Rent Increases in Portugal: Limits, Deadlines, and Legislation

Rent increases in Portugal are strictly regulated under the New Urban Lease Regime (NRAU), established by Law 6/2006, which originally came into force on 27 June 2006. For 2026, the legislative landscape has shifted toward greater market flexibility for new contracts while maintaining structured growth for existing tenancies governed by the Portuguese Civil Code.

The Annual Update Coefficient (2026)

For residential leases in Portugal, annual rent adjustments are primarily bound to the annual inflation coefficient published by the National Statistics Institute (INE) and formally mandated by government notice.

[!IMPORTANT] The official rent increase coefficient for the 2026 calendar year is 1.0224, permitting a 2.24% increase on existing contracts, as per Aviso n.º 23174/2025/2.

Implementation Procedure

Under Article 1077.º of the Civil Code, the following rules apply:

1. One-Year Rule: The first rent increase can only occur after the contract has been in force for at least one (1) full year.
2. Written Notification: Landlords must notify tenants via registered letter (with acknowledgment of receipt) at least 30 days in advance.
3. Required Information: The notice must specify the current coefficient and the resulting new rent amount.

Exceptional Rules & Recent Changes

Removal of the 2% New Contract Cap

In 2026, the government retired the restrictive 2% cap previously imposed on new rental contracts (introduced under Law 56/2023 for properties leased in the preceding 5 years). New contracts are now governed by market rates, though tax incentives exist for landlords who keep rents within "moderate" bounds (under €2,300/month).

Cumulative Updates

If a landlord has not applied annual updates for any of the past 3 years, they may legally apply those coefficients cumulatively in 2026. This allows for a "catch-up" increase that reflects the missed inflation adjustments from previous years, as permitted by the Civil Code framework.

Automated Rent Management with Landager

Landager's Portuguese module is synchronized with the latest INE coefficients. Our system automatically identifies upcoming 1-year anniversaries, calculates the 2.24% update for 2026, and generates the legally required registered letter drafts, ensuring your property yield keeps pace with inflation without risking non-compliance with the Civil Code.