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On July 9, 2026, the Council of Ministers approved the new rental regime — the largest revision 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 practically all landlords in Portugal. This guide explains, point by point, what is changing, when it changes, and what you should do right now.
The essentials in 30 seconds
- The new regime was approved by the Council of Ministers on July 9, 2026, but it is not yet law — it still requires approval in the Assembly of the Republic and promulgation.
- Biggest change: termination for non-payment goes from arrears of more than 3 months to just 2 consecutive months.
- Also changing: the early end of the 2% cap on new contracts and a security deposit with no legal limit (currently subject to NRAU limits).
- Until it comes into force, the current rules apply — the most essential thing right now is to have a contract, registration with the Tax Authority (AT), and rent receipts up to date.
Summary: before vs. after
| Topic | Current rule | New regime (proposal) |
|---|---|---|
| Termination for non-payment | Arrears of more than 3 months | 2 consecutive months of rent in arrears |
| Repeated delays | 4 delays of more than 8 days in 12 months | 3 delays >8 days in a year (or 4 in 18 months), do not need to be consecutive |
| Eviction process | Eviction and rent collection handled separately | A single process for eviction + outstanding rent |
| 2% cap on new contracts | In force until 2029 | Ends 3 years early — initial rent is freely set |
| Old rents (pre-1990) | Frozen | Phased unfreezing by age and income of the tenant (see below) |
| Security deposit | Legal limits | No legal limit — negotiable between the parties |
| Advance rents | Maximum 2 months | Maximum 3 months |
| 1st automatic renewal | Limited opposition | Landlord can oppose the 1st renewal with proper prior notice |
| Notices | Registered letter | Email allowed by agreement of the parties |
Evictions: what changes in detail
This is the change with the most practical impact. In the proposed regime:
- 2 months of rent in arrears now justify the termination of the contract (today, the general rule is a default of more than 3 months);
- Repeated delays count: 3 payments more than 8 days late in a year — or 4 in 18 months — also allow terminating the contract, even if the tenant always ends up paying;
- A single process: vacating the property and collecting unpaid rents now run together, eliminating the duplication that drags out cases today.
In practice, the cost of a default — which today we calculate to be between €5,400 and €10,800 — should decrease, because the clock starts ticking earlier and the process skips stages. But beware: everything still depends on a valid contract, registered with the AT, and properly executed notices — which already explains the majority of failed evictions at the BAS.
Old rents: the phased unfreezing
For contracts prior to 1990 — frozen for decades — the proposal creates a matrix based on the tenant’s age and income:
| Tenant | Annual income | What happens to the rent |
|---|---|---|
| Under 65 years old | Up to ~€64,400 | Frozen for another 5 years |
| Under 65 years old | Above ~€64,400 | Can increase up to 1/15 of the property’s VPT |
| 65 years or older | Up to ~€64,400 | Contract remains unchanged |
| 65 years or older | Above ~€64,400 | Can increase up to 1/15 of the VPT |
For landlords with old leases, the first step is to know the current VPT of the property (caderneta predial) and simulate 1/15 of this value — in many cases, the difference compared to the frozen rent is substantial. The proposal also includes tax benefits for landlords with these contracts.
New contracts: freedom to set rent and more guarantees
- End of the 2% cap: the limitation on the initial rent of new contracts (which would have been in effect until 2029) ends early. Rent is once again set by the market — use real data by municipality in our Rental Market Simulator;
- Security deposit without legal limit and up to 3 months’ rent in advance — more margin to calibrate guarantees against tenant risk;
- Opposition to the 1st renewal: the landlord is no longer ‘tied’ to the first automatic renewal cycle, provided they comply with the notice period;
- Email as an official channel of communication, if both parties agree — ending part 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, which can be combined with other supports. For landlords, this means struggling tenants have a safety net — and, in theory, fewer prolonged defaults.
What landlords should do NOW (before the law comes into force)
- Do not apply anything yet — the new rules are not yet in effect; an eviction at 2 months today would be invalid;
- Get your paperwork in order: written contract, registration with the Tax Authority (AT), up-to-date electronic rent receipts — the new regime only speeds up processes for landlords who have everything documented;
- Old rents: look up the VPT (Tax Asset Value) and prepare the 1/15 simulation to determine the update potential;
- Contracts up for renewal in the coming months: consider the timing — signing before or after the new rules take effect can change the applicable limits on the rent cap and security deposit;
- New leases: strengthen your screening process — even with faster evictions, the decisive factor is still 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 Parliament and be promulgated. Until its publication in the Diário da República, the current rules apply.
Will I be able to evict a tenant who is 2 months in arrears?
If the legislation is approved as proposed, yes — 2 consecutive months of rent in arrears (or repeated delays exceeding 8 days) will now be grounds for termination, in a single process that includes rent collection.
What happens to the 2% rent cap on new contracts?
It ends three years earlier than planned. The initial rent for new contracts will once again be 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 scope), the rent can increase up to 1/15 of the property’s VPT (Tax Asset Value). Tenants aged 65 and over with low incomes will keep the contract as it is.
Is the security deposit really no longer capped?
In the proposal, yes — the security deposit and rent paid in advance (up to 3 months) become negotiable. Use this leeway wisely: disproportionate guarantees drive away good tenants.
Navigate 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 processes. → Generate your NRAU-compliant lease agreement for free — and subscribe to our guides to receive updates when the new regime is enacted.
