You have received applications for your property. Now comes the most important, and most neglected, part of the rental process: analysing the applicant’s file. A well-analysed file is the difference between a tenant who pays the rent every month and one who leaves you without income for a year.
The essentials in 30 seconds
- Effort rate (taxa de esforço) = (monthly rent ÷ monthly net income) × 100. Below 30% is low risk; above 40% is very high risk and should be refused or made subject to additional guarantees.
- Always ask for the original ID document and confirm the NIF (tax number) on the Finanças Portal.
- Cross-check payslips, income tax returns (IRS) and bank statements for the last few months: figures that do not add up are a warning sign.
- A refusal to provide any document is, almost always, a red flag.
This guide gives you a structured, document-by-document analysis process, with the warning signs you need to know.
Which Documents to Ask For
The list of documents to request varies with the applicant’s profile. Here is the complete list by category:
For employees (employment contract):
- Last 3 payslips (recibos de vencimento)
- Employment contract (full copy: check whether it is permanent, fixed-term or open-ended temporary)
- Latest income tax return (IRS) or tax assessment notice
- Last 3 months of bank statements
- Valid ID document (Cartão de Cidadão or passport)
- Proof of NIF
For self-employed workers (recibos verdes):
- Last 2 income tax returns (Modelo 3 with Annex B)
- Recibos verdes for the last 6 months
- Last 6 months of bank statements
- Proof of registration as a self-employed worker with the Tax Authority (AT)
For retirees / pensioners:
- Up-to-date pension statement (Social Security or Centro Nacional de Pensões)
- Last 3 months of bank statements
For non-resident / foreign applicants:
- Valid passport + residence visa or residence permit
- Proof of Portuguese NIF
- Proof of income in the country of origin (translated and apostilled, if necessary)
- Reference from an employer in Portugal or a Portuguese employment contract
How to Verify Identity Documents
Identity verification is the first step, and the most basic. Do not skip it.
- Ask to see the original document in person. Do not accept photocopies only: anyone can forge a photocopy.
- Check the name, photograph and expiry date. If the document has expired, it is not valid.
- For Portuguese citizens: check the Cartão de Cidadão (it has a chip) or the Bilhete de Identidade (outdated, but still valid for some purposes).
- For foreign citizens: check the passport and the residence permit (Autorização de Residência), if applicable. The residence permit has an expiry date: check that it covers the period of the lease.
- Check the NIF on the Finanças Portal (portaldasfinancas.gov.pt > Consultar NIF) to confirm that it matches the name given.
Income Verification: Payslips, Tax Returns, Bank Statements
Payslips: what to check:
- Name of the employer and the employee: they must match the ID document
- Monthly net amount: use this figure to calculate the effort rate
- Type of employment relationship: permanent, fixed-term, open-ended temporary, service provision
- Consistency across the 3 months: very variable amounts may point to shift work, commissions or instability
Income tax return (IRS): what to check:
- Total income declared: compare it with the payslips
- Source of income: Category A (employment), B (self-employed), F (rental), etc.
- Tax assessment notice: whether there is tax to pay or a refund; IRS debts are a warning sign
Bank statements: what to check:
- Average monthly balance: it should be positive and stable
- Regular deposits that match the declared payslips
- No payments relating to tax enforcement proceedings or seizures (penhoras)
- Spending patterns: credit cards with a high balance, frequent withdrawals of large sums
How to Calculate the Effort Rate
The effort rate is the most important indicator of short-term solvency. It is simple to calculate:
Effort rate = (Monthly rent / Monthly net income) × 100
Reference thresholds:
- Below 30%: low risk, a comfortable applicant
- 30% to 33%: moderate risk, acceptable for most landlords
- 33% to 40%: high risk, consider asking for a guarantor or rent insurance
- Above 40%: very high risk, we recommend refusing or requiring additional guarantees
Red Flags in a File
Beyond the numbers, there are qualitative signs that should raise suspicion:
- Documents with erasures, corrections or inconsistencies (e.g. the name written in different ways)
- Payslips that do not match the bank statements (different amounts)
- A history of multiple moves in the last 2 to 3 years with no clear explanation
- Extreme urgency to close the deal and move into the property immediately
- Refusal to provide some documents: “I don’t have that document” is almost always a red flag
- Bank statements showing returned cheques or tax enforcement proceedings
- Negative references from previous landlords, or landlords who cannot be contacted
Complete Screening Checklist: Phases and Steps
Phase 1: Pre-screening (before the in-person meeting)
- Effort rate calculated from the preliminary data provided by the applicant
- Employment situation clarified: permanent / self-employed / retired
- Confirm availability to provide all the documents
Phase 2: Collecting and verifying documents
- ID document seen in the original
- NIF verified on the Finanças Portal
- Payslips / income tax return / statements reviewed
- Effort rate calculated with real data
Phase 3: Credit checks and references
- Mapa de Responsabilidades (credit liabilities report) from the Banco de Portugal requested or consulted
- Search for tax enforcement proceedings on the Citius portal
- Contact with previous landlords (at least 1)
Phase 4: Decision and documentation
- Decision: Accept / Accept with additional guarantees / Refuse
- Reasons for the decision recorded (for compliance purposes)
- If accepted: lease drafted, signed and registered with the AT
