New Portuguese Law Makes Removing Illegal Occupants Faster and Easier

November 25, 2025

A new law, Lei n.º 67/2025, de 24 de novembro, strengthens the rights of property owners, especially those dealing with illegal occupation of apartments, houses, or investment properties. For anyone who owns property in Portugal and rents long-term, this law introduces some of the most impactful changes in recent years.

Below, we break down what’s new:

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1. Stronger Criminal Protection for Property Owners

The new law amends the Penal Code (artigo 215.º do Código Penal) and Criminal Procedure Code (artigos 200.º e 204.º do Código de Processo Penal) to give owners clearer and faster tools to deal with illegal occupation (“usurpação”).

Key upgrades include:

Harsher penalties for illegal occupation

Anyone who occupies property without legal right now faces:

• Up to 2 years in prison or 240 days of fines
• Up to 3 years in prison if violence/threat is used or the property is someone’s primary residence
• 1 to 4 years in prison if offenders act professionally or for profit

Attempted occupation is also now explicitly punishable.

Protection for primary residences

If the illegally occupied home is someone’s main residence, the penalties increase.

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2. Immediate Restitution of the Property to the Owner

One of the most significant changes is procedural.

Courts can now order the immediate return of the property to its rightful owner as soon as there is strong evidence of illegal occupation. Previously, restitution often took months—or much longer—because it depended on slow criminal procedures. Now, owners can regain possession FAR more quickly. For landlords or investors, this can be the difference between a minor inconvenience and a long-term financial loss.

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3. Special Rules for Public Housing—With Social Safeguards

When illegal occupation involves state housing, the process is different:

• Authorities must assess the socioeconomic situation of the occupants
• Social or housing support options must be activated
• If the occupants leave voluntarily, the state may decide not to file a criminal complaint

This means the law distinguishes between opportunistic/professional squatters and families in vulnerable situations.

For private property owners, the key point is: These social safeguards do not apply to private real estate.
Your restitution rights remain fast and direct.

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4. Why This Matters for the Real Estate Market

Portugal, like many major European countries, has faced:

• Rising cases of illegal occupation
• Difficulties for foreign owners to enforce rights
• Slow and bureaucratic eviction procedures

This new law is a major step forward because it:

✅ Restores confidence for international buyers

Foreign investors often worry about legal uncertainties. Faster restitution and clearer penalties reduce perceived risk.

✅ Protects rental and AL operators

An illegally occupied short-term rental or unfurnished long-term unit can cause substantial income loss. The new framework helps mitigate that risk.

✅ Supports a healthier rental market

When illegal occupation becomes harder and riskier, landlords are more willing to rent properties legitimately.

✅ Improves overall security and deterrence

Professional squatters now face significantly tougher consequences.

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5. Key Takeaways for Lisbon Property Owners

This law represents a strong shift toward protecting legitimate ownership and speeding up recovery of occupied properties.

If you own property in Portugal, remember:

• Illegal occupants can now be removed much more quickly
• Courts can order immediate restitution
• Penalties for illegal occupation are tougher across the board
• The law helps safeguard both resident owners and investors
• Public housing cases follow separate rules and do not affect private property rights