Renting a home in Portugal

Last verified: September 2026.

Who this is for

• You will sign a long-term lease in Portugal, arriving on a visa, as an EU citizen, or moving house.
• A landlord or agent is asking for a guarantor, months of rent up front, or a large deposit.
• You already rent and face a rent rise, a repair dispute, a withheld deposit, or notice to leave.
• You are a tenant; landlord duties appear only where they affect you.

Not for you if: You are still choosing a city and want to know what rents and bills cost: read "Cost of living in Portugal".

Updated September 2026. The deposit and advance-rent caps are now stated correctly (two months each, in force since 2023), the tenant IRS deduction has risen to 900 euros for 2026 income, the old BNA has been replaced by the BAS, and the Government's rental law overhaul is in Parliament but not yet law. This guide separates what applies today from what is only proposed.

A long-term rental in Portugal runs on a written lease that states both parties' NIF (tax number), the rent, the deposit, and how the lease ends. Nearly every new resident who is not buying needs one, and it is usually your first big piece of paperwork. What surprises people is the up-front cash: first month, up to two months in advance, and a two-month deposit, often four to five months' rent in total. The law is broadly on the tenant's side if you have a written lease and keep records.

This guide covers what a lease must contain, what a landlord may legally ask for, how rent increases work, how a lease ends, what you can deduct from your taxes, and where to go when something goes wrong.

A note on timing. In July 2026 the Government approved a wide reform of rental law and sent it to Parliament in August 2026. As of 9 September 2026 it has not been voted on and is not in force. Everything in this guide describes the law as it stands today. The proposed changes are summarised in their own section near the end, so you can see what may shift.

What a residential lease is, and which law applies

A long-term rental is a contrato de arrendamento urbano para fim habitacional (residential lease contract). It is governed by the Código Civil (Civil Code) and by the Novo Regime do Arrendamento Urbano (New Urban Lease Regime, known as the NRAU, Lei n.º 6/2006), both amended several times, most recently by the Mais Habitação package (Lei n.º 56/2023). The tax side runs through the Autoridade Tributária e Aduaneira (Tax and Customs Authority, AT), which everyone calls Finanças.

Do not confuse a lease with Alojamento Local (local accommodation, AL). AL is tourist accommodation booked through platforms such as Airbnb or Booking. If you are staying in an AL, you are a guest, not a tenant, and none of the protections below apply to you. Many newcomers spend their first weeks in an AL while they look for a proper lease. That is fine, but do not let a landlord run a long stay on AL terms to avoid giving you a lease.

Before you start: what you need

Portugal has a chicken-and-egg problem for new arrivals. You need an address for some documents, and you need documents to get an address. Sort these out first.

Budget for the up-front cash. On signing day you may be asked for the first month's rent, up to two months' rent in advance, and a deposit of up to two months' rent, plus an agency fee if an agency found the property. That can mean four to five months' rent before you get the keys. On a 1,200 euro apartment, that is roughly 5,000 to 6,000 euros.

Finding a home and avoiding scams

Most long-term listings are on Idealista, Imovirtual, Casa Sapo, and SUPERCASA. OLX carries many private listings, especially outside Lisbon and Porto, with a higher scam risk. Facebook groups are active and unverified. Uniplaces and HousingAnywhere target students and shorter stays. On any portal, filter for arrendamento (long-term rental), not alojamento or férias (holiday lets).

Estate agencies (mediadoras imobiliárias) must be licensed by IMPIC (Instituto dos Mercados Públicos, do Imobiliário e da Construção) and must show their AMI licence number on every listing. No AMI number means a private owner or an unlicensed intermediary. Agency fees for tenants are commonly half a month's to one month's rent plus VAT, and must be agreed in writing.

Three checks before you pay anything:

1. Confirm who owns the property. Ask for the caderneta predial (the property's tax record from Finanças), which names the owner, or check the land registry yourself with a certidão permanente do registo predial (permanent land registry certificate): 15 euros online at predialonline.pt, and it also shows mortgages and pending court actions. The name should match the person signing, or that person should hold a written power of attorney.
2. Ask for the licença de utilização (usage licence) issued by the câmara municipal (town hall) for residential use. A lease on a property without one can be invalid.
3. Ask for the certificado energético (energy certificate). It is mandatory for any new lease under Decreto-Lei n.º 101-D/2020, and the energy class must appear in the advert.

Red flags that almost always mean a scam: a deposit to "reserve" a home you have not visited, a landlord who is "abroad" and wants to do everything remotely, a price well below the market for the area, payment by Western Union, cryptocurrency, or to a foreign account, and "no contract needed, just cash". Never pay before viewing in person and never pay cash without a receipt.

Learn the furnishing terms. Mobilado (furnished) usually means beds, sofa, table, wardrobes, and kitchen appliances, of variable quality. Semi-mobilado usually means kitchen appliances only. Não mobilado (unfurnished) can mean truly empty: no light fittings, no curtains, sometimes no kitchen units. Listings give the size as T0, T1, T2 (the number of bedrooms). Ask exactly what stays before you sign.

What the lease must contain

The lease must be in writing. A verbal agreement gives you almost no protection. Under the Civil Code and the NRAU the contract should state:

Two clauses deserve a slow read. The rent-update clause may only apply the annual coefficient published by the Instituto Nacional de Estatística (National Statistics Institute, INE); a fixed escalator above that is unenforceable. And a clause transferring the IMI property tax to you is unenforceable: IMI is always the landlord's.

Leases shorter than one year are only allowed for non-permanent housing or a specific temporary purpose (a work posting, a course), and the contract must say so.

Deposit, advance rent, and the guarantor: what the law allows today

Since 1 January 2023 (Lei n.º 24-D/2022, which amended article 1076 of the Civil Code), two caps apply:

• Advance rent (rendas antecipadas): at most two months, and only with written agreement.
• Deposit (caução): at most the value of two months' rent.

So the legal maximum on signing is the first month's rent, up to two further months in advance, and a two-month deposit. Anything beyond that is not enforceable, however common it may be in expat-targeted listings. Older guides (and some agents) still quote three months' deposit or "no legal cap"; that is out of date.

The deposit is held by the landlord. There is no escrow scheme and it earns no interest. It must be returned at the end of the lease minus documented damage beyond normal wear and tear. The law sets no deadline for its return, so write one into the contract (30 days is a fair working norm) and keep your dated entry photos. Get a written, dated receipt for every deposit and rent payment, even when you pay by transfer.

The fiador (guarantor) is a private arrangement, not a legal requirement. If you have no Portugal-based guarantor, the usual alternatives are: offering the full two months' advance plus two months' deposit that the law allows; a seguro de renda or seguro-fiança (rent guarantee insurance) sold by insurers and specialist providers, typically costing a percentage of the annual rent; or, for corporate relocations, having the employer stand behind the lease. Paying six or twelve months up front, which some landlords still ask for, exceeds the legal cap.

Step by step: from viewing to keys

1. View in person and meet the owner or the licensed agent. Ask for the caderneta predial, licença de utilização, and certificado energético.
2. Check ownership on the land registry if anything feels off (15 euros, see above).
3. Read the draft lease line by line, ideally with a Portuguese speaker or a solicitador (a licensed legal professional who handles this routinely for a few hundred euros). Check every item in the table above.
4. Negotiate the up-front stack within the legal caps and get the agency fee in writing.
5. Do the inventory together on handover: photos and video of every room, meter readings, keys received. Both parties sign and date it. Portuguese landlords rarely prepare one, so bring your own.
6. Pay by bank transfer and get a receipt. Keep the lease, the inventory, and all messages with the landlord. WhatsApp and email exchanges are accepted as evidence in Portuguese disputes.

After you sign: registration, stamp duty, and receipts

Registration with Finanças. The landlord must communicate the lease to AT through the Portal das Finanças (the Modelo 2 stamp duty declaration) by the end of the month following the start of the lease. Ask for a copy of the confirmation. It proves the lease exists in AT's records, which you will need for your tax deduction and for immigration paperwork. If the landlord fails to do it, since August 2025 you can file your own Comunicação do Locatário ou Sublocatário (tenant's communication) on the Portal das Finanças with a copy of the contract (Portaria n.º 106/2025/1).

Imposto do Selo (stamp duty). Every lease attracts stamp duty of 10 percent of one month's rent, paid once by the landlord when the lease is registered. Some contracts pass the cost to the tenant through a reimbursement clause. Read for it: if it is there, budget for it; if it is not, the landlord pays.

Recibos de renda eletrónicos (electronic rent receipts). Since 2015 landlords must issue a receipt for each rent payment through the Portal das Finanças. The receipt is your proof of payment, feeds your IRS deduction automatically, and is what AIMA and other bodies accept as evidence of where you live. Two groups of landlords are exempt: those aged 65 or over, and those with small rental income who are not required to have an electronic mailbox. Exempt landlords give paper receipts and file an annual Modelo 44 declaration by the end of January. If a landlord who is not exempt refuses to issue receipts, that is a warning sign and you can report it through the e-balcão on the Portal das Finanças.

Utilities. Electricity (EDP Comercial, Galp, Endesa, Iberdrola, Goldenergy, and others), gas, water (the municipal water company), and internet (MEO, NOS, Vodafone, Digi) are usually moved into your name from the move-in date. You will need your NIF, the lease, and for electricity the CPE (Código de Ponto de Entrega) shown on an old bill; gas uses a CUI code. See our utilities guide.

Condomínio (building charges). By default the landlord pays the condomínio. The lease may pass routine running costs (cleaning, lift, lighting) to the tenant, but only if the contract says so and itemises them. Extraordinary works and the reserve fund stay with the owner. Ask to see the regulamento do condomínio: it may restrict noise hours, pets, or use of common areas.

Your address. Update your domicílio fiscal (tax address) on the Portal das Finanças or through your Cartão de Cidadão; Finanças expects changes within 15 days (60 days if your residency status changes). Residence permit holders should also update their address with AIMA through its portal, using the registered lease as proof. Your junta de freguesia (parish council) can issue an atestado de residência (proof of address) if a school or service asks for one. Contents insurance is not compulsory but is cheap and worth having.

Costs and timing at a glance

How long the lease lasts and how it ends

Renewal. A fixed-term lease renews automatically at the end of the term for the same period, or for three years if the original term was shorter, unless one side gives notice in time. So a one-year lease, left alone, becomes a three-year lease at its first renewal.

Notice to stop a fixed-term lease renewing (articles 1097 and 1098 of the Civil Code):

There is one big extra protection for tenants: the landlord's opposition to the first renewal only takes effect three years after the lease was signed, unless the landlord needs the home for themselves or a child. In practice, a landlord cannot push you out of a new one-year lease after twelve months just because the term is up.

Leaving early (denúncia). Once one third of the term (or of the current renewal) has run, you may leave at any time with 120 days' notice if the term is one year or more, or 60 days if it is under a year. If the landlord has given notice that the lease will not renew, you may leave at any point with 30 days' notice. Notice must be sent by carta registada com aviso de receção (registered letter with acknowledgment of receipt) to the address in the contract; an email or WhatsApp message does not count under today's law. Leaving without giving notice means you owe the rent for the notice period.

Indefinite leases. You may end one with 120 days' notice if you have been there a year or more, or 60 days if less. The landlord may only end it for their own or a child's use, for demolition or deep renovation, or with five years' notice.

Landlord termination during the term. During a fixed term the landlord cannot simply end the lease. Termination for cause (resolução) requires a breach: rent unpaid for three months or more, or more than eight days late four times in twelve months after a written warning, subletting without consent, or using the home for another purpose. You can stop a termination for arrears by paying everything owed within one month of the notice. Late payment itself can trigger a 20 percent penalty on the amount overdue. Eviction always requires either a court decision or the special eviction procedure at the BAS (see disputes below). Changing the locks, cutting utilities, or intimidation is illegal.

Mutual agreement. A distrate (termination by mutual consent) can end the lease at any time on any terms both sides sign. It is the cleanest early exit if the landlord is willing.

Rent increases: how much and when

Rent may be updated once a year, on the anniversary of the lease, and only after at least a year has passed since the start or the last update. The landlord must tell you in writing at least 30 days before, stating the new rent and the coefficient applied. If the letter does not arrive, the rent does not change.

• 2026: the coefficient is 1.0224, a maximum increase of 2.24 percent, published by INE in Aviso n.º 23174/2025/2 in the Diário da República on 19 September 2025. On a 1,000 euro rent, the most a landlord may add is 22.40 euros.
• 2027: INE's flash inflation estimate at the end of August 2026 points to a coefficient of about 1.0256 (a 2.56 percent maximum). The official figure will be published in the Diário da República in the autumn of 2026. Until then it is an estimate.

The coefficient tracks consumer price inflation excluding housing over the twelve months to August. Governments have capped it in high-inflation years (2 percent in 2023), so check the year's published figure rather than the inflation headline. A landlord who skips an update may apply up to three skipped years' coefficients later, but never more than the published figures allow.

New leases on previously rented homes. Under article 34 of Lei n.º 56/2023 (Mais Habitação), if the property was let at any time in the five years before 7 October 2023, the starting rent of a new lease may not exceed the previous rent plus 2 percent (plus any unapplied coefficients from the previous three years, and certified deep-renovation costs up to 15 percent a year). Rents below the affordable-rent thresholds in Portaria n.º 176/2019 are exempt. The cap runs to 31 December 2029 under today's law. You are entitled to ask what the previous rent was. This is one of the rules the Government proposes to abolish (see below).

Your rights and duties as a tenant

• Habitable home. Structural problems, plumbing, wiring, water heaters, and appliances that came with the property are the landlord's to repair. Light bulbs, fuses, blocked drains you caused, lost keys, cleaning, and damage by you or your guests are yours. Put repair requests in writing and keep copies.
• Privacy. The landlord may not enter without your consent except in a genuine emergency. You may have guests. You may not sublet or move someone in permanently without written permission.
• Right of preference. If the landlord sells during the lease and you have lived there for at least two years, you may buy on the same terms as the proposed buyer. The landlord must notify you by registered letter with the price and conditions, and you have 30 days to reply.
• Protection from eviction. No court order or BAS decision, no eviction. Complaining about repairs or refusing an unlawful rent rise is not a ground for termination.
• Compensation. If a landlord ends an indefinite lease for their own use or for major works, you are owed compensation and, for own use, at least six months' notice.
• Your duties. Pay on time, use the home for the agreed purpose, look after it, allow access for necessary works with reasonable notice, and give proper notice when you leave.

The tenant IRS deduction

If you are tax resident in Portugal and the property is your permanent home, you can deduct 15 percent of the rent you paid in the year from your IRS bill, up to a cap. For 2025 income (declared in spring 2026) the cap is 700 euros. For 2026 income (declared in 2027) it rises to 900 euros, and from 2027 to 1,000 euros, under Decreto-Lei n.º 97/2026 of 20 May. Higher caps apply to some lower-income households and to tenants who moved to the interior for work.

The deduction only works if the lease is registered with Finanças and the rent was reported through the electronic receipts (or the exempt landlord's Modelo 44). The amounts then appear in your pre-filled return on the Portal das Finanças. If your NIF was not on the receipts, you will have to add the rent manually and keep the receipts. See our IRS guide.

Common problems and what to do

The landlord will not issue electronic receipts. Ask in writing. If nothing changes, file the tenant's communication of the lease on the Portal das Finanças and report the missing receipts through the e-balcão. Keep paying by bank transfer with "renda" and the month in the reference.

The deposit is not returned. Send a registered letter asking for its return within a stated period, attaching your entry and exit photos. If that fails, the Julgados de Paz (small-claims courts) handle claims up to 15,000 euros for a 70 euro fee, paid in the end by the losing party (50 euros in total if you settle in mediation). No lawyer is needed, though many people use a solicitador for the filing.

The landlord wants you out early. Check the notice periods above. Without a lawful ground the landlord cannot end a running lease, and opposition to the first renewal must respect the three-year rule. Reply by registered letter saying you are staying under the contract.

Repairs are ignored. Write by registered letter with a reasonable deadline. If the landlord still does nothing, you may in some cases have urgent repairs done and deduct the cost, but only after formal notice, and it is wise to take advice first. For habitability problems you can ask the câmara municipal to inspect.

Illegal rent increase. If the increase exceeds the coefficient or comes without 30 days' written notice, reply in writing that you will keep paying the current rent.

Disputes: the BAS, the Julgados de Paz, and the courts

• BAS (Balcão do Arrendatário e do Senhorio, Tenant and Landlord Counter). Run by the Ministry of Justice, it replaced the old Balcão Nacional do Arrendamento in February 2024. It handles the special eviction procedure (used by landlords for unpaid rent or an expired lease) and rent injunctions. If you receive BAS papers, respond within the deadline stated; ignoring them leads to a fast eviction order. Tenants in financial difficulty can ask for deferral under Portaria n.º 50/2024. Information at tribunais.org.pt.
• Julgados de Paz. Small claims up to 15,000 euros, including deposit returns and damage disputes. Not for evictions.
• Tribunal Judicial de Comarca (district court). Higher-value claims and contested evictions. Slow, and you will want a lawyer.

For complaints about an estate agency, use the Livro de Reclamações (complaints book, online or in the office) and IMPIC.

What may change: the 2026 rental law reform

On 9 July 2026 the Council of Ministers approved a proposal to revise the NRAU, the Civil Code, and the Code of Civil Procedure. It was sent to Parliament in the second week of August 2026 as a proposta de lei de autorização legislativa (a bill authorising the Government to legislate), and as of 9 September 2026 it awaits debate. Nothing in it applies yet. If Parliament approves it, the Government still has to publish the decree-law, so most commentators expect any changes to take effect at the end of 2026 or in early 2027 at the earliest.

The main proposals, as published:

• Remove the two-month cap on the deposit and raise the advance-rent cap from two to three months.
• Abolish the Mais Habitação limit on the starting rent of new leases on previously rented homes.
• Let landlords oppose the first renewal at the end of the initial term, ending the three-year rule.
• Let a fixed-term lease renew for the same period as agreed, ending the automatic three-year minimum renewal.
• Cut the arrears threshold for termination from three months to two, and add termination after three late payments (over eight days) in twelve months or four in eighteen.
• Raise the residence period for the right of preference from two years to three.
• Allow email between landlord and tenant where both agree, keeping registered letters for termination and major works.
• Cut the landlord's no-cause notice on indefinite leases from five years to three, and simplify termination for deep renovation.
• Transitional rules for pre-1990 leases, with protection for tenants aged 65 or over, with a disability of 60 percent or more, or with household income below roughly 64,400 euros a year.
• A separate emergency housing fund for tenants who lose their home, with support of up to about 537 euros a month for six months for households below three times the minimum wage.

If you sign a lease before any change enters into force, today's rules govern your contract. We will update this guide when the outcome is known.

Sources

• Portal das Finanças, FAQs on stamp duty and lease communication: https://info.portaldasfinancas.gov.pt/pt/apoio_contribuinte/questoes_frequentes/Pages/faqs-00033.aspx (registration deadline, payment of stamp duty)
• Portal das Finanças, change of address: https://info.portaldasfinancas.gov.pt/pt/apoio_ao_contribuinte/Cidadaos/Dados_pessoais_familia/Dados_pessoais/Morada/Paginas/default.aspx (15 and 60 day deadlines)
• Governo de Portugal, Comunicado do Conselho de Ministros de 9 de julho de 2026: https://portugal.gov.pt/gc25/governo/comunicados-do-conselho-de-ministros/comunicado-do-conselho-de-ministros-de-9-de-julho-de-2026-1 (rental reform approved as a proposta de lei)
• DGAJ, Balcão do Arrendatário e do Senhorio: https://dgaj.justica.gov.pt/Noticias-da-DGAJ/Balcao-do-Arrendatario-e-do-Senhorio-BAS-entra-em-funcionamento (BAS replacing BNA, Portarias 49/2024 and 50/2024)
• Conselho dos Julgados de Paz: https://www.conselhodosjulgadosdepaz.com.pt/informacao.asp (15,000 euro limit, 70 euro fee)
• IRN Predial Online, certidão permanente: https://www.predialonline.pt/PredialOnline/docs/Pedido_Certidao_Online.pdf (15 euros online)
• SCE (Sistema de Certificação Energética), FAQs: https://www.sce.pt/perguntas-frequentes/ (energy certificate mandatory for leases, DL 101-D/2020)
• Cuatrecasas, coeficiente de atualização de rendas 2026: https://www.cuatrecasas.com/pt/portugal/imobiliario/art/coeficiente-atualizacao-anual-rendas-2026 (1.0224, Aviso n.º 23174/2025/2, 30-day notice)
• Executive Digest, rendas 2027: https://executivedigest.sapo.pt/rendas-voltam-a-acelerar-em-2027-e-aumento-pode-chegar-aos-256/ (2.56 percent flash estimate, 31 August 2026)
• Belzuz Abogados, alterações ao artigo 1076.º: https://belzuz.com/publicacion/alteracoes-a-antecipacao-do-pagamento-de-rendas-e-novo-limite-maximo-para-caucoes-nos-contratos-de-arrendamento-urbano/ (two-month caps, Lei 24-D/2022)
• TOF Advogados, oposição à renovação: https://www.tofadvogados.com/post/limita%C3%A7%C3%B5es-%C3%A0-oposi%C3%A7%C3%A3o-%C3%A0-renova%C3%A7%C3%A3o-contratual-por-parte-dos-senhorios (article 1097 notice periods and three-year rule)
• Doutor Finanças, arrendamento com prazo certo: https://www.doutorfinancas.pt/vida-e-familia/habitacao/arrendamento-com-prazo-certo-o-que-saber-sobre-prazos-duracao-e-denuncia/ (article 1098 tenant notice periods)
• Doutor Finanças, direito de preferência: https://www.doutorfinancas.pt/vida-e-familia/habitacao/direito-de-preferencia-saiba-os-seus-direitos-quando-quiser-comprar-uma-casa-arrendada/ (two years, 30 days to reply)
• Doutor Finanças, dispensa de recibos eletrónicos: https://www.doutorfinancas.pt/carreira-e-rendimentos/rendimentos/quem-esta-dispensado-de-emitir-recibos-eletronicos/ (exemptions, Modelo 44)
• Doutor Finanças, medidas fiscais para a habitação (DL 97/2026): https://www.doutorfinancas.pt/vida-e-familia/habitacao/medidas-fiscais-para-a-habitacao-o-que-muda-no-iva-irs-imt-e-arrendamento/ (IRS deduction 900 and 1,000 euros)
• DECO Proteste, dedução das rendas no IRS: https://www.deco.proteste.pt/dinheiro/arrendamento/noticias/deducao-rendas-irs-sobe-900-euros-2026 (700 euros for 2025 income)
• DECO Proteste, revisão da lei do arrendamento: https://www.deco.proteste.pt/dinheiro/arrendamento/noticias/que-pode-mudar-com-revisao-lei-arrendamento (current rule versus proposal, item by item)
• Doutor Finanças, contratos de arrendamento vão mudar: https://www.doutorfinancas.pt/vida-e-familia/habitacao/contratos-de-arrendamento-vao-mudar-7-alteracoes-que-senhorios-e-inquilinos-devem-conhecer/ (proposal sent to Parliament 12 August 2026, expected timing)
• idealista/news, arrendar casa: o que vai mudar: https://www.idealista.pt/news/imobiliario/habitacao/2026/08/05/76918-arrendar-casa-em-portugal-o-que-vai-mudar-para-senhorios-e-inquilinos (proposal details, emergency fund)
• Montepio, arrendar casa: contratos, limites às rendas e impostos: https://www.montepio.org/ei/pessoal/impostos/arrendar-casa-contratos-limites-as-rendas-e-impostos/ (Mais Habitação new-lease cap in force to 2029, landlord rates)
• TOF Advogados, atualizações máximas de renda (Lei 56/2023): https://www.tofadvogados.com/post/as-atualiza%C3%A7%C3%B5es-m%C3%A1ximas-de-renda-de-acordo-com-a-lei-n-%C2%BA-56-2023-de-6-de-outubro (article 34, exceptions)
• Vida Imobiliária, comunicação de contratos por arrendatários: https://imojuris.vidaimobiliaria.com/actualidade/noticias/Aprovado-o-modelo-de-comunicacao-de-contratos-de-a/ (Portaria 106/2025/1, tenant communication from August 2025)

Last verified September 2026. Rules and fees change; check the official source before acting.