“My contract says I can’t sublet” is a sentence that tends to turn up too late, usually after the deposit has been paid and the keys are already in your hand. Subletting is legal in Portugal, but only under specific conditions, and stepping outside them carries a real risk: losing the home with little warning, because the contract you depend on is not yours.
This guide explains when subletting is valid, what rent limit applies, and what happens if the main contract ends while you are living there.
The essentials in 30 seconds
- Subletting is only lawful with the landlord's authorisation, either in writing or already provided for in the main contract (arts. 1088 and 1038(f) of the Código Civil, the Civil Code).
- Subletting without authorisation is grounds for terminating the main contract, and that can leave you without a home.
- Unless otherwise agreed with the landlord, the subrent cannot exceed the main rent, or its proportional share for a partial sublease, plus 20% (art. 1062 of the Civil Code).
- If the main contract ends, the sublease normally lapses, so always ask to see the main contract and the authorisation before you sign.
What is subletting?
Subletting happens when the tenant under a lease (the “main contract”) in turn rents the home, or part of it, to another person: the subtenant. A common example is renting a room within a larger house. A room is sublet when a tenant lets it to another person on the basis of their own tenancy agreement (see the guide to renting a room).
Sublease, assignment, guests: what counts as what
Not everything that looks like a sublease is one. The law treats several ways of letting third parties use a rented home very differently, and mixing them up is the source of most conflicts. A sublease exists when the tenant, relying on the rights of their own lease, grants a new lease to someone else (art. 1060 of the Civil Code): your tenant becomes the landlord of another person.
| Form of occupation | What it is | Authorisation needed? | Legal basis |
|---|---|---|---|
| Sublease | The tenant grants a new lease based on the rights of their own contract | Yes, in writing | Arts. 1060 and 1088(1) CC |
| Assignment of the lease | The tenant leaves and another person takes their place in the contract | Yes | Arts. 1038(f) and 1059(2) CC |
| Free loan of use | The tenant lends the home without compensation | Yes | Art. 1038(f) CC |
| People in a common household | De facto partners, relatives or in-laws in the direct line or up to the 3rd degree of the collateral line, among others | No | Art. 1093(1)(a) and (2) CC |
| Lodgers | People to whom the tenant provides housing and routinely related services or food, for payment | No, up to three, unless otherwise stipulated | Art. 1093(1)(b) and (3) CC |
For the landlord, the useful words are “unless otherwise stipulated”: if you do not want lodgers in the home, the contract has to say so. Without that clause, up to three are allowed by default.
When subletting is legal
Subletting is only lawful with the landlord’s authorisation, which can be given separately in writing or already be provided for in a clause of the main contract, under arts. 1088 and 1038(f) of the Civil Code. Without that authorisation, the sublease cannot be enforced against the landlord.
Regardless of the sublease, your basic rights as a tenant remain, including a rent receipt and privacy in your space. For the full picture, see tenant rights.
Authorisation in writing, then notice within 15 days
Art. 1038 of the Civil Code sets two cumulative duties for the tenant: to obtain the authorisation (paragraph f) and then to tell the landlord, within 15 days, that the use of the home has been transferred (paragraph g). Art. 1088(1) adds the format: the authorisation to sublet must be given in writing.
Until this happens, the sublease exists between the tenant and the subtenant, but it does not bind the landlord. Under art. 1061, a sublease only takes effect in relation to the landlord or third parties once the landlord recognises it or receives the communication required by art. 1038(g).
The risk of an unauthorised sublease
What a landlord should know before reacting
For the landlord, an unlawful transfer of the use of the home is grounds for termination: art. 1083(2)(e) of the Civil Code lists it among the serious breaches, whether it is for payment or free of charge, partial or total. But two pitfalls can make that right disappear:
- Tacit ratification. Under art. 1088(2), an unauthorised sublease is considered ratified if the landlord recognises the subtenant as such. Nothing needs to be signed: treating the occupant as a subtenant is enough.
- Loss of the right to terminate. Under art. 1049, the landlord has no right to terminate for breach of art. 1038(f) and (g) if they recognised the beneficiary as such or, for paragraph (g), if the subtenant themselves reported the situation.
In practice, as soon as an unauthorised sublease is suspected, avoid negotiating directly with the occupant, issuing receipts to them or accepting payments from them before deciding a position, because each of these can be read as recognition. Speak to the tenant first, in writing. For the termination routes themselves, see our guide on lease termination: notice periods and rules.
The rent limit a subtenant can pay
The law limits how much you can be charged. Unless otherwise agreed with the landlord, the subrent cannot exceed the main rent, or its proportional share for a partial sublease, plus 20%, under art. 1062 of the Civil Code.
Two details in that rule matter. “Proportionally” means that in a partial sublease (a bedroom, for example) the limit is calculated on the corresponding share of the rent, not on the whole rent. And the cap applies “unless otherwise agreed with the landlord”: it can be waived, but only by agreement with the landlord, which is the moment for them to negotiate compensation.
| Main contract rent | Scope of the sublease | Default legal limit (art. 1062) |
|---|---|---|
| €800 a month | Whole home | €960 a month (€800 + 20%) |
| €800 a month | Part corresponding to €300 of the rent | €360 a month (€300 + 20%) |
| €800 a month | Any, with a written agreement from the landlord to the contrary | Whatever is agreed |
The figures only illustrate how the calculation works.
If the landlord authorises: the powers they gain
Authorising does not mean giving up control. A recognised sublease gives the landlord two tools they would not otherwise have:
- Collecting from the subtenant (art. 1063). If both the tenant and the subtenant are in arrears on their respective rents, the landlord may demand from the subtenant what they owe, up to the amount of the landlord’s own credit.
- Replacing the tenant in a full sublease (art. 1090(1)). When the sublease covers the whole home, the landlord may replace the tenant through judicial notification: the original lease is then considered terminated and the subtenant becomes the direct tenant.
Art. 1090(2) is the flip side: if the landlord receives rent from the subtenant and issues a receipt after the lease has ended, the subtenant is deemed to be the direct tenant, with no further formalities.
The sublease ends with the main contract
Under art. 1089 of the Civil Code, the sublease lapses when the lease ends, for whatever reason: expiry, notice of termination, opposition to renewal or termination for cause. If the cause is attributable to the original tenant, it is they, not the landlord, who answers to the subtenant.
Commercial leases: the business establishment exception
Non-residential leases have a specific exception for the lease of a business establishment (“locação de estabelecimento”). Art. 1109(1) defines it as the temporary, paid transfer of the use of a building, or part of it, together with the operation of the commercial or industrial establishment installed in it. Under art. 1109(2), this transfer does not need the landlord’s authorisation, but it must be communicated to them within one month. In other words, for that type of transfer the landlord is informed, not asked. The exception concerns only the lease of a business establishment; it does not apply to every commercial sublease.
Renting directly vs subletting
| Direct lease | Sublease | |
|---|---|---|
| Who answers to the landlord | The tenant themselves, directly | The main tenant: you answer to them, not to the landlord |
| If the “upstream” contract ends | Your contract continues, as it is the only one that exists | The sublease normally lapses, so you may lose the home |
| Rent limit | Freely agreed with the landlord | Unless otherwise agreed with the landlord, cannot exceed the main rent (or its proportional share) + 20% (art. 1062 CC); see +20% max. |
| Is authorisation needed? | Not applicable | Yes, from the landlord, in writing or provided for in the contract (arts. 1088 and 1038(f) CC) |
What to demand before signing a sublease
- See the main contract, to confirm the term, the reference rent and whether it allows subletting.
- See the landlord's authorisation: in writing, or the clause in the main contract that already provides for it.
- Confirm that the rent requested respects the art. 1062 limit: unless otherwise agreed with the landlord, it does not exceed the main rent, or its proportional share for a partial sublease, plus 20%.
- Confirm that the landlord has been notified of the sublease. If in doubt, use our guide to check the contract before you sign.
Landlord’s checklist
- Write the clause. State in the contract whether lodgers are allowed or prohibited; without a clause, art. 1093 allows up to three.
- Record the occupants and their actual status accurately. AIMA may still require the applicant's own accommodation declaration and supporting documents.
- Require written authorisation (art. 1088(1)) and a reasoned request: who, which part of the home, for how long and for what amount.
- Set the amount. If you accept more than the art. 1062 ceiling, agree it expressly in writing and consider fair compensation.
- Confirm the notice within the 15 days required by art. 1038(g).
- Ask for a copy of the sublease and check that its term does not exceed the main contract, since under art. 1089 it lapses with it.
- Check the tax side. An authorised sublease has tax implications; confirm your reporting duties with the Tax Authority (AT).
- Keep a written record of your communications. Conduct that recognises the occupant as a subtenant can affect your rights (arts. 1049 and 1088(2)); silence alone does not generally amount to consent.
Frequently asked questions
Is subletting always illegal without the landlord's authorisation?
It is not automatically invalid between the parties, but it has no effect against the landlord and is grounds for terminating the main contract (arts. 1088 and 1038(f) of the Civil Code), which can also end your sublease.
What is the maximum rent I can be charged in a sublease?
Unless otherwise agreed with the landlord, the subrent cannot exceed the main rent, or its proportional share for a partial sublease, plus 20%, under art. 1062 of the Civil Code.
What happens to my home if the main contract ends?
As a rule, the sublease lapses with the main contract, and you lose the right to stay in the home. That is why you should always check the term of the main contract before you sign.
Does the landlord have to know there is a sublease?
Yes, the landlord must be notified of the sublease. If you are unsure whether that has been done, you can ask to see that notification before you sign.
How can I confirm that the sublease I am being offered is valid?
Ask to see the main contract and the authorisation (in writing, or the clause that provides for it) before handing over any money. It is the only way to confirm that the person has the right to sublet to you.
Can a tenant rent out a room without asking the landlord?
It depends on how the situation is classified. If it is a sublease, art. 1038(f) requires the landlord's authorisation and art. 1088(1) requires it to be in writing. If the person is a lodger, meaning someone to whom the tenant routinely provides housing and services or food for payment (art. 1093(3)), the law allows up to three unless the contract says otherwise. The boundary is factual, which is why the contract clause is decisive.
A landlord has discovered an unauthorised sublease. What can they do?
It is grounds for termination under art. 1083(2)(e) of the Civil Code. But if the landlord recognises the occupant as a subtenant, the sublease is considered ratified (art. 1088(2)) and the right to terminate on those grounds is lost (art. 1049). Before contacting the occupant, it is wise to take legal advice.
Does a landlord who authorises a sublease get a direct relationship with the subtenant?
Partly. Art. 1063 lets the landlord demand from the subtenant what they owe, up to the amount of the landlord's own credit, when both are in arrears. And in a full sublease, art. 1090(1) lets the landlord replace the tenant through judicial notification, making the subtenant the direct tenant.
The right clause beats an argument later
Clear clauses on occupancy and subletting help both parties understand their obligations before a dispute arises. Set out on paper who may occupy the home, on what terms and with what authorisations, and choose carefully who signs, using our tenant selection checklist and the guide to tenant relations. You can generate an NRAU-compliant lease agreement with occupancy and subletting clauses already included.
Note: informational article, not legal advice. Always check the current conditions and amounts in your contract or with a professional.
