Portugal’s new rental law 2026 is not in force yet. It is a Government proposal (Proposta de Lei n.º 103/XVII/1.ª), approved in principle on 30 September 2026 and now under committee review. It proposes faster evictions, updatable old rents and uncapped deposits, but nothing changes in today’s contracts.
This guide is for landlords and tenants: what the proposal says, where it stands, when it could come into force, where to read the text and what has actually changed in 2026 (the IRS on rents).
Last updated: 16 October 2026. Status: approved in principle, under committee review. We follow every vote and update this page.
The essentials in 30 seconds
- The reform was approved by the Council of Ministers on 9/07/2026 and approved in principle by Parliament on 30/09/2026. It is not in force yet and there is no start date.
- Main proposals: end of the 2% cap on new contracts, 3 months' advance rent (today 2), no cap on the deposit (today 2 months' rent) and eviction after 2 months of non-payment (today 3). Deposits and advance rent may be limited at committee stage.
- There is no decree-law and no publication in the Diário da República (the official gazette): the PDF in circulation is the bill (proposta de lei).
- What is already law in 2026 is something else: the tax package of Decreto-Lei n.º 97/2026 (10% IRS on residential rents up to €2,300/month).
Where the new rental law stands
The known timetable, according to Jornal Económico, Renascença and idealista (23/09/2026, in Portuguese):
- 9 July 2026 · doneApproval by the Council of Ministers
The Government approves the proposal that becomes Proposta de Lei n.º 103/XVII/1.ª, a legislative authorisation to amend the NRAU.
- 12 August 2026 · doneSubmitted to Parliament
The bill is lodged in the Assembleia da República, at about 75 pages.
- 30 September 2026 · approved ✓First vote in Parliament (generalidade)
Approved with votes in favour from PSD, IL and CDS-PP, Chega abstaining, and PS, Livre, PCP, PAN, JPP and BE against. Other parties' bills were rejected. It moves to committee.
- Now · in progressCommittee stage (especialidade)
Article-by-article review in the parliamentary committee. This is where the PSD-Chega agreement tries to limit advance rent and deposits. The next steps are in the section below.
When does the new rental law come into force?
There is no date yet. No reliable source says when the new rental law comes into force, and this page does not invent one. Some news reports place publication after the 2027 State Budget debate, but that is an expectation, not an official timetable.
Because Proposta de Lei n.º 103/XVII/1.ª is a legislative authorisation, the road has six steps, and only the last one gives the new rules effect:
- Committee stage (especialidade). Article-by-article discussion and voting. This is where the four changes in the PSD-Chega agreement are negotiated, including limits on deposits and advance rent.
- Final global vote in the plenary of the Assembleia da República.
- Government decree-law. With the authorisation approved, the Government adopts the decree-law that actually amends the NRAU, in the Council of Ministers.
- Promulgation by the President of the Republic.
- Publication in the Diário da República.
- Entry into force on the date the decree-law sets, with its transition rules for ongoing contracts.
Until then the current rules (Civil Code and NRAU) apply to all contracts, including the ones you sign now. If a new contract complies with the law in force, it does not need to be redone when the reform arrives: at most, you add an addendum to the lease.
New rental law Portugal 2026: PDF and Diário da República
The text that exists today is the Government’s Proposta de Lei n.º 103/XVII/1.ª. It was approved by the Council of Ministers on 9 July 2026, lodged in the Assembleia da República on 12 August 2026 and runs to about 75 pages. It amends the Civil Code, the NRAU (Lei n.º 6/2006), the Code of Civil Procedure and Decreto-Lei n.º 157/2006 (works in rented buildings).
Where to read or download the PDF:
- on the Assembleia da República website, in the legislative initiatives area, searching for PPL 103/XVII;
- in the LexPoint legal database: Proposta de Lei 103/XVII/1 (Government, 12/08/2026) (in Portuguese).
What the new rental law says: what changes for landlords
This compares the rule in force with the proposal, from the landlord’s point of view.
| Topic | Rule in force today | Proposal (not law yet) |
|---|---|---|
| Initial rent on new contracts | 2% cap from Mais Habitação versus the previous rent of the same property | Cap ends initial rent freely set |
| Rent paid in advance | Maximum 2 months (art. 1076.º, n.º 1, Civil Code) | Up to 3 months may be limited at committee stage |
| Security deposit (caução) | Maximum 2 months’ rent (art. 1076.º, n.º 2, Civil Code) | No legal limit may be limited at committee stage |
| Eviction for non-payment | 3 months of non-payment (art. 1083.º regime, Civil Code) | 2 months |
| Lease renewal | The landlord cannot oppose the first renewal before 3 years (art. 1097.º, n.º 3, Civil Code) | No 3-year wait |
| Old rents (before 1990) | Transitional regime, with limited updates | Update according to the tenant’s age and annual income; stronger protection for elderly tenants under the PSD-Chega agreement |
| Evicted tenants | No specific support under this regime | New social support |
End of the 2% cap on new contracts
Mais Habitação (the 2023 housing package) capped the initial rent of new contracts on homes that had been let before: the new rent could not rise more than a set ceiling above the previous one. The proposal scraps that cap, and the initial rent would again be set by the market.
Until the law comes into force, the cap still applies. Do not confuse it with the annual update of ongoing contracts, which follows the INE (national statistics institute) coefficient (see below) and the rules in can the landlord increase the rent? For what the 2023 package already changed, see Mais Habitação 2026: what changed for landlords.
Deposit and advance rent: what is proposed
Today, art. 1076.º of the Civil Code limits the security deposit (caução) to two months’ rent and advance payment to two months. The proposal raises advance rent to three months and removes the ceiling on the deposit, which would be negotiated between the parties.
Note: this is the Government’s proposal, which may be limited at committee stage. The PSD-Chega agreement plans to limit how much advance rent and deposit can be demanded compared with the proposed extension.
Evictions: from 3 to 2 months of arrears
This is the change with the most practical impact. The non-payment that allows the landlord to terminate the contract drops from three to two months, shortening the time before the landlord can act.
The exact period and how it is counted depend on the final text: until then, rely on the current Civil Code rule (art. 1083.º, n.º 3).
The rest of the process (notice to the tenant, the BAS, the Balcão do Arrendatário e do Senhorio or tenant and landlord desk, and court) still requires a written contract, registered with the Tax Authority, and properly served notices. See how long it takes today in how long an eviction takes in Portugal and the step-by-step in our guide to tenant eviction and the BAS.
Old rents: updates by age and income
Contracts signed before 1990 would move into the NRAU, with the rent updated according to the tenant’s age and income and with protection for elderly tenants. The PSD-Chega agreement plans to protect the most vulnerable, with a compensation regime for landlords. The final criteria depend on the committee stage.
If you have one of these contracts, the first step is to gather the caderneta predial (property tax record, with the VPT tax value) and the contract details, so you can simulate the impact as soon as the final text is known.
New social support for evicted tenants
In return, the proposal creates a new social support for evicted tenants (idealista, 23/09/2026). The PSD-Chega agreement plans to deepen this social response and strengthen the housing emergency fund. Amounts and conditions will only be known in the final text.
What changes for tenants
For renters, the proposal is less favourable than the current regime on several points. None applies today: the middle column is the law in force.
| Topic | Today | Proposal (not law yet) |
|---|---|---|
| Deposit and advance rent | Deposit up to 2 months’ rent and advance rent up to 2 months (art. 1076.º, Civil Code) | Up to 3 months’ advance rent and no cap on the deposit; the PSD-Chega agreement plans to limit both |
| Eviction for non-payment | Termination after arrears of 3 months or more (art. 1083.º, n.º 3) | From 2 months of arrears |
| Lease renewal | The landlord cannot oppose the first renewal before 3 years (art. 1097.º, n.º 3) | The landlord can oppose renewal without waiting 3 years |
| Pre-1990 contracts and 65+ protection | Protection for tenants aged 65+ or with a disability of 60% or more (art. 36.º NRAU and Lei n.º 13/2019) | Move into the NRAU with rent updates and protection for elderly tenants under the PSD-Chega agreement |
| Initial rent on new contracts | 2% cap versus the previous rent | Cap ends |
| Evicted tenants | No specific support under this regime | New social support |
Deco (the consumer association) and tenant associations criticise above all the uncapped deposits and the shorter eviction periods. But the committee stage can still change the text.
What you can do now as a tenant
- Keep your rent receipts. They are proof of payment and open the door to support and to the IRS deduction. See what you should receive in our guide to the electronic rent receipt.
- Check that the contract is registered with the Tax Authority and that the deposit does not exceed 2 months' rent. Verify your agreement for free.
- Know your rights and limits: read the complete guide to tenant rights in Portugal.
- If you want to leave, respect the notice periods in lease termination: notice periods and rules and use the termination letter template.
New rental law and IRS: what already changed in 2026
The new rental law and the IRS are two separate topics. The NRAU reform does not change the IRS on rents. What changed IRS in 2026 is the tax package of Decreto-Lei n.º 97/2026, of 20 May, which is already law and applies regardless of the reform:
- 10% autonomous IRS rate on residential rents up to €2,300/month, from 1 January 2026 (art. 45.º-C of the EBF, the Tax Benefits Statute, created by DL 97/2026). It applies to new and existing contracts, for rents received from 1 January 2026 to 31 December 2029, and the contract must be registered with the Tax Authority. The Tax Authority has confirmed it also applies when you let a home to a company, with specific clauses.
- RSAA, with IRS exemption (0%), from 1 September 2026, as an alternative to the 10% rate. The two regimes cannot be combined: see the full picture in landlord IRS in 2026: the 4 tax rates and run the numbers in the rental income tax calculator.
- 2027 rent update coefficient: 2.56%. INE set it on 10/09/2026 from August inflation (ECO, 10/09/2026) and it has been official since Aviso n.º 24199/2026/2, published in the Diário da República on 1 October 2026. Run the numbers in the 2026/2027 rent update calculator.
On the tenant side, the IRS runs through rent receipts: without a receipt there is no proof of payment for the deduction. Our tenant rights guide explains what you can demand.
The criticism: tenants and Deco
Deco and tenant associations from Lisbon and Porto oppose the proposal. They warn that uncapped deposits, with no guaranteed refund mechanism, and shorter eviction periods shift risk onto tenants (idealista, 25/09/2026). Jornal de Negócios headlined that the law “transfers risk disproportionately” to tenants.
For landlords, the practical reading is simple: deposits and evictions are the most contested points and the most likely to change before the final vote.
What to do now with your contracts
- Apply the current law to any contract signed today: deposit up to 2 months' rent, advance rent up to 2 months, and the current 3-month non-payment rule.
- Do not draft clauses "in anticipation" of the reform. A clause that would only be valid under the new law can be challenged now.
- Get your paperwork in order: written contract, lease registration with the Tax Authority and electronic rent receipts up to date. An unregistered contract is a problem in itself (see verbal or unregistered lease: is it valid?), and electronic rent receipts are your proof of every payment. Any faster eviction only works when everything is documented.
- Prepare the 2027 update with the 2.56% coefficient, giving the tenant 30 days' written notice.
- Follow the process: we update this article after every vote.
Need a contract now? Our free NRAU tenancy agreement generator drafts it under the law in force. When the reform is published, an addendum is all it takes, if needed. For the full legal framework, see the NRAU explained for landlords and the complete landlord guide to renting in Portugal.
Frequently asked questions
Is Portugal's new rental law already in force?
No. Proposta de Lei n.º 103/XVII/1.ª, a legislative authorisation bill, was approved in principle on 30 September 2026. Committee review and a final global vote follow; the Government then approves the decree-law, which must be promulgated and published in the Diário da República. Until then, the current rules apply.
When does the new rental law come into force?
There is no date yet and no reliable source gives one. Still to come: committee review, the final global vote, the Government decree-law, promulgation and publication in the Diário da República. The law only applies from the entry-into-force date the decree-law sets. Until then, the current rules apply.
Where is the PDF of the new rental law?
The available text is Proposta de Lei n.º 103/XVII/1.ª, about 75 pages, on the Assembleia da República website (legislative initiatives, PPL 103/XVII) and on LexPoint. It is a bill, not the final law: the text can change at committee stage.
Has the new rental law been published in the Diário da República?
No. There is no decree-law yet and no publication in the Diário da República. A PDF circulating as the "decree-law of the new rental law" is the bill or the tax package of Decreto-Lei n.º 97/2026, which is a different thing. We will link to the official text on the day it is published.
Does the new rental law change the IRS on rents?
No. The NRAU reform does not touch the IRS. What changed in 2026 was Decreto-Lei n.º 97/2026, which is already in force: a 10% rate on residential rents up to €2,300/month (art. 45.º-C of the EBF) from 1 January 2026, and exemption under the RSAA from 1 September 2026.
Will the new law apply to the contracts I already have?
It depends on the transition rules of the final decree-law, which does not exist yet. Nothing changes today: ongoing contracts and the ones you sign now follow the Civil Code and the NRAU in force. Check the transition rules in the Diário da República once the diploma is published.
What changes for tenants under the new law?
If the proposal passes as it stands: eviction from 2 months of arrears, up to 3 months' advance rent, no cap on the deposit, renewal without the 3-year wait and updatable old rents with protection for elderly tenants. The PSD-Chega agreement plans to limit deposits and advance rent. None of this applies yet.
Can I ask for 3 months' deposit on a new contract?
Not today. Art. 1076.º of the Civil Code limits the security deposit to two months' rent and advance rent to two months. The proposal removes the deposit cap and raises advance rent to three months, but only once it comes into force, and the PSD-Chega agreement plans to limit these amounts at committee stage.
Under the new law, can I evict after 2 months of non-payment?
If the proposal is approved as it stands, eviction becomes possible after 2 months of non-payment instead of 3. Until it comes into force, the current period of art. 1083.º, n.º 3, of the Civil Code still applies.
How much can I raise the rent in 2027?
Up to 2.56%, the coefficient set by Aviso n.º 24199/2026/2 (Diário da República, 1 October 2026). It does not depend on the new rental law.
Sources (in Portuguese): Jornal Económico, 30/09/2026 · Renascença, 30/09/2026 · idealista, 23/09/2026 · idealista, 25/09/2026 · Jornal de Negócios · ECO, 10/09/2026 · Civil Code, arts. 1076.º, 1083.º and 1097.º · NRAU, art. 36.º.
