Portugal Landlord-Tenant Laws: Complete Compliance Guide

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.

Key Portugal Rental Laws at a Glance

Security Deposits (Caução)

Landlords can request a security deposit of up to two months' rent. The deposit must be returned at the end of the lease, minus documented costs for damages exceeding normal wear and tear.

Rent Control and Increases (2026)

Rent increases are linked to the annual inflation coefficient. For 2026, landlords can increase rent by 2.24% with a minimum of 30 days' written notice.

• Removal of Caps: The restrictive 2% cap previously applied to new contracts under the Mais Habitação program has been retired to stimulate supply.
• Fiscal Incentives: Landlords offering moderate rentals benefit from a reduced autonomous IRS rate (~10% instead of 25%).

Eviction Procedures

Eviction processes are managed through the Special Eviction Procedure (PED) at the National Rental Counter (BNA). Valid grounds include non-payment (2+ months) or serious contract breaches. 2026 reforms have simplified procedures for prolonged non-payment to bolster landlord confidence.

Lease Agreements and Formalities

All residential contracts must be in writing and registered with the Tax Authority (Finanças). Failure to register can lead to significant fines and prevents the landlord from using the PED for eviction.

Maintenance and Habitability

Landlords are responsible for all major repairs (plumbing, structural, electrical) required to ensure habitability. Tenants are responsible for minor maintenance arising from daily use.