.svg){kind=small}
.svg){kind=small}
On July 9, 2026, the Council of Ministers approved the new rental regime — the largest overhaul of the rent law since Mais Habitação. Faster evictions, the end of the 2% cap on new contracts, the unfreezing of old rents, negotiable security deposits: the changes affect virtually every landlord in Portugal. This guide explains, point by point, what changes, when it changes, and what you should do right now.
Important: the decree was approved by the Council of Ministers but is not yet law — it requires approval by Parliament and promulgation by the President. Until then, the current NRAU rules remain in effect. We will update this article at every step of the legislative process.
Summary: before vs. after
Evictions: what changes in detail
This is the change with the most practical impact. Under the proposed regime:
- 2 months of rent in arrears will now constitute grounds for contract termination (currently, the general rule is arrears exceeding 3 months);
- Repeated delays count: 3 payments delayed by more than 8 days in a year — or 4 in 18 months — also allow the termination of the contract, even if the tenant always ends up paying;
- A single process: the eviction and the collection of outstanding rent will now run together, eliminating the duplication that currently drags out cases.
In practice, the cost of a default — which we currently calculate to be between €5,400 and €10,800 — should decrease, because the clock starts ticking earlier and the process loses steps. But beware: everything still depends on a valid contract, registered with the AT, and proper communications — which already explains the majority of failed evictions at the BAS.
Old rents: phased unfreezing
For contracts prior to 1990 — frozen for decades — the proposal creates a matrix based on the tenant’s age and income:
For landlords with old rents, the first step is to know the current VPT of the property (property tax document) and simulate 1/15 of that value — in many cases, the difference compared to the frozen rent is substantial. The proposal also provides tax benefits for the landlords of these contracts.
New contracts: rent freedom and more guarantees
- End of the 2% cap: the limitation on the initial rent for new contracts (which would have been in force until 2029) ends prematurely. Rent is once again determined by the market — use real data by municipality in our Rental Market Simulator;
- Security deposit without legal limit and up to 3 rents in advance — more margin to calibrate guarantees to the tenant’s risk;
- Opposition to the 1st renewal: the landlord is no longer ‘tied’ to the first automatic renewal cycle, provided they comply with the prior notice;
- Email as an official channel of communication, if both parties agree — putting an end to some of the formality of registered letters (but always keep proof).
Social support: the other side of the coin
The package includes a housing emergency fund: up to €537.13/month for 6 months for families with incomes below 3 minimum wages or victims of domestic violence, accumulable with other support. For landlords, this means struggling tenants have a safety net — and, in theory, fewer prolonged defaults.
What landlords must do NOW (before the law comes into force)
- Do not apply anything yet — the new rules are not yet in force; an eviction at 2 months today would be invalid;
- Get your paperwork in order: written contract, AT registration, up-to-date electronic receipts — the new regime only accelerates processes for those who have everything documented;
- Old rents: look up the VPT and prepare the 1/15 simulation to find out the update potential;
- Contracts renewing in the coming months: consider the timing — signing before or after it comes into force can change the rules applicable to the rent cap and security deposit;
- New leases: reinforce screening — even with faster evictions, the decisive factor remains choosing well; run candidates through the Tenant Solvency Calculator (free).
Frequently asked questions
Is the new rental regime already in effect?
No. It was approved by the Council of Ministers on July 9, 2026, but it needs to pass in the Assembly of the Republic and be promulgated. Until it is published in the Diário da República, current rules apply.
Will I be able to evict a tenant with 2 months of arrears?
If the legislation is approved as proposed, yes — 2 consecutive months of rent in arrears (or repeated delays exceeding 8 days) will become grounds for termination, in a single process that includes rent collection.
What happens to the 2% cap on rents for new contracts?
It ends three years earlier than planned. The initial rent for new contracts is once again freely negotiated between the parties.
I have a frozen rent from before 1990. How much can I increase it?
It depends on the tenant’s age and income: with incomes above ~€64,400/year (or tenants under 65 outside the protection), the rent could increase up to 1/15 of the property’s VPT. Low-income tenants aged 65+ keep the contract as it is.
Will the security deposit really no longer have a limit?
In the proposal, yes — security deposits and advance rents (up to 3 months) become negotiable. Use this margin wisely: disproportionate guarantees drive away good tenants.
Keep up with the changes with the right contract
Whatever the final version of the law, one thing does not change: landlords with solid contracts and up-to-date documentation are the first to benefit from any acceleration of the processes. → Generate your rental contract according to the NRAU for free — and subscribe to our guides to receive updates when the new regime is promulgated.
