Rent regulation in Portugal comes to Parliament: Important changes in eviction, deposit and new contracts are on the table

The new rent regulation in Portugal, which directly concerns tenants and landlords, comes to the agenda of the Parliament this week.

The Proposta de Lei n.º 103/XVII/1.ª prepared by the government will be put to general vote at the Assembleia da República on Wednesday, September 30.

The regulation envisages comprehensive changes in Portugal's rental system, from rental agreements to eviction processes, from deposit application to old lease agreements.

Two months' rent debt may lead to the termination of the contract

In the current system, if the tenant does not pay the rent, the period for termination of the contract is three months.

The government's regulation aims to reduce this period to two months.

The proposal also expands a landlord's ability to terminate the lease for repeated late payments.

This change will mean that the system works faster, especially for tenants who owe rent.

The 2% limit on new contracts will be removed

One of the important topics of the regulation is the price limitation in new lease agreements.

In certain cases, it is envisaged that the 2% increase limit that can be applied based on the previous rent will be removed in the new contract.

This change will give the landlord more freedom to determine the rental price in new contracts.

Annual legal rent updates of existing contracts operate through a different mechanism.

Advance rent for three months can come out

Changes are also planned regarding the advance rent that can be requested when starting a rental.

It is envisaged that up to three months' advance rent can be requested instead of the current two-month limit.

There are also changes in the deposit and guarantee system that will provide more freedom to the contract parties.

This title may affect the amount of initial cash required, especially for those who have just moved to Portugal and are renting a house for the first time.

Old lease agreements are also included in the regulation

The government's package doesn't just cover new leases.

Rules on updating old leases are also part of the package of changes.

The rent update system is being rearranged within the new framework, with protections based on the tenant's age and household income.

The first vote is on September 30

The action to be held on September 30 will be the first important Parliamentary stage of the legislative process.

After the general vote, the detailed review and voting processes of the regulation in the Parliament will need to be completed.

The final text will be followed by the Presidential and Diário da República processes.

Therefore, existing lease agreements do not operate according to the new offer provisions as of today.

Resources

Assembleia da República — Proposta de Lei n.º 103/XVII/1.ª

https://www.parlamento.pt/ActividadeParlamentar/Paginas/DetalheIniciativa.aspx?BID=377135

Governo de Portugal — Conselho de Ministros, 9 July 2026

https://portugal.gov.pt/gc25/governo/comunicados-do-conselho-de-ministros/comunicado-do-conselho-de-ministros-de-9-de-julho-de-2026-1

Idealista News — Vanessa Sousa, September 23, 2026

https://www.idealista.pt/news/imobiliario/habitacao/2026/09/23/77809-novas-regras-do-arrendamento-vao-a-votos-em-plenario-a-30-de-setembro