, are entitled to an exceptional monthly or proportional support;
  • The value of the support corresponds to one third of the mensual contributory incidence base for the first quarter of 2020. The support has a minimum limit of 1 Indexing social support (IAS) and maximum of 2 1/2 IAS, and may not, in any case, exceed the amount of remuneration recorded as a basis of contributory incidence;
  • Entities benefiting from the support shall, for the purpose of proving the facts on which the application is based and its extensions, preserve the relevant information over a three-year period;
  • During the period of granting the support, there is no compensation with previous debts of the holders of the support or their employer;
  • Entitlement to child and grandchild care allowances in the event of prophylactic isolation without a guarantee period;
  • Increase in the daily amount of child support allowance for employees performing public functions as part of the convergent social protection scheme;
  • The daily amount of child care allowance is now equal to 100% of the reference remuneration.

B) Professional Training

  • Creation of an extraordinary vocational training support, in the amount of 50% of the employee’s salary up to the National Minimum Wage, plus the cost of training, for the situations of employees not employed in productive activities for considerable periods;
  • Guarantee of social protection for trainees and trainers during training activities, as well as for beneficiaries engaged in active employment policies who are unable to attend training activities;
  • The presential training activities developed or promoted by the Institute for Employment and Vocational Training, I. P., through the direct management vocational training centres, participated management vocational training centres or by training entities may be resumed as from 18 May 2020, in a gradual manner and with the necessary adaptations, provided that compliance with the guidelines of the Directorate General of Health is ensured, namely in terms of hygiene and physical distance. Without prejudice to the provisions, the entities therein provided shall give priority to the development of the formative activity at a distance and to projects of articulation between this activity and face-to-face formative activity, whenever the conditions allow it.

C) Measures to support employees in case of sickness 

  • Payment of 100% of the reference remuneration to employees and self-employed workers in the general social security system in prophylactic isolation for 14 days, motivated by situations of serious risk to public health determined by the health authorities;
  • Entitlement to sickness benefit without a waiting period.
D) Measures to support domestic service employees
Creation of a support for domestic service employees corresponding to two-thirds of the remuneration recorded in January 2020, being paid one third by Social Security, keeping employers the obligation to:
  • Payment of one third of the remuneration;
  • Declaration of working hours and normally declared remuneration for the employee, irrespective of the partial suspension of his actual payment;
  • Payment of the corresponding contributions.
  • In case of domestic servisse employees, the declaration of each employer attesting the non-provision of and the non-payment of the entire remuneration shall be preserved for three years.
E) Measures to support self-employed workers
Extraordinary support for the reduction of self-employed economic activity
  • Financial support to employees who are exclusively covered by self employed the scheme and who are not pensioners, subject to compliance with the obligation to contribute at least 3 months in a row or six months interpolated for at least 12 months:
  1. In a proven situation of total stopping of the activity performed or other activity of the same sector as a result of due to covid-19 pandemic; Or
  2. By a declaration together with na accounting certificate attesting that it is in a situation of abrupt  drop of at least 40 % of income in the period of thirty days preceding the application with the competent social security services, with reference to the monthly average of the two months preceding that period, or compared to the same period of the previous year or , also for those who started the activity less than 12 months ago, at the average of this period.
  • In order to attest the situation of income breakage, the concerned employees must submit a commitment of honour declaration or, in case of self employed workers in the organized account scheme a certificate from the accountant;
  • The support is one month, extendable, up to the limit of six months and is paid from the month following the submission of the application;
  • As long as the payment of the extraordinary support is maintained, the self-employed, when subject to this obligation, shall maintain the obligation of the quarterly declaration;
  • The amount of financial support is multiplied by its respective drop, expressed in percentage terms;
  • For the calculation of support, the remuneration considered corresponds to:

a) For self-employed workers, the average contributory impact base for the months in which there has been a record of remuneration in the period of 12 months immediately preceding the date of application submission;

b) For managing partners, the basic remuneration declared in March 2020 for the month of February 2020 or, in the absence of basic remuneration declared in that month, the value of the indexing of social support.

  • The drop shall be declared and subject to further verification by social security services within one year counted from the support, on the basis of the information requested to the Tax Authority, giving rise to an eventual refund of the amounts wrongly received;
  • The support provided is granted, with the necessary adaptations, to the managers of private limited companies and members of statutory bodies of foundations, associations or cooperatives with functions equivalent to those, which are exclusively covered by the general social security system in that capacity and carry out that activity in a single entity that in the previous year had invoiced less than (euro) 80,000;
  • When the communication of the elements of the invoices through the E Invoice does not reflect the totality of the practiced operations subject to VAT, even if exempt, related to the transmission of goods and services, referring to the period in analysis, the measurement of the limits foreseen therein is made by declaration, with reference to the turnover, with the respective certification by a certified accountant, and subject to subsequent verification by the social security, within one year from the attribution of the support, based on information requested to the Tax and Customs Authority, giving rise to the eventual restitution of the unduly received amounts;
  • The support provided shall have as its minimum limit a value corresponding to 50 % of the IAS value and may be extended on the basis of any of the conditions laid down;
  • The support granted is conditional on the activity being continued within eight days if it has been suspended or terminated;
  • The self-employed workers covered by the above-mentioned financial support measures are entitled to deferment of the payment of contributions due in the months in which the extraordinary financial support is being paid. 

Extraordinary measure to encourage professional activity

  • The self-employed worker is entitled to a one-month financial support, extendable monthly up to a maximum of three months, based on the average of the invoices reported for tax purposes between March 1, 2019 and February 29, 2020, with a maximum limit of half of the value of the IAS and a minimum corresponding to the lowest base value of the minimum contribution;
  • The application for granting the support determines, from the month following the cessation of the support, the effects of the placement in the scheme for self-employed workers or the cessation of the exemption;
  • The value of the average invoice that determines the calculation of the support is transmitted by the Tax and Customs Authority to Social Security;
  • Attribution of the support is subject to the effects of the classification in the social security regime of the independent workers and implies the maintenance of the exercise of activity for a minimum period of 24 months after the cessation of the payment of the benefit;
  • The support is due from the date of application and is granted for a maximum period of two months;
  • The amount of the benefit to be granted is half the amount of the IAS;
  • The amount of the benefit to be granted corresponds to half of the amount of the IAS;
  • The attribution of the benefit obliges the employee to declare the beginning or resumption of independent activity with the tax administration, the effects of the corresponding framing in the social security system of independent workers and the maintenance of the exercise of activity for a minimum period of 24 months after the cessation of the payment of the benefit;
  • The declaration of cessation of activity before the end of the period identified in the previous paragraph determines the refund of the amounts of the benefits paid.

F) Unemployment Protection Measures

  • The following employees are entitled to initial unemployment benefit provided that have:

a) 90 days of paid employment, with the corresponding wage record, in a 12-month period immediately preceding the date of unemployment;

b) 60 days of paid employment, with the corresponding wage record, in a 12-month period immediately prior to the date of unemployment, in cases where the unemployment occurred due to the expiry of the fixed-term employment contract or the termination of the employment contract at the initiative of the employer during the trial period.

Simplifying access to social insertion income

  • The allocation of the social insertion income benefit is not dependent on the conclusion of the insertion contract;
  • At the end of the period of validity of the law that determined the simplification process, the entity managing the benefit shall make an officious verification of the composition and income of the household beneficiaries for the purposes of renewal or termination and, as a result, shall review the value of the benefit or terminate its attribution;
  • Social income support for integration and unemployment protection is required until 30 June 2020 and cannot be combined with other social benefits.

G) Other measures

  • Approval and display of the holiday map until April 15 may take place up to 10 days after the end of the state of emergency;
  • Extension of fixed-term contracts (with teaching and non-teaching staff at service of the Ministry of Education public schools) with termination on August 31 2020;
  • Suspension of the requirement regarding the non-existence of debts for applicant entities or promoters to the IEFP, I. P. training program. To this end, debts incurred by the applicant or promoters, from 1 March 2020 to 30 June 2020 will not be considered;
  • Strengthening of the means and powers of the Authority for Working Conditions, namely by contracting external services to assist in the execution of its activity;
  • Possibility of a labour inspector, when verifies the existence of signs of unlawful dismissal, to draw up a report and notify the employer to regularize the situation. With the notification to the employer and until the employee’s situation is regularised or the judicial decision has been finalised, as the case may be, the employment contract in question will not be terminated, and all the rights of the parties will remain, namely the right to remuneration, as well as the inherent obligations towards the general social security system.
  • Regarding this matter, the labour courts shall have jurisdiction to provide a judicial decision;
  • The deadline for the payment of contributions and levies due in March 2020 is, exceptionally, extended until 31 March 2020. Without prejudice to this provision, employers who have not paid one third of the contributions due in the first month of adhesion to the measure, March or April as applicable, and who immediately proceed to the payment of this amount plus interest on arrears shall retain the right to deferment of the payment of contributions;
  • Possibility for the collective executive bodies of public professional associations that exercise management and management powers to decree the suspension or reduction of their members’ membership fees, without the need for resolution by the respective representative assemblies;
  • Until September 30, 2020, the hiring of workers is authorized for the establishment of fixed-term employment relationships, for a period of four months in the entities of the Ministry of Health, and its renewals are made for equal periods;
  • Telework regime may be determined unilaterally by the employer or by employee’s request, without the need of agreement by the parties, provided that it is compatible with the functions performed;
  • In the current context of COVID-19 disease, and exclusively for reasons of protection of one’s own health and of others, body temperature measurements may be taken to employees for the purposes of access and permanence in the workplace;
  • The provisions do not affect the right to individual data protection, and it is expressly prohibited to record the body temperature associated with the identity of the person, unless expressly authorized by the person;
  • If the normal body temperatures are higher than normal body, that person’s access to the workplace may be prevented.

H) Measures to support start-ups

New measures relating to Portuguese start-ups, in order for these entities to overcome the consequences of the Covid-19 pandemic and to continue their normal activity after this exceptional period (representing an overall support of more than EUR 25 million and an average of EUR 10,000 euros per start-up):

  • Start-up RH Covid19 measure, under which financial support will be granted through an incentive equivalent to one minimum wage per employee, up to a maximum of 10 employees per start-up;
  • Extension for 3 months of the previous scholarship benefit already awarded, in the amount of EUR 2,075 per entrepreneur job;
  • The “Incubation Voucher – Covid-19”, applicable to recent start-ups (incorporated less than 5 years ago), through the hiring of incubation services based on a non-refundable incentive of EUR 1,500;
  • Convertible loans in amounts between EUR 50,000 and EUR 100,000 per start-up, to be converted after 12 months at a discount rate that avoids dilution of shareholders;
  • Portugal Ventures issuing a call for investments in start-ups, with tickets starting at EUR 50,000 (this initiative being funded through the Instituição Financeira de Desenvolvimento (IFD), Portugal Ventures and Imprensa Nacional – Casa da Moeda); and
  • Two support measures already in force and applicable to start-ups were revised, as follows: (i) within the 200M Fund, co-investment with private investors in Portuguese start-ups and scaleups, with a minimum amount of public funds of EUR 500,000 and a maximum of EUR 5 million, and (ii) within the co-investment fund for social innovation, the co-investment with private investors in companies with innovative projects with a social impact, with a minimum amount of public funds of EUR 50,000 and a maximum of EUR 2.5 million.

Note: During the state of emergency, social security services, Working Conditions Authority, Directorate General for Employment and Labour Relations , Institute for Employment and Vocational Training, Commission for Equality at Work and Employment and the National Institute for Rehabilitation remain open on presential regime .

Tax Measures

NEW MEASURES PUBLISHED – PEES PROGRAM

Tax measures to support SME’s and Cooperatives

  • Temporary suspension of IRC’s payment on account for SMEs and cooperatives;
  • Possibility to request a full refund of the special payment on account which has not been deducted until 2019, with a waiver of the 90 days deadline, for SMEs and cooperatives;
  • Maximum period of 15 days for the refund of VAT, IRS and IRC, whenever the amount of tax withholding of payments on account or of VAT liquidations is higher than the due tax.

MEASURES ADOPTED DURING THE PANDEMIC

Deferral of tax obligations

A)  Deadline extension for compliance with tax obligations

  • Deferral of the special payment on account (“PEC”) deadline from March 31 to June 30;
  • Deferral of the deadline to submit the corporate income tax return and pay the related tax until July 31;
  • Deferral of the first payment on account deadline from July 31 to August 31.

B) Flexibilization of payments to the Tax Authority

  • Possibility of paying taxes in instalments;
  • Companies and self-employed persons with turnover in 2018 up to 10 M or starting activity from 01/01/19, may fractionate the VAT, IRS and IRC due (even as withholding tax), for the 2nd quarter, without the need for guarantee, under the law terms or in 3 or 6 monthly instalments without interest;
  • With regard to the payments made in 3 or 6 monthly instalments without interest, the first installment is due on the date of compliance with the payment obligation and the remainder on the same date in the following months;
  • Applications for payments made in 3 or 6 interest-free monthly instalments shall be submitted electronically by the end of the voluntary payment period;
  • This scheme also applies to taxable persons who have restarted activity on or after 1 January 2019, when they have not obtained turnover in 2018;
  • Other companies and self-employed persons may require the same flexibility in the payment of these tax obligations in the second quarter provided that they have been subjected to a decrease in their turnover of at least 20% in the 3-month average in which there is an obligation to pay the tax compared to the same period of the previous year.
    Furthermore, whenever the communication of invoice elements through the E-Invoice does not reflect all transactions carried out subject to VAT, even if exempt, relating to the transmission of goods and services for the periods under review, the measurement of the billing breach shall be made with reference to turnover, with its certification by the auditor or accountant;
  • Payment of the total VAT or in three instalments. In case this is covered by the quarterly scheme, the next obligation is due on 15 May being paid 1/3 in due time, 1/3 in June and 1/3 in July, with exemption from interest;
  • Possibility of paying VAT in six instalments – 1/6 in due time and 1/6 in each subsequent months. In this case there will already be an interest payment from the fourth month;
  • The same regime will be applied in relation to withholding tax at the source of IRS, concerning law firms employees;
  • Recognition of the right to full or partial exemption in respect to local authorities or inter-municipal entities taxes. In the event of exceptional situation relating to the pandemic, the need for approval of a regulation by the municipal assembly is waived, and in such cases the exemption, in whole or in part, may last longer than the end of the current calendar year. Exemptions must be communicated within 48 hours of their practice.

C) Flexibilization of payments to the Social Security 

  • Postponement of the deadline for payment of social security contributions by companies. This postponement is applied to employers from the private and social sectors with:
a) Less than 50 employees;
b) Total number of employees between 50 and 249, provided that they show a drop of at least 20 % of the invoicing reported through the E-Invoice in March, April and May 2020 compared to the same period of the previous year or, for whom it has started the activity less than 12 months, to the average of the period of activity elapsed;
c) Total of 250 or more employees, provided that they show a drop of at least 20 % of the invoicing reported through the E-Invoice in March, April and May 2020 compared to the same period of the previous year or, for whom they have started the activity less than 12 months, at the average of the elapsed period of activity, and fall within one of the following forecasts:
i) it is a particular institution of social solidarity or equivalent;
ii) the activity of those employers falls within the sectors closed by imposition of the state of emergency decree or in the aviation and tourism sectors in relation to the establishment or undertaking actually closed;
iii) The activity of those employers has been suspended, by legislative or administrative determination, in relation to the closed establishment or companies;
  • Extraordinary support for the reduction of self-employed economic activity and deferred payment of contributions;
  • Reduction of social contributions and payment in instalments;
  • With regard to social security contributions due between March and May 2020, the Government approved a:

i ) 1/3 of payment on the due date;
ii ) The remaining 2/3 are paid in equal and successive installments in the months of July, August and September 2020 or in the months from July to December 2020, without interest.

  • The requirements of the installment plan related to billing are demonstrated by the employer during the month of July 2020, together with declaration by the certified accountant;
  • The same regime applies to contributions due by self-employed workers.

D) Other measures

  • Automatic extension of unemployment benefits and solidarity supplement for the elderly or insertion social income that are already in payment, applicable to benefits whose concession or renewal period has ended in March or ends in April, May and June 2020 inclusive. The extension of the period for the granting of unemployment benefits does not amount to the allocation of other unemployment benefits or for the purposes of recording remuneration for equivalence to the entry of contributions;
  • Suspension of tax enforcement procedures;

Loans and Funding

MEASURES ADOPTED DURING THE PANDEMIC

Measures relating to credit lines and other financial incentives

A) Credit Lines

  • EUR 200 M credit line to support companies’ cash flows;
  • Creation by “Turismo de Portugal” of a Treasury Support line for Microenterprises. This line will have an allocation of 60 M and relates to companies or individual entrepreneurs with less than 10 job posts and whose annual turnover or annual total balance sheet does not exceed 2 M;
  • Creation of a credit line up to EUR 20 000 000 for the fishing and aquaculture sectors, which is intended to provide financial means for the acquisition of production factors, for a working or treasury fund, in particular for the settlement of taxes, payment of wages and renegotiation of debts with suppliers, credit institutions or other entities empowered by law to grant credit;
  • Natural or legal persons who meet the following conditions may apply to the reffered credit line:
  1. Are legally and regulatorily empowered to carry out fishing and aquaculture activities, processing and marketing industry of fishery products, or are recognised producer organisations;
  2. Are in effective activity;
  3. Have their registered office in national territory;
  4. Have their contributory situation regularized before the tax administration and social security;
  5. Are not a company in economic difficulties.
  • The total amount of aid to be allocated may not exceed (euro) 120 000 gross per beneficiary. When the individual amount of aid is found to exceed the stipulated limit, aid value per beneficiary shall be adjusted, by reducing in proportion to the excess recorded and reducing, accordingly, the individual amount of credit to be granted;
  • The credit is granted in the form of a repayable loan by credit institutions or other entities empowered by law to grant credit that conclude protocol with the Institute of Financing of Agriculture and Fisheries, I. P. (IFAP, I. P.), in which a maximum nominal interest rate is established;
  • Loans are formalized by written contract, in terms to be defined by IFAP, I.P., concluded between credit institutions or other entities authorized by law to grant credit;
  • Loans are granted for a maximum period of six years from the date of conclusion of the contract and depreciable annually in instalments of equal amount, with the first repayment due one year after the expected date of the first use of credit;
  • Loans accrue interest at the contractual rate, calculated day by day on outstanding capital. Interest are paid annually;
  • In each interest counting period, and throughout the duration of the loan, the following interest rate bonuses are allocated, differentiated according to the company’s turnover:
  1. Turnover up to EUR 500 000: up to 100 % bonus;
  2. Turnover exceeding EUR 500 000: up to 90 % bonus.
  • Creation of credit lines by the State and supported by the bank sector, totalling 3000 M, that will cover the following sectors:

Restaurant sector and similar: 600 M of credit, of which 270 M is earmarked for micro-enterprises and PME;

Tourism sector, namely travel agencies, animation, event organisation and the similar: 280 M of credit, of which 75 M is for micro-enterprises and PME;

Other companies in the tourism sector (including, tourist resorts and tourist accommodation): 900 M of credit, of which 300 M is for micro-enterprises and PME;

Industry sector (textile, clothing, footwear, extractive industry and the wood sector): 1300 M of credit, of which 400 M is directed to micro-enterprises and PME.

These credit lines will have a grace period of payments until the end of 2020 and can be amortized within 4 years.

ADAPTAR Program

  • With an allocation of 100 million euros, Adaptar Program aims to support companies in the costs of purchasing personal protective equipment for employees, hygiene equipment, disinfection contracts or expenses with space organization.

Scope and Eligibility

  • Projects inserted in all economic activities are eligible, with the following exceptions:

a) Fishing and aquaculture sector;

b) Primary agricultural production and forestry sector;

c) Processing and marketing of agricultural products and processing and marketing  sectors of forestry products;

d) Projects relating to the following activities: financial and insurance, defence, lotteries and other gambling.

Requirements

  • The following criteria are required with regard to micro-enterprises of any kind:

a) To be legally constituted on 1 March 2020;

b) Have an organised account;

c) Meet the necessary conditions to obtain the status of microenterprise;

d) To have the tax and social security situation regularized.

Project Eligibility

  • The eligibility criteria for projects are the following:

a) Aiming to make an investment of an eligible expenditure value of not less than (euro) 500 and not more than (euro) 5000, for the adaptation of the company’s activity to the context of COVID-19 disease, guaranteeing the employees and clients safety, and the relationship with suppliers, complying with the established standards and recommendations of the competent authorities;

b) Have a maximum execution duration of six months from the date of notification of the favorable decision, with a deadline of 31 December 2020;

c) To comply with the legal and regulatory provisions applicable to them.

Expenses and Application

  • In the case of micro-enterprises (up to 10 employees), Adaptar contemplates an 80% non-refundable support for expenses between 500 and 5,000 euros, being eligible since March 18;
  • Access to the programme will be through a simplified application scheme, based on a expenditure budget by large heading, where confirmation of the compulsory administrative requirements is made automatically by the application management system or by a declaration by the promoter;
  • The decision on the application will be taken within 10 working days.

PME’s

  • Adaptar is also applicable to small and medium-sized enterprises (PMEs), with projects between 5,000 and 40,000 euros, with 50% non-refundable funding, under Portugal 2020 program, through the Compete and the regional operational programes.

Scope and Eligibility

  • The eligibility criteria for small and medium-sized enterprises are as follows:

a) To be legally constituted until March, 1st 2020;

b) To have an organised account in accordance with the applicable legislation;

c) To have its tax and social security situation regularized;

d) To have its situation regularized with regard to replacements, within the scope of financing from the European Structural and Investment Funds (FEEI);

e) To have the PME certificate issued by IAPMEI;

f) Not be a company in difficulties;

g) To declare that it is not a company subject to an outstanding recovery order following a previous Commission decision declaring an aid illegal and incompatible with the internal market.

Project Eligibility

  • The eligibility criteria for PME projects are as follows:

a) To aim at making an investment of an eligible expenditure value of not less than (euro) 5000 and not more than (euro) 40 000, for the qualification of processes, organisations, products and services of SMEs, namely the adaptation of their establishments, work organisation methods and relationships with clients and suppliers to the new conditions in the context of the COVID-19, ensuring compliance with the established standards and recommendations of the competent authorities;

b) The investment is not in force at the date of application;

c) To have a maximum execution duration of six months, from the date of notification of the favorable decision, with a deadline of 31 December 2020;

d) To comply with the legal and regulatory provisions applicable to them.

Expenses and Application

  • In both situations, after the validation of the term of acceptance of the application, an automatic advance of an amount equivalent to 50% of the approved incentive will be processed;
  • The eligible expenses for Adaptar support include the purchase of masks, gloves or visors, the purchase and installation of automatic payment devices, hiring of disinfection services of the premises, for a maximum period of six months, or also the expenses with the intervention of certified accountants or statutory auditors, in the validation of the expenses of the payment requests.
  • In the case of PME’s, the decision on the application will be taken within 20 working days and the application is the same applicable to microenterprises.

B) Moratorium Approvals

  • Extension by three months of the maximum period for the beneficiaries of the Rural Development Program (PDR 2020) to  implement and complete projects whose deadline for to invest occurs between March 1 and June 15, 2020. In this sense, payments were authorized under the “PDR 2020” program, without observing the maximum number of payment requests. Beneficiaries with actions cancelled due to the new coronavirus are eligible for the reimbursement of expenses. Under this programme, site visits for administrative control prior to the decision of applications are waived in the case of applications with a total estimated investment of less than (euro) 500 000, even if they include expenditure defined through standard unit cost tables, and the analysis of eligibility of operations shall be carried out using alternative means, in particular the sharer information system (SIP) and updated orthophotomaps;
  • Beneficiaries that have had their productive and/or commercial activity seriously affected as a result of the epidemiological situation of the new Coronavirus – COVID 19 may conclude the investment projects contracted under the PDR 2020, regardless of the degree of execution they are in, after recognition of the situation of “force majeure”, to be granted upon request;
  • For assessment and recognition of the situation to be framed, beneficiaries must submit an application for application of the concept of “force majeure” to the Institute for Financing Agriculture and Fisheries, I. P. (IFAP), by May 31, 2020, demonstrating the causal link between the impossibility of continuing the execution of investment projects and the COVID-19 situation;
  • Temporary authorization of late payment of rents (housing and non-housing). This scheme allows the Institute of Housing and Urban Rehabilitation (IHRU) to grant loans for payment of income to tenants who have suffered income breaks;
  • Possibility of loan from the municipal councils without need for authorization by the municipal assembly. The loan must be communicated electronically within 48 hours of its practice.

C) Extraordinary support measures for the liquidity of families, companies, private charitable institutions, non-profit associations and other social economy entities

Beneficiary entities

Companies fulfilling all of the following conditions will benefit from the measures:

a) Have their head office and exercise their economic activity in Portugal;

b) Are classified as micro, small or medium-sized enterprises;

c) Are not, on 18 March 2020, in default or in default of cash benefits for more than 90 days with the institution and are not in a situation of insolvency, suspension or cessation of payments, or on that date are already in execution by any of the institutions;

d) Have their situation regularized with the Tax and Customs Authority and Social Security, not being relevant until April 30, 2020, for this purpose, the debts constituted in the month of March 2020.

The measures provided for shall benefit natural persons who fulfil the conditions referred to in paragraphs c) and d), whether or not they are resident in Portugal and are, or are part of a household in which at least one of its members is, in one of the following situations:

a) Prophylactic isolation or illness;

b) Caring for children or grandchildren;

c) Reduction of the normal period of work or suspension of the employment contract due to a business crisis;

d) Unemployment situation registered with the Instituto do Emprego e Formação Profissional, I. P.;

e) Employees eligible for extraordinary support to reduce the economic activity of self-employed workers;

f) Employees from entities whose establishment or activity has been subject to a determined closure during the period of emergency or during a situation of calamity due to legal or administrative imposition; or

g) Temporary income break of at least 20 % of their household’s overall income as a result of the OVID-19 pandemic.

They also benefit from the measures envisaged:

a) Individual entrepreneurs, as well as private social solidarity institutions, non-profit associations and other social economy entities, fulfil the conditions referred to in paragraphs c) and d) of no. 1 and have their domicile or head office in Portugal;

b) other companies, regardless of their size, which fulfil the conditions referred to in subparagraphs (a), (c) and (d) of paragraph 1, excluding those forming part of the financial sector.

Banks, other credit institutions, financial companies, payment institutions, electronic money institutions, financial intermediaries, investment firms, collective investment schemes, pension funds, securitisation funds, their management companies, securitisation companies, insurance and reinsurance companies and public bodies that administer public debt at national level, with the same status, according to the law, as credit institutions, shall be deemed to be part of the financial sector.

Operations covered

This measures applies to credit operations granted by credit institutions, credit finance companies, investment companies, leasing companies, factoring companies and mutual guarantee companies, as well as by branches of credit institutions and financial institutions operating in Portugal, known as “institutions”, to the beneficiary entities.

This applies to the following credit operations when contracted by beneficiary entities which are natural persons:

a) Mortgage credit, as well as leasing of real estate for residential purposes;

b) Consumer credit, for education, including academic and professional training.

This shall not apply to the following operations:

a) Credit or financing for the acquisition of securities or positions in other financial instruments, whether or not secured by such instruments;

b) Credit granted to beneficiaries of schemes, subsidies or benefits, namely tax benefits, to establish their head office or place of residence in Portugal, including for investment activity, with the exception of citizens covered by the Return Programme;

c) Credit granted to companies for individual use by means of credit cards of members of management, supervisory bodies, workers or other employees.

Moratorium

Entities benefit from the following support measures in relation to their credit exposures contracted with institutions:

a) Prohibition of total or partial revocation of contracted credit lines and loans, in the amounts contracted on the date of entry into force of this Decree-Law, during the period in which this measure is in force;

b) Extension, for a period equal to the duration of this measure, of all credits with capital payment at the end of the contract, in force on the date of entry into force of this Decree-Law, together with all its associated elements, including interest, guarantees, namely provided through insurance or in credit securities;

c) Suspension, in respect of credits with installment repayment of capital or with installment repayment of other cash instalments, during the period in which this measure is in force, of the payment of the capital, rents and interest with foreseen maturity until the end of this period, commissions and other charges extended automatically for the same period as the suspension, in order to ensure that there are no charges other than those which may arise from the variability of the reference interest rate underlying the contract, and all elements associated with the contracts covered by the measure, including guarantees, are also extended.

The entities benefiting from the measures provided for in subparagraphs b) and c) of the preceding paragraph may, at any time, request that only the principal repayments, or part thereof, be suspended.

The extension of the period for payment of capital, rents, interest, commissions and other charges referred to in subparagraphs b) and c) of paragraph 1 shall not give rise to any:

a) Breach of contract;

b) Activation of early maturity clauses;

c) Suspension of the maturity of interest due during the extension period, which shall be capitalised in the amount of the loan by reference to the time at which they are due at the contract rate in force; and

d) Ineffectiveness or termination of guarantees granted by the entities benefiting from the measures or by third parties, in particular the effectiveness and duration of insurance, sureties and/or guarantees.

The application of the measure provided for in paragraph 1 to credits with financial collateral shall cover the debtor’s obligations to restore maintenance margins as well as the creditor’s right to enforce stop losses clauses.

With regard to loans granted on the basis of total or partial financing, including in the form of subsidies, or guarantees from third parties based in Portugal, the measures provided for in paragraph 1 shall apply automatically, without the prior authorisation of those entities, under the same conditions as those laid down in the original legal transaction.

The extension of guarantees, namely of insurance, sureties and/or guarantees referred to in the preceding paragraphs does not require any other formality, opinion, authorisation or prior act by any other entity provided for in another law and are fully effective and enforceable against third parties, and the respective registration, when necessary, shall be promoted by the institutions, based on the provisions of this Decree-Law, without the need to present any other document and with dispensation from successive treatment.

Access to the moratorium

In order to access the measures provided for in the preceding article, the beneficiary entities shall send the lending institution, by physical or electronic means, a declaration of adherence to the application of the moratorium, in the case of natural persons and sole proprietors, signed by the borrower and, in the case of companies and private charitable institutions, as well as non-profit associations and other social economy entities, signed by their legal representatives.

Beneficiary entities must send the documentation proving the regularity of their tax and contributory situation within 15 days from the date of sending the declaration of membership.

The communication of adhesion to the foreseen moratorium is made until June 30, 2020, with the possibility of extension.

Duty to provide information

The institutions have the duty to publicise and advertise the measures provided for in this Decree-Law, including the terms and deadlines for access to the moratorium, on their website and through the usual contacts with their customers. The institutions are also obliged to give full knowledge of all the measures provided for in this Decree-Law prior to the formalisation of any credit agreement whenever the client is a beneficiary entity.

The Banco de Portugal regulates the manner in which the provision of information foreseen in the previous paragraphs shall be effected.

Regulation

The member of the Government responsible for the area of finance shall define by order the other general conditions applicable to any of the exceptional and temporary measures in response to the COVID-19 pandemic provided for in this decree-law.

In the case of subsidized credits supported by the State, including direct and indirect administration, the current competencies for the respective implementation within the scope of the present decree-law are maintained.

Banco de Portugal densifies, by regulation, the information obligations of institutions regarding operations covered by the exceptional and temporary measures in response to the OVID-19 pandemic provided for in this decree-law.

Personal guarantees

Personal guarantees may be provided by the State and other legal persons governed by public law due to the national economic emergency situation caused by the COVID-19 disease pandemic, within the maximum limits for the granting of personal guarantees provided for in the State Budget Law.

The member of the Government responsible for the area of finance may authorise the granting of guarantees, namely to guarantee credit operations or other financial operations, in any form, to ensure liquidity or any other purpose, to companies, private institutions of social solidarity, non-profit associations and other entities of the social economy or in the context of initiatives, programmes or other support measures adopted within the framework of the European Union, namely by institutions or other bodies of the European Union, or under European instruments or mechanisms.

Procedure for granting State guarantees in the event of a national economic emergency

The request for a State guarantee shall be addressed to the member of the Government responsible for the area of finance, through the Directorate-General for the Treasury and Finance, together with the essential elements of the operation to be guaranteed, in particular the amount and the deadline, without prejudice to any additional elements that may be requested for the assessment of the risk of the operation and the definition of the conditions of the guarantee to be granted.

The envisaged request shall be subject to the favourable opinion of the member of the Government of the area of activity of the entity benefiting from the guarantee, and shall focus on the framework of the operation within the Government’s policy of response to the national economic emergency situation due to the COVID-19 pandemic, the assessment of the relevance of the beneficiary entity for the national economy, as well as the prospect of economic viability of the entity in question and the express need for a personal guarantee from the State.

The essential elements of the operation as well as the opinion referred to in the previous paragraph shall be published in an annex to the approval or authorisation order, and any amendment shall follow the same procedure.

The elements necessary for the monitoring of the operations that are the object of the guarantee and, as soon as they become aware of them, of facts that make it impossible to punctually comply with the guaranteed obligations, are regularly sent to the General Directorate of the Treasury by the beneficiary entities or other entities to be defined in the dispatch of the member of the Government responsible for the area of finance.

The procedure set out in this article shall apply, mutatis mutandis, to the granting of guarantees in the context of initiatives, programmes or other support measures adopted within the framework of the European Union, namely by European Union institutions or other bodies or under European instruments or mechanisms.

D) Taxes and Payments

  • Elimination of minimum fees charged to merchants for payment by POS – ‘Point of sale’, so that everyone can accept payments in electronic means without the need to establish a minimum value;
  • Suspension of commissions on payment transactions;
  • Suspension of the collection fees due for the use and performance of payment transactions through digital platforms of payment, in particular homebanking or applications with a card-based payment instrument, for persons who are in a situation of prophylactic isolation or illness or who provide assistance to children or grandchildren, as well as for persons who are eligible for extraordinary support to reduce the economic activity of self-employed workers or are entities whose establishment or activity has been the subject of a determined closure during the state of emergency period;
  • Payment service providers are prohibited from providing in their prices the charging of new fixed or variable commissions related to the acceptance of card payment transactions carried out in automatic payment terminals;
  • Beneficiaries of card payments that provide automatic payment terminals cannot refuse or limit the acceptance of cards for payment of any goods or services, regardless of the value of the operation, during the period in which the suspension provided for in the previous article is in force;
  • Setting a maximum limit for card payments with contactless technology, which should be around EUR 30,00;
  • Possibility of reimbursement of savings and retirement plans (PPR) during the state of emergency. The amount of the PPR refunded must correspond to the value of the unit of participation at the date of the refund application.

E) Other business support measures

  • ECB launches a 750 billion Pandemic Emergency Purchase Programme (PEPP) of private and public sector securities to counter the serious economic risks due to the coronavirus outbreak;
  • Payment of pending invoices by public entities.

F) Incentives under PT2020 program

  • Payment of incentives within 30 days;
  • Extension of the repayment period for credits granted under QREN and PT2020;
  • Eligibility of expenses incurred with cancelled international events.

G) Financing for the acquisition of acrylic protective barriers

  • In 2020, the acquisition of acrylic barriers to protection, for face-to-face service stations in the Citizen’s Spaces and Citizen’s Shops, whose management is the responsibility of the local authorities, can be financed through the appropriation entered in the State’s general expenses budget. Financing foreseen in the budget amounts is to up to 90 % of the total cost of the acrylic barrier, with a limit of (euro) 54.00 per unit, with only the barriers that comply with the model defined by the Agency for Administrative Modernisation, I.P. being eligible. (AMA, I.P.);
  • The financing procedure is simplified as follows:

a) Local authorities apply to the Directorate-General for Local Authorities (DGAL) for the financing provided for, in accordance with the form made available on the respective DGAL portal;

b) DGAL will validate with the AMA, I. P., the number of acrylic barriers identified taking into account the existing service stations in each Citizen’s Space or Citizen’s Shop;

c) Local authority sends proof of purchase to the DGAL

d) Contribution is transferred by DGAL according to the expenditure incurred.

Deadlines and Contracts

NEW MEASURES PUBLISHED – PEES PROGRAM 

Renting for non-housing purposes

Rent deferral scheme

The tenant may defer the payment of rent whenever fulfils the requirements relating to the legally provided drop of income, in the following cases:

  • during the months in which, under a legal provision or administrative measure approved in the context of the COVID 19 pandemic, the closure of his premises or suspension of his activity was determined;
  • during the three months following the month in which the imposition of closure of its facilities or the suspension of its activity was lifted.

In these cases:

  • the deferral cannot, in any case, apply to rents due after 31 December 2020;
  • the debt settlement period begins on January 1, 2021 and extends until December 31, 2022 (i.e. the period ending in June 2021 is extended), and the total amount owed excludes past due and already paid rents, which are considered as settled;
  • the payment is made in 24 successive instalments in the amount corresponding to that resulting from the apportionment of the total amount due for 24, paid with the rent for the month in question or up to the eighth calendar day of each month in the case of non-monthly rent.

The tenant may, at any time, pay all or part of the instalments.

Landlords whose tenants cease to pay the rent in accordance with the terms referred to above may request the granting of a credit line with reduced costs, to be regulated, to support the difference between the amount of the monthly rent due and the amount resulting from the application to the landlord’s monthly income or invoice of a maximum effort rate of 35%, the demonstration of which is made in accordance with the ordinance to be approved.

These rules apply, with the necessary adaptations, to other contractual forms of exploitation of property for commercial purposes. However, the rent deferral regime does not apply to establishments that are part of commercial joint ventures that choose to benefit from the special regime provided for in the State Budget for 2020, as amended by the Supplementary State Budget for 2020.

The tenant that intends to benefit from the regime that allows the deferment of rents of non-housing leases must communicate his intention to the landlord, in writing and up to five days (20 days for the rents due in July 2020) before the expiry of the first rent in which he intends to benefit from this regime, by means of a registered letter with acknowledgment of receipt, sent to the respective address contained in the lease agreement or in its immediately preceding communication.

As an alternative to this communication, the tenant may address to the landlord, by registered letter with notice of receipt, sent to the respective address in the lease agreement or in the immediately preceding communication, a proposal for an agreement for the payment of the rent due and falling due, different from the legal solution.

These communications must contain, in addition to the elements indicated therein, under penalty of ineffectiveness:

– that the deadline for reply is 10 days, being considered as failure to reply the non-fulfilment of this deadline;

– the content of the reply;

– the consequences of failure to reply.

The acceptance of the agreement or the respective refusal must be transmitted by the landlord, in writing, by means of a registered letter with acknowledgment of receipt to the address of the tenant, within 10 days after receipt of the tenant’s proposal.

In the event of absence of a reply from the landlord or of a reply transmitted after that period, it is presumed that the landlord has expressed his agreement to the tenant’s proposal.

The landlord may, within the same period, formulate a counterproposal to the tenant, to which the tenant must respond within a period of ten days, and the rejection of the same by the tenant, or the absence of a response by the tenant within that period, determines the applicability of the legal regime.

Bank Guarantees

During the exceptional situation of prevention, containment, mitigation and treatment of epidemiological infection by SARS-CoV-2 and COVID-19 disease, the landlord will not be able to execute bank guarantees for non-residential rent payments.

More favourable regimes

The now amended legal regime concerning the deferral of rents does not prejudice the existence of more favourable regimes for the lessee, arising from the law or from an agreement, entered into or to be entered into between the parties, namely debt forgiveness agreements or agreements for deferral in the payment of rents more beneficial to the lessee.

In cases of non-housing leases, if there is an agreement previously entered into that establishes less favourable conditions for the tenant, the latter will be without effect provided that the tenant sends a communication, within 30 days after the entry into force of this Act, to the landlord’s address, through which the tenant expresses his intention to apply the regime now established. The amounts that have already been paid by way of a tent are not returned to the tenant, being relevant for the purposes of calculation of the total amount due.

The clauses of waiver of rights attributed by this regime or of recourse to judicial means and also of acceptance of increases in rent or in the period of the lease provided for in the contracts referred to are null and void.

MEASURES ADOPTED DURING THE PANDEMIC

Impact of Covid-19 on deadlines and contracts

A) Rental Contracts 

    1. The production of effects of the complaints made by the landlord regarding housing and non-housing leases;
    2. The expiry of the housing and non housing leases, unless the tenant does not oppose the termination;
    3. The effects of the revocation, the opposition to the renewal of housing and non-housing leases made by the landlord;
    4. The term indicated in Article 1053 of the Civil Code, if the end of such term occurs during the period of time in which such measures are in force;
    5. The foreclosure of a mortgage on a property that is the property of the foreclosed party’s permanent residence.It remain suspended until September 30, 2020:

Exceptional regime of late rent payment

Housing Lease

Extension of the financial support granted by the Institute for Housing and Urban Rehabilitation, I.P. This support becomes applicable to rents falling due from April 1, 2020 until September 1, 2020.

The new set of measures will apply to rental contracts for housing purposes when one of the following situations occurs:

  1. A drop of more than 20% of the lessee’s household income compared to the income of the previous month or the same period of the previous year; and the level of effort of the lessee’s household, calculated as a percentage of all members’ income of that household, intended for rental payment, of at least 35%; or
  2. Landlords with a drop of more than 20% of income compared to the income of the previous month or the same period of the previous year; and that percentage of the income break is caused by the lack of payment of rents by the tenants under the provisions of the law.

Therefore, Landlords will only be allowed to terminate lease on the grounds of non-payment of the rents due in the months in which the state of emergency is in force and in the first month thereafter, if the lessee does not make the payment of the outstanding rents within 12 months from the end of that period. Rents can be paid in monthly instalments not less than one twelfth of the total amount, paid together with the monthly rent.

On the other hand, it is possible to request a free interest loan to the Institute of Housing and Urban Renewal (IHRU, I.P), under the following terms:

  1. Lessees and guarantors of students not earning work income, who have proven to have a drop of 20% of income and are unable to pay the rent of their permanent residence or, in the case of students, their educational residence, if it is located at a distance of more than 50 km from the permanent residence;
  2. Landlords that suffer a drop of more than 20% of income compared to the income of the previous month or the same period of the previous year; and that percentage of the income break is caused by the non-payment of rents by the tenants under the provisions of the diploma.

Lessee’s loan aims to support the difference between the amount of the monthly rent and the amount resulting from the application to the household’s income of a maximum effort rate of 35 %, in order to allow the payment of the due rent. The remaining disposable income of the household cannot be lower than the indexing of social support (IAS – EUR 438.81).

For landlords, the loan will compensate the amount of the monthly rent, due and unpaid, whenever the remaining disposable income of the household falls, for this reason, below the IAS (EUR 438.81).

It shall be noted that, in order to be able to use the regime set forth in the diploma, the lessees must inform the landlord in writing at least five days before the due date of the first rent, adding, for this purpose, the evidence of the situation of income decrease. However, for rents that have expired on the 1st of April, the deadline for notification is 20 days after the date of entry into force of the law (7th of April).

Non-Housing Lease

Possibility for tenants to defer payment of rent due during the months in which such situations of closure or suspension continue, or in the first month thereafter, always until 1 September 2020.

This measure is applicable to tenants with:

  • Establishments open to the public that are engaged in retail trade and service activities that are closed or have their activities suspended, including in cases where they maintain the provision of e-commerce activities, or the provision of services at a distance or through an electronic platform, or
  • Restaurant and similar establishments, including in cases where they maintain activity for the exclusive purpose of confectionery intended for consumption outside the establishment or delivery to the home, under a legal provision or administrative measure approved under the current epidemiological situation which, even after the end of the state of emergency, determines the closure of the same or suspension of their activities.

The period for settling the debt begins on September 1, 2020 or after the end of the month following that in which the impediment ceases, always with the month of June 2021 as the limit.

These annuities must be paid in monthly instalments, together with the month in question, not less than the amount resulting from the apportionment of the total amount due by the number of months in which it is to be settled.

The non-payment of rent due in the months in which the state of emergency is in force and in the first subsequent month, as well as in the case of establishments that remain closed or their activities suspended after that date, during the months in which the closure or suspension is in force and in the subsequent month, and until 1 September 2020, cannot be invoked as grounds for termination, termination or other form of termination of contracts, nor as grounds for an obligation to vacate property.

The compensation legally provided for the late payment of rents (corresponding to 20% of the amount owed) will now also not be payable for rents falling due by September 1, 2020.

In this regard, Ordinance No. 91/2020 of April 14 defined the terms in which the income drop is demonstrated for the purpose of applying this exceptional regime, in the following terms:

It is considered a drop of 20 % or more of income in the following cases:

  1. Housing lessee, who constitutes his permanent residence, when the percentage share of the total monthly income of the household members is intended for payment of a monthly rent exceeding 35 %;
  2. Students with a housing lease located more than 50 km from the permanent residence, for attendance of educational establishment, when the percentage share of the total monthly income of the household members is intended for payment of a monthly rent exceeding 35 %;
  3. Housing lease guarantor of a student who does not earn income from work, when the percentage part of the total monthly income of the guarantor’s household members destined to pay the monthly income of the student’s housing exceeds 35 %; Or
  4. Landlords, when the drop in the monthly income of the members of their household is due to the non-payment of rents by their tenants and the remaining income of that household falls below the value of the IAS – EUR 438,81.

It is presumed to constitute permanent residence of the lessee and the student the property corresponding to their tax address.

The income drop referred to corresponds to a decrease in income by more than 20 %:

  1. In the case of lessees, guarantors and students, by comparing the sum of household members’ income in the month in which the determining cause of the change in income occurs with the income earned by the same household members in the previous month or in the same period of the previous year;
  2. In the case of landlords, by comparing the sum of income of the members of their household in the month in which the rents due by their lessees are not paid in the same period of the previous year.

The following are considered relevant for proving the drop:

  1. In the case of income from dependent work, their gross monthly value – proven by means of receipts or employer’s statement;
  2. In the case of CIRS category B income or professional income, the value before VAT – proven by invoices or receipts;
  3. In the case of pension income, its gross monthly value;
  4. In the case of property income, the value of the rents received;
  5. Monthly amount of social benefits received on a regular basis;
  6. Monthly amount of housing support received on a regular basis;
  7. Amounts of other income received on a regular or periodic basis.

Points 3 to 7 may be proven by documents issued by the respective paying entities or other documents reporting the receipt of that values.

Whenever the proof of income referred to is not possible, the income may be attested by a self-declaration, on a commitment of honour basis or by the certified accountant in case of self-employed workers in an organised accounting scheme.

The proof of income subject to the statements referred to must be submitted within a maximum of 30 days after the date of communication to the landlord or the application submitted to the Institute of Housing and Urban Rehabilitation, I. P. (IHRU, I. P.).

Public Entities

Under the law, public entities with leased properties (by any other form object of use agreements) may reduce rents to tenants who have proven to have suffered a decrease in their income of more than 20 % compared to the income of the previous month or the same period of the previous year, when the payment of the rent results in a level of effort of more than 35 % in relation to the income.

B) Insurance Contracts

  • Possibility of agreement on the payment of the premium at a later date than the beginning of the risk coverage, waiver of automatic termination or non-extension in the event of non-payment, premium instalments, extension of the validity of the insurance contract, temporary suspension of premium payment and temporary reduction in the amount of the premium according to the risk reduction;
  • In the absence of agreement and in the case of non-payment of the premium or instalment on the due date, the contract shall be automatically extended for a period of 60 days from the due date of the premium or instalment. The insurer must inform the policyholder at least 10 working days before the due date of the premium, and the latter may oppose maintaining the coverage until the due date. The termination of the insurance contract due to non-payment of the premium, part or fraction of it, until the end of the 60-day period shall not relieve the insured of the obligation to pay the premium corresponding to the period in which the contract was in force;
  • The policyholders who develop activities that are suspended or whose establishments or facilities are still closed due to exceptional and temporary measures adopted in response to the COVID-19 pandemic, or those whose activities have been substantially reduced due to the direct or indirect impact of these measures, may request the reflection of these circumstances in the insurance premium covering the risks of the activity, as well as request the fractioning of the payment of the premiums related to the current annuity, without additional costs.  When the premium has been fully paid at the beginning of the annuity, the amount of the premium reduction shall be deducted from the amount of the premium due for the subsequent annuity or, in the case of an insurance contract that does not extend, cancelled within 10 working days prior to its termination, unless otherwise agreed by the parties;
  • A substantial reduction in business shall be deemed to exist when the insurance holder is in a state of business crisis, including when he or she experiences an abrupt and sharp drop of at least 40 % in billing;
  • Contractual changes are reduced to writing in additional minutes, or on a particular condition, to be sent by the insurer to the policy holder within 10 working days of the date of the agreement or of the exercise of the right by the policy holder, being the Insurance and Pension Funds Supervisory Authority (ASF) responsible for the supervision and control.

C) Legal and non-legal Deadlines

Legal Deadlines

The procedural deadlines are no longer suspended from 3 June 2020.

As for administrative deadlines the suspension ends on June 26, 2020, except for the deadlines ending at a later date.

Judicial acts may only take place in person when regarding trial hearings and other proceedings that require the inquiry of witnesses, provided that the maximum number of people and other safety, hygiene and health rules defined by the Directorate General of Health (DGS) are complied.

Whenever it is not viable to do it this way, in particular when it does not prejudice the purposes of justice, it shall take place by appropriate means of communication at a distance, although statements by the accused or statements by witnesses or parties shall always be made in a court of law, unless the parties agree otherwise.

Exceptionally, when the parties, their representatives or other intervening parties are over 70 years of age, are immuno-compromised or chronically ill, they are not obliged to go to court, in which case their enquiry or follow-up shall be carried out by means of distance communication from their legal or professional domicile.

Without prejudice to the provisions abovementioned, the accused shall be guaranteed presence at the inquiry debate and the trial session when statements by the accused or co-defendant and the testimony of witnesses take place.

In other proceedings requiring the physical presence of the parties, their representatives or other procedural interveners, the practice of any other procedural acts shall be carried out through appropriate means of communication at a distance or in person, when they cannot be made at a distance, provided that the maximum number of persons and other safety, hygiene and health rules defined by the DGS are complied.

The following deadlines remain suspended:

  1. Deadline for presenting the debtor for insolvency;
  2. Acts to be performed in the executive or insolvency proceedings related to the judicial delivery of the family home;
  3. Eviction proceedings, and the proceedings for delivery of rented property, when the tenant, by virtue of the final judicial decision to be rendered, may be placed in a situation of fragility due to lack of own habitation or for another compelling corporate reason;
  4. Prescription and expiry deadlines respecting proceedings referred to in the preceding paragraphs;
  5. Prescription and expiry deadlines relating to proceedings which cannot be conducted.

In cases where the acts to be performed in the course of executive proceedings or insolvency proceedings relating to sales and judicial deliveries of real estate are likely to cause damage to the subsistence of the defendant or of the person declared insolvent, the latter may request the suspension of his practice, provided that such suspension does not cause serious damage to the subsistence of the defendant or irreparable damage, and the court shall decide the incident within 10 days, after hearing the parties.

Registries and Documents

  • Applications for civil registration, vehicles, commercial and building that cannot be made online through the IRN website, I.P., may be sent to the e-mail address of the respective registration service, or by another electronic mean. The provisions shall also apply to the filing of a hierarchical appeal of decisions refusing to practice registration acts in accordance with the terms required;
  • It is now accepted the sending by scan of original documents on paper, by those who have competence for certification of photocopies assigned by law, and also by managers, administrators and secretaries of commercial or civil by affixing a qualified digital signature with the citizen card or digital mobile key using the Professional Certification System (SCAP);
  • Acts regarding registration of companies, increase and reduction of capital and the appointment of managers are of an urgent nature;
  • After the decision authorising registration or granting of Portuguese nationality, the verbal declaration of birth attributing the nationality, or the verbal declaration of birth in application for acquisition of Portuguese nationality whenever the seat per registration is necessary, is replaced by a declaration sent by e-mail;
  • The death of any individual occurred in Portuguese territory must be declared by e-mail to be sent to the e-mail address of any civil registry office. If there are no non-conformities, the death certificate is issued by the competent authorities;
  • The supply of deficiencies related to registration requests made online and all processes associated with the issuance of professional certification system by managers, directors and secretaries of companies is exempt from emoluments;
  • All acts requested from INPI, must be presented exclusively through the online services available on NPI’s website. Notification of any administrative acts or steps promoted by the INPI in the context of procedures conducted by the latter, may be carried out by e-mail, using, where applicable, the addresses that the interested parties have communicated at earlier stages of the procedures;
  • Identification documents as well as licences and permits are accepted until 30 October 2020;
  • Scanned copies and photocopies of acts and contracts shall be recognised as the evidential value of the respective originals, unless the person to whom they are presented requests the display of that original;
  • The signature of the scanned copies of the acts and contracts by hand or by qualified electronic signature does not affect their validity, even if different forms of signature coexist in the same act or contract.

D) Other deadlines

  • Postponement for one year of payment of benefits relating to repayable subsidies which deadline is until 30 September 2020. All companies are subject to the postponement and it will not imply the payment of interest charges or other penalty for companies that benefit from it;
  • Possibility of sending the approval of accounts by 30 June by entities whose accounts depend on a collegiate body;
  • Postponement of general meetings for commercial societies, associations or cooperatives until June 30 and possibility of submission of approval of accounts until July 15, 2020;
  • Measures provided for in the Municipal Adjustment Programs (PAM) that allow off-limits debt provided for in the Local Finance Law in combating Covid-19.
  • Electronic certification scheme for PME’s and amendment of the deadline for submission of the application, under which the company submits to IAPMEI, I.P., the electronic certification form with the final data of the following financial year, up to 30 working days after the legally provided deadline for submission of the annual accounting and tax declaration, and these data confirm the content of the declaration submitted;
  • Suspension of the signature collection on the delivery of registered mail, which is replaced by verbal identification and collection of the citizen card number, or any other legal means of identification, until the exceptional situation of pandemic is terminated;
  • Suspension of the deadline of use for medium and long-term loans established at a maximum of two years;
  • E-mail communications made by Justices of the Peace, Registry curators, INPI’s employees among others, are made through the e-mail address made available by the entities. The referred entities have to confirm the receipt of emails addressed to them;
  • In the context of acts and communications that take place in tax court proceedings, between the tax administration services, the local peripheral service and the tax enforcement agency and the tax courts, access to the computer system to support the activities of the administrative and tax courts is carried out by the representatives of the entities identified at https://pro.tribunais.org.pt, in accordance with the procedures and instructions contained therein:
  1. The referral of the administrative process to the court, by the local peripheral service, when this is ordered by the judge under the terms of Article 110(5) of the Tax Procedure and Proceedings Code;
  2. The following acts of the tax enforcement body:
  3. Communication, to the tax court of 1st instance where the opposition is pending, of the payment of the enforced debt under the terms of paragraph 7 of article 203 of the Tax Procedure and Proceedings Code;
  4. Referral of the tax execution proceedings to the tax court, when an opposition is filed, pursuant to article 208(1) of the Code of Tax Procedure and Procedure.
  • By means of a protocol to be signed with the Institute of Financial Management and Justice Equipment, I.P., public entities may carry out the communications foreseen in this article through an interoperability service between the computer system supporting the activities of administrative and tax courts and the respective information system;
  • Public entities within the scope of tax lawsuits may consult the cases in which they carry out the acts envisaged, through the computer system supporting the activities of the administrative and tax courts, at https://pro.tribunais.org.pt, or, in the other cases envisaged, through the interoperability service provided for in the protocol”;
  • Sales that take place during the months of May and June 2020 are not included in the maximum sales limit of 124 days per year. The economic operator wishing to sell in sales during the months of May and June 2020 is exempted from issuing, during this period, the declaration addressed to the Food and Economic Security Authority.
E) Other contracts
  • In the case of contracts which expressly provide for the right of the contractor or private partner to be compensated for any breach of use or where the occurrence of a pandemic constitutes grounds for a claim to restore financial equilibrium, such compensation or restoration may only be effected by extending the period of performance of the services or the duration of the contract and shall not give rise, irrespective of legal provision or contractual stipulation, to a price revision or the assumption by the contractor or public partner of a duty to provide the counterparty;
  • No compensation shall be given for damage resulting from acts regularly performed by the State or another public entity, in the exercise of powers conferred by public health and civil protection legislation, or in the framework of the state of emergency, for the purpose of preventing and combating the COVID-19 pandemic, which is for this purpose a cause of force majeure.

Other relevant measures

MEASURES ADOPTED DURING THE PANDEMIC 

Measures to support population 

A) Teaching establishments

For school activities, the following was foreseen:

  • Presential classes start May 18, 2020 for students of the 11th and 12th years of schooling and of the 2nd and 3rd years of the double certification courses of secondary education, as well as for students of the specialized artistic courses not offering double certification, in the subjects that have a national compulsory final exam, remaining the other subjects in a non presential regime;
  • In addition, teaching and training activities may be presential in the subjects of a practical nature and in work context training when, they require the use of specific spaces, instruments and equipment, that cannot take place through distance learning or simulated practice and in compliance with the guidelines of the Health Authorities, namely in terms of hygiene and physical distance;
  • Under the regime of presential school activities, school hours were reorganised, observing the following:

i) the time lag between school hours and working hours, preferably using the period between 10 a.m. and 5 p.m;

ii) The organization of classes in different periods or days, minimizing the contact between different groups or their intersection and concentration, as well as the number of trips to school per student;

iii) The splitting of classes whenever the number of pupils makes it unfeasible to comply with the rules of physical distance, using teachers with available time in their teaching component;

iv) The reduction of up to 50 % of the teaching load of the subjects taught in person, whenever the measures adopted do not ensure compliance with the physical distance of the students, organising moments of autonomous work in the remaining times;

  • The school spaces were also reorganised, namely through:

i) Whenever possible, teaching in large spaces, such as auditoriums or other spaces;

ii) Whenever possible, the assignment of a single room or space per class;

iii) setting standards for meals;

  • Basic education will remain until the end of the school year in the non presential regime, using digital methodologies that will be reinforced with the support of pedagogical television content;
  • The 10th year of schooling remains until the end of the school year in the non presential regime;
  • The following exams are cancelled:
  • measurement tests, from the 2nd, 5th and 8th grades;
  • Final exams of basic education at the end of the 9th grade;
  • School-level tests, carried out as final exams of primary education;
  • National final exams, when performed by internal pupils, for the purpose of passing subjects and completing secondary education.
  • Students will only take national final exams in the subjects they elect as entrance exams for the purposes of a national competition for access to University;
  • For the completion of the primary and secondary education cycles, the classifications of each subject are based on the whole school year, including the work carried out throughout the 3rd period;
  • Student’s absence to presential activities is considered justified if it is determined by the respective guardian;
  • Schools must reorganize the spaces, classes and schedules of teachers and students, in order to ensure hygiene standards and adequate social distancing.

School application

  • School application is preferably submitted by Internet;
  • In pre-school education and in the 1st cycle of primary education, application period for 2020/2021 school year is fixed between 4 May and 30 June 2020;
  • Applications received by June 30, 2020 are considered immediately after that date for serialization purposes, and the others are subject to serialization at a later time;
  • In primary and secondary education application periods are fixed by the school principal and may not exceed:
  1. The 5th working day following the definition of the school situation of pupils wishing to change their educational pathway;
  2. 30 July 2020 for students wishing to continue their educational journey;
  3. December 31, 2020 for students wishing to enrol recurrent education.
  • Once the period fixed until 30 July 2020 has expired, applications may be accepted in duly justified exceptional situations in:
  1. The following eight working days;
  2. After the period set out in the preceding paragraph, until December 31, 2020, upon existence of a vacancy in the classes.

Application to national final exams

  • Pending the suspension of classroom school activities, the application process to national final exams are subject to the following rules:
  1. Students or their guardians shall send to the school by e-mail a registration form (EMEC model);
  2. Schools have to confirm the registration and the reception of the identified documents, verify the conformity of the enrolment in relation to the student’s school situation and communicate it by e-mail;
  3. In situations where the use of electronic resources is not possible, registration may be made by means of a form.
  • School principals can choose other ways of applications that they deem more appropriate and effective;
  • Teaching establishment network promoted the reception of children or other dependents in the care of health professionals, social action services, security and relief forces and services, including volunteer firefighters, and armed forces, employees in essential public services, whose mobilisation for service or readiness hinders them from assisting them;
  • Provision of food support to pupils benefiting from levels A and B of the school social action and, whenever necessary, support measures for students from specialised units that have been integrated into learning support centres and whose stay in school is considered indispensable.

B) Cultural, artistic and game activities

  • Rescheduling of shows canceled due to the pandemic, within a maximum period of one year after the date originally planned. Rescheduling of the show may, if necessary, involve the replacement of tickets already sold;
  • If scheduling is not possible, the show will be canceled and will give rise to a refund of the price of tickets already sold, within 60 working days after the cancellation announcement;
  • Partial or total limitations of access to online gambling platforms, until the end of the period related to the state of emergency.

C) Medical measures

  • The use of masks or visors is mandatory for access or permanence in commercial and service spaces and establishments, in services and buildings serving the public and in educational establishments and day care centers by teaching and non-teaching staff and students over 10 years old, as well as in public transport for passengers.
  • For the purpose of preventing the contagion of the new Coronavirus, medical devices for human use and personal protective equipment must comply with legally health and safety requirements;
  • Flexibility of measures related to the electronic prescription of medicines;
  • Possibility of developing projects aimed to protect health users and social responses professionals, with one or more of the following objectives:
    a) Acquisition of goods or services for the performance of diagnostic and screening tests for SARS-CoV-2 infections, including immunity tests, as well as any consumables used for this purpose;
    b) Storage, packaging and delivery of sampling in public or private entities with laboratory capacity for this purpose;
    c) Acquisition and distribution of personal protective equipment;
    d) Acquisition of services and leasing of goods for accommodation of users and professionals of social responses;
    e) Acquisition of logistics goods and services, including transport, with the aim of mitigating the effects of the COVID-19 pandemic on social responses, including for monitoring, evaluation and monitoring of users and professionals, transport of users and professionals, collection of crops and special waste;
    f) Support for the hiring and temporary training of human resources, including urgent and deferrable care providers for users of social responses, as well as psychological and mental health support for professionals and users;
  • Creation of a Covid-19 Productive Innovation measure to support all companies wishing to establish, strengthen or reverse their production capacities for goods and services, focusing on products aimed at combating the pandemic. It also covers the construction and modernisation of testing and testing facilities for relevant products in the context of combating the pandemic. Companies from all over the country may apply and all economic activities aimed at the production of relevant goods and services to deal with Covid-19 are eligible. Support rate is 80% in the lost fund, which is added na incentive of  15% to projects whose implementation takes place within two months, bringing the level of support to 95%. The purpose of this increase is to encourage beneficiary entities to make their products available with maximum speed. Applications will be submitted from 20 April until 29 May, through a simplified electronic form, which will be made available at Balcão 2020;
  • Creation of an Incentive System for Research and Development Activities (R&D) and Investment in Testing and Optimization Infrastructure (upscaling) that aims to support R&D activities in the context of combating the pandemic. Companies based in national territory and non-business entities of the R&D system may apply. The support rate is 80% in the lost fund, which adds an incentive of 15% if the project is transnational. In the case of so-called fundamental research activities, the support is 100% of the value of the costs eligible for the lost fund. Applications will be submitted from 20 April until 29 May, through a simplified electronic form, which will be made available at Balcão 2020;
  • Percentage of profit in the wholesale and retail marketing of medical devices and personal protective equipment, as well as ethyl alcohol and alcoholic-based skin disinfectant gel, shall be limited to a maximum of 15 %;
  • Possibility for the Government to determine the necessary exception measures regarding market containment and limitation, setting maximum prices for liquefied petroleum gas, limiting profit margins for medical devices, personal protective equipment and ethyl alcohol and skin disinfectant solutions, monitoring stocks and quantities produced and exemption from payment of fees for economic operators acting in emergency situations.

D) Foreigners

  • Regularization of foreigners with pending applications in the Foreigners and Borders Service (SEF);
  • Extension of the re-establishment of border control of people until 00:00 on 15th June 2020;
  • Extension of the ban on flights from 00:00 on 18 May 2020 and in force until 00:00 on 15 June;
  • Interdiction of air traffic to and from Portugal from all flights to and from countries outside the European Union, except for:
  1. countries associated with the Schengen area (Liechtenstein, Norway, Iceland and Switzerland);
  2. countries of portuguese official language; brazil, however, will only be admitted flights from and to São Paulo and to and from Rio de Janeiro;
  3. United Kingdom, United States of America, Venezuela, Canada and South Africa, given the presence of important Portuguese communities.
  • Repatriation flights of nationals and with a residence permit are still allowed;
  • In the context of the pandemic, the it was adopted the Recommendation (EU) 2020/648 of 13 May, providing the possibility for vouchers to be issued to passengers or travellers by carriers or organisations as an alternative to cash reimbursement, and subject to the voluntary acceptance of the passenger or traveller, in the following circumstances:

a) In the event of cancellation by the carrier or organiser from 1 March 2020 for reasons linked to the COVID-19 pandemic;

b) in the event of amendments to the contract or termination taking place from 1 March 2020 for reasons linked to the COVID-19 pandemic.

  • Vouchers must have a minimum validity period of 12 months;
  • When vouchers are valid for more than 12 months, passengers and travellers shall have the right to request a cash refund no later than 12 months after the voucher has been issued. This same right should assist them at any subsequent time, subject to the applicable legal provisions on time limitation;
  • Carriers and organisations may consider reimbursement of vouchers at an earlier time than 12 months after the voucher in question has been issued if the passenger or traveller so requests;
  • Passengers and travellers should be able to use the vouchers as a means of payment for any new booking made before their expiry date, even if the payment or the service takes place after that date;
  • Vouchers for transport services should be transferable to another passenger at no additional cost;
  • Package travel vouchers should also be transferable to another traveller at no additional cost if the providers of the services included in the travel agree to the transfer at no additional cost;
  • In order to make vouchers more attractive, organisations and carriers may consider issuing vouchers of a higher value than the amount of any payments made for the package holidays or transport service initially booked, for example through an additional lump sum or additional service elements;
  • Vouchers should indicate their period of validity and specify all rights attached to them. They must be issued on a durable medium, such as electronic mail or paper.

E) Essential services

  • Adoption of measures to simplify and suspend obligations of communication or electronic companies, regarding, for example, compliance with deadlines and assurance of quality parameters, in order to ensure an uninterrupted service  to the population;
  • During the state of emergency and in the following month, the provision of the following essential services cannot be suspended:
    1. water supply service;
    2. Electricity supply service;
    3. natural gas supply service;
    4. electronic communications services.
  • The suspension of electronic communications applies when motivated by unemployment, drop of 20% or more of income, or covid-19 infection;
  • During this period, consumers who are unemployed or with a drop of 20% of income or more compared to the previous month’s income may unilaterally terminate their telecommunications contracts, without compensation to the supplier;
  • In case of debts regarding the services referred, a payment plan shall be drawn up. The payment plan is defined by agreement between the vendor and the consumer and shall take place in the second month after the state of emergency.

F) Penalties

  • Pardon of the prison sentences for prisoners convicted by final decision of two years or less;
  • Pardon the remaining periods of imprisonment for prisoners convicted by final decision of more than two years if the time remaining for full compliance is equal to or less than two years, and the prisoner has served at least half of the sentence;
  • In the event of conviction in successive sentences without legal cumulation, the pardon shall be addressed only to the remainder of the sum of those sentences, if the time remaining for full compliance is equal to or less than two years;
  • The partial pardon of prison sentences up to two years, or the last two years of prison sentences, does not apply to those who have committed crimes such as murder, violations, domestic violence or abuse of minors, nor to crimes committed by political office holders, members of security forces or Armed Forces, by magistrates or other persons with special responsibility functions;
  • The general director of reintegration and prison services or by delegation of these, may grant leave of absence to the convicted for a period of 45 days, with possibility of renewal. If the administrative leave under these terms has been successfully granted, the placement on probation may be brought forward by the court of execution of the sentences for a maximum period of six months.
G) Measures to support social institutions
  • Increase by 3.5% in the payment of social security financial contribution under cooperation agreements concluded in all social responses whose activity has been suspended;
  • Whenever the Residential Structure for Elderly Persons is in a situation of second degree dependence, the value of the expected financial contribution is increased by:
  1. An additional monthly contribution of 113.22 (euro) per elderly person in situations of second-degree dependency; And
  2. A monthly supplementary contribution of 53.39 (euro) per user/month when the frequency of the elderly person in a situation of second degree dependency is 75 % or more;
  • In situations of day care centers incorporating children with disabilities, per room, in addition to the financial contribution that corresponds to twice the amount fixed in the cooperation agreement, up to the limit of the number of users covered, there is a supplementary contribution of 101.91 (euro) per child/month for the year 2020;
  • Support for humanitarian fire-fighting associations through the possibility of bringing forward twelfths of the permanent funding due to them and the provision of a specific line of funding for the payment of salaries;
  • Reduction of VAT on protective masks and disinfectant gel to 6%, a proposal that had been made by Rui Rio and accepted by the Government;
    Extension to national and EU operators of the exemption from VAT on the supply to hospitals and charitable organisations of various health equipment, including personal protective equipment, in line with the decision already taken by the European Commission and followed by Portugal on the situations of importation of these goods.

H) Measures to support agriculture sector

  • For the purposes of financing, management and monitoring of the Common Agricultural Policy (CAP), COVID-19 pandemic situation can be recognised as a “force majeure case”, resulting in the impossibility of complying with obligations laid down in the support schemes. In these situations, the administrative penalties established, in particular at the level of reductions or exclusions of support, will not apply because the non-compliance is not intentional or negligent;
  • Situations of non-compliance, in fallow subplots, of obligations relating to the abstention of grazing in the period from 1 February to 31 July 2020 are considered “force majeure”, and the affected beneficiaries are not penalised in the amount of the Greening payment and the communication of the “force majeure” occurrence is waived;
  • Non-compliance on holdings with parcels producing cereals, as well as those relating to obligations to the practice of crop diversification are also considered as “force majeure”, however, in such cases, the affected beneficiaries shall assess on a case-by-case basis the verification of a causal link and report the occurrence of the “force majeure case”;
  • It was also foreseen that, in view of the restrictions on movement imposed by virtue of the State of Emergency, control and certification bodies will be exempted from carrying out presential control actions and the communication by these bodies of the ‘force majeure’ event is exempted.

I) Tourism 

  • Travel packages organised by travel and tourism agencies, scheduled between 13 March 2020 and 30 September 2020, which are cancelled due to the outbreak of the COVID-19 disease pandemic, confer, exceptionally and temporarily, the right to travellers to opt:

a) By issue a voucher of equal value to the payment made by the traveler and valid until December 31, 2021. The voucher is issued to the bearer and is transmissible by mere tradition. If it is used for the same trip, even if on a different date, the insurance that was contracted at the time of acquisition of the travel service remains in force and if it is not used until December 31, 2021, the traveler is entitled to reimbursement within 14 days. Or
b) By rescheduling the trip until December 31, 2021. If the rescheduling is not made until December 31, 2021, the traveler is entitled to reimbursement, to be made within 14 days.

  • These measures are also applicable to the case of finalist or similar trips;
  • The non-compliance attributable to travel and tourism agencies allows travelers to activate the travel and tourism guarantee fund;
  • Until 30 September 2020, travellers who are unemployed may request a reimbursement of the entire amount spent, to be made within 14 days;
  • Reservation of accommodation services in tourist resorts and local accommodation establishments located in Portugal, with or without complementary services, carried out directly by the guest in the resort or establishment or through online platforms, for the period from 13 March 2020 to 30 September 2020, that are not carried out or that are cancelled due to a fact related to the declaration of a state of emergency decreed in the country of origin or in Portugal or, also, to the closure of borders attributable to the outbreak of the COVID-19 disease pandemic, in the modality of non-reimbursement of the amounts paid, confer, exceptionally and temporarily, to the guests the right to opt:

a) By issue a voucher of equal value to the payment made by the guest and valid until December 31, 2021;

b) By rescheduling the reservation of the accommodation service until December 31, 2021, by agreement between the guest and the tourist resort or local accommodation establishment.

The voucher referred in paragraph a) of the previous number:

a) It is issued in the guest’s name and is transmissible by mere tradition;

b) It can be used by whoever presents it also as a principle of payment for services of higher value, according to the availability of the resort or establishment and the conditions applicable on the new dates intended. If the rescheduling is not made until December 31, 2021, due to lack of agreement between the tourist resort or local accommodation establishment and the guest, he has the right to be refunded on the amount paid at the time of cancellation of the reservation, to be made within 14 days.

c) In case it is not used until 31 December 2021, the guest has the right to the reimbursement, to be made within 14 days.

  • Rescheduling can only be done directly with the tourist resort and local accommodation establishment. The provisions do not apply to refundable reservations, in which case the rules on cancellation of tourist resorts and local accommodation establishments shall apply;
  • Until 30 September 2020, guests who are unemployed may request reimbursement of the entire amount spent, to be made within 14 days;
  • Reservation of accommodation services in tourist resorts and local accommodation establishments located in Portugal, for the period from 13 March 2020 to 30 September 2020, carried out by Portuguese or international travel and tourism agencies or entertainment operators operating in Portugal, that are not carried out or that are cancelled due to a fact related to the declaration of a state of emergency decreed in the country of origin or in Portugal or to the closure of borders attributable to the outbreak of the COVID-19 disease pandemic, in the form of non-reimbursement of the amounts paid, grant, exceptionally and temporarily, to these operators the right to credit of the unused amount;
  • Credit must be used for the settlement of costs with any other booking of services with the same tourist resort or local accommodation establishment, on a date defined by the travel and tourism agency or the tourist entertainment operator, subject to availability of accommodation services, until December 31, 2021;
  • If the tourist resort or local accommodation establishment is not available for multiple dates requested by the travel and tourism agency or the tour operator until December 31, 2021, the travel and tourism agency or the tour operator may request the return of the credit to be made within 14 days;
  • If the travel and tourism agency or the tour operator is not able to make a new reservation for an accommodation service at a tourist resort or local accommodation establishment located in Portugal by 31 December 2021, the deposit amount must be returned within 14 days after this date.

J) Sport

  • Extension of the public utility status of sports federations until December 31, 2021, ensuring ownership of the status until the year of the Olympic and Paralympic Games, the year in which its renewal may be requested;
  • Extension of the mandates of the sport’s federation bodies, professional leagues or territorial associations of clubs until the year 2021 to ensure the organisational stability of the sports federations and continuity in the conduct, where appropriate, of their Olympic projects;
  • Amendments to the regulations of sports federations, allowing them to take effect in current sporting seasons, so as to enable the federations to adopt measures in response to the public health emergency caused by Covid-19 disease;
  • Comparison of distance training with face-to-face training (sports coaches, technical directors and exercise coaches), ensuring a match between the hours of training required to obtain continuous training credit units, in order to cope with the difficulties of conducting face-to-face training actions;
    Suspension of the renewal of registration of high performance sports agents (sportspersons, coaches and referees), ensuring the continuity of the support to these agents as long as there are no international competitions that allow them to obtain the sports results that justify such renewal;
    Suspension of the renewal of medical-sports examinations (sportspersons, coaches and referees), in view of the restrictions arising from the Covid-19 disease pandemic.

K) Measures to prevent risks of corruption and related offences

  • The Council for the Prevention of Corruption has recommended to all public bodies and entities, regardless of their nature, to intervene in the management or control of monies and other public values, as follows:

1 – Ensure the necessary control to guarantee the absence of conflicts of interest, the transparency of public procurement procedures and the integrity in the execution of public contracts, especially in the areas of health and infrastructure.

2 – To strengthen the means and instruments necessary to ensure transparency, impartiality and integrity in the allocation of public aid and social benefits, with possible use of digital information platforms or transparency portals.

3 – To ensure the creation of monitoring and evaluation tools concomitant with the implementation of public aid, in accordance with the principle of efficiency and effectiveness in the application of public money.

4 – To exercise an effective control over the operations of public intervention in the Business Sector and other beneficiary Private Entities, considering, in particular, the warning signs of risk of irregularities, in order to safeguard the legality, the correct application of the resources and their allocation to the foreseen purposes.

L) Courts

  • The declaration issued by a health authority in favor of a procedural subject, party, its representatives or agents, that attests the necessity of a period of isolation from them due to possible risk of contagion of COVID-19 is considered, for all intents and purposes, grounds for the allegation of fair impediment to the practice of procedural acts that must be practiced in person in the scope of proceedings, procedures, acts and diligences that run their terms in judicial, administrative and fiscal courts, arbitration courts, courts of peace, alternative dispute resolution entities, notary public offices, registry offices, services and administrative entities;
  • The referred declaration also constitutes grounds for not appearing in any procedural or procedural steps, as well as its postponement, within the scope of the proceedings and procedures referred to in the preceding paragraph;
  • In case of closure of facilities where procedural acts must be performed within the scope of proceedings and procedures, or of suspension of attendance at those facilities by decision of a public authority based on the risk of contagion of COVID-19, the time limit for performing the procedural or procedural act in question shall be considered suspended from the day of the closure or suspension of attendance;
  • The suspension ceases with the declaration by the public authority of the reopening of the installations;
  • The signature of the other judges who, besides the rapporteur, have intervened in a collective court, may be replaced by a written declaration of the rapporteur attesting the vote of conformity of the judges who have not signed.

M) Measures to support families

Until 30 September 2020, consumers who are unemployed or whose household income is 20 % or more lower than that of the previous month may apply:

  1. a) unilateral termination of telecommunications contracts, without compensation to the supplier;
  2. b) The temporary suspension of telecommunication contracts, without penalties or additional clauses for the consumer, resuming on 1 October 2020.

The payment plan referred to in the preceding paragraph is defined by agreement between the supplier and the client, starting from the second month after the end of the term;

Until September 30, 2020, the amount of the Retirement Savings Plans (PPR) may be reimbursed up to the monthly limit of the index of social support, by the participants of these plans and provided that one of the members of their household is in a situation of prophylactic isolation or illness or is caring for children or grandchildren, or has been placed in a reduction of the normal working period or in suspension of the employment contract, due to a business crisis, in a situation of unemployment as well as being eligible for extraordinary support for the reduction of the economic activity of a self-employed worker, i.e. worker of entities whose establishment or activity has been closed during the state of emergency or during a calamity situation due to legal or administrative imposition;

The suspension of the supply of the following essential services is not allowed until September 30, 2020.

N) Other measures

  • Approval of  public procurement and authorization of expenditure exceptional regime;
  • Extension of the vehicle periodic inspection period by five months from the date of registration for vehicles required for inspection between 13 March and 31 May 2020.
  • Trips scheduled until September 31 and cancellations due to the pandemic will be replacable by vouchers of the same value until December 31, 2021.  Thus, a voucher is awarded until December 31, 2021 and, on that date, it can be reimbursable”;
  • Automatic extension of the period for receiving domestic violence victims until 15 July 2020;
  • It is determined that within 72 hours probationary proceedings shall be carried out to evaluate the victim’s background in relation to the assessment of the risk of further acts of violence against the victim and other persons related to the victim, by the prosecutor or the OPC, as well as in cases where the accused is detained;
  • Civil jurisdiction is given to the criminal courts to issue urgent provisional decisions for the protection of domestic violence victima, such as the provisional regulation of the exercise of parental responsibilities, the provisional use of the family home and the custody of pets. These measures shall be communicated to the Public Prosecutor of the competent court;
  • The scope of the Database on Violence against Women and Domestic Violence is broadened, in the context of the process of improving, harmonising and updating official data on violence against women and domestic violence under way, in particular by adapting and harmonising collection mechanisms and information systems.
  • The simplified direct setting regime for the execution of contracts whose object is the acquisition of equipment, goods and services necessary for the prevention, containment, mitigation and treatment of infection by SARS-CoV-2 and COVID-19 disease, or related to them, may be adopted exceptionally, to the extent strictly necessary and for reasons of compelling urgency, duly substantiated, and independently of the contractual price and up to the limit of the budgetary scope, namely:
  1. Personal protective equipment;
  2. Goods necessary for the testing of COVID-19;
  3. Equipment and material for intensive care units;
  4. Medicines, including medicinal gases;
  5. Other medical devices;
  6. Logistics and transport services, including air transportation, related to the acquisition, against payment or free of charge, of the goods mentioned in the previous paragraphs, as well as their distribution to entities under the supervision of the Government member responsible for the health area or to other public or public interest entities for which they are destined.
  • The circumstances invoked to justify extreme urgency may in no case be attributable to the contracting authority;
  • Contracts made under the simplified direct setting regime shall be communicated by the contracting authorities to the members of the Government responsible for finance and health and shall be advertised on the public procurement portal, including the grounds for adopting this procedure;
  • Up to 60 days after the period of validity of the decree-law, the entities shall prepare a joint report, which is published on SPMS’s website, E. P. E., on all contracts grounds and circumstantiality, namely by justifying the impossibility or serious inconvenience of having recourse to another type of procedure.

State of Calamity

State of Calamity in Portugal

It was published the Council of Ministers Resolution 88-A/2020 declaring the calamity situation due to the Covid-19 pandemic.

To this extent, the following measures have been implemented:

Mandatory Confinement

Patients with COVID-19 and those infected with SARS-CoV-2, as well as citizens for whom the health authority or other health professionals have determined active surveillance, are subject to mandatory confinement.

Work organisation and teleworking

The employer must provide adequate safety and health conditions to prevent the risk of infection, and may in particular adopt the teleworking regime.

Without prejudice, telework may be compulsory in the following cases:

  • When the employee, through medical certification, is covered by the exceptional protection regime for immunosuppressed and chronically ill people;
  • In the case of a disabled employee, with a degree of disability of 60 % or more.

Teleworking scheme is also compulsory, irrespective of the employment relationship and whenever the functions concerned allow it, when the physical spaces and the organisation of the work do not allow compliance with the guidelines of the DGS and the Authority for Working Conditions on the matter, to the strict extent necessary.

Closed premises and establishments

Facilities and establishments for recreational, leisure and entertainment activities, dance or party halls, amusement parks and similar parks for children and other similar places or facilities, games and betting facilities and drinks establishments remain closed.

Sales and consumption of alcoholic beverages

The sale of alcoholic beverages in service areas or at petrol stations and, from 8 p.m. onwards, in retail outlets, including supermarkets and hypermarkets, is prohibited.

The consumption of alcoholic beverages is forbidden in open air spaces with public access and on public roads, except in the exterior spaces of restaurants and drinks establishments duly licensed for this purpose.

In the period after 8:00 pm, the exception provided for in the final part of the previous paragraph admits only the consumption of alcoholic beverages in the context of meal service.

Rules of occupation, permanence and physical distance

  • The maximum occupancy of spaces accessible to the public should be 0.05 people per square metre of area, with the exception of service establishments;
  • Minimum distance of two meters between people, unless special provision or orientation of the DGS in a different direction;
  • Permanence within the spaces only for the time strictly necessary;
  • Prohibition of waiting situations for service provision within service establishments, with economic operators having to resort, preferably, to prior appointment mechanisms.

Hygiene rules

  • Promotion of daily and periodic cleaning and disinfection of spaces, equipment, objects and surfaces with which there is intense contact;
  • Promotion of cleaning and disinfection, before and after each use or interaction by the client, of the automatic payment terminals (TPA), equipment, objects, surfaces, products and utensils of direct contact with the clients;
  • Control of access to tasters, safeguarding, when applicable, the partial inactivation of some of these spaces, in order to guarantee the minimum safety distances.

Disinfectant solutions

Retail or service establishments should seek to ensure that skin disinfectant solutions are available to workers and customers at all entrances and exits of establishments, as well as within them, in suitable locations for disinfection according to the organisation of each space.

Priority 

Retail or service establishments should give priority to health professionals, security, protection and rescue personnel, armed forces and social support personnel.

Duty to provide information

Retail or service establishments must clearly and visibly inform customers of the new rules on maximum occupancy, operation, access, priority, service, hygiene, safety and other relevant rules applicable to each establishment.

Events

Celebrations and other events involving a crowd of more than five people are not permitted, unless they belong to the same household, without prejudice to the following paragraph.

Special rules for:

  • Family events, including weddings and baptisms, whether for civil or religious ceremonies or for other commemorative events, a gathering of more than 50 people is not permitted, except for weddings and baptisms scheduled to take place by 11:59 pm on October 14, 2020, to be confirmed by a declaration of the celebrating entity;
  • Events of a corporate nature held in spaces suitable for this purpose, namely congress halls, tourist establishments, venues suitable for holding trade fairs and open-air spaces.

Funerals

The holding of funerals is subject to the adoption of organisational measures to ensure that there are no crowds of people and that safety distances are controlled, in particular the setting of a maximum attendance limit to be determined by the local authority exercising the management powers of its cemetery.

Rules applicable to air traffic and airports

Passengers on flights from countries to be defined by order of the members of the Government responsible must, at the time of departure, present proof of molecular testing for infection by SARS-CoV-2 with a negative result, carried out in the 72 hours preceding the time of boarding, failing which they will be denied boarding of the aircraft and entry into national territory.

National citizens and foreign nationals legally resident in national territory, as well as diplomatic staff posted in Portugal, who, exceptionally, do not have proof of molecular testing for infection by SARS-CoV-2 with a negative result on arrival, before entering national territory, are sent by the competent authorities to carry out that test at their own expense.

Passengers who are found to have a body temperature of 38 ºC or above must be routed immediately to a space suitable for a repeat measurement of the body temperature and, if the assessment of the situation so warrants, those passengers must be subjected to a molecular test for screening for infection by SARS-CoV-2.

Restoration and similar

The operation of catering and similar establishments is only permitted if the following conditions are met:

  • Compliance with the instructions specifically drawn up for this purpose by the DGS, as well as with the rules and instructions laid down in this scheme;
  • Occupancy within the establishment is limited to 50% of its capacity or, alternatively, impermeable physical barriers are used to separate customers facing each other and a distance between tables of one and a half metres;
  • From 00:00 h public access is excluded for new admissions;
  • They close at 01:00 h;
  • Groups of more than five people are not allowed to stay, unless they belong to the same household.

Bars and other drinking establishments

Bars, other no-show drinks establishments and drinks establishments with dancing space remain closed.

Fairs and markets

For each fairground or market there must be a contingency plan for VIDOCID-19 disease, drawn up by the competent local authority or approved by it, in the case of fairs and markets operated by private entities.

Gambling establishments, casinos, bingos or similar establishments

Gambling establishments, casinos, bingos or the like are allowed to operate as long as they are in good standing that they:

  • Comply with the guidelines and instructions laid down specifically for this purpose by the DGS concerning physical distance, hand and surface hygiene, respiratory label and the rules laid down in this scheme;
  • Have a specific protocol for cleaning and sanitising the gaming areas;
    Prioritise transactions by TPA;
  • Do not stay inside the establishments that do not want to consume or play.

Personal care and aesthetics

  • Hairdressing salons, barbershops, beauty institutes, by appointment;
  • Tattoo and bodypiercing establishments or studios, by appointment;
  • Massages in beauty salons, gyms or similar establishments.

Activities in academic context

It is forbidden, in the academic field of higher education, to celebrate, as well as to engage in playful or recreational activities.

ESSP

ESSP– Economic and Social Stabilisation Programme
1. Companies and Employees
ACTIVAR.PT – Employment support measures, especially for new unemployed
Target groups: unemployed, with a special focus on new unemployed and young people
Objective: to cover 50,000 new unemployed and keep the coverage rate of active policy measures close to 20% between 2020 and 2021
Amount: budget increase of EUR 106 million IEFP, I. P.
Financing: ESF
Responsible: MTSSS
The Program includes active policy programs for specific sectors and audiences:
  • Impulse of young PME to promote the qualification and renewal of SME staff, particularly in strategic sectors of the Portuguese economy, stimulating the hiring of qualified young people (level 5 of the National Qualifications Framework (NQF) or higher).
  • Recipients: mature companies (>5 years), viable and inserted in strategic sectors.
  • Publics eligible for supported hiring: unemployed young people up to the age of 35 with a qualification equal to or higher than level 5 of the National Qualifications Framework (QNQ).
  • Configuration: direct hiring support, paid in a phased manner over 12 months and with a variable amount according to the level of qualification of the young person to be hired, and with a surcharge for the hiring of young people of the under-represented sex in highly asymmetrical sectors from the gender point of view.
  • Undertakes2020, a national competition of projects to create one’s own job and business projects for young people and the unemployed in the logic of (re)entering the labour market young people and the unemployed, with monitoring during the first year (space; counselling; technical support), enhancing the experience and capacity installed in IEFP, I. P., STARTUP Portugal, National Network of Incubators, among other operators. The introduction of a quota for entrepreneurial projects presented by women and an increase in the amount of financial support when these projects fall into highly asymmetrical sectors from the gender point of view are foreseen.
  • Target groups: young people looking for their first job; young NEETs; other unemployed
  • Responsible: MTSSS /METD
  • + CO3SO Employment, to support entrepreneurship initiatives, including social entrepreneurship, by financing the creation of jobs, including the inherent costs, especially in the inland territories.

Support for investments by emigrants and Lusodescendants

  • A flat rate of 40 % on the direct costs of the jobs created, to finance other costs associated with their creation.
  • The support is for the hiring of workers with a permanent contract and the support is for 36 months.

Beneficiaries: SMEs and social economy entities

Amount: 70 M

Financing: ESF

Responsible: MCT/MTSSS

Social Employment Market Network in the national territory, mobilizing local actors to respond to needs and public not covered by the market, within the scope of the following measures:

  • MAREESS – Measure to support the emergency reinforcement of social and health equipment: extension of the measure until the end of 2020 and introduction of a “employment premium” for entities that hire participants integrated in the projects for an indefinite period.
  • Local Partnerships for Employment and Training: involvement of municipalities, social economy and other local actors to promote signage and referral of very disadvantaged audiences to employment and/or training responses.
  • CEI/CEI+: reinforcement of the training and insertion component and promotion of a better balance between improving the employability of beneficiaries and the needs of user entities.
  • Extraordinary support for the integration of people with disabilities, in order to create the conditions to improve the conditions of integration of people with disabilities in an emergency framework, with an exceptional extension of the Internships and CEI/CEI+ projects already being implemented until the end of 2020, but also with the reinforcement of support for the employment of people with disabilities.

Recipients: people with disabilities

Responsible: MTSSS

  • Social employment hubs, a network of job search incubators, based on a collaborative methodology in which, with the support of a mentor, a dynamic of skills acquisition and joint work routines in job search are generated

Recipients: unemployed (broadband measure)

Responsible: MTSSS

ACTIVAR.PT Professional Training

  • Review and strengthening of responses to training and retraining programmes for the unemployed.
  • Specific training programs for emerging areas – digital economy; energy and climate change; social sector.
  • Digital Guarantee: to ensure that by 2023 all unemployed people have a digital training offer.
    Bet on post-secondary professional training (level 5), with revision and re-launch of Technological Specialization Courses and expansion of Learning Courses to post-secondary level (launch of Dual + program).
  • Target groups: unemployed, with special focus on new unemployed and young people
  • Objective: to cover at least 40,000 new unemployed and keep the coverage rate of active policy measures close to 20% between 2020 and 2021
  • Amount: budget increase of EUR 35 million IEFP, I. P.
  • Financing: ESF
  • Responsible: MTSSS
The strengthening of training policies includes measures to increase the skills of specific audiences:
  • Young + Digital, Training Programme for young graduates or with 12th year for the acquisition of skills in digital areas such as e-commerce, programming bases, mobile applications, webdesign
  • Addressees: young unemployed or newly graduates looking for their first job, graduates or 12th year olds
  • Pro Digital Programme, to equip and train the professional training centres of the IEFP network (direct management centres and participatory management centres with social partners) to develop distance learning

Professional requalification in higher education

Short initial training in polytechnic higher education

Support the insertion of 10,000 young people and adults, including unemployed and lay-off people, in short initial training in higher education polytechnic (cTESPs) in conjunction with employers, to start with face-to-face actions in July 2020, in order to increase by 30% the graduates of these training courses.

Recipients: 10,000 new higher education students

Amount: EUR 5 M (2020) EUR 10 M (2021)

Funding: EU (2020) EU+OE (2021)

Responsible: MCTES/MTSSS/MPlan/MCT

Encouraging the insertion of active adults in higher education (over 23 years)

To support the insertion of 10 000 adults (over 23 years), including unemployed and lay-off people, in higher education degree programs, mainly in post-labour regime, to start with face-to-face actions in July 2020.

Addressees: 10,000 new higher education students

Amount: EUR 5 M (2020) EUR 10 M (2021)

Funding: EU (2020) EU+OE (2021)

Responsible: MCTES/MTSSS/MPlan/MCT

Post-graduate courses with employers, scientific institutions and innovation centres
To support the integration of 10,000 adults, including unemployed and lay-off people, into postgraduate higher education courses, mainly of short duration, to be started with face-to-face actions in July 2020, in a post-labour regime and in articulation with employers and R&D units, scientific institutions and innovation centres.
Recipients: 10,000 new higher education students
Amount: EUR 15 M (2020) EUR 25 M (2021)
Funding: EU (2020) EU+OE (2021)
Responsible: MCTES/MTSSS/MPlan/MCT
Highly Qualified Human Resources – RHAQ (graduates, masters, doctors)
Support for the recruitment of Highly Skilled Human Resources, adapted to the specificities of the hinterland territories with a total allocation of EUR 18.1 million (EUR 16.6 million in the hinterland) which will create 654 new highly qualified jobs (graduates, masters and PhDs), of which 614 in the hinterland territories.
Recipients: Companies and entities in the scientific and technological system
Amount: EUR 18.1 M
Financing: ESF
Responsible: MCT
Employment support in recovery
  • Companies which remain closed by determination of the Government remain eligible for the simplified lay-off scheme;
  • The simplified lay-off, in the model currently in force, is extended until the end of July;
  • Companies that have a drop in turnover of 40% or more can benefit, between August and December 2020, from a progressive recovery support mechanism;
  • Companies that have benefited from the simplified lay-off scheme can now benefit from an extraordinary incentive to normalise business activity, choosing one of two modalities: 1 SMN one-off or 2 SMN over 6 months, with conditionalities regarding the prohibition of dismissals and job losses.

Support for gradual recovery

The measure replacing the simplified lay-off has as its main assumptions:

  • The progressive convergence of the worker’s salary to 100 % of his salary;
  • The payment by the company of all hours worked;
  • The progressive reduction of the exemption from social security contributions and the compensation of the loss of social security revenue by the State Budget

 

JULY AUG/SEP OCT/DEC
Elegibility Closed and > 40%Drop off ≥ 40%Drop off ≥60%Drop off ≥ 40%Drop off ≥ 60%Drop off
Measure Suspension or activity reduction Reduction of working hours until 50% Reduction of working hours until 70% Reduction of working hours until 40% Reduction of working hours until 60%
Social Security Contributions Total exemption Big companies reduction 50% No reduction
Total exemption MPMES Reduction 50%
Salary Worked hours or non worked hours paid at 66% Worked hours paid 100%
Non worked hours paid 66% Non worked hours paid 80%
Social Security 70% of worked and non worked hours Worked hours: 0%
Non worked hours: 70%
Employee’s salary 66% At least 83% At least 77% At least 92% At least 88%
  • Prohibition of collective dismissal, due to the extinction of the job and due to unsuitability during the implementation of the measure and in the following 60 days;
  • Prohibition of distribution of dividends during the application of the measure.

Recipients: Companies that have benefited from the simplified lay-off scheme and have a turnover shortfall of 40 % or more

Amount: 713 M

Financing: OE + SURE
Responsible: MTSSS
Extraordinary financial incentive for the normalisation of business activity

Recipients: enterprises which have benefited from the simplified lay-off scheme or the extraordinary training plan (PEF) as long as they have not accessed the phase-in support mechanism.

  • One-off support

Scheme: One-off support of 1 x SMN per job that has been lay-off under the simplified scheme;

Conditionality: prohibition of collective dismissal, due to job extinction and maladjustment, as well as the duty to maintain the level of employment for the following 60 days

Amount: 169 M

Financing: OE + SURE

Support over 6 months

Regime:

2 x SMN per worker (paid in two or three tranches over six months);

50 % reduction in social security contributions for the first 3 months;

If in the three months following the end of the support there is net job creation compared to the same three months, the company is exempted from paying social security contributions for a period of two months in proportion to the employment gain as long as it maintains this employment gain for a period of six months.

Conditionality: prohibition of collective dismissal, due to job extinction and maladjustment, as well as the duty to maintain the employment level, during the implementation of the measure and in the following 60 days

Amount: 434_ M
Financing: OE + SURE
Responsible: MTSSS
Income protection

Stabilization Complement

Creation of the Stabilization Supplement, with the objective of giving extraordinary support to workers who had a reduction in income as a result of the pandemic, with the objective of mitigating the loss of family income.

This is a one-off measure, to be paid in July, in the amount of the loss of income of one lay-off month, in an amount that can vary between 100 and 351 euros, to all workers with income from February up to 2 SMN and who have recorded a loss of base salary (i.e. have a base salary of more than 1 SMN), who were lay-off in one of the months between April and June.

Recipients: workers with a base salary higher than 1 SMN and less than or equal to 2 SMN who were in lay-off.

Amount: 70 ME

Financing: State Budget (financed by SURE)

Responsible: MTSSS

Protection of self-employed and informal workers

Extraordinary measure to support self-employed and informal workers in a situation of social vulnerability, which foresees the support of 1 IAS (EUR 438.81), between July and December 2020, and its integration into the social security system, with a 36-month link to the public social protection regime.

Requirements:
Binding to the social protection system for 30 months, after the deadline for granting the support (December 2020).

After the support is granted, the corresponding contribution must be paid to the self-employed worker based on the amount of the support for 30 months.

During the period of granting of the support the worker contributes with 1/3 of the amount of the contribution corresponding to the self-employed worker and the rest is paid within 12 months after the granting of the support.

Amount 38 M
Financing: OE
Responsible: MTSSS

Teleworking

Increase the number of Public Administration employees teleworking
The Government intends, by the end of the legislature, to have at least 25% of the workers in telework from among the universe of those who perform functions compatible with this type of work.
Addressees: Workers of the Public Administration
Amount: EUR 4.4M
Source of funding: State Budget
Entities responsible: DGAEP
Working Inside
The Inland Work Programme provides a set of measures to stimulate job creation and the settlement of workers and their families in the territories of the interior of the country. These include initiatives to strengthen incentives to work inland:
  • Geographical mobility of workers (Inland Employment Plus measure – Supported Mobility for a Sustainable Interior;
  • Dynamics of the employment market in the territories of the interior, decisive for the leverage of the factors of attractiveness and retention of people and companies.

The measure “Inland Employment PLUS” is aimed at families who want to live and work in inland/low-density counties, and the support for mobility expenses from territories that are not inland to inland territories, and as such constitute an incentive for telework in these territories.

Recipients: Workers and their families who want to move from the coast to work in the interior
Amount: EUR 3M
Financing: ESF

Responsible: MTSSS/MCT

Support for telework contracting

Within the scope of the Programme + CO3SO Employment, a special hiring support system is created within the scope of the direct costs associated with the jobs created, namely the costs with salaries, plus the respective contribution expenses to be borne by the employer, within a maximum period of 36 months, allowing coastal companies to receive an additional 0.5 IAS (Social Support Index) per job for each month of support, regardless of the number of jobs created, whenever jobs are created in a territory of the Inland in a teleworking regime.
ESF value: 20 M

Support for the creation of coworking/teleworking spaces, in the interior, with the involvement of municipalities or technological infrastructure

Support will also be given to the implementation/improvement of working conditions through the creation (with continuous involvement of municipalities and technological infrastructures) of spaces specially designed for teleworking, namely in a coworking system, based on technology-based infrastructures (namely Technology Parks). The implementation of these spaces is expected to have a high potential to capture the new digital nomads and millennials, among others, promoting the practice of telework, especially in inland cities.

Coworking/teleworking spaces aim to reduce the disadvantages of teleworking, namely isolation, a frequent factor of discouragement. On the other hand, they stimulate the sharing of experiences, ideas, as well as being a stimulant factor for the local economy.

ERDF value: EUR 20 million

Beneficiaries: municipalities and technological infrastructure of inland territories

Promotion of the Blue Economy

  • VOUCHER EMPLOYMENT BLUE – 50% net support to the annual recruitment of graduates or masters or PhDs in marine or related areas for the various areas of the blue economy including for the management support of these SMEs;
  • BLUE VOUCHER INNOVATION – to support entrepreneurs with innovative projects on a sustainable basis, focusing on the circular economy, biotechnology, preservation of biodiversity and nature conservation, waste reduction and industrial requalification and reconversion;
  • Campaign to promote the national fish and increase the number of short marketing circuits, with a view to fairer trade, with the consequent increase in income for producers and fishing professionals.

Recipients: Young graduates, masters or PhDs; Technological and scientific based entrepreneurs; Fishermen

Amount: 2M Blue Job Voucher; 1.7M Blue Innovation Voucher; 250 thousand Euros
Financing: Blue Fund; PO-MAR2020
Responsible: MM

2. Tax Measures

Payments on Account

Following the recommendation of the Organisation for Economic Cooperation and Development (OECD) on this issue, an adjustment is made to the rules and forms of payment for the PPP due in 2020:

  • Break in invoicing > 20% in the 1st half of 2020 – limitation of payment up to 50%;
  • Break in invoicing > 40% in the 1st half of 2020 and housing and catering sectors – limitation of payment up to 100%;

Recipients: Companies

Amount: This measure has no budgetary impact, only on the distribution of corporate income tax (IRC) revenue between 2020 and 2021, and is an important support to business liquidity in 2020.

Responsible parties: MEF

Autonomous Taxations

The increase in autonomous taxes due by companies with profits in previous years and which show a tax loss in 2020 should be disregarded.

Recipients: Companies

Responsible: MEF

Reporting period for tax losses

The context of economic paralysis, followed by a gradual and uncertain recovery, will lead to the tax result of companies being particularly marked by the creation of new tax losses and the difficulty of using past tax losses already recognised.

In this sense, a particular consideration of tax losses in the current conjuncture is justified, giving them a specific and transitory framework with the following rules:

Disregard the years 2020 and 2021 for the purposes of counting the period of use of tax losses in force on 1 January 2020;

For tax losses for 2020 and 2021, to change for companies that have a carry-over period from 5 to 10 years, and to extend for all companies the deduction limit from 70 % to 80 % when these 10 percentage points concern tax losses from 2020 and 2021;

Addressees: Companies

Responsible: MEF

Fostering concentrations and acquisitions of PME

In concentrations of PME in 2020, disregard the limit of use of tax losses by the acquiring company (by reference to the assets of the companies involved in the operation), with the rule of non-distribution of profits, for 3 years, exempting, during the same period, the application of state surcharge (where applicable);

Consider the transferability of tax losses on acquisitions of shares of PME which, in 2020, became considered “companies in difficulty”, for use of these tax losses by the acquiring company, with the rule of non-distribution of profits and the commitment to maintain jobs for 3 years.

Recipients: Companies

Responsible: MEF

Additional solidarity contribution on the banking sector

The creation of an additional 0.02 pp of solidarity on the banking sector, whose revenue is earmarked to contribute to the costs of the public response to the current crisis, through its consignment to the Social Security Financial Stabilisation Fund.

Recipients: (i) credit institutions with their main and effective head office in Portugal, (ii) branches in Portugal of credit institutions that do not have their main and effective head office in Portugal and (iii) branches in Portugal of credit institutions with their main and effective head office outside Portugal.

Amount: revenue 33M

Responsible: MEF

Extra investment tax credit

It is proposed to reinstate the Extraordinary Investment Tax Credit, creating for the investment expenses made in the second half of 2020 and in the first half of 2021, a deduction from the IRC collection, corresponding to 20% of investment expenses up to a limit of 5 million euros, to be used for a maximum period of 5 years, with the obligation to maintain jobs during the period of use of the tax credit, with a minimum of three years.

Recipients: Enterprises

Responsible: MEF

3. Loans and Fundings

Measures to support the tourism sector

Tourism: Congress VAT

Return to the organisers of congresses, fairs, exhibitions, seminars, conferences and the like of the amount equivalent to the VAT deducted from the Tax and Customs Authority with the expenses incurred for the direct needs of the participants in accordance with Article 21(2)(d) of the CIVA.

Addressees: Events Organization Companies

Amount: Up to 6 M

Financing: Turismo de Portugal, I. P.

Responsible: MEETD/ MEF

Plan for the Resumption of the Portuguese Tourism Air Operation

Reinforcement of the Plan for the Resumption of the Air Operation of Tourism of Portugal, promoting the launch or development of air routes of tourist interest to Portugal, and aiming at the valorisation and dissemination of the national tourist offer aimed at the distribution channels in the various issuing markets, through the implementation of marketing campaigns for regional destinations

Target groups: Companies in the tourism production and distribution chain in the market(s) in which it operates

Amount: EUR 20 M reinforcement

Funding: Tourism of Portugal, I.P., European funds

Responsible: MEETD/ MP

Support to Events Organization

Creation of a financial facility to respond to the immediate and pressing financing needs of micro-enterprises and PME for the organisation of events, whose activity is limited due to the restrictions imposed in the framework of OVID-19 and support for the promotion of events.

Recipients: Events Organizing Companies

Amount: 20 M

Funding: Tourism of Portugal, I.P., European funds

Responsible: MEETD/ MP

Support for Microenterprises in Tourism

Extension of the financial support of the line for tourism microenterprises and partial conversion into a non-repayable fund.

Recipients: Tourism Microenterprises

Amount: EUR 40 M reinforcement

Funding: Tourism of Portugal, I.P., European funds

Responsible: MEETD/ MP

Credit Lines and Moratoriums

Reinforcement of the volume of credit lines with State guarantee until the end of the year by 6,800M euros, taking into account the maximum amount authorized by the European Union, which will allow doubling the amount already made available. The Government will thus be able to reinforce the public policy of promoting the financing conditions of companies, through credit lines with a public guarantee:

  • Launch of credit lines with a public guarantee of up to EUR 1,000 million, for financing up to EUR 50,000 from micro and small companies in all sectors of activity;
  • Continuation of the provision of publicly guaranteed lines of credit, according to the specific needs of the various sectors of activity and the economy as a whole;
  • Support for international order financing under the COVID-19 economic support lines, allowing companies to ensure liquidity conditions to meet the demand of foreign clients.

Recipients: PME and MidCaps

Amount: EUR 6,800 M guarantee for FCGM

Responsible: MEETD/MENE/MEF

Credit Insurance

Recipients: all companies

Amount: 2000M euros of guarantees for public coverage

Responsible: MEETD/MENE/MEF

PME financing

Creation of a special vehicle for the acquisition of debt issued by PME and the placement of this debt on the capital market, through the issue of bonds, with the possibility of associating Mutual Guarantee. It follows up the ongoing project to issue Tourism Bonds, which brings together a number of PME in Tourism, but does so through a new mechanism in Portugal that makes it possible to speed up the financing of PME through the capital market, mainly by resorting to institutional investors.

Responsible parties: MEETD

Sale and Lease Back

It is proposed to launch calls totalling EUR 60M, within the scope of real estate investment funds under the management of Turismo Fundos-SGOIC S. A., for Sale and Lease Back operations, with an obligation to invest in modernisation and energy efficiency or circular economy, of which EUR 40M is for tourism (of which 50 % is for low density territories) and EUR 20M for industry.

Amount: EUR 60M

Responsible: MEETD

Bank Moratoriums

The main guidelines are:

  • Extension of the current banking moratorium until March 31, 2021;
  • Enlargement of beneficiaries, including emigrants
  • New eligibility factors related to loss of income that allow covering a larger number of people with temporary liquidity constraints;
  • Extension of the moratorium to all mortgage contracts, to consumer credit for education.

In addition to the above-mentioned changes, the review will include a mechanism for including natural persons who have benefited from private moratoria and who, as a result of the changes, become eligible for adherence to the public moratorium.

Addressees: natural persons, non-financial companies, sole proprietors, private charitable institutions, non-profit associations and other social economy entities

Responsible: MEF

Corporate capitalisation fund

Creation of a capital and quasi-public fund (Fundo), to be managed by Banco de Fomento, for participation in capitalization operations of viable companies with high growth potential, in strategic sectors and with a focus on foreign markets, with temporary public intervention and preferential coinvestment mechanisms.

Recipients: Companies

Funding: eminently through European funds and funding under the crisis response instruments through the Recovery Fund (Solvency Support Facility) and the EIB (Pan-European Guarantee Fund).

Responsible parties: MEETD

PME Acceleration

Crescer+ Program

Program focused on mature (>5 years) and viable companies, in strategic or systemic sectors, lasting 1 year, providing the company with the necessary skills to develop and enhance its brand, adapt to regulatory requirements, direct growth to foreign markets, leverage its added value, find partners and financing, etc.

It focuses on consultancy, training, networking (supplier networks, integration in value chains, external partners, etc.)

Recipients: PME

Amount:20 M

Financing: ERDF

Responsible: METD

Adapt 2.0: Adaptation and modernisation of commercial establishments

Launch of the program “ADAPTAR 2.0” in order to help and stimulate micro and PME in the secondary and tertiary sectors to update and remodel their establishments and production units, modernizing and adapting them in the current context.

Recipients: micro enterprises of the secondary and tertiary sectors

Amount: EUR 50/50M (2020-21)

Financing: Community funds

Responsible: MEETD, MPlan, MCT

Digital Commerce

Creation of incentives for the digital transition of the business model of PME (particularly micro and small enterprises), through the promotion of e-commerce, materialized in the support to the adhesion to already existing platforms, the reformulation of websites – as long as they have integration with the logistic chain or coupled reservation systems – and the design of projects by business or commercial associations, which are also associated with decarbonized logistic solutions.

It is intended to support PME, provided that integration in logistics and distribution solutions or reservation systems is ensured.

Recipients: Trade PME

Amount: EUR 40M

Number of Companies Covered: approximately 10 000 companies and 25 joint projects, with the possibility of enlargement

Financing: Community funds

Responsible: MEETD, MPlan, MAAC

Support for investment in the agricultural sector

  • Support to the setting-up of young farmers by positively discriminating, in the selection of applications, against young farmers who want to settle for the first time in the Interior of the country. In addition, a specific farm investment notice will be created for young farmers to set up in the interior of the country;
  • Support for investment in the specific farm for organic farming, which will take into account the location of the farm in the hinterland as a priority criterion;
  • Support for the creation of producer groups and organizations, namely multi-products, where the location of the Producer Grouping will be taken into account in the selection of projects in order to promote the organization of production and thus address one of the main structural weaknesses of the sector;
  • EIB credit line to complement new and ongoing investments under PDR2020 and for working capital.

Target groups: Young farmers; Organic farmers, producer groups and organisations

Amount: (EUR 2M + EUR 3M; EUR 0.5M); EIB credit line

Financing: PDR2020 and EIB

Responsible: MA

Corporate capitalisation fund

Creation of a capital and quasi-public fund (Fundo), to be managed by Banco de Fomento, for participation in capitalization operations of viable companies with high growth potential, in strategic sectors and with a focus on foreign markets, with temporary public intervention and preferential coinvestment mechanisms.

Recipients: Companies

Funding: eminently through European funds and funding under the crisis response instruments through the Recovery Fund (Solvency Support Facility) and the EIB (Pan-European Guarantee Fund).

Responsible parties: MEETD

4. Deadlines and Contracts 

Measures applicable to the real estate sector

Local Housing Conversion

This program can be achieved by supporting municipal lease programs for subletting at affordable prices, paying 50% of the difference between the rent paid and the rent received, to which is added the amount not collected through the IRS/IRC tax exemption granted by the Affordable Rental Program. It is estimated that the investment required for the co-participation is 4.5M euros/year, to which a tax benefit of about 12.9M euros is added

Amount: EUR 4.5M/year (+ tax benefit of EUR 12.9M/year)

Financing: OE

Responsible: MIH/CMs

Housing lease protection

Amount: EUR 4 million in loans granted | 1.5 million converted into non-repayable grants

Financing: OE

Responsible: MIH (IHRU)

National Urgent Housing Exchange and Housing First

Creation of a program to support the creation of a National Emergency Housing Grant, which can co-finance investments for this purpose to be made by public entities and the third sector.

Amount: 7.5 M

Financing: OE

Responsible: MIH/MTSSS

Simplified cadastral information

Granting of financial support to municipalities or intermunicipal entities that do not have a geometric cadastre of rural property or land registry. The support will be essentially for two purposes:

Creation of contact points for citizens to identify their buildings through the simplified cadastral information system and the georeferenced graphic representation procedure (RGG);

Sharing information with Central Administration entities, on expenses related to consultancy, computer equipment, software, publicity, personnel, etc.

Addressees: MunicipalitieS

Amount: EUR 20 M (EUR 10 M in the Centre region and EUR 10 M in the North region)

Financing: ESF

Responsible: MJ/MCT

Forest works, hydrographic network and sustainable mobility

Fuel Interruption Ranges

Implementation of Fuel Interruption Bands (FICs) aimed at establishing favourable conditions for the suppression of rural fires in strategic locations. With the availability of funds in the amount necessary for the implementation and maintenance of this structuring network, it will be possible to reach the objective of 2,500 ha/year.

Other actions for the forest

Creation of fuel management mosaics, the management of fuel using grazing and controlled fire actions. Equally important is to ensure the protection of settlements considered a priority in terms of risk.

Water efficiency interventions

It is planned to support the following 7 priority actions of the Algarve Water Efficiency Plan:
Telemetry of underground collection in the Vale do Lobo water body (critical situation);

Installation of automatic sensors in piezometers for continuous measurement of groundwater level;
Automation of the piezometric and hydrometric network to improve response and knowledge in periods of drought;

Rehabilitation of the dissipation basin and repair of concrete and metal parts of the Fencho dam;

Adoption of intelligent and efficient urban irrigation systems;

Active monitoring and control of losses;

Promotion of the use of water for reuse.

Support program for more sustainable buildings

Launch of an action programme focused on improving the energy efficiency of buildings and their decarbonisation, covering

Supporting the installation of efficient windows, roof and façade insulation, and other interventions to promote energy efficiency in buildings;

Installation of photovoltaic panels and other renewable energy production equipment, installation of heat pumps and other equipment using energy from renewable sources;

Interventions aimed at water efficiency, including the replacement of equipment;

Interventions that promote the incorporation of biomaterials, recycled materials, natural-based solutions, green façades and roofs and bioclimatic architecture solutions.

This initiative is intended to help reduce energy bills, improve comfort levels and indoor air quality, reducing energy poverty and benefiting health. The approach to be pursued can be articulated with building rehabilitation strategies.

Amount: EUR 40 million (2020-21)

Financing: Strengthening the Environmental Fund

Responsible: MAAC

PARES 3.0 – Extension of the Social Equipment Network

Launch of PARES 3.0 program for construction works or requalification of social equipment.
Social Responses to be covered: Day Care, Residential Structure for Elderly People, Day Care Center,

Residential Home, Occupational Activities Center

Amount: 110 M

Financing: Social Games

Responsible: MTSSS

5. Other relevant measures

Unemployment Social Allowance

Automatic extension of unemployment benefit until the end of 2020.

Recipients: Beneficiaries of the SSD

Amount: 12 ME per month, 72 ME in 2020

Financing: OE

Responsible: MTSSS

Strengthening social responses

Increase in cooperation agreements in 2020 with the Social and Solidarity Sector to strengthen social responses to the most vulnerable populations.

Recipients: Institutions of the Social Economy

Amount: +12M euros (2nd semester)

Source of funding: State Budget 2020 and Social Games

Responsible: MTSSS

Social + Adapt

Training of social responses for prevention in relation to COVID-19, namely through layout changes, acquisition and installation of hygiene equipment and automatic dispensing of disinfectants; acquisition and installation of control devices and physical distance; costs with the acquisition and placement of information and guidance to employees and the public (signage); contracting of disinfection services of the facilities.

+ Companies and Employees

Companies and Employees

NEW MEASURES PUBLISHED – PEES PROGRAM  

Measures to support the economic recovery

A. Recovery support

  • These measures are applicable from August onwards to a) companies closed by legal requirement and b) to all other companies with a drop of at least 40% in billing;
  • Prohibition of employement contracts suspension, being the employers only authorized to reduce the normal working periods due to a drop of at least 40% in billing.

Regime

August and September

  • Companies that have at least 40% but less than 60% of billing drops will be able to reduce the normal working periods by 50%;
  • Companies with 60% or more of billing drops will be able to reduce working hours by 70%.

October and December

  • Companies that have a drop of at least 40% but less than 60% will be able to reduce the normal working periods by 40%;
  • Companies that have billing drops of at least 40% but less than 60% will be able to reduce the normal working periods by 60%.

Under these new measures, Social Security will support 70% of the unworked hours and the employer 30%. This scheme will be in force between August and December.

B. Extraordinary support for companies with a billing drop of 75% or more

  • Regime applicable to companies with a billing drop of 75% or more;
  • Social Security will support in 35% the period related to the hours worked;
  • Social Security will support 70% of the unworked hours and 30% will be paid by the employer;
  • The request for renewal is monthly and there is no obligation to be sequential;
  • This support will be in force from September, with retroactive effects to August.

C. Simplified Lay-off

  • Companies that remain subject to the duty of closure may continue to benefit from the extraordinary support for the maintenance of an employment contract, as well as its extension, as long as this duty is maintained, in which case the limits of duration previously provided for shall not apply;
  • Extension of the simplified lay-off scheme until 30 September 2020;
  • Companies who did not benefit from the extraordinary support for the mantainance of employment contracts in a business crisis may only submit their initial applications with effects until 30 June 2020, in which case they may extend the application of the measure on a monthly basis up to a maximum of three months;
  • Companies that have reached the limit of renewal of this extraordinary support until June 30th may benefit from an exceptional extension until the end of July;
  • The employees covered by this regime will continue to receive two thirds of their remuneration, 70% supported by Social Security and 30% by the employer.

Employment protection measures under the Economic and Social Stabilisation Programme

1. Creation of a stabilization supplement for employees whose basic pay in February 2020 was equal to or less than twice the RMMG and who, between the months of April and June, were covered for at least one full calendar month by the support for maintaining the employment contract;

The stabilization supplement corresponds to the difference between the amounts of basic remuneration declared for the month of February 2020 and the full calendar month in which the worker was covered by one of the two measures referred to where the greatest difference was found;

The complement has a minimum limit (euro) of 100.00 and a maximum limit (euro) of 351.00 and is paid in the month of July 2020, being considered for this purpose the values in the remuneration declarations submitted until July 15, 2020;

The support is paid by the social security and granted automatically and unofficially.

2. Creation of an extraordinary incentive to standardise business activity for employers who have benefited from the extraordinary support for maintaining an employment contract or the extraordinary training plan;

The extraordinary incentive for the normalisation of business activity is granted in one of the following ways:

a) Support in the amount of one RMMG per worker covered by the measures referred to in the previous paragraph, paid in one lump sum; or

b) Support in the amount of two RMMG per worker covered by the measures referred to in the previous paragraph, paid in a phased manner over six months.

Contributions scheme – in the form provided for in point b)

In the case of this method, there is also the right to partial remission of 50 % of the employer’s social security contributions in respect of workers covered by the extraordinary training plan or by the extraordinary support for maintaining an employment contract;

Where the period of application of the extraordinary support for the maintenance of an employment contract has been longer than 30 days, the partial exemption of 50 % of the payment of social security contributions at the employer’s expense refers to the workers covered in the last month of application of that support;

The partial waiver of 50 % of the payment of employer’s social security contributions shall apply as follows:

a) during the first month of the granting of the support provided for in this point, where it is granted following implementation of the measures for a period of one month or less;

b) during the first two months of the granting of the support provided for in this point, where it is granted following implementation of the measures for a period of more than one month but less than three months;

c) during the first three months of the granting of support provided for in this point, where support is granted following implementation of the measures for a period of three months or more.

Where there is net job creation through the conclusion of employment contracts of indefinite duration within three months of the end of the support provided for in this point, the employer shall be entitled to two months’ total exemption from the payment of social security contributions payable by the employer;

For this purpose:

a) Net job creation is considered to occur when the employer has more employees at his service than the average number observed in the three homologous months;

b) The total exemption from the payment of social security contributions payable by the employer refers to jobs created in net terms through an employment contract of indefinite duration;

c) The employer is subject to the duty to maintain the level of employment achieved for a period of 180 days.

The following criteria shall be taken into account when determining the amount of support envisaged:

a) where the period of application of the measures has been longer than one month, the amount of support shall be determined according to the simple arithmetic mean of the number of workers concerned by each month of application of that support;

b) where the period of application of measures has been less than one month, the amount of support provided for in point (a) above shall be reduced proportionally;

c) where the period of application of the measures has been less than three months, the amount of support provided for in point (b) of the previous point shall be reduced proportionally.

Employer’s Duties

Employers who benefit from the extraordinary incentive to normalise business activity may not terminate contracts of employment under the terms of collective dismissal, dismissal for termination of employment, dismissal for maladjustment;

Employers covered by the support must maintain the level of employment observed in the last month of implementation of the measures;

When the last month of implementation of the planned measures took place in July 2020, the month immediately preceding the implementation of these measures shall be considered;

Compliance with the obligations set out in the preceding paragraphs shall be observed during the period for which support is granted within 60 days thereafter.

Cummulation of supports

The employer may not benefit both from the support provided for maintaining employment contracts and from the support for gradual take-over;

The employer who makes use of the extra support for the maintenance of the planned employment contract may, at the end of this support, make use of the take-over support;

The employer that makes use of the extraordinary support for the maintenance of an employment contract may, at the end of the support, resort to the application of the reduction or suspension measures in the general lay-off regime provided for in the Labour Code;

The employer that makes use of the extraordinary incentive to normalise the planned business activity cannot access the gradual recovery support.

MEASURES ADOPTED DURING THE PANDEMIC 

Simplified Lay-Off Process

  • Simplified ‘lay-off’ procedure providing a financial support towards the maintenance of employment contracts, with or without training, in case of temporary reduction of the normal working period or suspension of the employment contract, ensuring social security 70% of the employees remuneration;
  • This measure is applied to companies with verification of i) 40% drop in the period of thirty days prior to the request from the competent social security services, with reference to the monthly average of the two months prior to that period, or compared to the same period in the previous year, or even for those who started the activity less 12 months, the average of that period; ii) cessation of the activity resulting from interruption of global supply chains, the suspension or cancellation of orders or to companies or establishments whose total or partial closure has been enacted by decision of the political or health authorities;
  • Companies in this situation may benefit from an additional temporary exemption from the social security contribution payments and an extraordinary financial incentive to support the normalization of the company’s activity, granted by IEFP, IP, corresponding to the value of RMMG (635 €) per worker;
  • Possibility of accumulate the support measure with IEFP vocational training, on which a grant of EUR 131.64 will be paid, half of which is allocated to the employee and the other half to the employer;
  • During the period of reduction or suspension, as well as within 60 days of its application, the employer cannot terminate employment contracts by means of collective dismissal or extinction of job post;
  • To access these measures, companies shall have their tax and contributory situation regularized. For this purpose, until April 30, 2020, debts incurred in March 2020 won’t be considered;
  • Possibility for lay off employees to engage in paid activity provided that in the areas of food production, social support, health, logistics and distribution;
  • In the context of extraordinary support for the maintenance of employment contracts, the calculation of retributive compensation considers the remuneration benefits normally declared for social security and usually received by the employee, relating to basic remuneration, monthly premiums and regular monthly allowances;
  • The inclusion of new employees during the period of extraordinary support for the maintenance of employment contracts, which are in addition to those identified in the initial application, is made through the delivery of a new attached file;
  • Payments of uncertain or variable nature, as  commissions are not considered in the calculation of the illiquid monthly remuneration in the simplified lay-off scheme;
  • Suspension of labour accident insurance in the event of suspension of the employment contract under the simplified lay-off scheme. In the event of a reduction in the normal working periods, the obligation to insurance is maintained;
  • Companies with establishments whose activities have been subject to the lifting of closure restrictions after the end of the state of emergency or of restrictions imposed by legislative or administrative determination continue, from that moment onwards, to be able to access the simplified lay off mechanism, provided that they resume the activity within eight days;
  • The extraordinary financial incentive to support the normalisation of the company’s activity is regulated by an ordinance of the member of the Government responsible for the area of work, namely as regards the procedures, conditions and terms of access;
  • For the purposes of non-compliance and restitution of the extraordinary support for the maintenance of an employment contract in a company in a situation of corporate crisis, paragraph e) of no. 1 of article 303 of the Labour Code is not applicable in the part concerning contract renewals;
  • Applications submitted upon declaration by the employer together with a certificate from the certified accountant, in which the starting date of the extraordinary support measure for the maintenance of employment contract in a situation of business crisis is subsequent to March 16, 2020, are accepted.

Measures to protect employees and job positions

A) Support for dependents

  • Justified absences to employees and self-employed workers, without any except regarding retribution,  motivated by undeterable assistance to children or other dependents under the age of 12, or, regardless of age, with disabilities or chronic illness, resulting from suspension of presential classes and non-school activities in school. The employee is entitled to receive exceptional monthly or proportional support corresponding to two thirds of his basic remuneration, paid in equal parts by the employer and social security. To this end, it will be considered the basic remuneration declared in March 2020 for February 2020 or, in the absence of basic remuneration declared in that month, the amount of the minimum monthly remuneration guaranteed. In situations where the employee has more than one employer, the ceiling is applied to the total basic remuneration paid by the various employers, with the support payable distributed proportionally, depending on the value of the basic remuneration declared by each employer;
  • Justified absences for family assistance, when there is a need to assist the spouse or person who lives in registered partnership or common economy with the employee, relative or similar in the straight upward line that is in charge of the employee and who frequent social facilities whose activity is suspended by an health authority;
  • Justified absences motivated by the provision of assistance or transportation, within the scope of the COVID-19 disease pandemic, by volunteer firefighters with an employment contract with a private or social sector employer, evidently called by the respective fire department;
    Justified absences do not result in the loss of any rights, except with regard to remuneration;
  • Exceptional financial support for employees who have to stay at home with their children up to 12 years of age in the amount of 66% of the basic remuneration. From April, this support is equivalent to 100% of the basic remuneration of the employees who have to accompany their sick or in prophylactic isolation children;
  • Exceptional financial support for self-employed workers who have to stay at home with their children up to 12 years old, amounting to 1/3 of the average remuneration;
  • Self-employed workers obliged to pay for at least 3 consecutive months for at least 12 months, who are unable to continue their activity, are entitled to an exceptional monthly or proportional support;
  • The value of the support corresponds to one third of the mensual contributory incidence base for the first quarter of 2020. The support has a minimum limit of 1 Indexing social support (IAS) and maximum of 2 1/2 IAS, and may not, in any case, exceed the amount of remuneration recorded as a basis of contributory incidence;
  • Entities benefiting from the support shall, for the purpose of proving the facts on which the application is based and its extensions, preserve the relevant information over a three-year period;
  • During the period of granting the support, there is no compensation with previous debts of the holders of the support or their employer;
  • Entitlement to child and grandchild care allowances in the event of prophylactic isolation without a guarantee period;
  • Increase in the daily amount of child support allowance for employees performing public functions as part of the convergent social protection scheme;
  • The daily amount of child care allowance is now equal to 100% of the reference remuneration.

B) Professional Training

  • Creation of an extraordinary vocational training support, in the amount of 50% of the employee’s salary up to the National Minimum Wage, plus the cost of training, for the situations of employees not employed in productive activities for considerable periods;
  • Guarantee of social protection for trainees and trainers during training activities, as well as for beneficiaries engaged in active employment policies who are unable to attend training activities;
  • The presential training activities developed or promoted by the Institute for Employment and Vocational Training, I. P., through the direct management vocational training centres, participated management vocational training centres or by training entities may be resumed as from 18 May 2020, in a gradual manner and with the necessary adaptations, provided that compliance with the guidelines of the Directorate General of Health is ensured, namely in terms of hygiene and physical distance. Without prejudice to the provisions, the entities therein provided shall give priority to the development of the formative activity at a distance and to projects of articulation between this activity and face-to-face formative activity, whenever the conditions allow it.

C) Measures to support employees in case of sickness 

  • Payment of 100% of the reference remuneration to employees and self-employed workers in the general social security system in prophylactic isolation for 14 days, motivated by situations of serious risk to public health determined by the health authorities;
  • Entitlement to sickness benefit without a waiting period.
D) Measures to support domestic service employees
Creation of a support for domestic service employees corresponding to two-thirds of the remuneration recorded in January 2020, being paid one third by Social Security, keeping employers the obligation to:
  • Payment of one third of the remuneration;
  • Declaration of working hours and normally declared remuneration for the employee, irrespective of the partial suspension of his actual payment;
  • Payment of the corresponding contributions.
  • In case of domestic servisse employees, the declaration of each employer attesting the non-provision of and the non-payment of the entire remuneration shall be preserved for three years.
E) Measures to support self-employed workers
Extraordinary support for the reduction of self-employed economic activity
  • Financial support to employees who are exclusively covered by self employed the scheme and who are not pensioners, subject to compliance with the obligation to contribute at least 3 months in a row or six months interpolated for at least 12 months:
  1. In a proven situation of total stopping of the activity performed or other activity of the same sector as a result of due to covid-19 pandemic; Or
  2. By a declaration together with na accounting certificate attesting that it is in a situation of abrupt  drop of at least 40 % of income in the period of thirty days preceding the application with the competent social security services, with reference to the monthly average of the two months preceding that period, or compared to the same period of the previous year or , also for those who started the activity less than 12 months ago, at the average of this period.
  • In order to attest the situation of income breakage, the concerned employees must submit a commitment of honour declaration or, in case of self employed workers in the organized account scheme a certificate from the accountant;
  • The support is one month, extendable, up to the limit of six months and is paid from the month following the submission of the application;
  • As long as the payment of the extraordinary support is maintained, the self-employed, when subject to this obligation, shall maintain the obligation of the quarterly declaration;
  • The amount of financial support is multiplied by its respective drop, expressed in percentage terms;
  • For the calculation of support, the remuneration considered corresponds to:

a) For self-employed workers, the average contributory impact base for the months in which there has been a record of remuneration in the period of 12 months immediately preceding the date of application submission;

b) For managing partners, the basic remuneration declared in March 2020 for the month of February 2020 or, in the absence of basic remuneration declared in that month, the value of the indexing of social support.

  • The drop shall be declared and subject to further verification by social security services within one year counted from the support, on the basis of the information requested to the Tax Authority, giving rise to an eventual refund of the amounts wrongly received;
  • The support provided is granted, with the necessary adaptations, to the managers of private limited companies and members of statutory bodies of foundations, associations or cooperatives with functions equivalent to those, which are exclusively covered by the general social security system in that capacity and carry out that activity in a single entity that in the previous year had invoiced less than (euro) 80,000;
  • When the communication of the elements of the invoices through the E Invoice does not reflect the totality of the practiced operations subject to VAT, even if exempt, related to the transmission of goods and services, referring to the period in analysis, the measurement of the limits foreseen therein is made by declaration, with reference to the turnover, with the respective certification by a certified accountant, and subject to subsequent verification by the social security, within one year from the attribution of the support, based on information requested to the Tax and Customs Authority, giving rise to the eventual restitution of the unduly received amounts;
  • The support provided shall have as its minimum limit a value corresponding to 50 % of the IAS value and may be extended on the basis of any of the conditions laid down;
  • The support granted is conditional on the activity being continued within eight days if it has been suspended or terminated;
  • The self-employed workers covered by the above-mentioned financial support measures are entitled to deferment of the payment of contributions due in the months in which the extraordinary financial support is being paid. 

Extraordinary measure to encourage professional activity

  • The self-employed worker is entitled to a one-month financial support, extendable monthly up to a maximum of three months, based on the average of the invoices reported for tax purposes between March 1, 2019 and February 29, 2020, with a maximum limit of half of the value of the IAS and a minimum corresponding to the lowest base value of the minimum contribution;
  • The application for granting the support determines, from the month following the cessation of the support, the effects of the placement in the scheme for self-employed workers or the cessation of the exemption;
  • The value of the average invoice that determines the calculation of the support is transmitted by the Tax and Customs Authority to Social Security;
  • Attribution of the support is subject to the effects of the classification in the social security regime of the independent workers and implies the maintenance of the exercise of activity for a minimum period of 24 months after the cessation of the payment of the benefit;
  • The support is due from the date of application and is granted for a maximum period of two months;
  • The amount of the benefit to be granted is half the amount of the IAS;
  • The amount of the benefit to be granted corresponds to half of the amount of the IAS;
  • The attribution of the benefit obliges the employee to declare the beginning or resumption of independent activity with the tax administration, the effects of the corresponding framing in the social security system of independent workers and the maintenance of the exercise of activity for a minimum period of 24 months after the cessation of the payment of the benefit;
  • The declaration of cessation of activity before the end of the period identified in the previous paragraph determines the refund of the amounts of the benefits paid.

F) Unemployment Protection Measures

  • The following employees are entitled to initial unemployment benefit provided that have:

a) 90 days of paid employment, with the corresponding wage record, in a 12-month period immediately preceding the date of unemployment;

b) 60 days of paid employment, with the corresponding wage record, in a 12-month period immediately prior to the date of unemployment, in cases where the unemployment occurred due to the expiry of the fixed-term employment contract or the termination of the employment contract at the initiative of the employer during the trial period.

Simplifying access to social insertion income

  • The allocation of the social insertion income benefit is not dependent on the conclusion of the insertion contract;
  • At the end of the period of validity of the law that determined the simplification process, the entity managing the benefit shall make an officious verification of the composition and income of the household beneficiaries for the purposes of renewal or termination and, as a result, shall review the value of the benefit or terminate its attribution;
  • Social income support for integration and unemployment protection is required until 30 June 2020 and cannot be combined with other social benefits.

G) Other measures

  • Approval and display of the holiday map until April 15 may take place up to 10 days after the end of the state of emergency;
  • Extension of fixed-term contracts (with teaching and non-teaching staff at service of the Ministry of Education public schools) with termination on August 31 2020;
  • Suspension of the requirement regarding the non-existence of debts for applicant entities or promoters to the IEFP, I. P. training program. To this end, debts incurred by the applicant or promoters, from 1 March 2020 to 30 June 2020 will not be considered;
  • Strengthening of the means and powers of the Authority for Working Conditions, namely by contracting external services to assist in the execution of its activity;
  • Possibility of a labour inspector, when verifies the existence of signs of unlawful dismissal, to draw up a report and notify the employer to regularize the situation. With the notification to the employer and until the employee’s situation is regularised or the judicial decision has been finalised, as the case may be, the employment contract in question will not be terminated, and all the rights of the parties will remain, namely the right to remuneration, as well as the inherent obligations towards the general social security system.
  • Regarding this matter, the labour courts shall have jurisdiction to provide a judicial decision;
  • The deadline for the payment of contributions and levies due in March 2020 is, exceptionally, extended until 31 March 2020. Without prejudice to this provision, employers who have not paid one third of the contributions due in the first month of adhesion to the measure, March or April as applicable, and who immediately proceed to the payment of this amount plus interest on arrears shall retain the right to deferment of the payment of contributions;
  • Possibility for the collective executive bodies of public professional associations that exercise management and management powers to decree the suspension or reduction of their members’ membership fees, without the need for resolution by the respective representative assemblies;
  • Until September 30, 2020, the hiring of workers is authorized for the establishment of fixed-term employment relationships, for a period of four months in the entities of the Ministry of Health, and its renewals are made for equal periods;
  • Telework regime may be determined unilaterally by the employer or by employee’s request, without the need of agreement by the parties, provided that it is compatible with the functions performed;
  • In the current context of COVID-19 disease, and exclusively for reasons of protection of one’s own health and of others, body temperature measurements may be taken to employees for the purposes of access and permanence in the workplace;
  • The provisions do not affect the right to individual data protection, and it is expressly prohibited to record the body temperature associated with the identity of the person, unless expressly authorized by the person;
  • If the normal body temperatures are higher than normal body, that person’s access to the workplace may be prevented.

H) Measures to support start-ups

New measures relating to Portuguese start-ups, in order for these entities to overcome the consequences of the Covid-19 pandemic and to continue their normal activity after this exceptional period (representing an overall support of more than EUR 25 million and an average of EUR 10,000 euros per start-up):

  • Start-up RH Covid19 measure, under which financial support will be granted through an incentive equivalent to one minimum wage per employee, up to a maximum of 10 employees per start-up;
  • Extension for 3 months of the previous scholarship benefit already awarded, in the amount of EUR 2,075 per entrepreneur job;
  • The “Incubation Voucher – Covid-19”, applicable to recent start-ups (incorporated less than 5 years ago), through the hiring of incubation services based on a non-refundable incentive of EUR 1,500;
  • Convertible loans in amounts between EUR 50,000 and EUR 100,000 per start-up, to be converted after 12 months at a discount rate that avoids dilution of shareholders;
  • Portugal Ventures issuing a call for investments in start-ups, with tickets starting at EUR 50,000 (this initiative being funded through the Instituição Financeira de Desenvolvimento (IFD), Portugal Ventures and Imprensa Nacional – Casa da Moeda); and
  • Two support measures already in force and applicable to start-ups were revised, as follows: (i) within the 200M Fund, co-investment with private investors in Portuguese start-ups and scaleups, with a minimum amount of public funds of EUR 500,000 and a maximum of EUR 5 million, and (ii) within the co-investment fund for social innovation, the co-investment with private investors in companies with innovative projects with a social impact, with a minimum amount of public funds of EUR 50,000 and a maximum of EUR 2.5 million.

Note: During the state of emergency, social security services, Working Conditions Authority, Directorate General for Employment and Labour Relations , Institute for Employment and Vocational Training, Commission for Equality at Work and Employment and the National Institute for Rehabilitation remain open on presential regime .

+ Tax Measures

Tax Measures

NEW MEASURES PUBLISHED – PEES PROGRAM

Tax measures to support SME’s and Cooperatives

  • Temporary suspension of IRC’s payment on account for SMEs and cooperatives;
  • Possibility to request a full refund of the special payment on account which has not been deducted until 2019, with a waiver of the 90 days deadline, for SMEs and cooperatives;
  • Maximum period of 15 days for the refund of VAT, IRS and IRC, whenever the amount of tax withholding of payments on account or of VAT liquidations is higher than the due tax.

MEASURES ADOPTED DURING THE PANDEMIC

Deferral of tax obligations

A)  Deadline extension for compliance with tax obligations

  • Deferral of the special payment on account (“PEC”) deadline from March 31 to June 30;
  • Deferral of the deadline to submit the corporate income tax return and pay the related tax until July 31;
  • Deferral of the first payment on account deadline from July 31 to August 31.

B) Flexibilization of payments to the Tax Authority

  • Possibility of paying taxes in instalments;
  • Companies and self-employed persons with turnover in 2018 up to 10 M or starting activity from 01/01/19, may fractionate the VAT, IRS and IRC due (even as withholding tax), for the 2nd quarter, without the need for guarantee, under the law terms or in 3 or 6 monthly instalments without interest;
  • With regard to the payments made in 3 or 6 monthly instalments without interest, the first installment is due on the date of compliance with the payment obligation and the remainder on the same date in the following months;
  • Applications for payments made in 3 or 6 interest-free monthly instalments shall be submitted electronically by the end of the voluntary payment period;
  • This scheme also applies to taxable persons who have restarted activity on or after 1 January 2019, when they have not obtained turnover in 2018;
  • Other companies and self-employed persons may require the same flexibility in the payment of these tax obligations in the second quarter provided that they have been subjected to a decrease in their turnover of at least 20% in the 3-month average in which there is an obligation to pay the tax compared to the same period of the previous year.
    Furthermore, whenever the communication of invoice elements through the E-Invoice does not reflect all transactions carried out subject to VAT, even if exempt, relating to the transmission of goods and services for the periods under review, the measurement of the billing breach shall be made with reference to turnover, with its certification by the auditor or accountant;
  • Payment of the total VAT or in three instalments. In case this is covered by the quarterly scheme, the next obligation is due on 15 May being paid 1/3 in due time, 1/3 in June and 1/3 in July, with exemption from interest;
  • Possibility of paying VAT in six instalments – 1/6 in due time and 1/6 in each subsequent months. In this case there will already be an interest payment from the fourth month;
  • The same regime will be applied in relation to withholding tax at the source of IRS, concerning law firms employees;
  • Recognition of the right to full or partial exemption in respect to local authorities or inter-municipal entities taxes. In the event of exceptional situation relating to the pandemic, the need for approval of a regulation by the municipal assembly is waived, and in such cases the exemption, in whole or in part, may last longer than the end of the current calendar year. Exemptions must be communicated within 48 hours of their practice.

C) Flexibilization of payments to the Social Security 

  • Postponement of the deadline for payment of social security contributions by companies. This postponement is applied to employers from the private and social sectors with:
a) Less than 50 employees;
b) Total number of employees between 50 and 249, provided that they show a drop of at least 20 % of the invoicing reported through the E-Invoice in March, April and May 2020 compared to the same period of the previous year or, for whom it has started the activity less than 12 months, to the average of the period of activity elapsed;
c) Total of 250 or more employees, provided that they show a drop of at least 20 % of the invoicing reported through the E-Invoice in March, April and May 2020 compared to the same period of the previous year or, for whom they have started the activity less than 12 months, at the average of the elapsed period of activity, and fall within one of the following forecasts:
i) it is a particular institution of social solidarity or equivalent;
ii) the activity of those employers falls within the sectors closed by imposition of the state of emergency decree or in the aviation and tourism sectors in relation to the establishment or undertaking actually closed;
iii) The activity of those employers has been suspended, by legislative or administrative determination, in relation to the closed establishment or companies;
  • Extraordinary support for the reduction of self-employed economic activity and deferred payment of contributions;
  • Reduction of social contributions and payment in instalments;
  • With regard to social security contributions due between March and May 2020, the Government approved a:

i ) 1/3 of payment on the due date;
ii ) The remaining 2/3 are paid in equal and successive installments in the months of July, August and September 2020 or in the months from July to December 2020, without interest.

  • The requirements of the installment plan related to billing are demonstrated by the employer during the month of July 2020, together with declaration by the certified accountant;
  • The same regime applies to contributions due by self-employed workers.

D) Other measures

  • Automatic extension of unemployment benefits and solidarity supplement for the elderly or insertion social income that are already in payment, applicable to benefits whose concession or renewal period has ended in March or ends in April, May and June 2020 inclusive. The extension of the period for the granting of unemployment benefits does not amount to the allocation of other unemployment benefits or for the purposes of recording remuneration for equivalence to the entry of contributions;
  • Suspension of tax enforcement procedures;
+ Loans and Funding

Loans and Funding

MEASURES ADOPTED DURING THE PANDEMIC

Measures relating to credit lines and other financial incentives

A) Credit Lines

  • EUR 200 M credit line to support companies’ cash flows;
  • Creation by “Turismo de Portugal” of a Treasury Support line for Microenterprises. This line will have an allocation of 60 M and relates to companies or individual entrepreneurs with less than 10 job posts and whose annual turnover or annual total balance sheet does not exceed 2 M;
  • Creation of a credit line up to EUR 20 000 000 for the fishing and aquaculture sectors, which is intended to provide financial means for the acquisition of production factors, for a working or treasury fund, in particular for the settlement of taxes, payment of wages and renegotiation of debts with suppliers, credit institutions or other entities empowered by law to grant credit;
  • Natural or legal persons who meet the following conditions may apply to the reffered credit line:
  1. Are legally and regulatorily empowered to carry out fishing and aquaculture activities, processing and marketing industry of fishery products, or are recognised producer organisations;
  2. Are in effective activity;
  3. Have their registered office in national territory;
  4. Have their contributory situation regularized before the tax administration and social security;
  5. Are not a company in economic difficulties.
  • The total amount of aid to be allocated may not exceed (euro) 120 000 gross per beneficiary. When the individual amount of aid is found to exceed the stipulated limit, aid value per beneficiary shall be adjusted, by reducing in proportion to the excess recorded and reducing, accordingly, the individual amount of credit to be granted;
  • The credit is granted in the form of a repayable loan by credit institutions or other entities empowered by law to grant credit that conclude protocol with the Institute of Financing of Agriculture and Fisheries, I. P. (IFAP, I. P.), in which a maximum nominal interest rate is established;
  • Loans are formalized by written contract, in terms to be defined by IFAP, I.P., concluded between credit institutions or other entities authorized by law to grant credit;
  • Loans are granted for a maximum period of six years from the date of conclusion of the contract and depreciable annually in instalments of equal amount, with the first repayment due one year after the expected date of the first use of credit;
  • Loans accrue interest at the contractual rate, calculated day by day on outstanding capital. Interest are paid annually;
  • In each interest counting period, and throughout the duration of the loan, the following interest rate bonuses are allocated, differentiated according to the company’s turnover:
  1. Turnover up to EUR 500 000: up to 100 % bonus;
  2. Turnover exceeding EUR 500 000: up to 90 % bonus.
  • Creation of credit lines by the State and supported by the bank sector, totalling 3000 M, that will cover the following sectors:

Restaurant sector and similar: 600 M of credit, of which 270 M is earmarked for micro-enterprises and PME;

Tourism sector, namely travel agencies, animation, event organisation and the similar: 280 M of credit, of which 75 M is for micro-enterprises and PME;

Other companies in the tourism sector (including, tourist resorts and tourist accommodation): 900 M of credit, of which 300 M is for micro-enterprises and PME;

Industry sector (textile, clothing, footwear, extractive industry and the wood sector): 1300 M of credit, of which 400 M is directed to micro-enterprises and PME.

These credit lines will have a grace period of payments until the end of 2020 and can be amortized within 4 years.

ADAPTAR Program

  • With an allocation of 100 million euros, Adaptar Program aims to support companies in the costs of purchasing personal protective equipment for employees, hygiene equipment, disinfection contracts or expenses with space organization.

Scope and Eligibility

  • Projects inserted in all economic activities are eligible, with the following exceptions:

a) Fishing and aquaculture sector;

b) Primary agricultural production and forestry sector;

c) Processing and marketing of agricultural products and processing and marketing  sectors of forestry products;

d) Projects relating to the following activities: financial and insurance, defence, lotteries and other gambling.

Requirements

  • The following criteria are required with regard to micro-enterprises of any kind:

a) To be legally constituted on 1 March 2020;

b) Have an organised account;

c) Meet the necessary conditions to obtain the status of microenterprise;

d) To have the tax and social security situation regularized.

Project Eligibility

  • The eligibility criteria for projects are the following:

a) Aiming to make an investment of an eligible expenditure value of not less than (euro) 500 and not more than (euro) 5000, for the adaptation of the company’s activity to the context of COVID-19 disease, guaranteeing the employees and clients safety, and the relationship with suppliers, complying with the established standards and recommendations of the competent authorities;

b) Have a maximum execution duration of six months from the date of notification of the favorable decision, with a deadline of 31 December 2020;

c) To comply with the legal and regulatory provisions applicable to them.

Expenses and Application

  • In the case of micro-enterprises (up to 10 employees), Adaptar contemplates an 80% non-refundable support for expenses between 500 and 5,000 euros, being eligible since March 18;
  • Access to the programme will be through a simplified application scheme, based on a expenditure budget by large heading, where confirmation of the compulsory administrative requirements is made automatically by the application management system or by a declaration by the promoter;
  • The decision on the application will be taken within 10 working days.

PME’s

  • Adaptar is also applicable to small and medium-sized enterprises (PMEs), with projects between 5,000 and 40,000 euros, with 50% non-refundable funding, under Portugal 2020 program, through the Compete and the regional operational programes.

Scope and Eligibility

  • The eligibility criteria for small and medium-sized enterprises are as follows:

a) To be legally constituted until March, 1st 2020;

b) To have an organised account in accordance with the applicable legislation;

c) To have its tax and social security situation regularized;

d) To have its situation regularized with regard to replacements, within the scope of financing from the European Structural and Investment Funds (FEEI);

e) To have the PME certificate issued by IAPMEI;

f) Not be a company in difficulties;

g) To declare that it is not a company subject to an outstanding recovery order following a previous Commission decision declaring an aid illegal and incompatible with the internal market.

Project Eligibility

  • The eligibility criteria for PME projects are as follows:

a) To aim at making an investment of an eligible expenditure value of not less than (euro) 5000 and not more than (euro) 40 000, for the qualification of processes, organisations, products and services of SMEs, namely the adaptation of their establishments, work organisation methods and relationships with clients and suppliers to the new conditions in the context of the COVID-19, ensuring compliance with the established standards and recommendations of the competent authorities;

b) The investment is not in force at the date of application;

c) To have a maximum execution duration of six months, from the date of notification of the favorable decision, with a deadline of 31 December 2020;

d) To comply with the legal and regulatory provisions applicable to them.

Expenses and Application

  • In both situations, after the validation of the term of acceptance of the application, an automatic advance of an amount equivalent to 50% of the approved incentive will be processed;
  • The eligible expenses for Adaptar support include the purchase of masks, gloves or visors, the purchase and installation of automatic payment devices, hiring of disinfection services of the premises, for a maximum period of six months, or also the expenses with the intervention of certified accountants or statutory auditors, in the validation of the expenses of the payment requests.
  • In the case of PME’s, the decision on the application will be taken within 20 working days and the application is the same applicable to microenterprises.

B) Moratorium Approvals

  • Extension by three months of the maximum period for the beneficiaries of the Rural Development Program (PDR 2020) to  implement and complete projects whose deadline for to invest occurs between March 1 and June 15, 2020. In this sense, payments were authorized under the “PDR 2020” program, without observing the maximum number of payment requests. Beneficiaries with actions cancelled due to the new coronavirus are eligible for the reimbursement of expenses. Under this programme, site visits for administrative control prior to the decision of applications are waived in the case of applications with a total estimated investment of less than (euro) 500 000, even if they include expenditure defined through standard unit cost tables, and the analysis of eligibility of operations shall be carried out using alternative means, in particular the sharer information system (SIP) and updated orthophotomaps;
  • Beneficiaries that have had their productive and/or commercial activity seriously affected as a result of the epidemiological situation of the new Coronavirus – COVID 19 may conclude the investment projects contracted under the PDR 2020, regardless of the degree of execution they are in, after recognition of the situation of “force majeure”, to be granted upon request;
  • For assessment and recognition of the situation to be framed, beneficiaries must submit an application for application of the concept of “force majeure” to the Institute for Financing Agriculture and Fisheries, I. P. (IFAP), by May 31, 2020, demonstrating the causal link between the impossibility of continuing the execution of investment projects and the COVID-19 situation;
  • Temporary authorization of late payment of rents (housing and non-housing). This scheme allows the Institute of Housing and Urban Rehabilitation (IHRU) to grant loans for payment of income to tenants who have suffered income breaks;
  • Possibility of loan from the municipal councils without need for authorization by the municipal assembly. The loan must be communicated electronically within 48 hours of its practice.

C) Extraordinary support measures for the liquidity of families, companies, private charitable institutions, non-profit associations and other social economy entities

Beneficiary entities

Companies fulfilling all of the following conditions will benefit from the measures:

a) Have their head office and exercise their economic activity in Portugal;

b) Are classified as micro, small or medium-sized enterprises;

c) Are not, on 18 March 2020, in default or in default of cash benefits for more than 90 days with the institution and are not in a situation of insolvency, suspension or cessation of payments, or on that date are already in execution by any of the institutions;

d) Have their situation regularized with the Tax and Customs Authority and Social Security, not being relevant until April 30, 2020, for this purpose, the debts constituted in the month of March 2020.

The measures provided for shall benefit natural persons who fulfil the conditions referred to in paragraphs c) and d), whether or not they are resident in Portugal and are, or are part of a household in which at least one of its members is, in one of the following situations:

a) Prophylactic isolation or illness;

b) Caring for children or grandchildren;

c) Reduction of the normal period of work or suspension of the employment contract due to a business crisis;

d) Unemployment situation registered with the Instituto do Emprego e Formação Profissional, I. P.;

e) Employees eligible for extraordinary support to reduce the economic activity of self-employed workers;

f) Employees from entities whose establishment or activity has been subject to a determined closure during the period of emergency or during a situation of calamity due to legal or administrative imposition; or

g) Temporary income break of at least 20 % of their household’s overall income as a result of the OVID-19 pandemic.

They also benefit from the measures envisaged:

a) Individual entrepreneurs, as well as private social solidarity institutions, non-profit associations and other social economy entities, fulfil the conditions referred to in paragraphs c) and d) of no. 1 and have their domicile or head office in Portugal;

b) other companies, regardless of their size, which fulfil the conditions referred to in subparagraphs (a), (c) and (d) of paragraph 1, excluding those forming part of the financial sector.

Banks, other credit institutions, financial companies, payment institutions, electronic money institutions, financial intermediaries, investment firms, collective investment schemes, pension funds, securitisation funds, their management companies, securitisation companies, insurance and reinsurance companies and public bodies that administer public debt at national level, with the same status, according to the law, as credit institutions, shall be deemed to be part of the financial sector.

Operations covered

This measures applies to credit operations granted by credit institutions, credit finance companies, investment companies, leasing companies, factoring companies and mutual guarantee companies, as well as by branches of credit institutions and financial institutions operating in Portugal, known as “institutions”, to the beneficiary entities.

This applies to the following credit operations when contracted by beneficiary entities which are natural persons:

a) Mortgage credit, as well as leasing of real estate for residential purposes;

b) Consumer credit, for education, including academic and professional training.

This shall not apply to the following operations:

a) Credit or financing for the acquisition of securities or positions in other financial instruments, whether or not secured by such instruments;

b) Credit granted to beneficiaries of schemes, subsidies or benefits, namely tax benefits, to establish their head office or place of residence in Portugal, including for investment activity, with the exception of citizens covered by the Return Programme;

c) Credit granted to companies for individual use by means of credit cards of members of management, supervisory bodies, workers or other employees.

Moratorium

Entities benefit from the following support measures in relation to their credit exposures contracted with institutions:

a) Prohibition of total or partial revocation of contracted credit lines and loans, in the amounts contracted on the date of entry into force of this Decree-Law, during the period in which this measure is in force;

b) Extension, for a period equal to the duration of this measure, of all credits with capital payment at the end of the contract, in force on the date of entry into force of this Decree-Law, together with all its associated elements, including interest, guarantees, namely provided through insurance or in credit securities;

c) Suspension, in respect of credits with installment repayment of capital or with installment repayment of other cash instalments, during the period in which this measure is in force, of the payment of the capital, rents and interest with foreseen maturity until the end of this period, commissions and other charges extended automatically for the same period as the suspension, in order to ensure that there are no charges other than those which may arise from the variability of the reference interest rate underlying the contract, and all elements associated with the contracts covered by the measure, including guarantees, are also extended.

The entities benefiting from the measures provided for in subparagraphs b) and c) of the preceding paragraph may, at any time, request that only the principal repayments, or part thereof, be suspended.

The extension of the period for payment of capital, rents, interest, commissions and other charges referred to in subparagraphs b) and c) of paragraph 1 shall not give rise to any:

a) Breach of contract;

b) Activation of early maturity clauses;

c) Suspension of the maturity of interest due during the extension period, which shall be capitalised in the amount of the loan by reference to the time at which they are due at the contract rate in force; and

d) Ineffectiveness or termination of guarantees granted by the entities benefiting from the measures or by third parties, in particular the effectiveness and duration of insurance, sureties and/or guarantees.

The application of the measure provided for in paragraph 1 to credits with financial collateral shall cover the debtor’s obligations to restore maintenance margins as well as the creditor’s right to enforce stop losses clauses.

With regard to loans granted on the basis of total or partial financing, including in the form of subsidies, or guarantees from third parties based in Portugal, the measures provided for in paragraph 1 shall apply automatically, without the prior authorisation of those entities, under the same conditions as those laid down in the original legal transaction.

The extension of guarantees, namely of insurance, sureties and/or guarantees referred to in the preceding paragraphs does not require any other formality, opinion, authorisation or prior act by any other entity provided for in another law and are fully effective and enforceable against third parties, and the respective registration, when necessary, shall be promoted by the institutions, based on the provisions of this Decree-Law, without the need to present any other document and with dispensation from successive treatment.

Access to the moratorium

In order to access the measures provided for in the preceding article, the beneficiary entities shall send the lending institution, by physical or electronic means, a declaration of adherence to the application of the moratorium, in the case of natural persons and sole proprietors, signed by the borrower and, in the case of companies and private charitable institutions, as well as non-profit associations and other social economy entities, signed by their legal representatives.

Beneficiary entities must send the documentation proving the regularity of their tax and contributory situation within 15 days from the date of sending the declaration of membership.

The communication of adhesion to the foreseen moratorium is made until June 30, 2020, with the possibility of extension.

Duty to provide information

The institutions have the duty to publicise and advertise the measures provided for in this Decree-Law, including the terms and deadlines for access to the moratorium, on their website and through the usual contacts with their customers. The institutions are also obliged to give full knowledge of all the measures provided for in this Decree-Law prior to the formalisation of any credit agreement whenever the client is a beneficiary entity.

The Banco de Portugal regulates the manner in which the provision of information foreseen in the previous paragraphs shall be effected.

Regulation

The member of the Government responsible for the area of finance shall define by order the other general conditions applicable to any of the exceptional and temporary measures in response to the COVID-19 pandemic provided for in this decree-law.

In the case of subsidized credits supported by the State, including direct and indirect administration, the current competencies for the respective implementation within the scope of the present decree-law are maintained.

Banco de Portugal densifies, by regulation, the information obligations of institutions regarding operations covered by the exceptional and temporary measures in response to the OVID-19 pandemic provided for in this decree-law.

Personal guarantees

Personal guarantees may be provided by the State and other legal persons governed by public law due to the national economic emergency situation caused by the COVID-19 disease pandemic, within the maximum limits for the granting of personal guarantees provided for in the State Budget Law.

The member of the Government responsible for the area of finance may authorise the granting of guarantees, namely to guarantee credit operations or other financial operations, in any form, to ensure liquidity or any other purpose, to companies, private institutions of social solidarity, non-profit associations and other entities of the social economy or in the context of initiatives, programmes or other support measures adopted within the framework of the European Union, namely by institutions or other bodies of the European Union, or under European instruments or mechanisms.

Procedure for granting State guarantees in the event of a national economic emergency

The request for a State guarantee shall be addressed to the member of the Government responsible for the area of finance, through the Directorate-General for the Treasury and Finance, together with the essential elements of the operation to be guaranteed, in particular the amount and the deadline, without prejudice to any additional elements that may be requested for the assessment of the risk of the operation and the definition of the conditions of the guarantee to be granted.

The envisaged request shall be subject to the favourable opinion of the member of the Government of the area of activity of the entity benefiting from the guarantee, and shall focus on the framework of the operation within the Government’s policy of response to the national economic emergency situation due to the COVID-19 pandemic, the assessment of the relevance of the beneficiary entity for the national economy, as well as the prospect of economic viability of the entity in question and the express need for a personal guarantee from the State.

The essential elements of the operation as well as the opinion referred to in the previous paragraph shall be published in an annex to the approval or authorisation order, and any amendment shall follow the same procedure.

The elements necessary for the monitoring of the operations that are the object of the guarantee and, as soon as they become aware of them, of facts that make it impossible to punctually comply with the guaranteed obligations, are regularly sent to the General Directorate of the Treasury by the beneficiary entities or other entities to be defined in the dispatch of the member of the Government responsible for the area of finance.

The procedure set out in this article shall apply, mutatis mutandis, to the granting of guarantees in the context of initiatives, programmes or other support measures adopted within the framework of the European Union, namely by European Union institutions or other bodies or under European instruments or mechanisms.

D) Taxes and Payments

  • Elimination of minimum fees charged to merchants for payment by POS – ‘Point of sale’, so that everyone can accept payments in electronic means without the need to establish a minimum value;
  • Suspension of commissions on payment transactions;
  • Suspension of the collection fees due for the use and performance of payment transactions through digital platforms of payment, in particular homebanking or applications with a card-based payment instrument, for persons who are in a situation of prophylactic isolation or illness or who provide assistance to children or grandchildren, as well as for persons who are eligible for extraordinary support to reduce the economic activity of self-employed workers or are entities whose establishment or activity has been the subject of a determined closure during the state of emergency period;
  • Payment service providers are prohibited from providing in their prices the charging of new fixed or variable commissions related to the acceptance of card payment transactions carried out in automatic payment terminals;
  • Beneficiaries of card payments that provide automatic payment terminals cannot refuse or limit the acceptance of cards for payment of any goods or services, regardless of the value of the operation, during the period in which the suspension provided for in the previous article is in force;
  • Setting a maximum limit for card payments with contactless technology, which should be around EUR 30,00;
  • Possibility of reimbursement of savings and retirement plans (PPR) during the state of emergency. The amount of the PPR refunded must correspond to the value of the unit of participation at the date of the refund application.

E) Other business support measures

  • ECB launches a 750 billion Pandemic Emergency Purchase Programme (PEPP) of private and public sector securities to counter the serious economic risks due to the coronavirus outbreak;
  • Payment of pending invoices by public entities.

F) Incentives under PT2020 program

  • Payment of incentives within 30 days;
  • Extension of the repayment period for credits granted under QREN and PT2020;
  • Eligibility of expenses incurred with cancelled international events.

G) Financing for the acquisition of acrylic protective barriers

  • In 2020, the acquisition of acrylic barriers to protection, for face-to-face service stations in the Citizen’s Spaces and Citizen’s Shops, whose management is the responsibility of the local authorities, can be financed through the appropriation entered in the State’s general expenses budget. Financing foreseen in the budget amounts is to up to 90 % of the total cost of the acrylic barrier, with a limit of (euro) 54.00 per unit, with only the barriers that comply with the model defined by the Agency for Administrative Modernisation, I.P. being eligible. (AMA, I.P.);
  • The financing procedure is simplified as follows:

a) Local authorities apply to the Directorate-General for Local Authorities (DGAL) for the financing provided for, in accordance with the form made available on the respective DGAL portal;

b) DGAL will validate with the AMA, I. P., the number of acrylic barriers identified taking into account the existing service stations in each Citizen’s Space or Citizen’s Shop;

c) Local authority sends proof of purchase to the DGAL

d) Contribution is transferred by DGAL according to the expenditure incurred.

+ Deadlines and Contracts

Deadlines and Contracts

NEW MEASURES PUBLISHED – PEES PROGRAM 

Renting for non-housing purposes

Rent deferral scheme

The tenant may defer the payment of rent whenever fulfils the requirements relating to the legally provided drop of income, in the following cases:

  • during the months in which, under a legal provision or administrative measure approved in the context of the COVID 19 pandemic, the closure of his premises or suspension of his activity was determined;
  • during the three months following the month in which the imposition of closure of its facilities or the suspension of its activity was lifted.

In these cases:

  • the deferral cannot, in any case, apply to rents due after 31 December 2020;
  • the debt settlement period begins on January 1, 2021 and extends until December 31, 2022 (i.e. the period ending in June 2021 is extended), and the total amount owed excludes past due and already paid rents, which are considered as settled;
  • the payment is made in 24 successive instalments in the amount corresponding to that resulting from the apportionment of the total amount due for 24, paid with the rent for the month in question or up to the eighth calendar day of each month in the case of non-monthly rent.

The tenant may, at any time, pay all or part of the instalments.

Landlords whose tenants cease to pay the rent in accordance with the terms referred to above may request the granting of a credit line with reduced costs, to be regulated, to support the difference between the amount of the monthly rent due and the amount resulting from the application to the landlord’s monthly income or invoice of a maximum effort rate of 35%, the demonstration of which is made in accordance with the ordinance to be approved.

These rules apply, with the necessary adaptations, to other contractual forms of exploitation of property for commercial purposes. However, the rent deferral regime does not apply to establishments that are part of commercial joint ventures that choose to benefit from the special regime provided for in the State Budget for 2020, as amended by the Supplementary State Budget for 2020.

The tenant that intends to benefit from the regime that allows the deferment of rents of non-housing leases must communicate his intention to the landlord, in writing and up to five days (20 days for the rents due in July 2020) before the expiry of the first rent in which he intends to benefit from this regime, by means of a registered letter with acknowledgment of receipt, sent to the respective address contained in the lease agreement or in its immediately preceding communication.

As an alternative to this communication, the tenant may address to the landlord, by registered letter with notice of receipt, sent to the respective address in the lease agreement or in the immediately preceding communication, a proposal for an agreement for the payment of the rent due and falling due, different from the legal solution.

These communications must contain, in addition to the elements indicated therein, under penalty of ineffectiveness:

– that the deadline for reply is 10 days, being considered as failure to reply the non-fulfilment of this deadline;

– the content of the reply;

– the consequences of failure to reply.

The acceptance of the agreement or the respective refusal must be transmitted by the landlord, in writing, by means of a registered letter with acknowledgment of receipt to the address of the tenant, within 10 days after receipt of the tenant’s proposal.

In the event of absence of a reply from the landlord or of a reply transmitted after that period, it is presumed that the landlord has expressed his agreement to the tenant’s proposal.

The landlord may, within the same period, formulate a counterproposal to the tenant, to which the tenant must respond within a period of ten days, and the rejection of the same by the tenant, or the absence of a response by the tenant within that period, determines the applicability of the legal regime.

Bank Guarantees

During the exceptional situation of prevention, containment, mitigation and treatment of epidemiological infection by SARS-CoV-2 and COVID-19 disease, the landlord will not be able to execute bank guarantees for non-residential rent payments.

More favourable regimes

The now amended legal regime concerning the deferral of rents does not prejudice the existence of more favourable regimes for the lessee, arising from the law or from an agreement, entered into or to be entered into between the parties, namely debt forgiveness agreements or agreements for deferral in the payment of rents more beneficial to the lessee.

In cases of non-housing leases, if there is an agreement previously entered into that establishes less favourable conditions for the tenant, the latter will be without effect provided that the tenant sends a communication, within 30 days after the entry into force of this Act, to the landlord’s address, through which the tenant expresses his intention to apply the regime now established. The amounts that have already been paid by way of a tent are not returned to the tenant, being relevant for the purposes of calculation of the total amount due.

The clauses of waiver of rights attributed by this regime or of recourse to judicial means and also of acceptance of increases in rent or in the period of the lease provided for in the contracts referred to are null and void.

MEASURES ADOPTED DURING THE PANDEMIC

Impact of Covid-19 on deadlines and contracts

A) Rental Contracts 

    1. The production of effects of the complaints made by the landlord regarding housing and non-housing leases;
    2. The expiry of the housing and non housing leases, unless the tenant does not oppose the termination;
    3. The effects of the revocation, the opposition to the renewal of housing and non-housing leases made by the landlord;
    4. The term indicated in Article 1053 of the Civil Code, if the end of such term occurs during the period of time in which such measures are in force;
    5. The foreclosure of a mortgage on a property that is the property of the foreclosed party’s permanent residence.It remain suspended until September 30, 2020:

Exceptional regime of late rent payment

Housing Lease

Extension of the financial support granted by the Institute for Housing and Urban Rehabilitation, I.P. This support becomes applicable to rents falling due from April 1, 2020 until September 1, 2020.

The new set of measures will apply to rental contracts for housing purposes when one of the following situations occurs:

  1. A drop of more than 20% of the lessee’s household income compared to the income of the previous month or the same period of the previous year; and the level of effort of the lessee’s household, calculated as a percentage of all members’ income of that household, intended for rental payment, of at least 35%; or
  2. Landlords with a drop of more than 20% of income compared to the income of the previous month or the same period of the previous year; and that percentage of the income break is caused by the lack of payment of rents by the tenants under the provisions of the law.

Therefore, Landlords will only be allowed to terminate lease on the grounds of non-payment of the rents due in the months in which the state of emergency is in force and in the first month thereafter, if the lessee does not make the payment of the outstanding rents within 12 months from the end of that period. Rents can be paid in monthly instalments not less than one twelfth of the total amount, paid together with the monthly rent.

On the other hand, it is possible to request a free interest loan to the Institute of Housing and Urban Renewal (IHRU, I.P), under the following terms:

  1. Lessees and guarantors of students not earning work income, who have proven to have a drop of 20% of income and are unable to pay the rent of their permanent residence or, in the case of students, their educational residence, if it is located at a distance of more than 50 km from the permanent residence;
  2. Landlords that suffer a drop of more than 20% of income compared to the income of the previous month or the same period of the previous year; and that percentage of the income break is caused by the non-payment of rents by the tenants under the provisions of the diploma.

Lessee’s loan aims to support the difference between the amount of the monthly rent and the amount resulting from the application to the household’s income of a maximum effort rate of 35 %, in order to allow the payment of the due rent. The remaining disposable income of the household cannot be lower than the indexing of social support (IAS – EUR 438.81).

For landlords, the loan will compensate the amount of the monthly rent, due and unpaid, whenever the remaining disposable income of the household falls, for this reason, below the IAS (EUR 438.81).

It shall be noted that, in order to be able to use the regime set forth in the diploma, the lessees must inform the landlord in writing at least five days before the due date of the first rent, adding, for this purpose, the evidence of the situation of income decrease. However, for rents that have expired on the 1st of April, the deadline for notification is 20 days after the date of entry into force of the law (7th of April).

Non-Housing Lease

Possibility for tenants to defer payment of rent due during the months in which such situations of closure or suspension continue, or in the first month thereafter, always until 1 September 2020.

This measure is applicable to tenants with:

  • Establishments open to the public that are engaged in retail trade and service activities that are closed or have their activities suspended, including in cases where they maintain the provision of e-commerce activities, or the provision of services at a distance or through an electronic platform, or
  • Restaurant and similar establishments, including in cases where they maintain activity for the exclusive purpose of confectionery intended for consumption outside the establishment or delivery to the home, under a legal provision or administrative measure approved under the current epidemiological situation which, even after the end of the state of emergency, determines the closure of the same or suspension of their activities.

The period for settling the debt begins on September 1, 2020 or after the end of the month following that in which the impediment ceases, always with the month of June 2021 as the limit.

These annuities must be paid in monthly instalments, together with the month in question, not less than the amount resulting from the apportionment of the total amount due by the number of months in which it is to be settled.

The non-payment of rent due in the months in which the state of emergency is in force and in the first subsequent month, as well as in the case of establishments that remain closed or their activities suspended after that date, during the months in which the closure or suspension is in force and in the subsequent month, and until 1 September 2020, cannot be invoked as grounds for termination, termination or other form of termination of contracts, nor as grounds for an obligation to vacate property.

The compensation legally provided for the late payment of rents (corresponding to 20% of the amount owed) will now also not be payable for rents falling due by September 1, 2020.

In this regard, Ordinance No. 91/2020 of April 14 defined the terms in which the income drop is demonstrated for the purpose of applying this exceptional regime, in the following terms:

It is considered a drop of 20 % or more of income in the following cases:

  1. Housing lessee, who constitutes his permanent residence, when the percentage share of the total monthly income of the household members is intended for payment of a monthly rent exceeding 35 %;
  2. Students with a housing lease located more than 50 km from the permanent residence, for attendance of educational establishment, when the percentage share of the total monthly income of the household members is intended for payment of a monthly rent exceeding 35 %;
  3. Housing lease guarantor of a student who does not earn income from work, when the percentage part of the total monthly income of the guarantor’s household members destined to pay the monthly income of the student’s housing exceeds 35 %; Or
  4. Landlords, when the drop in the monthly income of the members of their household is due to the non-payment of rents by their tenants and the remaining income of that household falls below the value of the IAS – EUR 438,81.

It is presumed to constitute permanent residence of the lessee and the student the property corresponding to their tax address.

The income drop referred to corresponds to a decrease in income by more than 20 %:

  1. In the case of lessees, guarantors and students, by comparing the sum of household members’ income in the month in which the determining cause of the change in income occurs with the income earned by the same household members in the previous month or in the same period of the previous year;
  2. In the case of landlords, by comparing the sum of income of the members of their household in the month in which the rents due by their lessees are not paid in the same period of the previous year.

The following are considered relevant for proving the drop:

  1. In the case of income from dependent work, their gross monthly value – proven by means of receipts or employer’s statement;
  2. In the case of CIRS category B income or professional income, the value before VAT – proven by invoices or receipts;
  3. In the case of pension income, its gross monthly value;
  4. In the case of property income, the value of the rents received;
  5. Monthly amount of social benefits received on a regular basis;
  6. Monthly amount of housing support received on a regular basis;
  7. Amounts of other income received on a regular or periodic basis.

Points 3 to 7 may be proven by documents issued by the respective paying entities or other documents reporting the receipt of that values.

Whenever the proof of income referred to is not possible, the income may be attested by a self-declaration, on a commitment of honour basis or by the certified accountant in case of self-employed workers in an organised accounting scheme.

The proof of income subject to the statements referred to must be submitted within a maximum of 30 days after the date of communication to the landlord or the application submitted to the Institute of Housing and Urban Rehabilitation, I. P. (IHRU, I. P.).

Public Entities

Under the law, public entities with leased properties (by any other form object of use agreements) may reduce rents to tenants who have proven to have suffered a decrease in their income of more than 20 % compared to the income of the previous month or the same period of the previous year, when the payment of the rent results in a level of effort of more than 35 % in relation to the income.

B) Insurance Contracts

  • Possibility of agreement on the payment of the premium at a later date than the beginning of the risk coverage, waiver of automatic termination or non-extension in the event of non-payment, premium instalments, extension of the validity of the insurance contract, temporary suspension of premium payment and temporary reduction in the amount of the premium according to the risk reduction;
  • In the absence of agreement and in the case of non-payment of the premium or instalment on the due date, the contract shall be automatically extended for a period of 60 days from the due date of the premium or instalment. The insurer must inform the policyholder at least 10 working days before the due date of the premium, and the latter may oppose maintaining the coverage until the due date. The termination of the insurance contract due to non-payment of the premium, part or fraction of it, until the end of the 60-day period shall not relieve the insured of the obligation to pay the premium corresponding to the period in which the contract was in force;
  • The policyholders who develop activities that are suspended or whose establishments or facilities are still closed due to exceptional and temporary measures adopted in response to the COVID-19 pandemic, or those whose activities have been substantially reduced due to the direct or indirect impact of these measures, may request the reflection of these circumstances in the insurance premium covering the risks of the activity, as well as request the fractioning of the payment of the premiums related to the current annuity, without additional costs.  When the premium has been fully paid at the beginning of the annuity, the amount of the premium reduction shall be deducted from the amount of the premium due for the subsequent annuity or, in the case of an insurance contract that does not extend, cancelled within 10 working days prior to its termination, unless otherwise agreed by the parties;
  • A substantial reduction in business shall be deemed to exist when the insurance holder is in a state of business crisis, including when he or she experiences an abrupt and sharp drop of at least 40 % in billing;
  • Contractual changes are reduced to writing in additional minutes, or on a particular condition, to be sent by the insurer to the policy holder within 10 working days of the date of the agreement or of the exercise of the right by the policy holder, being the Insurance and Pension Funds Supervisory Authority (ASF) responsible for the supervision and control.

C) Legal and non-legal Deadlines

Legal Deadlines

The procedural deadlines are no longer suspended from 3 June 2020.

As for administrative deadlines the suspension ends on June 26, 2020, except for the deadlines ending at a later date.

Judicial acts may only take place in person when regarding trial hearings and other proceedings that require the inquiry of witnesses, provided that the maximum number of people and other safety, hygiene and health rules defined by the Directorate General of Health (DGS) are complied.

Whenever it is not viable to do it this way, in particular when it does not prejudice the purposes of justice, it shall take place by appropriate means of communication at a distance, although statements by the accused or statements by witnesses or parties shall always be made in a court of law, unless the parties agree otherwise.

Exceptionally, when the parties, their representatives or other intervening parties are over 70 years of age, are immuno-compromised or chronically ill, they are not obliged to go to court, in which case their enquiry or follow-up shall be carried out by means of distance communication from their legal or professional domicile.

Without prejudice to the provisions abovementioned, the accused shall be guaranteed presence at the inquiry debate and the trial session when statements by the accused or co-defendant and the testimony of witnesses take place.

In other proceedings requiring the physical presence of the parties, their representatives or other procedural interveners, the practice of any other procedural acts shall be carried out through appropriate means of communication at a distance or in person, when they cannot be made at a distance, provided that the maximum number of persons and other safety, hygiene and health rules defined by the DGS are complied.

The following deadlines remain suspended:

  1. Deadline for presenting the debtor for insolvency;
  2. Acts to be performed in the executive or insolvency proceedings related to the judicial delivery of the family home;
  3. Eviction proceedings, and the proceedings for delivery of rented property, when the tenant, by virtue of the final judicial decision to be rendered, may be placed in a situation of fragility due to lack of own habitation or for another compelling corporate reason;
  4. Prescription and expiry deadlines respecting proceedings referred to in the preceding paragraphs;
  5. Prescription and expiry deadlines relating to proceedings which cannot be conducted.

In cases where the acts to be performed in the course of executive proceedings or insolvency proceedings relating to sales and judicial deliveries of real estate are likely to cause damage to the subsistence of the defendant or of the person declared insolvent, the latter may request the suspension of his practice, provided that such suspension does not cause serious damage to the subsistence of the defendant or irreparable damage, and the court shall decide the incident within 10 days, after hearing the parties.

Registries and Documents

  • Applications for civil registration, vehicles, commercial and building that cannot be made online through the IRN website, I.P., may be sent to the e-mail address of the respective registration service, or by another electronic mean. The provisions shall also apply to the filing of a hierarchical appeal of decisions refusing to practice registration acts in accordance with the terms required;
  • It is now accepted the sending by scan of original documents on paper, by those who have competence for certification of photocopies assigned by law, and also by managers, administrators and secretaries of commercial or civil by affixing a qualified digital signature with the citizen card or digital mobile key using the Professional Certification System (SCAP);
  • Acts regarding registration of companies, increase and reduction of capital and the appointment of managers are of an urgent nature;
  • After the decision authorising registration or granting of Portuguese nationality, the verbal declaration of birth attributing the nationality, or the verbal declaration of birth in application for acquisition of Portuguese nationality whenever the seat per registration is necessary, is replaced by a declaration sent by e-mail;
  • The death of any individual occurred in Portuguese territory must be declared by e-mail to be sent to the e-mail address of any civil registry office. If there are no non-conformities, the death certificate is issued by the competent authorities;
  • The supply of deficiencies related to registration requests made online and all processes associated with the issuance of professional certification system by managers, directors and secretaries of companies is exempt from emoluments;
  • All acts requested from INPI, must be presented exclusively through the online services available on NPI’s website. Notification of any administrative acts or steps promoted by the INPI in the context of procedures conducted by the latter, may be carried out by e-mail, using, where applicable, the addresses that the interested parties have communicated at earlier stages of the procedures;
  • Identification documents as well as licences and permits are accepted until 30 October 2020;
  • Scanned copies and photocopies of acts and contracts shall be recognised as the evidential value of the respective originals, unless the person to whom they are presented requests the display of that original;
  • The signature of the scanned copies of the acts and contracts by hand or by qualified electronic signature does not affect their validity, even if different forms of signature coexist in the same act or contract.

D) Other deadlines

  • Postponement for one year of payment of benefits relating to repayable subsidies which deadline is until 30 September 2020. All companies are subject to the postponement and it will not imply the payment of interest charges or other penalty for companies that benefit from it;
  • Possibility of sending the approval of accounts by 30 June by entities whose accounts depend on a collegiate body;
  • Postponement of general meetings for commercial societies, associations or cooperatives until June 30 and possibility of submission of approval of accounts until July 15, 2020;
  • Measures provided for in the Municipal Adjustment Programs (PAM) that allow off-limits debt provided for in the Local Finance Law in combating Covid-19.
  • Electronic certification scheme for PME’s and amendment of the deadline for submission of the application, under which the company submits to IAPMEI, I.P., the electronic certification form with the final data of the following financial year, up to 30 working days after the legally provided deadline for submission of the annual accounting and tax declaration, and these data confirm the content of the declaration submitted;
  • Suspension of the signature collection on the delivery of registered mail, which is replaced by verbal identification and collection of the citizen card number, or any other legal means of identification, until the exceptional situation of pandemic is terminated;
  • Suspension of the deadline of use for medium and long-term loans established at a maximum of two years;
  • E-mail communications made by Justices of the Peace, Registry curators, INPI’s employees among others, are made through the e-mail address made available by the entities. The referred entities have to confirm the receipt of emails addressed to them;
  • In the context of acts and communications that take place in tax court proceedings, between the tax administration services, the local peripheral service and the tax enforcement agency and the tax courts, access to the computer system to support the activities of the administrative and tax courts is carried out by the representatives of the entities identified at https://pro.tribunais.org.pt, in accordance with the procedures and instructions contained therein:
  1. The referral of the administrative process to the court, by the local peripheral service, when this is ordered by the judge under the terms of Article 110(5) of the Tax Procedure and Proceedings Code;
  2. The following acts of the tax enforcement body:
  3. Communication, to the tax court of 1st instance where the opposition is pending, of the payment of the enforced debt under the terms of paragraph 7 of article 203 of the Tax Procedure and Proceedings Code;
  4. Referral of the tax execution proceedings to the tax court, when an opposition is filed, pursuant to article 208(1) of the Code of Tax Procedure and Procedure.
  • By means of a protocol to be signed with the Institute of Financial Management and Justice Equipment, I.P., public entities may carry out the communications foreseen in this article through an interoperability service between the computer system supporting the activities of administrative and tax courts and the respective information system;
  • Public entities within the scope of tax lawsuits may consult the cases in which they carry out the acts envisaged, through the computer system supporting the activities of the administrative and tax courts, at https://pro.tribunais.org.pt, or, in the other cases envisaged, through the interoperability service provided for in the protocol”;
  • Sales that take place during the months of May and June 2020 are not included in the maximum sales limit of 124 days per year. The economic operator wishing to sell in sales during the months of May and June 2020 is exempted from issuing, during this period, the declaration addressed to the Food and Economic Security Authority.
E) Other contracts
  • In the case of contracts which expressly provide for the right of the contractor or private partner to be compensated for any breach of use or where the occurrence of a pandemic constitutes grounds for a claim to restore financial equilibrium, such compensation or restoration may only be effected by extending the period of performance of the services or the duration of the contract and shall not give rise, irrespective of legal provision or contractual stipulation, to a price revision or the assumption by the contractor or public partner of a duty to provide the counterparty;
  • No compensation shall be given for damage resulting from acts regularly performed by the State or another public entity, in the exercise of powers conferred by public health and civil protection legislation, or in the framework of the state of emergency, for the purpose of preventing and combating the COVID-19 pandemic, which is for this purpose a cause of force majeure.
+ Other relevant measures

Other relevant measures

MEASURES ADOPTED DURING THE PANDEMIC 

Measures to support population 

A) Teaching establishments

For school activities, the following was foreseen:

  • Presential classes start May 18, 2020 for students of the 11th and 12th years of schooling and of the 2nd and 3rd years of the double certification courses of secondary education, as well as for students of the specialized artistic courses not offering double certification, in the subjects that have a national compulsory final exam, remaining the other subjects in a non presential regime;
  • In addition, teaching and training activities may be presential in the subjects of a practical nature and in work context training when, they require the use of specific spaces, instruments and equipment, that cannot take place through distance learning or simulated practice and in compliance with the guidelines of the Health Authorities, namely in terms of hygiene and physical distance;
  • Under the regime of presential school activities, school hours were reorganised, observing the following:

i) the time lag between school hours and working hours, preferably using the period between 10 a.m. and 5 p.m;

ii) The organization of classes in different periods or days, minimizing the contact between different groups or their intersection and concentration, as well as the number of trips to school per student;

iii) The splitting of classes whenever the number of pupils makes it unfeasible to comply with the rules of physical distance, using teachers with available time in their teaching component;

iv) The reduction of up to 50 % of the teaching load of the subjects taught in person, whenever the measures adopted do not ensure compliance with the physical distance of the students, organising moments of autonomous work in the remaining times;

  • The school spaces were also reorganised, namely through:

i) Whenever possible, teaching in large spaces, such as auditoriums or other spaces;

ii) Whenever possible, the assignment of a single room or space per class;

iii) setting standards for meals;

  • Basic education will remain until the end of the school year in the non presential regime, using digital methodologies that will be reinforced with the support of pedagogical television content;
  • The 10th year of schooling remains until the end of the school year in the non presential regime;
  • The following exams are cancelled:
  • measurement tests, from the 2nd, 5th and 8th grades;
  • Final exams of basic education at the end of the 9th grade;
  • School-level tests, carried out as final exams of primary education;
  • National final exams, when performed by internal pupils, for the purpose of passing subjects and completing secondary education.
  • Students will only take national final exams in the subjects they elect as entrance exams for the purposes of a national competition for access to University;
  • For the completion of the primary and secondary education cycles, the classifications of each subject are based on the whole school year, including the work carried out throughout the 3rd period;
  • Student’s absence to presential activities is considered justified if it is determined by the respective guardian;
  • Schools must reorganize the spaces, classes and schedules of teachers and students, in order to ensure hygiene standards and adequate social distancing.

School application

  • School application is preferably submitted by Internet;
  • In pre-school education and in the 1st cycle of primary education, application period for 2020/2021 school year is fixed between 4 May and 30 June 2020;
  • Applications received by June 30, 2020 are considered immediately after that date for serialization purposes, and the others are subject to serialization at a later time;
  • In primary and secondary education application periods are fixed by the school principal and may not exceed:
  1. The 5th working day following the definition of the school situation of pupils wishing to change their educational pathway;
  2. 30 July 2020 for students wishing to continue their educational journey;
  3. December 31, 2020 for students wishing to enrol recurrent education.
  • Once the period fixed until 30 July 2020 has expired, applications may be accepted in duly justified exceptional situations in:
  1. The following eight working days;
  2. After the period set out in the preceding paragraph, until December 31, 2020, upon existence of a vacancy in the classes.

Application to national final exams

  • Pending the suspension of classroom school activities, the application process to national final exams are subject to the following rules:
  1. Students or their guardians shall send to the school by e-mail a registration form (EMEC model);
  2. Schools have to confirm the registration and the reception of the identified documents, verify the conformity of the enrolment in relation to the student’s school situation and communicate it by e-mail;
  3. In situations where the use of electronic resources is not possible, registration may be made by means of a form.
  • School principals can choose other ways of applications that they deem more appropriate and effective;
  • Teaching establishment network promoted the reception of children or other dependents in the care of health professionals, social action services, security and relief forces and services, including volunteer firefighters, and armed forces, employees in essential public services, whose mobilisation for service or readiness hinders them from assisting them;
  • Provision of food support to pupils benefiting from levels A and B of the school social action and, whenever necessary, support measures for students from specialised units that have been integrated into learning support centres and whose stay in school is considered indispensable.

B) Cultural, artistic and game activities

  • Rescheduling of shows canceled due to the pandemic, within a maximum period of one year after the date originally planned. Rescheduling of the show may, if necessary, involve the replacement of tickets already sold;
  • If scheduling is not possible, the show will be canceled and will give rise to a refund of the price of tickets already sold, within 60 working days after the cancellation announcement;
  • Partial or total limitations of access to online gambling platforms, until the end of the period related to the state of emergency.

C) Medical measures

  • The use of masks or visors is mandatory for access or permanence in commercial and service spaces and establishments, in services and buildings serving the public and in educational establishments and day care centers by teaching and non-teaching staff and students over 10 years old, as well as in public transport for passengers.
  • For the purpose of preventing the contagion of the new Coronavirus, medical devices for human use and personal protective equipment must comply with legally health and safety requirements;
  • Flexibility of measures related to the electronic prescription of medicines;
  • Possibility of developing projects aimed to protect health users and social responses professionals, with one or more of the following objectives:
    a) Acquisition of goods or services for the performance of diagnostic and screening tests for SARS-CoV-2 infections, including immunity tests, as well as any consumables used for this purpose;
    b) Storage, packaging and delivery of sampling in public or private entities with laboratory capacity for this purpose;
    c) Acquisition and distribution of personal protective equipment;
    d) Acquisition of services and leasing of goods for accommodation of users and professionals of social responses;
    e) Acquisition of logistics goods and services, including transport, with the aim of mitigating the effects of the COVID-19 pandemic on social responses, including for monitoring, evaluation and monitoring of users and professionals, transport of users and professionals, collection of crops and special waste;
    f) Support for the hiring and temporary training of human resources, including urgent and deferrable care providers for users of social responses, as well as psychological and mental health support for professionals and users;
  • Creation of a Covid-19 Productive Innovation measure to support all companies wishing to establish, strengthen or reverse their production capacities for goods and services, focusing on products aimed at combating the pandemic. It also covers the construction and modernisation of testing and testing facilities for relevant products in the context of combating the pandemic. Companies from all over the country may apply and all economic activities aimed at the production of relevant goods and services to deal with Covid-19 are eligible. Support rate is 80% in the lost fund, which is added na incentive of  15% to projects whose implementation takes place within two months, bringing the level of support to 95%. The purpose of this increase is to encourage beneficiary entities to make their products available with maximum speed. Applications will be submitted from 20 April until 29 May, through a simplified electronic form, which will be made available at Balcão 2020;
  • Creation of an Incentive System for Research and Development Activities (R&D) and Investment in Testing and Optimization Infrastructure (upscaling) that aims to support R&D activities in the context of combating the pandemic. Companies based in national territory and non-business entities of the R&D system may apply. The support rate is 80% in the lost fund, which adds an incentive of 15% if the project is transnational. In the case of so-called fundamental research activities, the support is 100% of the value of the costs eligible for the lost fund. Applications will be submitted from 20 April until 29 May, through a simplified electronic form, which will be made available at Balcão 2020;
  • Percentage of profit in the wholesale and retail marketing of medical devices and personal protective equipment, as well as ethyl alcohol and alcoholic-based skin disinfectant gel, shall be limited to a maximum of 15 %;
  • Possibility for the Government to determine the necessary exception measures regarding market containment and limitation, setting maximum prices for liquefied petroleum gas, limiting profit margins for medical devices, personal protective equipment and ethyl alcohol and skin disinfectant solutions, monitoring stocks and quantities produced and exemption from payment of fees for economic operators acting in emergency situations.

D) Foreigners

  • Regularization of foreigners with pending applications in the Foreigners and Borders Service (SEF);
  • Extension of the re-establishment of border control of people until 00:00 on 15th June 2020;
  • Extension of the ban on flights from 00:00 on 18 May 2020 and in force until 00:00 on 15 June;
  • Interdiction of air traffic to and from Portugal from all flights to and from countries outside the European Union, except for:
  1. countries associated with the Schengen area (Liechtenstein, Norway, Iceland and Switzerland);
  2. countries of portuguese official language; brazil, however, will only be admitted flights from and to São Paulo and to and from Rio de Janeiro;
  3. United Kingdom, United States of America, Venezuela, Canada and South Africa, given the presence of important Portuguese communities.
  • Repatriation flights of nationals and with a residence permit are still allowed;
  • In the context of the pandemic, the it was adopted the Recommendation (EU) 2020/648 of 13 May, providing the possibility for vouchers to be issued to passengers or travellers by carriers or organisations as an alternative to cash reimbursement, and subject to the voluntary acceptance of the passenger or traveller, in the following circumstances:

a) In the event of cancellation by the carrier or organiser from 1 March 2020 for reasons linked to the COVID-19 pandemic;

b) in the event of amendments to the contract or termination taking place from 1 March 2020 for reasons linked to the COVID-19 pandemic.

  • Vouchers must have a minimum validity period of 12 months;
  • When vouchers are valid for more than 12 months, passengers and travellers shall have the right to request a cash refund no later than 12 months after the voucher has been issued. This same right should assist them at any subsequent time, subject to the applicable legal provisions on time limitation;
  • Carriers and organisations may consider reimbursement of vouchers at an earlier time than 12 months after the voucher in question has been issued if the passenger or traveller so requests;
  • Passengers and travellers should be able to use the vouchers as a means of payment for any new booking made before their expiry date, even if the payment or the service takes place after that date;
  • Vouchers for transport services should be transferable to another passenger at no additional cost;
  • Package travel vouchers should also be transferable to another traveller at no additional cost if the providers of the services included in the travel agree to the transfer at no additional cost;
  • In order to make vouchers more attractive, organisations and carriers may consider issuing vouchers of a higher value than the amount of any payments made for the package holidays or transport service initially booked, for example through an additional lump sum or additional service elements;
  • Vouchers should indicate their period of validity and specify all rights attached to them. They must be issued on a durable medium, such as electronic mail or paper.

E) Essential services

  • Adoption of measures to simplify and suspend obligations of communication or electronic companies, regarding, for example, compliance with deadlines and assurance of quality parameters, in order to ensure an uninterrupted service  to the population;
  • During the state of emergency and in the following month, the provision of the following essential services cannot be suspended:
    1. water supply service;
    2. Electricity supply service;
    3. natural gas supply service;
    4. electronic communications services.
  • The suspension of electronic communications applies when motivated by unemployment, drop of 20% or more of income, or covid-19 infection;
  • During this period, consumers who are unemployed or with a drop of 20% of income or more compared to the previous month’s income may unilaterally terminate their telecommunications contracts, without compensation to the supplier;
  • In case of debts regarding the services referred, a payment plan shall be drawn up. The payment plan is defined by agreement between the vendor and the consumer and shall take place in the second month after the state of emergency.

F) Penalties

  • Pardon of the prison sentences for prisoners convicted by final decision of two years or less;
  • Pardon the remaining periods of imprisonment for prisoners convicted by final decision of more than two years if the time remaining for full compliance is equal to or less than two years, and the prisoner has served at least half of the sentence;
  • In the event of conviction in successive sentences without legal cumulation, the pardon shall be addressed only to the remainder of the sum of those sentences, if the time remaining for full compliance is equal to or less than two years;
  • The partial pardon of prison sentences up to two years, or the last two years of prison sentences, does not apply to those who have committed crimes such as murder, violations, domestic violence or abuse of minors, nor to crimes committed by political office holders, members of security forces or Armed Forces, by magistrates or other persons with special responsibility functions;
  • The general director of reintegration and prison services or by delegation of these, may grant leave of absence to the convicted for a period of 45 days, with possibility of renewal. If the administrative leave under these terms has been successfully granted, the placement on probation may be brought forward by the court of execution of the sentences for a maximum period of six months.
G) Measures to support social institutions
  • Increase by 3.5% in the payment of social security financial contribution under cooperation agreements concluded in all social responses whose activity has been suspended;
  • Whenever the Residential Structure for Elderly Persons is in a situation of second degree dependence, the value of the expected financial contribution is increased by:
  1. An additional monthly contribution of 113.22 (euro) per elderly person in situations of second-degree dependency; And
  2. A monthly supplementary contribution of 53.39 (euro) per user/month when the frequency of the elderly person in a situation of second degree dependency is 75 % or more;
  • In situations of day care centers incorporating children with disabilities, per room, in addition to the financial contribution that corresponds to twice the amount fixed in the cooperation agreement, up to the limit of the number of users covered, there is a supplementary contribution of 101.91 (euro) per child/month for the year 2020;
  • Support for humanitarian fire-fighting associations through the possibility of bringing forward twelfths of the permanent funding due to them and the provision of a specific line of funding for the payment of salaries;
  • Reduction of VAT on protective masks and disinfectant gel to 6%, a proposal that had been made by Rui Rio and accepted by the Government;
    Extension to national and EU operators of the exemption from VAT on the supply to hospitals and charitable organisations of various health equipment, including personal protective equipment, in line with the decision already taken by the European Commission and followed by Portugal on the situations of importation of these goods.

H) Measures to support agriculture sector

  • For the purposes of financing, management and monitoring of the Common Agricultural Policy (CAP), COVID-19 pandemic situation can be recognised as a “force majeure case”, resulting in the impossibility of complying with obligations laid down in the support schemes. In these situations, the administrative penalties established, in particular at the level of reductions or exclusions of support, will not apply because the non-compliance is not intentional or negligent;
  • Situations of non-compliance, in fallow subplots, of obligations relating to the abstention of grazing in the period from 1 February to 31 July 2020 are considered “force majeure”, and the affected beneficiaries are not penalised in the amount of the Greening payment and the communication of the “force majeure” occurrence is waived;
  • Non-compliance on holdings with parcels producing cereals, as well as those relating to obligations to the practice of crop diversification are also considered as “force majeure”, however, in such cases, the affected beneficiaries shall assess on a case-by-case basis the verification of a causal link and report the occurrence of the “force majeure case”;
  • It was also foreseen that, in view of the restrictions on movement imposed by virtue of the State of Emergency, control and certification bodies will be exempted from carrying out presential control actions and the communication by these bodies of the ‘force majeure’ event is exempted.

I) Tourism 

  • Travel packages organised by travel and tourism agencies, scheduled between 13 March 2020 and 30 September 2020, which are cancelled due to the outbreak of the COVID-19 disease pandemic, confer, exceptionally and temporarily, the right to travellers to opt:

a) By issue a voucher of equal value to the payment made by the traveler and valid until December 31, 2021. The voucher is issued to the bearer and is transmissible by mere tradition. If it is used for the same trip, even if on a different date, the insurance that was contracted at the time of acquisition of the travel service remains in force and if it is not used until December 31, 2021, the traveler is entitled to reimbursement within 14 days. Or
b) By rescheduling the trip until December 31, 2021. If the rescheduling is not made until December 31, 2021, the traveler is entitled to reimbursement, to be made within 14 days.

  • These measures are also applicable to the case of finalist or similar trips;
  • The non-compliance attributable to travel and tourism agencies allows travelers to activate the travel and tourism guarantee fund;
  • Until 30 September 2020, travellers who are unemployed may request a reimbursement of the entire amount spent, to be made within 14 days;
  • Reservation of accommodation services in tourist resorts and local accommodation establishments located in Portugal, with or without complementary services, carried out directly by the guest in the resort or establishment or through online platforms, for the period from 13 March 2020 to 30 September 2020, that are not carried out or that are cancelled due to a fact related to the declaration of a state of emergency decreed in the country of origin or in Portugal or, also, to the closure of borders attributable to the outbreak of the COVID-19 disease pandemic, in the modality of non-reimbursement of the amounts paid, confer, exceptionally and temporarily, to the guests the right to opt:

a) By issue a voucher of equal value to the payment made by the guest and valid until December 31, 2021;

b) By rescheduling the reservation of the accommodation service until December 31, 2021, by agreement between the guest and the tourist resort or local accommodation establishment.

The voucher referred in paragraph a) of the previous number:

a) It is issued in the guest’s name and is transmissible by mere tradition;

b) It can be used by whoever presents it also as a principle of payment for services of higher value, according to the availability of the resort or establishment and the conditions applicable on the new dates intended. If the rescheduling is not made until December 31, 2021, due to lack of agreement between the tourist resort or local accommodation establishment and the guest, he has the right to be refunded on the amount paid at the time of cancellation of the reservation, to be made within 14 days.

c) In case it is not used until 31 December 2021, the guest has the right to the reimbursement, to be made within 14 days.

  • Rescheduling can only be done directly with the tourist resort and local accommodation establishment. The provisions do not apply to refundable reservations, in which case the rules on cancellation of tourist resorts and local accommodation establishments shall apply;
  • Until 30 September 2020, guests who are unemployed may request reimbursement of the entire amount spent, to be made within 14 days;
  • Reservation of accommodation services in tourist resorts and local accommodation establishments located in Portugal, for the period from 13 March 2020 to 30 September 2020, carried out by Portuguese or international travel and tourism agencies or entertainment operators operating in Portugal, that are not carried out or that are cancelled due to a fact related to the declaration of a state of emergency decreed in the country of origin or in Portugal or to the closure of borders attributable to the outbreak of the COVID-19 disease pandemic, in the form of non-reimbursement of the amounts paid, grant, exceptionally and temporarily, to these operators the right to credit of the unused amount;
  • Credit must be used for the settlement of costs with any other booking of services with the same tourist resort or local accommodation establishment, on a date defined by the travel and tourism agency or the tourist entertainment operator, subject to availability of accommodation services, until December 31, 2021;
  • If the tourist resort or local accommodation establishment is not available for multiple dates requested by the travel and tourism agency or the tour operator until December 31, 2021, the travel and tourism agency or the tour operator may request the return of the credit to be made within 14 days;
  • If the travel and tourism agency or the tour operator is not able to make a new reservation for an accommodation service at a tourist resort or local accommodation establishment located in Portugal by 31 December 2021, the deposit amount must be returned within 14 days after this date.

J) Sport

  • Extension of the public utility status of sports federations until December 31, 2021, ensuring ownership of the status until the year of the Olympic and Paralympic Games, the year in which its renewal may be requested;
  • Extension of the mandates of the sport’s federation bodies, professional leagues or territorial associations of clubs until the year 2021 to ensure the organisational stability of the sports federations and continuity in the conduct, where appropriate, of their Olympic projects;
  • Amendments to the regulations of sports federations, allowing them to take effect in current sporting seasons, so as to enable the federations to adopt measures in response to the public health emergency caused by Covid-19 disease;
  • Comparison of distance training with face-to-face training (sports coaches, technical directors and exercise coaches), ensuring a match between the hours of training required to obtain continuous training credit units, in order to cope with the difficulties of conducting face-to-face training actions;
    Suspension of the renewal of registration of high performance sports agents (sportspersons, coaches and referees), ensuring the continuity of the support to these agents as long as there are no international competitions that allow them to obtain the sports results that justify such renewal;
    Suspension of the renewal of medical-sports examinations (sportspersons, coaches and referees), in view of the restrictions arising from the Covid-19 disease pandemic.

K) Measures to prevent risks of corruption and related offences

  • The Council for the Prevention of Corruption has recommended to all public bodies and entities, regardless of their nature, to intervene in the management or control of monies and other public values, as follows:

1 – Ensure the necessary control to guarantee the absence of conflicts of interest, the transparency of public procurement procedures and the integrity in the execution of public contracts, especially in the areas of health and infrastructure.

2 – To strengthen the means and instruments necessary to ensure transparency, impartiality and integrity in the allocation of public aid and social benefits, with possible use of digital information platforms or transparency portals.

3 – To ensure the creation of monitoring and evaluation tools concomitant with the implementation of public aid, in accordance with the principle of efficiency and effectiveness in the application of public money.

4 – To exercise an effective control over the operations of public intervention in the Business Sector and other beneficiary Private Entities, considering, in particular, the warning signs of risk of irregularities, in order to safeguard the legality, the correct application of the resources and their allocation to the foreseen purposes.

L) Courts

  • The declaration issued by a health authority in favor of a procedural subject, party, its representatives or agents, that attests the necessity of a period of isolation from them due to possible risk of contagion of COVID-19 is considered, for all intents and purposes, grounds for the allegation of fair impediment to the practice of procedural acts that must be practiced in person in the scope of proceedings, procedures, acts and diligences that run their terms in judicial, administrative and fiscal courts, arbitration courts, courts of peace, alternative dispute resolution entities, notary public offices, registry offices, services and administrative entities;
  • The referred declaration also constitutes grounds for not appearing in any procedural or procedural steps, as well as its postponement, within the scope of the proceedings and procedures referred to in the preceding paragraph;
  • In case of closure of facilities where procedural acts must be performed within the scope of proceedings and procedures, or of suspension of attendance at those facilities by decision of a public authority based on the risk of contagion of COVID-19, the time limit for performing the procedural or procedural act in question shall be considered suspended from the day of the closure or suspension of attendance;
  • The suspension ceases with the declaration by the public authority of the reopening of the installations;
  • The signature of the other judges who, besides the rapporteur, have intervened in a collective court, may be replaced by a written declaration of the rapporteur attesting the vote of conformity of the judges who have not signed.

M) Measures to support families

Until 30 September 2020, consumers who are unemployed or whose household income is 20 % or more lower than that of the previous month may apply:

  1. a) unilateral termination of telecommunications contracts, without compensation to the supplier;
  2. b) The temporary suspension of telecommunication contracts, without penalties or additional clauses for the consumer, resuming on 1 October 2020.

The payment plan referred to in the preceding paragraph is defined by agreement between the supplier and the client, starting from the second month after the end of the term;

Until September 30, 2020, the amount of the Retirement Savings Plans (PPR) may be reimbursed up to the monthly limit of the index of social support, by the participants of these plans and provided that one of the members of their household is in a situation of prophylactic isolation or illness or is caring for children or grandchildren, or has been placed in a reduction of the normal working period or in suspension of the employment contract, due to a business crisis, in a situation of unemployment as well as being eligible for extraordinary support for the reduction of the economic activity of a self-employed worker, i.e. worker of entities whose establishment or activity has been closed during the state of emergency or during a calamity situation due to legal or administrative imposition;

The suspension of the supply of the following essential services is not allowed until September 30, 2020.

N) Other measures

  • Approval of  public procurement and authorization of expenditure exceptional regime;
  • Extension of the vehicle periodic inspection period by five months from the date of registration for vehicles required for inspection between 13 March and 31 May 2020.
  • Trips scheduled until September 31 and cancellations due to the pandemic will be replacable by vouchers of the same value until December 31, 2021.  Thus, a voucher is awarded until December 31, 2021 and, on that date, it can be reimbursable”;
  • Automatic extension of the period for receiving domestic violence victims until 15 July 2020;
  • It is determined that within 72 hours probationary proceedings shall be carried out to evaluate the victim’s background in relation to the assessment of the risk of further acts of violence against the victim and other persons related to the victim, by the prosecutor or the OPC, as well as in cases where the accused is detained;
  • Civil jurisdiction is given to the criminal courts to issue urgent provisional decisions for the protection of domestic violence victima, such as the provisional regulation of the exercise of parental responsibilities, the provisional use of the family home and the custody of pets. These measures shall be communicated to the Public Prosecutor of the competent court;
  • The scope of the Database on Violence against Women and Domestic Violence is broadened, in the context of the process of improving, harmonising and updating official data on violence against women and domestic violence under way, in particular by adapting and harmonising collection mechanisms and information systems.
  • The simplified direct setting regime for the execution of contracts whose object is the acquisition of equipment, goods and services necessary for the prevention, containment, mitigation and treatment of infection by SARS-CoV-2 and COVID-19 disease, or related to them, may be adopted exceptionally, to the extent strictly necessary and for reasons of compelling urgency, duly substantiated, and independently of the contractual price and up to the limit of the budgetary scope, namely:
  1. Personal protective equipment;
  2. Goods necessary for the testing of COVID-19;
  3. Equipment and material for intensive care units;
  4. Medicines, including medicinal gases;
  5. Other medical devices;
  6. Logistics and transport services, including air transportation, related to the acquisition, against payment or free of charge, of the goods mentioned in the previous paragraphs, as well as their distribution to entities under the supervision of the Government member responsible for the health area or to other public or public interest entities for which they are destined.
  • The circumstances invoked to justify extreme urgency may in no case be attributable to the contracting authority;
  • Contracts made under the simplified direct setting regime shall be communicated by the contracting authorities to the members of the Government responsible for finance and health and shall be advertised on the public procurement portal, including the grounds for adopting this procedure;
  • Up to 60 days after the period of validity of the decree-law, the entities shall prepare a joint report, which is published on SPMS’s website, E. P. E., on all contracts grounds and circumstantiality, namely by justifying the impossibility or serious inconvenience of having recourse to another type of procedure.
+ State of Emergency

State of Calamity

State of Calamity in Portugal

It was published the Council of Ministers Resolution 88-A/2020 declaring the calamity situation due to the Covid-19 pandemic.

To this extent, the following measures have been implemented:

Mandatory Confinement

Patients with COVID-19 and those infected with SARS-CoV-2, as well as citizens for whom the health authority or other health professionals have determined active surveillance, are subject to mandatory confinement.

Work organisation and teleworking

The employer must provide adequate safety and health conditions to prevent the risk of infection, and may in particular adopt the teleworking regime.

Without prejudice, telework may be compulsory in the following cases:

  • When the employee, through medical certification, is covered by the exceptional protection regime for immunosuppressed and chronically ill people;
  • In the case of a disabled employee, with a degree of disability of 60 % or more.

Teleworking scheme is also compulsory, irrespective of the employment relationship and whenever the functions concerned allow it, when the physical spaces and the organisation of the work do not allow compliance with the guidelines of the DGS and the Authority for Working Conditions on the matter, to the strict extent necessary.

Closed premises and establishments

Facilities and establishments for recreational, leisure and entertainment activities, dance or party halls, amusement parks and similar parks for children and other similar places or facilities, games and betting facilities and drinks establishments remain closed.

Sales and consumption of alcoholic beverages

The sale of alcoholic beverages in service areas or at petrol stations and, from 8 p.m. onwards, in retail outlets, including supermarkets and hypermarkets, is prohibited.

The consumption of alcoholic beverages is forbidden in open air spaces with public access and on public roads, except in the exterior spaces of restaurants and drinks establishments duly licensed for this purpose.

In the period after 8:00 pm, the exception provided for in the final part of the previous paragraph admits only the consumption of alcoholic beverages in the context of meal service.

Rules of occupation, permanence and physical distance

  • The maximum occupancy of spaces accessible to the public should be 0.05 people per square metre of area, with the exception of service establishments;
  • Minimum distance of two meters between people, unless special provision or orientation of the DGS in a different direction;
  • Permanence within the spaces only for the time strictly necessary;
  • Prohibition of waiting situations for service provision within service establishments, with economic operators having to resort, preferably, to prior appointment mechanisms.

Hygiene rules

  • Promotion of daily and periodic cleaning and disinfection of spaces, equipment, objects and surfaces with which there is intense contact;
  • Promotion of cleaning and disinfection, before and after each use or interaction by the client, of the automatic payment terminals (TPA), equipment, objects, surfaces, products and utensils of direct contact with the clients;
  • Control of access to tasters, safeguarding, when applicable, the partial inactivation of some of these spaces, in order to guarantee the minimum safety distances.

Disinfectant solutions

Retail or service establishments should seek to ensure that skin disinfectant solutions are available to workers and customers at all entrances and exits of establishments, as well as within them, in suitable locations for disinfection according to the organisation of each space.

Priority 

Retail or service establishments should give priority to health professionals, security, protection and rescue personnel, armed forces and social support personnel.

Duty to provide information

Retail or service establishments must clearly and visibly inform customers of the new rules on maximum occupancy, operation, access, priority, service, hygiene, safety and other relevant rules applicable to each establishment.

Events

Celebrations and other events involving a crowd of more than five people are not permitted, unless they belong to the same household, without prejudice to the following paragraph.

Special rules for:

  • Family events, including weddings and baptisms, whether for civil or religious ceremonies or for other commemorative events, a gathering of more than 50 people is not permitted, except for weddings and baptisms scheduled to take place by 11:59 pm on October 14, 2020, to be confirmed by a declaration of the celebrating entity;
  • Events of a corporate nature held in spaces suitable for this purpose, namely congress halls, tourist establishments, venues suitable for holding trade fairs and open-air spaces.

Funerals

The holding of funerals is subject to the adoption of organisational measures to ensure that there are no crowds of people and that safety distances are controlled, in particular the setting of a maximum attendance limit to be determined by the local authority exercising the management powers of its cemetery.

Rules applicable to air traffic and airports

Passengers on flights from countries to be defined by order of the members of the Government responsible must, at the time of departure, present proof of molecular testing for infection by SARS-CoV-2 with a negative result, carried out in the 72 hours preceding the time of boarding, failing which they will be denied boarding of the aircraft and entry into national territory.

National citizens and foreign nationals legally resident in national territory, as well as diplomatic staff posted in Portugal, who, exceptionally, do not have proof of molecular testing for infection by SARS-CoV-2 with a negative result on arrival, before entering national territory, are sent by the competent authorities to carry out that test at their own expense.

Passengers who are found to have a body temperature of 38 ºC or above must be routed immediately to a space suitable for a repeat measurement of the body temperature and, if the assessment of the situation so warrants, those passengers must be subjected to a molecular test for screening for infection by SARS-CoV-2.

Restoration and similar

The operation of catering and similar establishments is only permitted if the following conditions are met:

  • Compliance with the instructions specifically drawn up for this purpose by the DGS, as well as with the rules and instructions laid down in this scheme;
  • Occupancy within the establishment is limited to 50% of its capacity or, alternatively, impermeable physical barriers are used to separate customers facing each other and a distance between tables of one and a half metres;
  • From 00:00 h public access is excluded for new admissions;
  • They close at 01:00 h;
  • Groups of more than five people are not allowed to stay, unless they belong to the same household.

Bars and other drinking establishments

Bars, other no-show drinks establishments and drinks establishments with dancing space remain closed.

Fairs and markets

For each fairground or market there must be a contingency plan for VIDOCID-19 disease, drawn up by the competent local authority or approved by it, in the case of fairs and markets operated by private entities.

Gambling establishments, casinos, bingos or similar establishments

Gambling establishments, casinos, bingos or the like are allowed to operate as long as they are in good standing that they:

  • Comply with the guidelines and instructions laid down specifically for this purpose by the DGS concerning physical distance, hand and surface hygiene, respiratory label and the rules laid down in this scheme;
  • Have a specific protocol for cleaning and sanitising the gaming areas;
    Prioritise transactions by TPA;
  • Do not stay inside the establishments that do not want to consume or play.

Personal care and aesthetics

  • Hairdressing salons, barbershops, beauty institutes, by appointment;
  • Tattoo and bodypiercing establishments or studios, by appointment;
  • Massages in beauty salons, gyms or similar establishments.

Activities in academic context

It is forbidden, in the academic field of higher education, to celebrate, as well as to engage in playful or recreational activities.

+ ESSP

ESSP

ESSP– Economic and Social Stabilisation Programme
1. Companies and Employees
ACTIVAR.PT – Employment support measures, especially for new unemployed
Target groups: unemployed, with a special focus on new unemployed and young people
Objective: to cover 50,000 new unemployed and keep the coverage rate of active policy measures close to 20% between 2020 and 2021
Amount: budget increase of EUR 106 million IEFP, I. P.
Financing: ESF
Responsible: MTSSS
The Program includes active policy programs for specific sectors and audiences:
  • Impulse of young PME to promote the qualification and renewal of SME staff, particularly in strategic sectors of the Portuguese economy, stimulating the hiring of qualified young people (level 5 of the National Qualifications Framework (NQF) or higher).
  • Recipients: mature companies (>5 years), viable and inserted in strategic sectors.
  • Publics eligible for supported hiring: unemployed young people up to the age of 35 with a qualification equal to or higher than level 5 of the National Qualifications Framework (QNQ).
  • Configuration: direct hiring support, paid in a phased manner over 12 months and with a variable amount according to the level of qualification of the young person to be hired, and with a surcharge for the hiring of young people of the under-represented sex in highly asymmetrical sectors from the gender point of view.
  • Undertakes2020, a national competition of projects to create one’s own job and business projects for young people and the unemployed in the logic of (re)entering the labour market young people and the unemployed, with monitoring during the first year (space; counselling; technical support), enhancing the experience and capacity installed in IEFP, I. P., STARTUP Portugal, National Network of Incubators, among other operators. The introduction of a quota for entrepreneurial projects presented by women and an increase in the amount of financial support when these projects fall into highly asymmetrical sectors from the gender point of view are foreseen.
  • Target groups: young people looking for their first job; young NEETs; other unemployed
  • Responsible: MTSSS /METD
  • + CO3SO Employment, to support entrepreneurship initiatives, including social entrepreneurship, by financing the creation of jobs, including the inherent costs, especially in the inland territories.

Support for investments by emigrants and Lusodescendants

  • A flat rate of 40 % on the direct costs of the jobs created, to finance other costs associated with their creation.
  • The support is for the hiring of workers with a permanent contract and the support is for 36 months.

Beneficiaries: SMEs and social economy entities

Amount: 70 M

Financing: ESF

Responsible: MCT/MTSSS

Social Employment Market Network in the national territory, mobilizing local actors to respond to needs and public not covered by the market, within the scope of the following measures:

  • MAREESS – Measure to support the emergency reinforcement of social and health equipment: extension of the measure until the end of 2020 and introduction of a “employment premium” for entities that hire participants integrated in the projects for an indefinite period.
  • Local Partnerships for Employment and Training: involvement of municipalities, social economy and other local actors to promote signage and referral of very disadvantaged audiences to employment and/or training responses.
  • CEI/CEI+: reinforcement of the training and insertion component and promotion of a better balance between improving the employability of beneficiaries and the needs of user entities.
  • Extraordinary support for the integration of people with disabilities, in order to create the conditions to improve the conditions of integration of people with disabilities in an emergency framework, with an exceptional extension of the Internships and CEI/CEI+ projects already being implemented until the end of 2020, but also with the reinforcement of support for the employment of people with disabilities.

Recipients: people with disabilities

Responsible: MTSSS

  • Social employment hubs, a network of job search incubators, based on a collaborative methodology in which, with the support of a mentor, a dynamic of skills acquisition and joint work routines in job search are generated

Recipients: unemployed (broadband measure)

Responsible: MTSSS

ACTIVAR.PT Professional Training

  • Review and strengthening of responses to training and retraining programmes for the unemployed.
  • Specific training programs for emerging areas – digital economy; energy and climate change; social sector.
  • Digital Guarantee: to ensure that by 2023 all unemployed people have a digital training offer.
    Bet on post-secondary professional training (level 5), with revision and re-launch of Technological Specialization Courses and expansion of Learning Courses to post-secondary level (launch of Dual + program).
  • Target groups: unemployed, with special focus on new unemployed and young people
  • Objective: to cover at least 40,000 new unemployed and keep the coverage rate of active policy measures close to 20% between 2020 and 2021
  • Amount: budget increase of EUR 35 million IEFP, I. P.
  • Financing: ESF
  • Responsible: MTSSS
The strengthening of training policies includes measures to increase the skills of specific audiences:
  • Young + Digital, Training Programme for young graduates or with 12th year for the acquisition of skills in digital areas such as e-commerce, programming bases, mobile applications, webdesign
  • Addressees: young unemployed or newly graduates looking for their first job, graduates or 12th year olds
  • Pro Digital Programme, to equip and train the professional training centres of the IEFP network (direct management centres and participatory management centres with social partners) to develop distance learning

Professional requalification in higher education

Short initial training in polytechnic higher education

Support the insertion of 10,000 young people and adults, including unemployed and lay-off people, in short initial training in higher education polytechnic (cTESPs) in conjunction with employers, to start with face-to-face actions in July 2020, in order to increase by 30% the graduates of these training courses.

Recipients: 10,000 new higher education students

Amount: EUR 5 M (2020) EUR 10 M (2021)

Funding: EU (2020) EU+OE (2021)

Responsible: MCTES/MTSSS/MPlan/MCT

Encouraging the insertion of active adults in higher education (over 23 years)

To support the insertion of 10 000 adults (over 23 years), including unemployed and lay-off people, in higher education degree programs, mainly in post-labour regime, to start with face-to-face actions in July 2020.

Addressees: 10,000 new higher education students

Amount: EUR 5 M (2020) EUR 10 M (2021)

Funding: EU (2020) EU+OE (2021)

Responsible: MCTES/MTSSS/MPlan/MCT

Post-graduate courses with employers, scientific institutions and innovation centres
To support the integration of 10,000 adults, including unemployed and lay-off people, into postgraduate higher education courses, mainly of short duration, to be started with face-to-face actions in July 2020, in a post-labour regime and in articulation with employers and R&D units, scientific institutions and innovation centres.
Recipients: 10,000 new higher education students
Amount: EUR 15 M (2020) EUR 25 M (2021)
Funding: EU (2020) EU+OE (2021)
Responsible: MCTES/MTSSS/MPlan/MCT
Highly Qualified Human Resources – RHAQ (graduates, masters, doctors)
Support for the recruitment of Highly Skilled Human Resources, adapted to the specificities of the hinterland territories with a total allocation of EUR 18.1 million (EUR 16.6 million in the hinterland) which will create 654 new highly qualified jobs (graduates, masters and PhDs), of which 614 in the hinterland territories.
Recipients: Companies and entities in the scientific and technological system
Amount: EUR 18.1 M
Financing: ESF
Responsible: MCT
Employment support in recovery
  • Companies which remain closed by determination of the Government remain eligible for the simplified lay-off scheme;
  • The simplified lay-off, in the model currently in force, is extended until the end of July;
  • Companies that have a drop in turnover of 40% or more can benefit, between August and December 2020, from a progressive recovery support mechanism;
  • Companies that have benefited from the simplified lay-off scheme can now benefit from an extraordinary incentive to normalise business activity, choosing one of two modalities: 1 SMN one-off or 2 SMN over 6 months, with conditionalities regarding the prohibition of dismissals and job losses.

Support for gradual recovery

The measure replacing the simplified lay-off has as its main assumptions:

  • The progressive convergence of the worker’s salary to 100 % of his salary;
  • The payment by the company of all hours worked;
  • The progressive reduction of the exemption from social security contributions and the compensation of the loss of social security revenue by the State Budget

 

JULY AUG/SEP OCT/DEC
Elegibility Closed and > 40%Drop off ≥ 40%Drop off ≥60%Drop off ≥ 40%Drop off ≥ 60%Drop off
Measure Suspension or activity reduction Reduction of working hours until 50% Reduction of working hours until 70% Reduction of working hours until 40% Reduction of working hours until 60%
Social Security Contributions Total exemption Big companies reduction 50% No reduction
Total exemption MPMES Reduction 50%
Salary Worked hours or non worked hours paid at 66% Worked hours paid 100%
Non worked hours paid 66% Non worked hours paid 80%
Social Security 70% of worked and non worked hours Worked hours: 0%
Non worked hours: 70%
Employee’s salary 66% At least 83% At least 77% At least 92% At least 88%
  • Prohibition of collective dismissal, due to the extinction of the job and due to unsuitability during the implementation of the measure and in the following 60 days;
  • Prohibition of distribution of dividends during the application of the measure.

Recipients: Companies that have benefited from the simplified lay-off scheme and have a turnover shortfall of 40 % or more

Amount: 713 M

Financing: OE + SURE
Responsible: MTSSS
Extraordinary financial incentive for the normalisation of business activity

Recipients: enterprises which have benefited from the simplified lay-off scheme or the extraordinary training plan (PEF) as long as they have not accessed the phase-in support mechanism.

  • One-off support

Scheme: One-off support of 1 x SMN per job that has been lay-off under the simplified scheme;

Conditionality: prohibition of collective dismissal, due to job extinction and maladjustment, as well as the duty to maintain the level of employment for the following 60 days

Amount: 169 M

Financing: OE + SURE

Support over 6 months

Regime:

2 x SMN per worker (paid in two or three tranches over six months);

50 % reduction in social security contributions for the first 3 months;

If in the three months following the end of the support there is net job creation compared to the same three months, the company is exempted from paying social security contributions for a period of two months in proportion to the employment gain as long as it maintains this employment gain for a period of six months.

Conditionality: prohibition of collective dismissal, due to job extinction and maladjustment, as well as the duty to maintain the employment level, during the implementation of the measure and in the following 60 days

Amount: 434_ M
Financing: OE + SURE
Responsible: MTSSS
Income protection

Stabilization Complement

Creation of the Stabilization Supplement, with the objective of giving extraordinary support to workers who had a reduction in income as a result of the pandemic, with the objective of mitigating the loss of family income.

This is a one-off measure, to be paid in July, in the amount of the loss of income of one lay-off month, in an amount that can vary between 100 and 351 euros, to all workers with income from February up to 2 SMN and who have recorded a loss of base salary (i.e. have a base salary of more than 1 SMN), who were lay-off in one of the months between April and June.

Recipients: workers with a base salary higher than 1 SMN and less than or equal to 2 SMN who were in lay-off.

Amount: 70 ME

Financing: State Budget (financed by SURE)

Responsible: MTSSS

Protection of self-employed and informal workers

Extraordinary measure to support self-employed and informal workers in a situation of social vulnerability, which foresees the support of 1 IAS (EUR 438.81), between July and December 2020, and its integration into the social security system, with a 36-month link to the public social protection regime.

Requirements:
Binding to the social protection system for 30 months, after the deadline for granting the support (December 2020).

After the support is granted, the corresponding contribution must be paid to the self-employed worker based on the amount of the support for 30 months.

During the period of granting of the support the worker contributes with 1/3 of the amount of the contribution corresponding to the self-employed worker and the rest is paid within 12 months after the granting of the support.

Amount 38 M
Financing: OE
Responsible: MTSSS

Teleworking

Increase the number of Public Administration employees teleworking
The Government intends, by the end of the legislature, to have at least 25% of the workers in telework from among the universe of those who perform functions compatible with this type of work.
Addressees: Workers of the Public Administration
Amount: EUR 4.4M
Source of funding: State Budget
Entities responsible: DGAEP
Working Inside
The Inland Work Programme provides a set of measures to stimulate job creation and the settlement of workers and their families in the territories of the interior of the country. These include initiatives to strengthen incentives to work inland:
  • Geographical mobility of workers (Inland Employment Plus measure – Supported Mobility for a Sustainable Interior;
  • Dynamics of the employment market in the territories of the interior, decisive for the leverage of the factors of attractiveness and retention of people and companies.

The measure “Inland Employment PLUS” is aimed at families who want to live and work in inland/low-density counties, and the support for mobility expenses from territories that are not inland to inland territories, and as such constitute an incentive for telework in these territories.

Recipients: Workers and their families who want to move from the coast to work in the interior
Amount: EUR 3M
Financing: ESF

Responsible: MTSSS/MCT

Support for telework contracting

Within the scope of the Programme + CO3SO Employment, a special hiring support system is created within the scope of the direct costs associated with the jobs created, namely the costs with salaries, plus the respective contribution expenses to be borne by the employer, within a maximum period of 36 months, allowing coastal companies to receive an additional 0.5 IAS (Social Support Index) per job for each month of support, regardless of the number of jobs created, whenever jobs are created in a territory of the Inland in a teleworking regime.
ESF value: 20 M

Support for the creation of coworking/teleworking spaces, in the interior, with the involvement of municipalities or technological infrastructure

Support will also be given to the implementation/improvement of working conditions through the creation (with continuous involvement of municipalities and technological infrastructures) of spaces specially designed for teleworking, namely in a coworking system, based on technology-based infrastructures (namely Technology Parks). The implementation of these spaces is expected to have a high potential to capture the new digital nomads and millennials, among others, promoting the practice of telework, especially in inland cities.

Coworking/teleworking spaces aim to reduce the disadvantages of teleworking, namely isolation, a frequent factor of discouragement. On the other hand, they stimulate the sharing of experiences, ideas, as well as being a stimulant factor for the local economy.

ERDF value: EUR 20 million

Beneficiaries: municipalities and technological infrastructure of inland territories

Promotion of the Blue Economy

  • VOUCHER EMPLOYMENT BLUE – 50% net support to the annual recruitment of graduates or masters or PhDs in marine or related areas for the various areas of the blue economy including for the management support of these SMEs;
  • BLUE VOUCHER INNOVATION – to support entrepreneurs with innovative projects on a sustainable basis, focusing on the circular economy, biotechnology, preservation of biodiversity and nature conservation, waste reduction and industrial requalification and reconversion;
  • Campaign to promote the national fish and increase the number of short marketing circuits, with a view to fairer trade, with the consequent increase in income for producers and fishing professionals.

Recipients: Young graduates, masters or PhDs; Technological and scientific based entrepreneurs; Fishermen

Amount: 2M Blue Job Voucher; 1.7M Blue Innovation Voucher; 250 thousand Euros
Financing: Blue Fund; PO-MAR2020
Responsible: MM

2. Tax Measures

Payments on Account

Following the recommendation of the Organisation for Economic Cooperation and Development (OECD) on this issue, an adjustment is made to the rules and forms of payment for the PPP due in 2020:

  • Break in invoicing > 20% in the 1st half of 2020 – limitation of payment up to 50%;
  • Break in invoicing > 40% in the 1st half of 2020 and housing and catering sectors – limitation of payment up to 100%;

Recipients: Companies

Amount: This measure has no budgetary impact, only on the distribution of corporate income tax (IRC) revenue between 2020 and 2021, and is an important support to business liquidity in 2020.

Responsible parties: MEF

Autonomous Taxations

The increase in autonomous taxes due by companies with profits in previous years and which show a tax loss in 2020 should be disregarded.

Recipients: Companies

Responsible: MEF

Reporting period for tax losses

The context of economic paralysis, followed by a gradual and uncertain recovery, will lead to the tax result of companies being particularly marked by the creation of new tax losses and the difficulty of using past tax losses already recognised.

In this sense, a particular consideration of tax losses in the current conjuncture is justified, giving them a specific and transitory framework with the following rules:

Disregard the years 2020 and 2021 for the purposes of counting the period of use of tax losses in force on 1 January 2020;

For tax losses for 2020 and 2021, to change for companies that have a carry-over period from 5 to 10 years, and to extend for all companies the deduction limit from 70 % to 80 % when these 10 percentage points concern tax losses from 2020 and 2021;

Addressees: Companies

Responsible: MEF

Fostering concentrations and acquisitions of PME

In concentrations of PME in 2020, disregard the limit of use of tax losses by the acquiring company (by reference to the assets of the companies involved in the operation), with the rule of non-distribution of profits, for 3 years, exempting, during the same period, the application of state surcharge (where applicable);

Consider the transferability of tax losses on acquisitions of shares of PME which, in 2020, became considered “companies in difficulty”, for use of these tax losses by the acquiring company, with the rule of non-distribution of profits and the commitment to maintain jobs for 3 years.

Recipients: Companies

Responsible: MEF

Additional solidarity contribution on the banking sector

The creation of an additional 0.02 pp of solidarity on the banking sector, whose revenue is earmarked to contribute to the costs of the public response to the current crisis, through its consignment to the Social Security Financial Stabilisation Fund.

Recipients: (i) credit institutions with their main and effective head office in Portugal, (ii) branches in Portugal of credit institutions that do not have their main and effective head office in Portugal and (iii) branches in Portugal of credit institutions with their main and effective head office outside Portugal.

Amount: revenue 33M

Responsible: MEF

Extra investment tax credit

It is proposed to reinstate the Extraordinary Investment Tax Credit, creating for the investment expenses made in the second half of 2020 and in the first half of 2021, a deduction from the IRC collection, corresponding to 20% of investment expenses up to a limit of 5 million euros, to be used for a maximum period of 5 years, with the obligation to maintain jobs during the period of use of the tax credit, with a minimum of three years.

Recipients: Enterprises

Responsible: MEF

3. Loans and Fundings

Measures to support the tourism sector

Tourism: Congress VAT

Return to the organisers of congresses, fairs, exhibitions, seminars, conferences and the like of the amount equivalent to the VAT deducted from the Tax and Customs Authority with the expenses incurred for the direct needs of the participants in accordance with Article 21(2)(d) of the CIVA.

Addressees: Events Organization Companies

Amount: Up to 6 M

Financing: Turismo de Portugal, I. P.

Responsible: MEETD/ MEF

Plan for the Resumption of the Portuguese Tourism Air Operation

Reinforcement of the Plan for the Resumption of the Air Operation of Tourism of Portugal, promoting the launch or development of air routes of tourist interest to Portugal, and aiming at the valorisation and dissemination of the national tourist offer aimed at the distribution channels in the various issuing markets, through the implementation of marketing campaigns for regional destinations

Target groups: Companies in the tourism production and distribution chain in the market(s) in which it operates

Amount: EUR 20 M reinforcement

Funding: Tourism of Portugal, I.P., European funds

Responsible: MEETD/ MP

Support to Events Organization

Creation of a financial facility to respond to the immediate and pressing financing needs of micro-enterprises and PME for the organisation of events, whose activity is limited due to the restrictions imposed in the framework of OVID-19 and support for the promotion of events.

Recipients: Events Organizing Companies

Amount: 20 M

Funding: Tourism of Portugal, I.P., European funds

Responsible: MEETD/ MP

Support for Microenterprises in Tourism

Extension of the financial support of the line for tourism microenterprises and partial conversion into a non-repayable fund.

Recipients: Tourism Microenterprises

Amount: EUR 40 M reinforcement

Funding: Tourism of Portugal, I.P., European funds

Responsible: MEETD/ MP

Credit Lines and Moratoriums

Reinforcement of the volume of credit lines with State guarantee until the end of the year by 6,800M euros, taking into account the maximum amount authorized by the European Union, which will allow doubling the amount already made available. The Government will thus be able to reinforce the public policy of promoting the financing conditions of companies, through credit lines with a public guarantee:

  • Launch of credit lines with a public guarantee of up to EUR 1,000 million, for financing up to EUR 50,000 from micro and small companies in all sectors of activity;
  • Continuation of the provision of publicly guaranteed lines of credit, according to the specific needs of the various sectors of activity and the economy as a whole;
  • Support for international order financing under the COVID-19 economic support lines, allowing companies to ensure liquidity conditions to meet the demand of foreign clients.

Recipients: PME and MidCaps

Amount: EUR 6,800 M guarantee for FCGM

Responsible: MEETD/MENE/MEF

Credit Insurance

Recipients: all companies

Amount: 2000M euros of guarantees for public coverage

Responsible: MEETD/MENE/MEF

PME financing

Creation of a special vehicle for the acquisition of debt issued by PME and the placement of this debt on the capital market, through the issue of bonds, with the possibility of associating Mutual Guarantee. It follows up the ongoing project to issue Tourism Bonds, which brings together a number of PME in Tourism, but does so through a new mechanism in Portugal that makes it possible to speed up the financing of PME through the capital market, mainly by resorting to institutional investors.

Responsible parties: MEETD

Sale and Lease Back

It is proposed to launch calls totalling EUR 60M, within the scope of real estate investment funds under the management of Turismo Fundos-SGOIC S. A., for Sale and Lease Back operations, with an obligation to invest in modernisation and energy efficiency or circular economy, of which EUR 40M is for tourism (of which 50 % is for low density territories) and EUR 20M for industry.

Amount: EUR 60M

Responsible: MEETD

Bank Moratoriums

The main guidelines are:

  • Extension of the current banking moratorium until March 31, 2021;
  • Enlargement of beneficiaries, including emigrants
  • New eligibility factors related to loss of income that allow covering a larger number of people with temporary liquidity constraints;
  • Extension of the moratorium to all mortgage contracts, to consumer credit for education.

In addition to the above-mentioned changes, the review will include a mechanism for including natural persons who have benefited from private moratoria and who, as a result of the changes, become eligible for adherence to the public moratorium.

Addressees: natural persons, non-financial companies, sole proprietors, private charitable institutions, non-profit associations and other social economy entities

Responsible: MEF

Corporate capitalisation fund

Creation of a capital and quasi-public fund (Fundo), to be managed by Banco de Fomento, for participation in capitalization operations of viable companies with high growth potential, in strategic sectors and with a focus on foreign markets, with temporary public intervention and preferential coinvestment mechanisms.

Recipients: Companies

Funding: eminently through European funds and funding under the crisis response instruments through the Recovery Fund (Solvency Support Facility) and the EIB (Pan-European Guarantee Fund).

Responsible parties: MEETD

PME Acceleration

Crescer+ Program

Program focused on mature (>5 years) and viable companies, in strategic or systemic sectors, lasting 1 year, providing the company with the necessary skills to develop and enhance its brand, adapt to regulatory requirements, direct growth to foreign markets, leverage its added value, find partners and financing, etc.

It focuses on consultancy, training, networking (supplier networks, integration in value chains, external partners, etc.)

Recipients: PME

Amount:20 M

Financing: ERDF

Responsible: METD

Adapt 2.0: Adaptation and modernisation of commercial establishments

Launch of the program “ADAPTAR 2.0” in order to help and stimulate micro and PME in the secondary and tertiary sectors to update and remodel their establishments and production units, modernizing and adapting them in the current context.

Recipients: micro enterprises of the secondary and tertiary sectors

Amount: EUR 50/50M (2020-21)

Financing: Community funds

Responsible: MEETD, MPlan, MCT

Digital Commerce

Creation of incentives for the digital transition of the business model of PME (particularly micro and small enterprises), through the promotion of e-commerce, materialized in the support to the adhesion to already existing platforms, the reformulation of websites – as long as they have integration with the logistic chain or coupled reservation systems – and the design of projects by business or commercial associations, which are also associated with decarbonized logistic solutions.

It is intended to support PME, provided that integration in logistics and distribution solutions or reservation systems is ensured.

Recipients: Trade PME

Amount: EUR 40M

Number of Companies Covered: approximately 10 000 companies and 25 joint projects, with the possibility of enlargement

Financing: Community funds

Responsible: MEETD, MPlan, MAAC

Support for investment in the agricultural sector

  • Support to the setting-up of young farmers by positively discriminating, in the selection of applications, against young farmers who want to settle for the first time in the Interior of the country. In addition, a specific farm investment notice will be created for young farmers to set up in the interior of the country;
  • Support for investment in the specific farm for organic farming, which will take into account the location of the farm in the hinterland as a priority criterion;
  • Support for the creation of producer groups and organizations, namely multi-products, where the location of the Producer Grouping will be taken into account in the selection of projects in order to promote the organization of production and thus address one of the main structural weaknesses of the sector;
  • EIB credit line to complement new and ongoing investments under PDR2020 and for working capital.

Target groups: Young farmers; Organic farmers, producer groups and organisations

Amount: (EUR 2M + EUR 3M; EUR 0.5M); EIB credit line

Financing: PDR2020 and EIB

Responsible: MA

Corporate capitalisation fund

Creation of a capital and quasi-public fund (Fundo), to be managed by Banco de Fomento, for participation in capitalization operations of viable companies with high growth potential, in strategic sectors and with a focus on foreign markets, with temporary public intervention and preferential coinvestment mechanisms.

Recipients: Companies

Funding: eminently through European funds and funding under the crisis response instruments through the Recovery Fund (Solvency Support Facility) and the EIB (Pan-European Guarantee Fund).

Responsible parties: MEETD

4. Deadlines and Contracts 

Measures applicable to the real estate sector

Local Housing Conversion

This program can be achieved by supporting municipal lease programs for subletting at affordable prices, paying 50% of the difference between the rent paid and the rent received, to which is added the amount not collected through the IRS/IRC tax exemption granted by the Affordable Rental Program. It is estimated that the investment required for the co-participation is 4.5M euros/year, to which a tax benefit of about 12.9M euros is added

Amount: EUR 4.5M/year (+ tax benefit of EUR 12.9M/year)

Financing: OE

Responsible: MIH/CMs

Housing lease protection

Amount: EUR 4 million in loans granted | 1.5 million converted into non-repayable grants

Financing: OE

Responsible: MIH (IHRU)

National Urgent Housing Exchange and Housing First

Creation of a program to support the creation of a National Emergency Housing Grant, which can co-finance investments for this purpose to be made by public entities and the third sector.

Amount: 7.5 M

Financing: OE

Responsible: MIH/MTSSS

Simplified cadastral information

Granting of financial support to municipalities or intermunicipal entities that do not have a geometric cadastre of rural property or land registry. The support will be essentially for two purposes:

Creation of contact points for citizens to identify their buildings through the simplified cadastral information system and the georeferenced graphic representation procedure (RGG);

Sharing information with Central Administration entities, on expenses related to consultancy, computer equipment, software, publicity, personnel, etc.

Addressees: MunicipalitieS

Amount: EUR 20 M (EUR 10 M in the Centre region and EUR 10 M in the North region)

Financing: ESF

Responsible: MJ/MCT

Forest works, hydrographic network and sustainable mobility

Fuel Interruption Ranges

Implementation of Fuel Interruption Bands (FICs) aimed at establishing favourable conditions for the suppression of rural fires in strategic locations. With the availability of funds in the amount necessary for the implementation and maintenance of this structuring network, it will be possible to reach the objective of 2,500 ha/year.

Other actions for the forest

Creation of fuel management mosaics, the management of fuel using grazing and controlled fire actions. Equally important is to ensure the protection of settlements considered a priority in terms of risk.

Water efficiency interventions

It is planned to support the following 7 priority actions of the Algarve Water Efficiency Plan:
Telemetry of underground collection in the Vale do Lobo water body (critical situation);

Installation of automatic sensors in piezometers for continuous measurement of groundwater level;
Automation of the piezometric and hydrometric network to improve response and knowledge in periods of drought;

Rehabilitation of the dissipation basin and repair of concrete and metal parts of the Fencho dam;

Adoption of intelligent and efficient urban irrigation systems;

Active monitoring and control of losses;

Promotion of the use of water for reuse.

Support program for more sustainable buildings

Launch of an action programme focused on improving the energy efficiency of buildings and their decarbonisation, covering

Supporting the installation of efficient windows, roof and façade insulation, and other interventions to promote energy efficiency in buildings;

Installation of photovoltaic panels and other renewable energy production equipment, installation of heat pumps and other equipment using energy from renewable sources;

Interventions aimed at water efficiency, including the replacement of equipment;

Interventions that promote the incorporation of biomaterials, recycled materials, natural-based solutions, green façades and roofs and bioclimatic architecture solutions.

This initiative is intended to help reduce energy bills, improve comfort levels and indoor air quality, reducing energy poverty and benefiting health. The approach to be pursued can be articulated with building rehabilitation strategies.

Amount: EUR 40 million (2020-21)

Financing: Strengthening the Environmental Fund

Responsible: MAAC

PARES 3.0 – Extension of the Social Equipment Network

Launch of PARES 3.0 program for construction works or requalification of social equipment.
Social Responses to be covered: Day Care, Residential Structure for Elderly People, Day Care Center,

Residential Home, Occupational Activities Center

Amount: 110 M

Financing: Social Games

Responsible: MTSSS

5. Other relevant measures

Unemployment Social Allowance

Automatic extension of unemployment benefit until the end of 2020.

Recipients: Beneficiaries of the SSD

Amount: 12 ME per month, 72 ME in 2020

Financing: OE

Responsible: MTSSS

Strengthening social responses

Increase in cooperation agreements in 2020 with the Social and Solidarity Sector to strengthen social responses to the most vulnerable populations.

Recipients: Institutions of the Social Economy

Amount: +12M euros (2nd semester)

Source of funding: State Budget 2020 and Social Games

Responsible: MTSSS

Social + Adapt

Training of social responses for prevention in relation to COVID-19, namely through layout changes, acquisition and installation of hygiene equipment and automatic dispensing of disinfectants; acquisition and installation of control devices and physical distance; costs with the acquisition and placement of information and guidance to employees and the public (signage); contracting of disinfection services of the facilities.

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