Right of First Refusal in Portugal: Essential Property Guide

Right of First Refusal in Portugal: How It Works When Buying or Selling Property

The right of first refusal applies to both the purchase and sale of a property. In practice, it is a legal mechanism that grants priority to a specific person or public entity when a property is placed on the market.

✅ Who does the right of first refusal apply to?

This is a legal right established in Article 65 of the Portuguese Constitution and in Decree‑Law No. 89/2021 of 3 November. Whenever a holder of this right exists — such as tenants or public authorities — the property owner must give them priority in the purchase.

✅ 1. Tenants

Tenants may exercise the right of first refusal when buying the property they live in, provided they meet the following conditions:

• they have lived in the property for more than two years

• they intend to buy the property for their own permanent residence

A tenant loses the right of first refusal if the intention is to buy the property for:

• short‑term rentals (Alojamento Local)

• traditional or long‑term rental purposes

How does it work in practice?

If you own a property that has been rented for more than two years and you intend to sell it, the tenants have the legal right to purchase it under the same conditions offered to any other buyer.

The landlord must:

1. Send a registered letter with acknowledgement of receipt informing the tenant of:

   • the intention to sell

   • the sale price and conditions

2. The tenant then has 30 days to reply and declare whether they wish to exercise the right of first refusal.

Before proceeding, it is essential to check whether the property is located in an area where public authorities have priority.

✅ 2. Public Authorities

Public entities may exercise the right of first refusal when the property is located in:

• Urban Pressure Zones (Zonas de Pressão Urbanística – ZPU)

• areas identified in the National Housing Programme

• protected or rehabilitation zones

• classified properties or properties in the process of classification

Public entities include:

• municipalities

• local authorities

• the Portuguese State

• the Autonomous Regions of Madeira and the Azores

What are Urban Pressure Zones (ZPU)?

These are areas where housing supply is insufficient or unaffordable for the majority of the population. This situation affects young people and low‑income families in particular.

Priority order for exercising the right of first refusal:

1. Municipalities

2. Autonomous Regions

3. The State

ZPUs are officially defined and published in:

• the Diário da República

• municipal bulletins

• municipal websites

The designation is valid for five years and may be revised, expanded or reduced according to Decree‑Law No. 67/2019 of 21 May.

Properties that have been vacant for more than two years within these zones may also be included.

✅ My property is in a ZPU — what should I do?

To check whether your property is located in an Urban Pressure Zone, you can consult:

• the Diário da República

• the website of the relevant municipality

• the municipal bulletin

• the website of the Directorate‑General for Cultural Heritage (for classified properties or those in the process of classification)

Mandatory step before selling: Casa Pronta

Before placing the property on the market, you must:

1. Access the Casa Pronta portal

2. Select “New Announcement”

3. Complete the form with the sale details

The announcement costs €15.

Public authorities may then:

• express interest in exercising the right of first refusal

• or declare that they do not intend to exercise it

The seller can track the status of the request directly on the portal.

✅ Important Note

This text is intended for general information only and does not replace professional advice from lawyers, solicitors, tax authorities or municipal services.