2027 Rent Update: Coefficient, Dates and How to Apply

The 2027 rent update coefficient — the figure that caps rent increases in 2027 — is 1.0256, i.e. +2.56%. It comes from the 12-month average change in the Consumer Price Index excluding housing (IPC sem habitação), confirmed by the final data that INE (Instituto Nacional de Estatística, Statistics Portugal) published on 10 September 2026 (article 24 of the NRAU, the Novo Regime do Arrendamento Urbano, Portugal’s urban lease regime), and it has been official since Aviso n.º 24199/2026/2 was published in the Diário da República (Portugal’s official gazette) on 1 October 2026.

Updates taking effect in 2026 still use the 2026 coefficient, 1.0224 (+2.24%). This guide explains which coefficient applies to each lease, how to calculate the new rent, what notice is compulsory and, month by month, the latest date to send the letter.

Update your rent in 3 free steps

1. Work out the new rent: enter the current rent and when the increase takes effect. The calculator picks the right coefficient (1.0224 or 1.0256) and adds any earlier coefficients you can still recover.
2. Generate the letter to your tenant: a filled-in PDF ready to sign, or the free template in PDF and Word, in Portuguese or bilingual Portuguese/English.
3. Run through the checklist before sending: the one-year rule, 30 days' notice, what your lease says and how the letter must be sent. The latest dates for each month are in the 2027 calendar.

The 2027 coefficient: 2.56% — how it is calculated

Article 24 of the NRAU sets the rule: the annual update coefficient is the 12-month average change in the CPI excluding housing, determined by INE from the data available on 31 August. So on the day INE publishes the August CPI, the following year’s coefficient is mathematically settled — weeks before the official notice. In its release “Índice de Preços no Consumidor — agosto de 2026” (Consumer Price Index, August 2026), published on 10 September, INE says so explicitly: “the 12-month average change in the CPI excluding housing, the reference for rent updates next year, stood at 2.6% (2.56%) in August” (our translation).

1. 10 September 2026INE publishes the August CPI

   The 12-month average change in the CPI excluding housing fixes the value of the 2027 coefficient.

2. 1 October 2026Official notice in the Diário da República

   INE publishes Aviso n.º 24199/2026/2, which sets the coefficient applicable to rents in 2027 at 1.0256 (general regime, residential and non-residential).

3. From 1 January 2027New coefficient in force

   It applies to all updates taking effect in 2027 — the letter can (and should) go out earlier, as long as the 30 days’ notice is respected.

Which coefficient applies: 2026 or 2027?

The practical rule: what counts is the date on which the increase takes effect, not the date of the letter. If the new rent comes into force in 2026, 1.0224 applies; if it comes into force in 2027 (for example, letters sent in November/December taking effect in January), the 2027 coefficient, 1.0256, applies.

For effects in 2026, the calculation is simple: current rent × 1.0224 = new rent.

And taking effect in 2027: current rent × 1.0256

Does that look small? Every month without an update is rent you never get back, and coefficients more than three years old can no longer be applied. The effect compounds year after year, because the next coefficient is applied to the rent actually being charged. Check your figures with the rent update calculator.

The 4 conditions for the increase to be valid

1. At least 1 year must have passed since the start of the lease or since the last update (art. 1077 of the Civil Code).
2. Notify in writing — a registered letter with acknowledgement of receipt sent to the tenant at the rented property (art. 9 of the NRAU), or handed over in person against a signed copy.
3. Respect the 30-day notice — the increase only takes effect 30 days after the notification, from the next rent payment.
4. State the coefficient and the new amount — the letter must identify the coefficient for the year in which the increase takes effect (1.0224 for effects in 2026; 1.0256 for effects in 2027) and the exact amount of the new rent.

Without a valid notification, the increase cannot be enforced. Charging the increased rent without following the required form may oblige you to refund the amounts — and it undermines your position in any future dispute. The lease also needs to be registered with the Tax Authority to be fully compliant.

Template: what the update letter must contain

• Identification of the landlord, the tenant and the property (full address);
• Reference to the lease (date of signing) and to the legal right to an annual update;
• Coefficient applied: the one for the year the increase takes effect — 1.0224 for 2026; 1.0256 for 2027 (Aviso n.º 24199/2026/2);
• Current rent → new rent (exact amounts, with cents);
• The date from which the new rent is due (respecting the 30 days);
• Date and signature.

Once you have updated the rent, don’t forget: the electronic rent receipts on the Portal das Finanças (the tax authority’s online portal) must show the new amount. And if you would rather not draft the letter from scratch, use the free rent update letter template (PDF and Word) and check the calculation with the update calculator.

Special cases that raise questions

New leases (less than 1 year)

They cannot be updated before they have run for a year. The first update takes place on the lease anniversary, with the coefficient then in force.

What if I did not update in previous years?

You can recover those coefficients, within a limit: coefficients that were not applied can be applied later, provided no more than three years have passed since the date on which they could have been applied (art. 1077, no. 2, subparagraph d), of the Civil Code). In practice, with effect in 2027 you can accumulate at most the 2025, 2026 and 2027 coefficients (1.0216 × 1.0224 × 1.0256). The update is not retroactive: the new rent only applies going forward and the differences for past months cannot be charged. The calculator does this calculation automatically.

Can I increase the rent by more than the coefficient?

Only by written agreement with the tenant (for example, in exchange for improvement works) or in the specific situations provided for by law. Unilaterally, the INE coefficient is the ceiling. If the rent is well below the market, use the Rental Market Simulator to see what a property like yours is worth today — essential information for negotiating, or for planning the end of the lease within the rules of the NRAU.

Old rents (leases signed before 1990)

Old leases under the transitional regime have their own rules for phased updates — do not apply the general coefficient without confirming how your lease is classified.

2027 calendar: when to send the letter

The new rent can only take effect one year after the lease started or after the last update (art. 1077(2)(b) of the Civil Code), and the letter must reach the tenant at least 30 days in advance, counted from the day they receive it, not the day you write it. The coefficient is the one for the year in which the new rent takes effect: 1.0224 if that is still in 2026, 1.0256 if it is in 2027, even when the letter goes out in 2026.

The table assumes the new rent is due from the 1st of the anniversary month. The “send by” date leaves about two weeks for registered post with acknowledgement of receipt (carta registada com aviso de receção), which matters if you are posting from abroad; the next column is the last day the letter can reach your tenant.

The landlord’s calendar for the update

Checklist before you send the letter

• At least one year has passed since the lease started or since the last update.
• Your lease has no rent review clause of its own. If it does, that clause applies instead of the INE coefficient (art. 1077(1) of the Civil Code).
• It is not a pre-1990 lease under the transitional regime, which has its own update rules.
• You use the coefficient for the year the increase takes effect: 1.0224 in 2026, 1.0256 in 2027, plus any unapplied coefficients from the last three years.
• The new rent is calculated to the cent, with no rounding of your own.
• The effective date leaves at least 30 days from the day your tenant receives the letter.
• The letter is complete and signed: parties, property, lease, coefficient, current rent, new rent and effective date.
• It goes by registered letter with acknowledgement of receipt to the rented property, or is handed over in person against a copy signed by the tenant (art. 9 of the NRAU). An email or WhatsApp message is not enough on its own.
• You keep the posting receipt and the acknowledgement of receipt with the lease.
• Electronic rent receipts show the new amount from the effective date.

All set? Generate the filled-in letter or check the figure first with the rent update calculator.

Frequently asked questions

Send us the lease — we’ll prepare the letter

The annual update is habit no. 1 of a professional landlord. No. 2 is having impeccable leases: → generate an NRAU-compliant tenancy agreement for free, ready in 5 minutes, in PDF and Word.

For information only — this is not legal advice.