Security Deposits in Portugal: Limits and Return Laws
Legal requirements for security deposits (caução) in Portugal under Law 56/2023 (Mais Habitação): 2-month statutory cap, the correct attribution of the cap to Law 24-D/2022 and Law 56/2023, and the absence of a fixed statutory return deadline in the Civil Code.
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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.
The security deposit (caução) plays an important role in Portuguese residential lease agreements as the landlord's financial protection against damage and arrears. Significant legislative changes in 2022 and 2023, culminating in the Mais Habitação program (Law No. 56/2023) which became effective on 7 October 2023, established clear statutory limits on deposit amounts. Landlords must ensure their practices comply with the updated framework of Law No. 24-D/2022 and Law No. 56/2023.
1. Statutory Deposit Limits: 2 Months' Rent
The 2-month cap on security deposits was introduced by two successive legislative acts:
- Law No. 24-D/2022: First introduced the cap as an amendment to the Civil Code.
- Law No. 56/2023 (Mais Habitação): Reinforced and confirmed the cap as part of the broader housing reform package.
NRAU Attribution Note: The 2-month cap should be attributed to Law 24-D/2022 and Law 56/2023 — not simply to the original NRAU (Lei 6/2006), which did not itself impose a specific numerical cap. Attributing the cap solely to "the NRAU" is legally imprecise and may cause confusion.
Combined Maximum Upfront Requirement:
- First month's rent: Payable at signing.
- Advance rent (antecipação de rendas): Maximum 2 months.
- Security deposit (caução): Maximum 2 months.
- Total maximum upfront: 5 months' rent (first month + 2 advance + 2 deposit).
Requiring any amount above these limits is unlawful and exposes the landlord to administrative penalties.
2. Permitted Deductions from the Deposit
The landlord may deduct from the deposit only documented and justified claims:
- Unpaid rent or outstanding fees.
- Unpaid utilities (water, electricity, gas) where the tenant was contractually responsible.
- Damage beyond normal wear and tear — documented in the move-out inspection report with photographic evidence and verified cost invoices.
- Excessive cleaning costs if the tenant left the premises in a condition substantially below what was received.
Prohibited deductions:
- Minor scratches, scuffs, or colour fading from normal everyday use.
- Gradual deterioration of painted surfaces or floor coverings from prudent use (Art. 1043 CC).
- Costs of upgrading or renovating the property for a new tenant.
3. Return of the Deposit: No Fixed Statutory Deadline
A critical point for compliance accuracy: Portuguese law does not stipulate a fixed number of days for the return of the security deposit.
- Art. 1076 of the Civil Code and the NRAU do not specify a "30-day" or "21-day" return period.
- Return must occur once the tenant's obligations are verified — meaning the landlord has inspected the property, assessed any damages, checked for outstanding utility bills, and confirmed outstanding rent is nil.
- Market practice: A 30-day return period is commonly included as a contractual term and is frequently cited in case law as a "reasonable" timeframe. However, this is market convention — not a statutory legal requirement.
- Jurisdiction: Disputes regarding the return of the deposit or disputed deductions are handled by the Julgados de Paz (Peace Courts) for claims up to €15,000 or the Tribunais Judiciais (Judicial Courts).
- Landlords who contractually commit to a 30-day period are bound by that contractual obligation, but in the absence of such a clause, the standard is "reasonable time."
Frequently Asked Questions
▶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.
▶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.
Read the complete guide▶What is the legal eviction process for landlords in Portugal?
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 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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