Portugal Landlord-Tenant Laws: Complete Compliance Guide

Portugal's rental laws are primarily governed by the Novo Regime do Arrendamento Urbano (NRAU). This legal framework seeks to balance the rights and duties of both landlords and tenants, establishing clear rules for contracts, rent increases, and eviction processes. Recently, the "Mais Habitação" (More Housing) program introduced several caps and new regulations.

Disclaimer: This guide provides general legal information for educational purposes only and does not constitute legal advice. Landlord-tenant laws change frequently. Always consult a licensed attorney in Portugal for advice specific to your situation. Information last verified: March 2026.

Key Portugal Rental Laws at a Glance

Security Deposits (Caução)

Under the NRAU, landlords can request a security deposit as a guarantee to cover potential damage to the property or unpaid rent. While not strictly mandatory by law, it is a standard practice. The deposit amount is legally limited to a maximum of two months' rent.

Landlords must return the deposit within the applicable timeframe after the lease ends, subtracting the costs of damages that exceed normal wear and tear.

For more detail, see our Security Deposits deep dive.

Rent Control and Increases

Rent increases for residential properties are regulated annually based on an inflation coefficient published by the National Statistics Institute (INE). Landlords must notify tenants in writing at least 30 days in advance of any increase.

Under the Mais Habitação program, a 2% cap was implemented for some contracts that already had substantial updates. Landlords who have not applied annual updates for up to three years may apply a cumulative increase.

For more detail, see our Rent Increases guide.

Eviction Procedures

Eviction processes in Portugal are strictly regulated. Landlords cannot evict tenants without valid legal reasons. The Special Eviction Procedure (PED) was created at the National Rental Counter (Balcão Nacional de Arrendamento - BNA) to make the process faster.

Grounds for Eviction

• Non-payment of rent (2 or more months in arrears)
• Serious breaches of the contract
• Damage to the property
• The landlord needing the property for their own use or that of first-degree descendants

Notice periods vary based on the duration of the contract, typically requiring 120 to 240 days for the landlord to oppose the automatic renewal of a fixed-term lease.

For more detail, see our Eviction Process guide.

Lease Agreements and Formalities

All urban residential rental contracts in Portugal must be in writing and registered with the Portuguese Tax Authority (Finanças). The lease agreement must identify the parties, the property, the intended use, the duration, the rent amount, and the time and place of its payment. The lack of a written contract can subject the landlord to penalties and make it difficult to take legal action to recover the property.

For more detail, see our Lease Requirements guide.

Maintenance and Habitability Obligations

The landlord is legally obliged to carry out the necessary repairs and maintenance to ensure that the property meets the required conditions for its intended use. This includes ordinary and extraordinary conservation works that ensure habitability (electricity, plumbing, structure).

For more detail, see our Maintenance Obligations guide.

Late Fees

If the tenant is late in paying rent, Portuguese laws allow the landlord to demand, in addition to the outstanding rent, a penalty equal to 20% of the amount owed. However, if the tenant pays the rent within a legal grace period (usually the 8 days immediately following the due date), the landlord loses the right to this penalty.

For more detail, see our Late Fees guide.

Getting Started with Compliance

Managing compliance with the NRAU and the "Mais Habitação" program laws in Portugal can be complex. Landager helps landlords track their compliance status, manage lease terms, and stay updated when regulations in Portugal change.

Explore more Portugal compliance topics:

• Security Deposits
• Eviction Process
• Required Disclosures
• Rent Increases
• Lease Requirements
• Maintenance Obligations
• Late Fees