dação em cumprimento
Published 4 November 2026, 18:37
dação em cumprimento (transfer of property to settle a debt)
A way of settling a debt with an asset instead of money: the debtor hands the creditor a flat or other property, and the debt is considered paid. In property transactions this is the second case, alongside an ordinary sale, in which a tenant has the right to buy the home ahead of anyone else (Article 1091.º of the Civil Code).
Where you come across it. An owner handing a flat over to the bank to settle an unpaid mortgage; the text of Article 1091.º; agreements with creditors.
In tax matters the same thing is called dação em pagamento: different words, same meaning.
Official website: diariodarepublica.pt/dr/legislacao-consolidada/decreto-lei/1966-34509075