What Portuguese law says about renting a home, in plain English.

Form of the contract

Since the 2019 reform, a residential lease has to be put in writing. A simple verbal agreement isn't enough to legally protect either party.

The contract should identify both parties, the property, the rent amount, and the start date. Without a written contract, the tenant can still prove the tenancy existed through other means (rent receipts, for example), but it's much harder.

Identification and guarantees

It's common for a landlord to ask for ID, proof of income, and sometimes a guarantor. There's no legally required list. This comes from market practice, not from the law.

Asking for these documents cannot be done in a discriminatory way, for example based on nationality, ethnicity, sexual orientation, or family situation.

Occupancy permit (licença de utilização)

A property meant for housing should have an occupancy permit issued by the local municipality (Câmara Municipal), certifying it's fit for that purpose.

A missing permit doesn't automatically void the contract, but it can be a warning sign about the property's legal situation.

Deposit (caução)

A landlord can ask for a deposit to secure the contract, but it can't exceed two months' rent.

The deposit must be returned at the end of the contract, with deductions only for damage beyond normal use of the property.

Advance rent

Besides the deposit, a landlord can only require at most two months' rent to be paid in advance.

Contract duration

If the contract has a fixed term (1, 2, or 5 years, for example), that has to be stated explicitly in the text. If no term is specified, the contract is treated as open-ended.

A fixed-term contract renews automatically at the end of each period, unless either party objects within the legal deadlines. This is the default rule, which applies when the contract says nothing to the contrary, so contracts commonly spell out this clause explicitly, sometimes with a different renewal period than the law's default.

Rent adjustment

In any contract, rent can be adjusted once a year based on the coefficient published by Statistics Portugal (INE). In 2026 that coefficient is 1.0224, a 2.24% increase.

The landlord must notify the tenant in writing, at least 30 days in advance, of the new amount.

Late rent payment

If you pay rent late but settle it within 8 days of the delay starting, there's no penalty at all.

After that, the landlord can demand, on top of the overdue rent, a 20% penalty on the amount owed. Paying the rent along with that penalty clears the default (legally, "purging the default").

Only serious or repeated delays, covered elsewhere on this page, give the landlord grounds to end the contract.

Repairs and maintenance

Unless agreed otherwise, the landlord is responsible for all conservation work, ordinary or extraordinary, needed to keep the property habitable.

The tenant can only carry out work on the property if the contract allows it or they have the landlord's written authorization.

Subletting and assignment

A tenant can't sublet the property, hand it over to someone else, or assign their position in the contract, without the landlord's written authorization, except in cases provided for by law.

When subletting is allowed or authorized, the tenant has to report it to the landlord within 15 days.

This also matters if you're the one moving into a sublet place: if you're renting through someone who isn't the direct landlord, it's worth confirming that sublease was authorized in writing by the owner. An unauthorized sublease is illegal and gives the landlord grounds to end the main contract, which can leave whoever's actually living there, often without knowing the situation, at risk of having to leave without notice.

Receipts and income tax (IRS)

The landlord must issue an electronic rent receipt on the Finance Portal every time they receive a payment, including the deposit and advance rent. Not issuing it can lead to a fine.

A tenant can deduct 15% of rent paid on their main home from their IRS (income tax), up to €900 a year in 2026, or up to €1,100 for those in the lowest tax bracket. This only counts if the contract is registered with the tax authority and rent payments have an electronic receipt.

The landlord pays income tax on rent received (predial income, "category F"), usually at a flat 25% rate, but that rate can drop considerably depending on the contract’s length or if the rent counts as "moderate".

Ways a tenancy ends

Mutual agreement: landlord and tenant agree to end it.

Resolution: due to a breach by either party, for example failing to pay rent.

Opposition to renewal: either party blocks the automatic renewal at the end of the term.

Termination notice (denúncia): either party unilaterally ends an open-ended contract, in cases provided for by law.

Lapse: the contract ends automatically, for example on the death of the tenant with no eligible successors, in certain cases.

Landlord's termination notice

In an open-ended contract, the landlord can end it to use the property themselves or for their descendants, for demolition or major renovation, or without any stated reason, but always with advance notice (between 1 and 15 months, depending on the grounds), and never less than 6 months before the intended move-out date.

The notice must explicitly state the grounds for termination, or it has no legal effect.

Protection for elderly or disabled tenants

In old contracts (signed before 1990) or fixed-term contracts signed before February 2019, if the tenant is 65 or older, or has a certified disability of 60% or more, and has lived there for at least 15 or 20 years (depending on the case), the landlord can only terminate the contract or oppose its renewal to carry out major renovation or restoration work, and even then has to arrange the tenant's temporary rehousing during the work.

This stronger protection doesn't apply to most new contracts. If you're unsure whether your contract is covered, it's worth getting legal advice, for example from the Tenant and Landlord Counter (BAS).

Tenant's termination notice

In an open-ended contract, the tenant can end it at any time, without giving a reason, once they’ve lived there for at least 6 months. The required notice depends on how long they’ve already lived there: 120 days if a year or more, or 60 days if less.

In a fixed-term contract, the tenant can end it early after completing a third of the term, with the same 120- or 60-day notice depending on the contract's length. They can also opt out of the automatic renewal, with at least 120 days' notice before the term ends.

Not giving enough notice doesn't stop the tenant from leaving, but it does mean they owe the landlord rent for the missing notice days.

Default and eviction

If a tenant has 2 or more months of unpaid rent, the landlord must first notify them to pay within 10 days. Only after that can they move to resolve the contract.

Eviction runs through the Tenant and Landlord Counter (Balcão do Arrendatário e do Senhorio, BAS). A landlord isn't allowed to change the locks or remove belongings without a court decision. So-called self-help eviction is illegal and can be a crime.

Getting the deposit back

The law sets no exact deadline for returning it. The general understanding is that it should happen without delay, once the keys are handed back and the property’s condition checked. That’s why it’s good practice for the contract to set a concrete deadline, 15 or 30 days, for example.

The landlord can only deduct amounts for real damage, never for normal wear from everyday use. A wall showing its age isn't the same as a broken wall. It's up to the landlord to justify and prove any deduction, with photos or repair quotes, for example.

If the landlord neither returns the deposit nor justifies withholding it, the tenant should demand its return in writing, ideally by registered letter with acknowledgment of receipt. If there’s no response, they can go to a Justice of the Peace court (Julgado de Paz) or regular court, with a right to interest for the delay.