In short
The reform of Portuguese residential leases is not yet in force. It is Government Bill No. 103/XVII/1 (Proposta de Lei), a legislative authorisation law approved in principle on 30 September 2026 and now being debated in committee. Until the Government publishes the authorised decree-law, the current rules apply: termination after three months of unpaid rent (Civil Code, Article 1083(3)), a deposit of up to two months’ rent and advance payment of up to two months (Article 1076) and, for certain new leases, an initial rent capped at +2% (Law No. 56/2023, Article 34). For 2027, the rent update coefficient is 1.0256 (+2.56%).
Anyone who owns let property in Portugal, or is thinking of letting it, is asking the same question: should I wait for the new law or decide now? The answer requires separating two things the press tends to blur: what the law says today and what the bill intends to change.
Where the new rental law stands
Government Bill No. 103/XVII/1 was submitted to Parliament on 1 September 2026. It authorises the Government to amend the Urban Lease Regime (NRAU, Law No. 6/2006 of 27 February), the Civil Code, the Code of Civil Procedure and related legislation, and attaches the draft authorised decree-law. It was approved in principle on 30 September 2026, with votes in favour from PSD, IL and CDS-PP and the abstention of Chega, and was sent to the Committee on Infrastructure, Mobility and Housing. According to the press, PSD and Chega agreed to introduce changes at that stage: limiting advance rent and deposits, protecting elderly tenants with pre-1990 leases, strengthening the housing emergency fund and distinguishing deliberate default from genuine inability to pay.
Because it is a legislative authorisation, parliamentary approval does not, by itself, change any lease. The final overall vote, promulgation and publication of the authorisation law are still to come. The Government must then approve the authorised decree-law, which is promulgated and published in the Diário da República. Only when that decree-law enters into force do the rules change. The authorisation lasts 180 days (Article 3 of the bill).
What is in force today and what the bill changes
The left-hand column has been checked against the consolidated versions published in the Diário da República. The right-hand column summarises the draft authorised decree-law attached to the bill, checked against the text published by Parliament. It may change in committee.
| Topic | Rules in force (17/10/2026) | Government bill |
|---|---|---|
| Termination for non-payment | Arrears of three months or more (Civil Code, Art. 1083(3)). The tenant may cure the default within one month, but only once per lease (Art. 1084(3) and (4)). | Arrears of two months. |
| Repeated late payment | Delay of more than eight days, more than four times in 12 months (Art. 1083(4)). | Delay of more than eight days more than three times in 12 months, or more than four times in 18 months. The landlord must warn the tenant by registered letter after the second delay (new Art. 1083(6)). |
| Time limit for the landlord to terminate | Three months where the ground is non-payment (Art. 1085(2)). | Six months. |
| Advance rent | Up to two months, by written agreement (Art. 1076(1)). | Up to three months (limit under review in committee). |
| Deposit | Up to two months’ rent (Art. 1076(2)). | No statutory limit (limit under review in committee). |
| Rent on a new lease | For certain previously let properties, capped at +2% on the last rent (Law No. 56/2023, Art. 34). | Article 34 of Law No. 56/2023 repealed. |
| Landlord’s objection to renewal | An objection to the first renewal only takes effect three years after the lease was signed, unless the landlord or a first-degree descendant needs the home (Art. 1097(3) and (4)). | Art. 1097(3) and (4) repealed. Automatic renewal for periods of equal duration (Art. 1096(1)). |
| Tenant’s pre-emption right on sale | Property let for more than two years (Art. 1091(1)(a)). | Property let for more than three years. |
| Notices | Registered letter with acknowledgment of receipt (NRAU, Art. 9(1)). | Email, where the written lease sets an agreed electronic address. |
| Pre-1990 leases | Do not transition to the NRAU (Law No. 56/2023, Art. 35). | The landlord may start the transition. Absent agreement, and if the tenant’s household income is below five annual minimum wages, the lease moves to the NRAU with a five-year fixed term. If the tenant is 65 or over or has a disability of 60% or more, the lease does not transition, but the annual rent may be raised up to 1/15 of the property’s value. |
The draft also gives appeals in actions on the validity, continuation or termination of leases a merely devolutive effect, and gives certain vulnerable tenants priority for social support (new Article 35-A of the NRAU). Under its Article 11, the changes apply to leases signed after entry into force and to contractual relationships still running on that date. That is the point that matters most to anyone who already holds a let portfolio.
What a landlord should do now
- Sign new leases under today’s law. A deposit of four months’ rent, or six months paid in advance, exceeds the limits of Article 1076 of the Civil Code, even if the reform later removes them.
- Check whether the property is caught by the 2% cap. Article 34 of Law No. 56/2023 only applies to properties let in the five years before that law entered into force and to leases above the general rent limits of Ordinance No. 176/2019. It does not apply to every lease.
- Handle arrears under the current time limits. Today, the threshold is three months. Notice of termination must be served by court notification, by personal service through a lawyer, solicitor or enforcement agent, or by registered letter with acknowledgment of receipt where the written lease sets an agreed address for notices (NRAU, Art. 9(7)). Outside that last case, a registered letter is not enough. The landlord has three months to terminate (Civil Code, Art. 1085(2)).
- Review term and renewal clauses in leases about to be signed, because that is where the reform, if confirmed, will bite hardest.
- Do not anticipate. No clause can safely rely on a law that does not yet exist.
Rent increases in 2027: 2.56%
The coefficient for 2027 is 1.0256. It was published by Notice No. 24199/2026/2 of the National Statistics Institute (INE), in Diário da República No. 191/2026, 2nd series, of 1 October 2026, under Article 24 of the NRAU. A rent of EUR 1,000 may rise to EUR 1,025.60.
The rules are in Article 1077 of the Civil Code and apply only where the lease does not provide for its own update mechanism:
- the first update may only be required one year after the lease begins, and each subsequent one a year after the previous update (para. 2(b));
- the landlord gives written notice, at least 30 days in advance, of the coefficient and the new rent (para. 2(c)), by registered letter with acknowledgment of receipt (NRAU, Art. 9(1));
- an update not made is not recovered. The coefficients may, however, be applied in later years, provided no more than three years have passed since they could first have been applied (para. 2(d)).
How to count the 30 days. The reference date is the due date of the first updated rent. Count backwards in calendar days, excluding the due date itself (Civil Code, Art. 279(b)), and post the letter early enough for it to be received within that period.
Frequently asked questions
Is the new Portuguese rental law already in force?
No. Government Bill No. 103/XVII/1 was approved in principle on 30 September 2026 and is being debated in committee. Because it is a legislative authorisation law, the new rules will only apply once the decree-law approved by the Government under it is published and enters into force. Until then, the current Civil Code and NRAU rules apply.
How many months of unpaid rent allow a landlord to terminate the lease?
Today, three months or more (Civil Code, Article 1083(3)), or delays of more than eight days on more than four occasions in 12 months (Article 1083(4)). The tenant may cure the default within one month, but only once per lease (Article 1084(3) and (4)). The Government bill reduces the threshold to two months.
Can I ask for three months’ rent in advance or a larger deposit?
Not while the reform is not in force. Article 1076 of the Civil Code limits advance payment to two months, by written agreement, and the deposit to two months’ rent. The bill extends advance payment to three months and removes the deposit limit, but both points are under review in committee.
How much can rent rise in 2027?
Up to 2.56%. The coefficient of 1.0256 was published in Notice No. 24199/2026/2 in the Diário da República on 1 October 2026. If the lease has no update clause of its own, Article 1077 of the Civil Code applies: written notice at least 30 days in advance, and only one year after the lease began or after the previous update.
Will the reform apply to existing leases?
Yes, under Article 11 of the draft decree-law attached to the bill: it applies to leases signed after entry into force and to contractual relationships still running on that date. The rule will only be settled by the final text of the authorised decree-law.
Can the landlord refuse renewal before three years?
As a rule, not today. An objection to the first renewal only takes effect three years after the lease was signed (Civil Code, Article 1097(3)). The exception is where the landlord or a first-degree descendant needs the property as a home (Article 1097(4)). The bill removes that minimum.
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Read also
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Sources
- Civil Code — consolidated version (Arts. 279, 1076, 1077, 1083–1085, 1091, 1095–1097)
- Urban Lease Regime (NRAU, Law No. 6/2006) — consolidated version (Arts. 9 and 24)
- Law No. 56/2023 of 6 October (Arts. 34 and 35)
- Notice No. 24199/2026/2 of 1 October — 2027 rent update coefficient
- Portuguese Parliament — Government Bill No. 103/XVII/1
Official Portuguese Gazette (Diário da República), consolidated versions; links checked on 17 October 2026. Always confirm the version in force on the date of your decision.
General information, updated on 17 October 2026. It does not replace an analysis of the specific case and is not legal advice.