Portugal's rental market is regulated under the Novo Regime do Arrendamento Urbano (NRAU, Law no. 6/2006, as amended). All lease agreements must be registered digitally with the tax authority by the end of the month following the lease start; under Portaria no. 106/2025, a tenant can register the contract directly via the Portal das Finanças if the landlord fails to. Permanent housing leases have a 1-year minimum term with mandatory automatic renewal unless both parties agree otherwise; temporary contracts have no statutory minimum, though the 2026 Simplified Accessible Rental Regime (RSAA) requires at least 3 months. Annual rent increases for ongoing contracts are capped (2.24% for 2026, set by INE based on CPI), and landlords must give 30 days' written notice of any increase.
Permanent housing leases have a 1-year minimum term with mandatory automatic renewal by default.
The 2026 annual rent increase cap for ongoing contracts is 2.24%, set by INE based on CPI.
The Simplified Accessible Rental Regime (RSAA) caps rent at 80% of local median rent, with an absolute cap of €2,300/month, in exchange for a 100% IRS/IRC exemption on that rental income.
Standard security deposits are 1-2 months' rent (caução) plus 1-2 months' advance rent, backed by official Finanças receipts.
Evictions can only be executed via the Balcão Nacional do Arrendamento (BNA) or court order; self-help evictions (e.g. changing locks) carry civil and criminal liability.
Tenants aged 65+ or with severe permanent disabilities who have lived in the property 15+ years have heightened statutory eviction protection.
Standard rental income is taxed at a flat 25% IRS rate; a reduced 10% rate applies to 3+ year contracts under €2,300/month rent, valid until 31 December 2029.
Tenants can deduct rental expenses from IRS liability up to €950 (2026), rising to €1,000 in 2027.