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New rent law in Portugal, in short: if the Government’s proposal is approved as it stands, it will not only apply to new contracts. The draft decree-law says the changes also apply to existing tenancies. But as of 24 October 2026, nothing has changed yet: Parliament has only approved the legislative authorisation in a first-reading vote, and the detailed committee stage should start at the end of November. We show, rule by rule, what would change in the contract you already have, what stays the same and what to prepare with the condominium.
In short
- The new rent law in Portugal is not yet in force: it has only passed the first-reading vote, on 30 September.
- The draft applies the changes to existing contracts too, not only to new ones.
- Termination for non-payment would be possible with 2 months of arrears, instead of 3.
- The landlord’s objection to the first renewal would no longer have to wait 3 years.
- A larger deposit or more rent in advance only by agreement; the end of the 2% cap only affects new contracts.
- Condominium fees passed on to the tenant count towards arrears, but towards the building the owner is still the one who pays.
New rent law in Portugal: where does the Government's proposal stand?
Revising the NRAU (Novo Regime do Arrendamento Urbano, the urban tenancy regime) is a matter reserved to the Assembleia da República (Parliament). So on 9 July 2026 the Council of Ministers approved Proposta de Lei 103/XVII, a bill asking Parliament for authorisation to legislate, with the draft decree-law the Government intends to approve afterwards attached.
As Jornal de Negócios sums it up, there are four pillars: freedom of contract, enforcement of contracts, simpler evictions and a social response.
| Stage | Status on 24 October 2026 |
|---|---|
| Approval by the Council of Ministers | Done on 9 July 2026 |
| First-reading vote (generalidade) | Approved on 30 September: PSD, IL and CDS-PP in favour, Chega abstained, PS, Livre, PCP, BE, PAN and JPP against |
| Committee stage (especialidade: hearings and amendments) | Due to start at the end of November, after the 2027 State Budget |
| Final overall vote and enactment of the authorising law | Not yet scheduled |
| Government decree-law | The authorisation lasts 180 days; without a decree-law in that time, a new request is needed |
| Enactment, publication and entry into force | Not yet scheduled |
The outcome is not guaranteed. Chega allowed the proposal through at first reading under a deal with PSD to change four points but, according to ECO, it now says it may vote against if the text is not corrected. PSD refuses to withdraw the proposal and the Government is open to negotiating with PS as well, idealista reports. According to Jornal de Negócios, quoted by idealista, the process could drag on until the summer of 2027.
Important: until the decree-law is published in the Diário da República (the official gazette) and comes into force, the current rules apply. Asking today for a deposit of more than two months’ rent still breaches article 1076 of the Civil Code.
Why would the new law apply to existing contracts?
You often read that the reform only affects new contracts. The text says otherwise: article 11 of the draft decree-law, on the application of the law over time, applies the changes to contracts signed after it comes into force and also «to contractual relationships already constituted that subsist on that date».
This follows the general rule in article 12 of the Civil Code: when a law directly governs the content of a legal relationship, it applies to relationships that already exist, but does not undo effects that have already occurred. In practice, the new rent law in Portugal would work like this:
- What has already happened stays as it is: deposit paid, rent paid, renewals made.
- The rules on ending the contract would apply straight away. Renewal periods, objection to renewal, notice to terminate and termination for non-payment would apply to running contracts from the date of entry into force.
- Rules that depend on agreement only count if there is agreement. More rent in advance or a bigger deposit requires both parties to sign; the landlord cannot impose them mid-contract.
- Some rules, by their nature, only affect new contracts. That is the case with the end of the 2% cap on the starting rent.
Important: article 11 is short and does not deal with in-between situations, such as arrears already in their second month when the law comes into force, or a three-year period half-way through. The final text may bring more detailed transitional rules; until then, treat these cases as uncertain.
What changes, rule by rule, in the contract you already have?
We compared the Civil Code in force with the text of the draft. The first table covers money up front and the rent.
| Rule | Today (in force) | Government proposal | In your existing contract |
|---|---|---|---|
| Rent in advance | Up to 2 months, with written agreement (art. 1076(1)) | Up to 3 months, with written agreement | Only if both parties sign an addendum |
| Deposit | Up to 2 months’ rent (art. 1076(2)) | No legal limit | The deposit paid stays as it is; any top-up only by agreement |
| Starting rent of a new contract | Last rent + 2% for homes let in the 5 years before October 2023, with exceptions (art. 34 of Law 56/2023, until 2029) | Cap repealed | Does not apply: it only counts when you sign a new contract |
| Annual update | INE (national statistics) coefficient, under art. 24 of the NRAU | Same mechanism kept | No change; for 2027 the coefficient is 2.56% (in Portuguese) |
The second table is the one that matters most for running contracts: arrears, renewal and ending the contract.
| Rule | Today (in force) | Government proposal |
|---|---|---|
| Termination for non-payment | Arrears of 3 months or more in rent, charges or expenses payable by the tenant (art. 1083(3)) | 2 months |
| Repeated delays of more than 8 days | More than 4 times in 12 months; registered letter with proof of receipt after the 3rd delay (art. 1083(4) and (6)) | More than 3 times in 12 months or more than 4 in 18 months; letter after the 2nd delay |
| Deadline for the landlord to terminate for arrears | 3 months from becoming aware (art. 1085(2)) | 6 months |
| Paying the arrears to stop termination | Up to one month after notice, once per contract (art. 1084(3) and (4)) | Kept |
| Automatic renewal | For an equal period, or 3 years if the term is shorter, unless agreed otherwise (art. 1096(1)) | For an equal period, unless agreed otherwise |
| Landlord’s objection to the 1st renewal | Only takes effect 3 years after signing (art. 1097(3)) | Rule repealed |
| Notice to end an open-ended contract | 5 years’ notice (art. 1101(c)) | 3 years’ notice |
| Tenant’s right of first refusal on sale | Home let for more than 2 years (art. 1091(1)) | More than 3 years |
Contracts from before 1990 have their own rules, which we explain in the Portugal rental reform 2026 checklist and in our comparison of the parties’ proposals for renting.
What would change for a landlord with a running contract?
The most concrete change is in how the contract ends. Take a one-year contract signed in March 2026. Today, the landlord can object to renewal with 120 days’ notice, but that objection only takes effect in March 2029, three years after signing. If the decree-law comes out as it stands and comes into force before then, that wait disappears: the objection takes effect at the end of the current term or renewal, provided it is given with the legal notice. How long a renewal already running on that date would last is one of the points the text does not clarify.
Renewal also becomes clearer. Today the courts are divided on whether the three years in article 1096 are mandatory (see a 2026 ruling). Under the proposal, the contract renews for the same period, unless agreed otherwise.
On arrears, the landlord could terminate the contract with two months’ rent unpaid, instead of three, and would have six months to do so. The tenant can still stop the termination by paying everything within one month, once per contract. For the procedure, see our guide on what to do when a tenant does not pay the rent (in Portuguese).
What not to do yet:
- ask for rent in advance or a deposit above the current limits «because the law is going to change»;
- send objections to renewal relying on rules that do not exist yet;
- rewrite clauses of running contracts without the tenant’s written agreement.
What you can do now: review the clauses in your tenancy agreement (in Portuguese), record the date of every payment and prepare the 2027 rent update. If you are looking for predictability, compare with affordable renting (arrendamento acessível), which is already in force.
What would change for the tenant?
For tenants, the key word becomes punctuality. With the limit falling to two months and the rule on repeated delays tightening, four delays of more than eight days in a year, or five in 18 months, would be enough for the landlord to end the contract, provided they have warned the tenant by registered letter with proof of receipt after the second delay.
In a short contract, there is no longer a guarantee of staying in the home for at least three years. The landlord’s notice period stays the same: 120 days for a contract of one to six years, for example.
What does not change: without your agreement, there is no extra rent in advance or top-up of the deposit, and the annual update follows the official coefficient.
According to RTP, the PSD–Chega deal provides for limits on deposits and rent in advance and for distinguishing tenants who deliberately do not pay from those who cannot pay. None of this is settled.
Important: if you are struggling to pay, talk to the landlord before the second month of arrears and keep any payment arrangement in writing.
And the condominium: do fees payable by the tenant count towards arrears?
They do, and they already do today. By default, the common expenses of a let unit are paid by the landlord (art. 1078(3)). But the contract can pass them on to the tenant. In that case, they are «charges or expenses payable by the tenant» and count towards arrears: three months today, two under the proposal.
An often-forgotten detail: if the condominium fee is in the landlord’s name, the landlord must provide proof of payment within one month, and the tenant pays at the end of the following month (art. 1078(5) and (6)). Without that proof, the tenant’s debt is hard to prove.
Towards the condominium, nothing changes: the person who owes the fees is always the owner of the unit, even if the contract passes them on to the tenant. The administrator collects from the owner and can use the minutes of the owners’ meeting as an enforceable title (in Portuguese). If the debt is dragging on, see what to do about owners who do not pay their fees (in Portuguese).
The rule that breaching the condominium’s building rules can justify termination by the landlord also stays (art. 1083(2)(a)). It is a good idea to give the tenant the building rules together with the contract.
Important: the condominium administrator is not a party to the tenancy agreement. It can issue the owner a statement of the unit’s fees, useful as evidence, but it does not collect fees from the tenant.
Checklist: what to do until the new rent law in Portugal is published
- List your contracts with the signing date, the term, renewals and the next end date.
- Flag those less than three years old: they are the most affected by the end of the rule in article 1097(3).
- Check whether the contract passes condominium fees on to the tenant, and on what terms.
- If the fees are in your name, send the tenant proof of payment every month.
- Record the date of every rent payment; the new regime counts delays of more than eight days.
- Do not ask for deposits above two months’ rent or more than two months in advance while the law has not changed.
- Check the text published in the Diário da República before acting.
Conclusion
The new rent law in Portugal is still a proposal and could change or fall at committee stage. But if it comes out as it stands, it will also reach running contracts. The biggest changes are in how contracts end: two months of arrears to terminate, an end to the three-year wait at the first renewal and three years’ notice for open-ended contracts. The deposit and rent in advance only change by agreement, and the 2% cap only counts for new contracts. For now, know the dates of your contracts and keep your payments documented.
New rent law in Portugal: frequently asked questions
Is the new rent law in Portugal already in force?
No. As of 24 October 2026, Parliament has only approved at first reading the legislative authorisation requested by the Government. The committee stage, the final overall vote, enactment and the Government’s decree-law are still to come. Until then, the current rules apply.
Does the new rent law apply to existing contracts?
Yes, if the text does not change. Article 11 of the draft applies the changes to new contracts and to contractual relationships that subsist on the date it comes into force. What has already happened stays as it is.
Can my landlord now demand more rent in advance or a bigger deposit?
No. Today the limit is two months’ rent in advance and a deposit of up to two months’ rent. Under the new law, higher limits would need the written agreement of both parties.
Under the new law, will eviction be possible with two months' rent unpaid?
The proposal lowers from three to two months the arrears that allow the landlord to terminate the contract. Charges payable by the tenant, such as condominium fees, also count. The tenant can still stop the termination by paying everything within one month, once per contract.
Does the end of the 2% cap change the rent in my current contract?
No. The cap in article 34 of Law 56/2023 limits the starting rent of a new contract. In a running contract, the rent only rises through the annual INE update.
Do condominium fees paid by the tenant count towards arrears?
They do, if the contract passes them on to the tenant: they are charges payable by the tenant. Towards the condominium, the owner always owes the fees.
When could the new rent law in Portugal come into force?
There is no date. Once the authorising law is approved and published, the Government has 180 days to approve the decree-law. According to Jornal de Negócios, quoted by idealista, the process could drag on until the summer of 2027.
This article is for information only and does not replace legal advice. It is based on Proposta de Lei 103/XVII and the attached draft decree-law, which may still be amended. Updated on 24 October 2026.
