The NRAU — Novo Regime do Arrendamento Urbano (New Urban Lease Regime) — is the law that governs practically everything in the landlord-tenant relationship in Portugal: the type of lease you can sign, when and how you can raise the rent, how a lease ends, and what to do when something goes wrong.
This guide explains the essentials in plain language, with the deadlines and rules in force in 2026.
- The NRAU governs the type of lease, the deadlines, the rent update, and how tenancies end in Portugal.
- The rent can only be updated once a year, by the INE coefficient (with 30 days’ notice) or by agreement between the parties.
- The lease must be registered with the AT by the end of the month after the lease starts — since 2025, if the landlord doesn’t, the tenant can register it.
- An NRAU-compliant lease avoids most of the costliest mistakes a landlord can make.
What is the NRAU?
The NRAU was approved by Lei n.º 6/2006 and amended several times since — notably by Lei n.º 31/2012 (which streamlined eviction), Lei n.º 13/2019 (which strengthened lease stability), and, more recently, the Mais Habitação package (Lei n.º 56/2023), which changed the rules on rent, deposits, and lease registration.
Together with the Civil Code, it is the legal framework of reference for any residential lease.
In practice, the NRAU answers four questions every landlord asks:
- What type of lease can I sign, and for how long?
- How much, and when, can I update the rent?
- How can I (or the tenant) end the lease?
- What happens if the tenant stops paying?
Types of lease agreement under the NRAU
The NRAU provides for two main types of residential lease:
| Type | Duration | Renewal | Who it suits |
|---|---|---|---|
| Fixed term | The duration set out in the lease (as a general rule, a minimum of 1 year for permanent housing) | Renews automatically at the end of the term, unless either party validly opposes it | The vast majority of residential leases |
| Indefinite duration | No fixed term | Not applicable — runs until terminated | Long-term relationships; gives the tenant more stability |
In fixed-term leases, if nothing is stated, the lease is deemed to run for the stipulated period and to renew for successive periods. Opposing renewal must comply with the legal notice periods — missing the deadline means, in practice, one more renewal cycle. See the deadlines in detail in our guide to lease termination.
For specific situations — students, temporary housing — there are dedicated rules we explain in short-term leases.
Rent: setting it, updating it, and its limits
The initial rent is freely set between the parties (with exceptions for subsidized/affordable-rent schemes). If you’re not sure what to ask, use real market data by municipality and property type on our free Rental Market Simulator.
Once the lease is signed, the rent can only be updated:
- Once a year, by the INE coefficient — published every October and applicable the following year, with written notice to the tenant 30 days in advance. We explain the calculation step by step in our guide to the annual rent update.
- By agreement between the parties — for example, in exchange for works.
Security deposit, advance rent, and guarantees
The NRAU allows a security deposit and advance rent within legal limits — up to 2 months’ rent as deposit and 2 months in advance (the deposit limits explained). Since Mais Habitação, market practice has settled around: 1 month’s current rent + advance rent + deposit, within the legal caps in force.
More important than maximizing guarantees is choosing the tenant well: a 2-month deposit doesn’t cover a default that, on average, costs 6 to 12 months between the process and recovering the property. Before signing, run candidates through our Tenant Solvency Calculator and see our comparison of rent guarantee insurance vs. a guarantor.
Landlord tax obligations (which the NRAU doesn’t forgive)
- Registering the lease with the AT by the end of the month after the lease starts (Modelo 2 of the stamp duty) — since 2025, if the landlord doesn’t register it, the tenant can. Full guide: registering the lease with the Tax Authority.
- Stamp duty — 10% of one month’s rent, assessed with the registration. Details: stamp duty on leases.
- Electronic rent receipts on the Portal das Finanças, month by month. How to issue them: electronic rent receipt.
- Annual declaration of rental income in your IRS return (Category F, with the option of aggregation or a flat rate, and reduced rates for long-term leases).
Ending the lease: denunciation, opposition to renewal, and termination
The NRAU distinguishes three routes, and confusing them is one of the costliest mistakes a landlord can make:
| Route | Who can use it | When |
|---|---|---|
| Opposition to renewal | Landlord or tenant | At the end of the term (or of a renewal), with the legal notice period met |
| Denunciation | Landlord (specific grounds: own housing, major works) or tenant (after a minimum period) | Under the terms and deadlines of the NRAU — see reclaiming the property for personal use |
| Termination | Either party, for the other’s breach | E.g.: rent arrears of more than 3 months, opposition to ordered works, misuse of the property |
In the most frequent case — rent arrears — the landlord can terminate the lease and turn to the BAS (Balcão do Arrendatário e do Senhorio) to carry out the eviction without going through a classic court process. We have a dedicated guide: tenant eviction in Portugal, and a tenancy lawyer can handle the notices and the application.
Landlord mistakes the NRAU punishes (and how to avoid them)
- A verbal lease or an outdated “internet template” — void clauses, wrong deadlines, a blocked eviction. Generate an NRAU-compliant lease in minutes with our free Lease Agreement Generator.
- Not registering the lease with the AT — fines, no access to the BAS, and, since 2025, the tenant can register it instead.
- Missing notice deadlines — the opposition to renewal has no effect and the lease renews.
- Accepting rent “off the books” or without a receipt — without electronic receipts there’s no proof of payment and no correct tax treatment.
- Reacting late to the first default — every month of hesitation costs, on average, one month’s rent. Find out what to do in the first 30 days of non-payment.
Frequently asked questions about the NRAU
Does the NRAU apply to all lease agreements?
It applies to urban lease agreements (residential and non-residential) signed after 2006, and — with their own transitional rules — to older leases. Short-term tourist rentals (Alojamento Local) and rural leases have separate regimes.
What’s the minimum duration of a residential lease?
For fixed-term leases for permanent housing, the general rule is a minimum term of 1 year; shorter terms are allowed only in specific, duly justified situations (for example, non-permanent housing or transitional purposes).
Can I raise the rent whenever I want?
No. Outside the annual update by the INE coefficient (with 30 days’ prior notice) and agreement between the parties, the rent cannot be changed unilaterally.
What happens if the tenant doesn’t pay the rent?
Once arrears exceed what the law provides for, the landlord can terminate the lease and turn to the BAS for eviction. The process is faster than the courts, but it requires a valid, registered lease and properly made notices.
Does the lease have to be in writing?
Yes — a residential lease must be in writing. Without a written lease, the landlord is at a disadvantage in any dispute and cannot register the lease with the AT.
Start with the right lease
Everything in the NRAU starts with one document: the lease. A well-drafted lease avoids 90% of the problems described in this guide. → Generate your NRAU-compliant lease agreement for free — ready to sign in 5 minutes, in PDF and Word.
