Security Deposits in Commercial Leases in Portugal
Learn how deposits and bank guarantees work in the Portuguese commercial real estate market (NRAU). Discover the exemptions from residential caps in B2B leases and how Article 1110 of the Civil Code governs these safeguards.
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This content is for general informational and educational purposes only. It does not constitute legal advice and should not be relied upon as such. Laws change frequently — always verify current regulations and consult a licensed attorney in your jurisdiction for advice specific to your situation. Landager is a property management platform, not a law firm.Information last verified: May 2026.
In the robust commercial real estate sector and leases dedicated to industries and retail commerce in mainland Portugal and the Islands, the paradigm regarding the collection and limit of monetary safeguards—primarily governed by the Portuguese Civil Code (effective since 1 June 1967) and the New Urban Leasing Regime (NRAU)—is strictly regulated by mandatory norms introduced by Law 56/2023 (Mais Habitação). While Article 1110 of the Civil Code establishes the principle of contractual freedom for non-residential leases, this freedom is expressly subject to the mandatory caps established in Article 1076, which entered into force on 7 October 2023.
Mandatory Maximum Caps for Commercial Leases
Instead of the previous flexibility, non-residential leases are now subject to the strict ceiling of 2 (two) months of rent for security deposits (caução), as established in Article 1076, n.º 2 of the Civil Code. This limit applies to all forms of security, including cash and bank guarantees (fiança bancária), intended to cover potential damages or breaches.
Under the specific regime for urban leases as amended by Law 56/2023, landlords are also restricted in the collection of advance rent. According to Article 1076, n.º 1, the payment of rent in advance is limited to a maximum of 2 months (reduced from the previous 3-month allowance). These caps are considered mandatory norms (normas imperativas) that override general contractual freedom, meaning any agreement requiring higher amounts is legally unenforceable.
Typical B2B Fiduciary Security Instruments
Given the enormous volume in bank flows, the usual Individual C.C or NIF Personal Guarantors give way to other corporately mitigated premises from the disadvantage of their organic bankruptcy or default, using:
- The "On First Demand" Bank Guarantee (Garantia Bancária À Primeira Solicitação): An instrument issued by a credit institution that allows the landlord to unconditionally demand payment up to an agreed limit. The amount of such guarantees is subject to the mandatory 2-month rent limit established in Article 1076.
- Mother-Company Corporate Guarantee (Aval Corporativo da Casa-Mãe): Where recourse is had to fiduciary corporate responsibilities from a parent company over the local Portuguese subsidiary (usually an "Lda") headquartered in the leased building.
Sources & Official References
Frequently Asked Questions
▶What are the key landlord-tenant laws in Portugal?
Portugal\'s rental laws are primarily governed by the Novo Regime do Arrendamento Urbano (NRAU). Recent legislative shifts in 2026 have introduced new fiscal incentives for "moderate" rents while streamlining the annual update process. This guide covers the essential compliance requirements for property owners and landlords.
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The eviction process in Portugal requires landlords to follow formal legal procedures. Valid grounds typically include non-payment of rent, lease violations, or the landlord's personal use of the property. Landlords must provide proper written notice, allow any required cure periods, and may need to obtain a court or tribunal order. Self-help evictions are generally prohibited.
Read the complete guide▶What are the rent increase limits and caps in Portugal?
Portugal has specific rules governing when and how landlords can increase rent. These rules may include caps on the percentage of increase, minimum notice periods, and restrictions on frequency. Landlords must comply with all applicable regulations when raising rent on existing tenancies.
Read the complete guide▶What are the security deposit rules and return deadlines in Portugal?
Portugal has rules governing how much landlords can charge as a security deposit, how deposits must be held or protected, and the timeline for returning deposits after a tenancy ends. Landlords must provide itemized statements of any deductions and comply with all statutory deadlines to avoid penalties.
Read the complete guide▶What are the mandatory lease requirements in Portugal?
Lease agreements in Portugal must comply with applicable national and local laws. Required elements typically include the names of both parties, property description, rent amount and payment terms, deposit details, lease duration, and maintenance responsibility allocation. Written leases may be required for certain tenancy types or durations.
Read the complete guide▶What are the landlord maintenance and repair obligations in Portugal?
Landlords in Portugal are generally required to maintain rental properties in a habitable condition, keeping the structure, plumbing, electrical systems, and essential services in proper working order. The specific allocation of maintenance responsibilities between landlord and tenant should be clearly documented in the lease agreement.
Read the complete guide▶What are the late fee and penalty rules for rental properties in Portugal?
Portugal has specific rules regarding late fees and penalties for overdue rent. These may include mandatory grace periods, caps on late fee amounts, and restrictions on interest charges. Late fee provisions should be clearly stated in the lease agreement and must comply with local regulations to be enforceable.
Read the complete guide▶What property disclosures are landlords required to make in Portugal?
Landlords in Portugal must disclose relevant information about the property to prospective tenants before the lease is signed. Required disclosures typically include known material defects, environmental hazards, previous damage history, and any conditions that could affect the tenant's use and enjoyment of the property.
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