Portugal Landlord-Tenant Laws: Complete Compliance Guide
Comprehensive overview of residential rental property laws in Portugal (NRAU) including security deposits, eviction procedures, rent control, and maintenance.
Legal Disclaimer
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.
Portugal's rental laws are primarily governed by the Novo Regime do Arrendamento Urbano (NRAU), which came into effect on 27 June 2006. Recent legislative shifts in 2026 have introduced new fiscal incentives for "moderate" rents while streamlining the annual update process under the consolidated Civil Code.
Key Portugal Rental Laws at a Glance
Security Deposits (Caução) - Art. 1076.º
Landlords can request a security deposit of up to two months' rent (Art. 1076.º of the Civil Code). This is distinct from rent advances, which are also capped. 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) - Art. 1077.º
Rent increases are linked to the annual inflation coefficient. For 2026, landlords can increase rent by 2.24% (as per Notice No. 23174/2025/2) 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%) under the 2026 reforms.
Eviction Procedures - Balcão Nacional do Arrendamento (BNA)
Eviction processes are managed through the Special Eviction Procedure (PED) at the National Rental Counter (Balcão Nacional do Arrendamento - BNA), established by Decree-Law 1/2013. 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 (Autoridade Tributária e Aduaneira). Failure to register can lead to significant fines and prevents the landlord from using the PED for eviction via the BNA.
Maintenance and Habitability - Art. 1074.º
Landlords are responsible for all major repairs (plumbing, structural, electrical) required to ensure habitability (Art. 1074.º of the Civil Code). Tenants are responsible for minor maintenance arising from daily use.
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