Navigating the intersection of longevity and real estate: legal and operational considerations for senior living in Portugal

Nuno de Mendia
J+ Legal, Lisbon
ndm@jlegal.pt

As global demographic trends evolve, the real estate sector must adapt to meet the needs of an aging population. By 2031, it is anticipated that 75 per cent of people will live to at least 80 years old, creating an unprecedented demand for housing solutions that cater to older adults. Senior living concepts are an innovative response to this challenge, designed for independent seniors who seek a vibrant community living experience. However, to successfully implement such a model, developers must navigate a complex legal and regulatory landscape that includes residential, touristic and social support frameworks. This article explores the critical legal and operational considerations for establishing senior living residences, with a particular focus on integrating options for dependent residents.

Legal frameworks: residential, touristic and social support uses

In Portugal, the development of senior living facilities can be pursued under several legal frameworks – residential, touristic and social support uses. Each of these frameworks presents unique requirements and challenges that must be carefully considered.

Residential and touristic uses

• Residential use: the Portuguese Lease Law governs residential leases, imposing strict regulations. However, developers can structure agreements to include not only the lease of space but also additional services, potentially circumventing some of these stringent requirements. This flexibility makes residential use a viable option for senior living concepts.
• Touristic use: the Tourism Law^[1] offers an alternative framework that is well-suited to the senior living model due to its emphasis on service provision. Under this law, touristic developments are managed by a single entity responsible for continuous operation and service delivery. This framework is advantageous for senior living concepts, as it allows for flexibility in operational periods and potentially fewer parking space requirements compared to residential use.

Social support use

• Residential structures for elderly people (estrutura residencial para pessoas idosas (ERPI): if senior living concepts were to include a component for residents who become dependent or highly dependent, the facility will need to incorporate elements of an ERPI.^[2] ERPI facilities are subject to stringent licensing, operational and staffing requirements to ensure that they can adequately care for dependent elderly residents.
• Integrating ERPI with senior living concepts: while senior living concepts are primarily designed for independent seniors, there is a need to plan for scenarios where residents may become dependent. One solution would be to designate a separate part of the facility – either within the same building or in an adjacent building – that is specifically equipped to accommodate dependent residents temporarily or permanently. This section of the building would have to operate under the ERPI framework, ensuring compliance with the necessary regulations.

Conclusion: a flexible approach to senior living

Senior living concepts present a forward-thinking approach to housing for older adults, offering flexibility in how they can be implemented depending on the legal and regulatory context of the location. By considering residential, touristic and social support frameworks, developers can tailor their projects to meet the specific needs of their target demographic while ensuring regulatory compliance.

One promising approach is to incorporate elements of both independent living and ERPI within the same facility. This allows for a seamless transition for residents who may require additional care over time, without the need to relocate to a different facility. The division of the property into separate units for independent and dependent residents, with appropriate legal structures, can ensure that the senior living concept is both sustainable and adaptable to the changing needs of all its residents.