Tenant rights in Portugal – leases, deposits, rent increases and notice

Residential leases must be in writing. A lease without a written contract can still be valid if the tenant was not to blame, proves they lived there with the landlord's agreement and paid rent for six months.

The landlord must communicate the lease to the tax authority (Finanças). If the landlord does not, the law allows the tenant to do it. Keep your copy safe: the tax authority accepts a lease as proof of address when you change your NIF to resident status.

• Fixed-term leases for a permanent residence last at least one year; a shorter term is automatically extended to one year. The government's bill keeps the minimum of one year and the maximum of 30 years.
• If a lease for a permanent residence is shorter than three years and nothing else is agreed, it is renewed for three years. A renewal period shorter than the original term may be agreed, but not shorter than three years.
• The landlord may not oppose renewal in the first three years unless they need the home for themselves or their children.

Under current law the deposit (caução) may not exceed the value of two months' rent, and advance rent (rendas antecipadas) may be agreed in writing for up to two months. Advance rent covers future months, while the deposit is a guarantee that should be returned at the end if nothing is owed.

Many landlords also ask for a guarantor (fiador).

• Annual update: after the lease has run for at least a year, the landlord may update the rent once a year using the coefficient published by the national statistics institute (INE). For 2026 it is 1.0224 (2.24%); DECO reported on 6 October 2026 that it will be 2.56% for 2027. The landlord must tell you in writing at least 30 days before the new rent applies. The update is optional for the landlord.
• New leases: until 31 December 2029, the rent of a new lease may not be more than 2% higher than the last rent for the same home, if it was rented in the previous five years. The government's bill proposes to end this limit.

Rent is due on the first working day of the month, unless agreed otherwise. If you pay late, the landlord can claim compensation of 20% of the amount due. Repeated delays — more than eight days late more than four times in twelve months — allow the landlord to end the contract after formal notice by registered letter.

You can end a fixed-term lease after one third of its initial term (or renewal) has passed, with notice of 120 days if the term is one year or more, or 60 days if shorter. You can also oppose renewal at the end of the term with notice of 120 days (terms of six years or more), 90 days (one to six years) or 60 days (six months to one year).

For open-ended leases you can leave after six months of actual occupation with 120 days' notice (lease running one year or more) or 60 days (less than a year). Send notice by registered letter with acknowledgement of receipt. Involuntary unemployment, permanent incapacity or death of a household member can release you from paying the notice period.

The landlord may inspect the home only with your prior agreement and without being intrusive. In the three months before you leave, you must allow visits by prospective tenants; without agreement, visits take place on weekdays between 17:30 and 19:30 and at weekends between 15:00 and 19:00.

Harassment by a landlord to force you out — creating an intimidating or hostile environment or seriously disrupting your use of the home — is prohibited. After two years in the home you have a right of first refusal if the landlord sells it.

Tenants can deduct 15% of the rent paid for their home in their IRS return, up to a limit. DECO reports the limit as €700 for 2025 income, €900 for 2026 and €1,000 for 2027.

• Associação dos Inquilinos Lisbonenses (AIL) gives legal advice and mediation on housing to members (membership fee).
• The Portal da Habitação of the Housing and Urban Rehabilitation Institute (IHRU) explains public housing programmes such as Porta 65 Jovem.