How much can a landlord raise rent in Portugal? Notice rules

In short: In Portugal, a landlord cannot simply announce a higher rent. An ordinary annual update is capped by the coeficiente de atualização anual de rendas that the INE publishes each year in the Diário da República (1.0224, or about 2.24%, for 2026), it can be applied only once a year and not before the contract is one year old, and it requires written notice at least 30 days before the new rent is due, stating the coefficient, the new amount, and the effective date (art. 1077 of the Código Civil). Separate caps introduced by the Mais Habitação law (Lei 56/2023) limit the rent on many new contracts. CourtStairs answers Portuguese and EU legal questions like this in plain language, with citations to the Diário da República.

If you rent your home in Portugal, a rent increase is not a matter of the landlord's discretion. The law separates two very different situations: the annual update of an existing lease, which is tightly capped, and the rent set at the start of a new contract, where recent reforms have added their own ceilings. Getting the two straight is the whole game.

How much can rent go up each year in Portugal?

The ordinary annual update is capped by the coefficient the INE publishes each year — 1.0224 (about 2.24%) for 2026 — and can be applied only once a year, no earlier than one year into the lease.

Article 1077 of the Civil Code lets the parties agree in writing how the rent will be updated. Where the contract is silent, the default regime applies: the rent may be updated once a year according to the coefficient published by the Instituto Nacional de Estatística (INE).

The INE calculates that coefficient from the variation in the consumer price index (excluding housing) over the twelve months to the previous August, and it is published in the Diário da República, as a rule by 30 October each year. For 2026 the coefficient was set at 1.0224 (Aviso n.º 23174/2025/2), which means an ordinary update can raise the rent by at most about 2.24%.

Two limits sit on top of the coefficient:

• The update can be applied only once in each calendar year.
• It cannot be demanded until one year has passed since the start of the contract or since the last update.

So a landlord who missed a year cannot stack two increases to catch up: each year stands on its own.

How much notice must a landlord give to raise the rent?

At least 30 days before the new rent falls due, and always in writing. An update does not take effect just because the landlord decided on it — it has to be communicated to you in writing, at least 30 days before the date the higher rent falls due. In practice this is done by registered letter with acknowledgment of receipt (carta registada com aviso de receção), or by a letter handed over against your signature.

The communication must state three things:

If the notice is late, incomplete, or never sent, the higher rent is simply not due for that period. You keep paying the current rent until a proper notice takes effect.

Is there a cap on the rent for a new lease?

Yes. Until 31 December 2029, the starting rent on a new residential lease for a property let in the previous five years generally cannot exceed the last rent by more than 2%. The rules above govern updates to a lease you already have. When a new lease is signed, the starting rent is, in principle, a matter of agreement. But the Mais Habitação reform (Lei n.º 56/2023), which amended the Novo Regime do Arrendamento Urbano (NRAU, Lei n.º 6/2006), introduced a ceiling aimed at properties that have recently been on the rental market.

Broadly, until 31 December 2029, for a new residential lease on a property that was already let at some point in the previous five years, the initial rent generally cannot exceed the last rent charged under the earlier contract increased by 2% (the coefficient 1.02). There are limited exceptions that allow more: for example, where the previous contract's annual updates were never applied, the last three years' coefficients may be added; and where the property has undergone certified deep renovation, a defined margin is allowed (up to 15% per year of the documented cost). These rules are detailed, so the exact ceiling depends on the property's letting history.

Annual update vs. new-contract rent: which rule applies to me?

The annual update caps the yearly rise on a lease you already hold; the Mais Habitação ceiling caps the starting rent when a new lease is signed on a recently-let home. They use different numbers and different laws, so figure out which situation you are in first.

For related tenancy questions, see our guides on ending a lease and eviction in Portugal and getting your rental deposit back.

What should I do if I receive a rent-increase notice?

Check the timing, the coefficient, and the form before you pay a cent more — an irregular notice does not oblige you to pay the higher rent.

1. Check the timingThe notice must reach you at least 30 days before the new rent is due, and no update is owed in the first year of the contract or within a year of the last one.
2. Check the coefficientCompare the figure in the letter with the coefficient the INE published for that year in the Diário da República (1.0224 for 2026). Recalculate the new rent yourself.
3. Check the formIt should be in writing, with proof of receipt, and state the coefficient, the new amount, and the effective date (art. 1077 Código Civil).
4. Keep paying the current rentUntil a valid update takes effect, you owe only the existing rent. Pay it on time so you are never in arrears.

This is how CourtStairs answers a question like this: a plain-language explanation, with each point linked to the article of the Civil Code, the NRAU, or the Mais Habitação law it rests on, so you can open the Diário da República and read the provision yourself.

Rules and coefficients change every year, and older or non-residential contracts can follow different regimes, so confirm anything important against the primary source or a lawyer. CourtStairs answers Portuguese and EU legal questions in plain language, in English and Portuguese, with citations you can verify.