Portugal rent update: What’s changing in the year ahead?

Rent Update Coefficient for the 2026 Calendar Year

The rent update coefficient for the 2026 calendar year has been published under Notice No. 23174/2025/2 by the National Statistics Institute (INE), in accordance with Article 1077 of the Civil Code and Article 24 of the New Urban Lease Scheme (NRAU).

The applicable coefficient is 1.0224, which corresponds to a maximum increase of 2.24% on the current rent amount.

Legal Requirements for Applying the Update

Rent updates are a discretionary right of the landlord and do not occur automatically.

To be legally effective, the following conditions must be met:

  • Minimum contract duration: At least one year must have passed since the start of the lease or the last rent update.
  • Advance notice: The landlord must notify the tenant at least 30 days in advance, specifying the new rent amount, the applied coefficient, and the effective date of the update.
  • Form of communication: The notice must be given in writing, as per Article 1077(2) of the Civil Code—preferably by registered letter with acknowledgment of receipt.

Contracts with Annual Update Clauses

For leases that include an annual update clause, the coefficient published by INE may be applied directly, provided that all legal and formal requirements are observed.

Special Regimes and Exceptions

Leases signed before 1990, as well as situations covered by transitional regimes or tenant protection measures, may be subject to specific limitations. In such cases, a tailored legal assessment is strongly recommended to ensure compliance with applicable regulations and to avoid potential disputes.

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