2027 rent increase has become official: 1,000 euro rent can increase by a maximum of 25.60 euros

In Portugal, the normal annual increase rate that can be applied to existing lease agreements in 2027 has become official.

The coefficient calculated by the Instituto Nacional de Estatística and published in Diário da República is 1.0256.

This means that the landlord can increase the rent by up to 2.56 percent if he uses the normal annual update mechanism.

However, the increase will not be automatically applied to all rents on January 1.

How much can rents increase?

Sample calculation based on the 2.56 percent coefficient:

500 euro rent → 512.80 euro

700 euro rent → 717.92 euro

1,000 euro rent → 1,025.60 euro

1,500 euro rent → 1,538.40 euro

These are the amounts that arise when the normal annual coefficient is applied in full.

The landlord does not have to implement the increase.

No automatic raise on January 1

In Portugal, in order for the rent update to be implemented, the landlord must notify the tenant.

Normally, written notification must be made at least 30 days before the increase will be applied.

In addition, at least one year must have passed since the start of the contract or the previous rent update.

Therefore, there is no system that says "2027 has arrived, all rents increased by 2.56 percent today".

Can the landlord make a higher raise?

The coefficient to be used in the normal annual update mechanism is 1.0256.

The landlord can arbitrarily set a rate above this based solely on the right to annual updates. cannot determine.

However, situations where the parties determine a different and legally valid update mechanism in the contract or when the contract is terminated and a new contract is made with new conditions may create different legal situations.

Increases that were not made in previous years are significant

One of the most overlooked issues for tenants is rent increases that were not implemented in previous years.

Under certain conditions, Portuguese rental legislation may allow the landlord to later take into account some update coefficients that have not been used in previous years.

However, it is not possible to accumulate all past years indefinitely.

For this reason, just because the increase notification received is higher than 2.56 percent in 2027 does not automatically mean that it is unlawful; It is necessary to check which coefficients the calculation is based on.

The coefficient is now official

There is no uncertainty here in terms of the legal stage.

INE calculated the coefficient and published in Aviso n.º 24199/2026/2, Diário da República.

Therefore, 2.56 percent is no longer a forecast or a quote; Official coefficient to be used in the 2027 normal annual rent update.

The critical point for the tenant is not the existence of the coefficient, but when and how the landlord can apply it to his contract.

Resources

Diário da República — Aviso n.º 24199/2026/2, 1 October 2026

https://diariodarepublica.pt/dr/detalhe/aviso/24199-2026-1175645456

DECO PROteste — Rendas aumentam 2.56% em 2027

https://www.deco.proteste.pt/dinheiro/arrendamento/noticias/rendas-aumentam-2-56-por-cento-2027