A lease (arrendamento) is the contract by which a landlord gives a tenant the temporary enjoyment of a property in return for rent (articles 1022 and 1023 of the Civil Code, or Código Civil). It sounds simple, but in Portugal it involves a written lease, obligations to the tax authority, tight rules for raising the rent and rigid deadlines for ending the contract.
This guide is the landlord’s complete map: each section sums up the essentials and points to the detailed guide for each stage — from the lease to IRS (personal income tax), from works to eviction.
The essentials in 30 seconds
- A residential lease has to be in writing; for a fixed term, the minimum duration is, as a rule, 1 year.
- The landlord reports the lease to the Finanças (Modelo 2) and pays stamp duty of 10% of one month’s rent by the end of the month following the start of the lease.
- The deposit is capped at 2 months’ rent; rent can only go up once a year, by the INE coefficient, with 30 days’ written notice.
- Rent is taxed under IRS Category F: 25% under the general regime, 10% for residential rents up to €2,300/month (2026–2029, no minimum lease term) and 28% for non-residential lets.
Types of lease
The Civil Code distinguishes residential leases (a home to live in) from non-residential leases (shops, offices, warehouses). The first is heavily regulated to protect the people who live there; the second leaves the parties far more freedom.
| Type | Duration | What you should know |
|---|---|---|
| Residential, fixed term | Minimum 1 year, maximum 30 years (art. 1095 CC) | Renews automatically for equal periods, or for 3 years if the term is shorter, unless a party opposes (art. 1096 CC). The most commonly used model. |
| Residential, indefinite duration | No end date | The landlord can only terminate in set cases (own residence, major works) or with 5 years’ notice (art. 1101 CC). |
| Non-permanent residence / transitory purposes | Can be under 1 year | Students, work assignments or holidays, with the reason stated in the lease (art. 1095(3) CC). |
| Non-residential | Free; if silent, 5 years | Duration, termination and renewal are freely agreed (art. 1110 CC). |
If the lease says nothing about the term, it is deemed to have been entered into for a fixed term of 5 years (art. 1094(3) CC). For shops and offices, see the specific rules on commercial leases. The full legal framework is in our guide to the NRAU explained for landlords (the New Urban Lease Regime).
The lease and its mandatory clauses
A lease must be put in writing (art. 1069 CC). Decree-Law no. 160/2006 sets out the elements that cannot be missing: full identification of the parties, identification and location of the property, the purpose of the lease (residential or not), the use licence, the amount of the rent and the date it was entered into. The energy certificate must also exist before the property is let.
Beyond the mandatory elements, a good lease sets out the date and method of rent payment, the deposit, who pays the service charges (condominium) and which works are allowed, the inventory and the rules for communication between the parties. Clauses that go against the law — such as waivers of the tenant’s rights — are simply void.
The quickest way to have a lease that complies with the law is our free lease agreement generator, which makes you fill in every legal element. If you would rather start from a document, compare its clauses with our annotated lease template.
Registration with the Finanças (Modelo 2) and stamp duty
Once signed, the lease must be reported to the Tax Authority (Autoridade Tributária, AT) through the Modelo 2 declaration on the Portal das Finanças, by the end of the month following the start of the tenancy (art. 60 of the Stamp Duty Code, Código do Imposto do Selo). A lease that starts on 10 March must be reported by 30 April. Changes to the lease and its termination are reported within the same deadline.
Reporting triggers stamp duty: 10% of one month’s rent (item 2 of the General Stamp Duty Table, TGIS), paid once by the landlord. Since August 2025, if the landlord does not register the lease within the deadline, the tenant can do so.
The step-by-step process, with screenshots of the Portal, is in our guide to registering your lease with the Finanças; how the tax is calculated and paid is in stamp duty on rentals.
Electronic rent receipts
For every rent payment received, the landlord issues an electronic rent receipt on the Portal das Finanças (art. 115 of the IRS Code, CIRS). That monthly record feeds the IRS return and is what the tenant uses to deduct the rent in their own IRS.
Exempt from this are landlords aged 65 or over on 31 December of the previous year (even if they have an electronic mailbox and whatever the amount of the rents) and those who, cumulatively, neither have nor are required to have an electronic mailbox and received annual rents of up to twice the IAS (the social support index; €1,074.26 in 2026). They report the year’s rents with the Modelo 44, submitted electronically only on the Portal das Finanças, by the end of February. See how to issue, cancel and correct receipts in our guide to the electronic rent receipt on the Finanças portal.
Deposit and advance rent
Since the Mais Habitação package (Law no. 56/2023), the deposit (caução) cannot exceed 2 months’ rent, and advance payment of rent is likewise limited to 2 months (art. 1076 CC). The deposit covers damage or unpaid rent at the end of the lease and must be returned when nothing is owed.
Document the condition of the property with an inventory and photographs at move-in and move-out — it is the only proof that counts in a dispute. Limits, retention and return deadlines are explained in security deposits on rentals.
Annual rent update
Unless another formula has been agreed in the lease, the rent can be updated once a year, after the lease has been in force for a year, using the coefficient published by the INE (Statistics Portugal). The landlord must notify the new amount in writing, at least 30 days in advance (art. 1077 CC and art. 24 NRAU).
For 2026, the coefficient is 1.0224 (+2.24%). For 2027, the coefficient is 1.0256 (+2.56%), set by Aviso no. 24199/2026/2, published in the Diário da República (Portugal’s Official Gazette) on 1 October 2026. The details are in rent updates and the coefficient.
To find the new rent and the amount of the increase in seconds, use the rent update calculator. Before setting the rent for a new lease, compare it with real figures by municipality in the Aluseg Rent Index.
IRS on rent: Category F
Rent is property income (Category F), declared in Anexo F of the IRS return, filed between 1 April and 30 June. By default it is taxed at the autonomous rate; the landlord can opt to combine it with their other income (englobamento) if that works out better.
| Situation | IRS rate | Legal basis |
|---|---|---|
| Residential — general regime | 25% | Art. 72 CIRS (Law no. 56/2023) |
| Residential — long leases | 15% / 10% / 5% | Leases of 5–10, 10–20 and 20 or more years (art. 72 CIRS) |
| Residential — rent up to €2,300/month | 10% | Art. 45-C of the Tax Benefits Statute (EBF) (DL no. 97/2026), income from 2026 to 2029; no minimum lease term |
| Non-residential | 28% | Art. 72 CIRS |
Tax is charged on the rent after deducting the accepted expenses: service charges (condominium), IMI (municipal property tax), insurance and maintenance works, among others. The conditions for each rate, and the simulator, are in our guide to landlord IRS.
Works and maintenance: who pays what
Unless otherwise agreed, it is up to the landlord to carry out ordinary and extraordinary maintenance works (art. 1074 CC): the roof, plumbing, structural damp, equipment that breaks down through normal use. The tenant bears small everyday repairs and any damage they cause themselves.
The tenant may only carry out works if the lease allows it or with the landlord’s written authorisation; urgent repairs can be done by the tenant, with a right to reimbursement (art. 1036 CC). The detailed split, case by case, is in repairs and maintenance in rentals.
End of the lease: opposition, termination and resolution
There are three ways to end a tenancy, and confusing them is one of the costliest mistakes a landlord can make. Notice is given in writing, normally by registered letter with acknowledgement of receipt — except for termination for non-payment, where a registered letter is not enough (see below).
| Route | Who | Deadlines and rules |
|---|---|---|
| Opposition to renewal (oposição à renovação) | Landlord | Notice of 240 days (lease of 6 or more years), 120 days (1 to 6 years), 60 days (6 months to 1 year). Opposition to the first renewal only takes effect 3 years after the lease was entered into (art. 1097 CC). |
| Opposition to renewal | Tenant | Notice of 120, 90 or 60 days, depending on the duration (art. 1098(1) CC). |
| Early termination (denúncia) | Tenant | After 1/3 of the term, with 120 days’ notice (lease of 1 year or more) or 60 days (shorter lease) (art. 1098(3) CC). |
| Termination for breach (resolução) | Either party | For serious breach by the other party — for example, rent arrears (arts. 1083 and 1084 CC). |
The deadlines for each situation, with example dates, are in terminating a lease: notice periods.
Default and eviction (BAS / PED)
The landlord can terminate the lease when the tenant has been in arrears for 3 months or more, or when they are more than 8 days late more than 4 times in 12 months (art. 1083 CC). Termination has to be communicated to the tenant by a judicial notification (notificação judicial avulsa) or by personal contact from a lawyer, solicitor or enforcement agent — a simple registered letter with acknowledgement of receipt is not enough (art. 9(7) NRAU). The tenant can also remedy the arrears within one month by paying the rent plus 20% compensation — but only once per lease (art. 1084 CC). Aluseg works with a partner lawyer who can send this notice for you — ask us for the contact at hello@aluseg.com.
If the tenant does not leave, the landlord turns to the special eviction procedure (Procedimento Especial de Despejo, PED) at the BAS, which is faster than an ordinary court action (art. 15 NRAU). For the PED you need the lease, proof of the notice and proof that stamp duty has been paid.
What to do from the first late payment is in tenant not paying rent: what to do; the whole process, with deadlines and costs, is in the guide to evicting a tenant through the BAS.
The landlord’s calendar: deadlines through the year
Keep this table: it brings together the obligations that repeat every year and those that arise with each lease.
| When | Obligation | Legal basis / note |
|---|---|---|
| By the end of the month following the start of the lease | Report the lease (Modelo 2) and pay stamp duty (10% of one month’s rent) | Art. 60 of the Stamp Duty Code; item 2 of the TGIS |
| Every month | Issue the electronic rent receipt for each rent payment received | Art. 115 CIRS |
| By the end of February | Modelo 44 with the previous year’s rents — only for landlords exempt from electronic receipts | In 2026 the deadline ended on 2 March (28 February was a Saturday) |
| 1 April to 30 June | File the IRS return with Anexo F (previous year’s rents and expenses) | Art. 60 CIRS |
| May (and August/November, depending on the amount) | Pay the IMI on the rented property | Single payment in May up to €100; 2 or 3 instalments above that |
| September to 30 October | The INE works out the change; next year’s coefficient is published in the Diário da República | Art. 24 NRAU |
| 30 days before the update date | Give written notice of the new rent (only after 1 year of the lease) | Art. 1077 CC and art. 24 NRAU |
| 240 / 120 / 60 days before the end of the term | Send the opposition to renewal, if you do not want to renew | Art. 1097 CC |
| By the end of the month following the change or termination | Report to the AT the change in rent or the end of the lease | Art. 60 of the Stamp Duty Code |
To learn about all the rights you have — and the limits the law places on you — also read the guide to landlord rights and duties.
Frequently asked questions
What is a lease (arrendamento)?
It is the contract by which a landlord undertakes to give a tenant the temporary enjoyment of a property in return for the payment of rent (arts. 1022 and 1023 of the Civil Code). It can be residential or non-residential and has to be in writing.
What is the minimum duration of a lease?
For a fixed-term residential lease, the minimum duration is 1 year and the maximum 30 years. Shorter terms are only possible for non-permanent residence or transitory purposes. If the lease says nothing, it is deemed to have been entered into for 5 years.
How much tax does a landlord pay?
On IRS (Category F), residential rents pay 25% under the general regime, 10% if the rent does not exceed €2,300/month (income from 2026 to 2029, with no minimum lease term required) and rates of 15%, 10% or 5% on long-term leases; non-residential lets pay 28%. Add stamp duty of 10% of one month’s rent, paid once, and the IMI.
Is it compulsory to register the lease?
Yes. The landlord has to report the lease to the Tax Authority with the Modelo 2 by the end of the month following the start of the tenancy and pay stamp duty. If they do not, since August 2025 the tenant can register it.
How much can the deposit be?
Since Law no. 56/2023 (Mais Habitação), the deposit cannot exceed the equivalent of 2 months’ rent, and advance payment of rent is also limited to 2 months.
Sources: Civil Code, arts. 1022, 1023, 1036, 1069, 1074, 1076, 1077, 1083, 1084 and 1094 to 1110; NRAU (Law no. 6/2006), arts. 9, 15 and 24; Decree-Law no. 160/2006; IRS Code, arts. 60, 72 and 115; Tax Benefits Statute, art. 45-C (Decree-Law no. 97/2026); Stamp Duty Code, art. 60 and item 2 of the TGIS; Law no. 56/2023 (Mais Habitação); Portaria no. 98-A/2015, art. 5; Portaria no. 2/2024 and Decree-Law no. 49/2025 (Modelo 44). Updated in September 2026.
