Renting a Home in Portugal

In Portugal, a property rental agreement is called an arrendamento (lease), the monthly amount is the renda (rent), the owner is the senhorio (landlord) and the tenant is the arrendatário. A letting (locação) is the contract by which one party undertakes to give the other the temporary use and enjoyment of a thing in exchange for payment, and it is called a lease (arrendamento) when it concerns real property (Arts. 1022 and 1023 of the Portuguese Civil Code (Código Civil)).

The main rules

• Portuguese Civil Code: general rules on letting (Arts. 1022 to 1063) and specific rules on leases of urban property (Arts. 1064 to 1113), as amended by the New Urban Lease Regime.
• NRAU: Law 6/2006 of February 27 (Lei) approved the New Urban Lease Regime (NRAU). It governs communications between the parties, the annual rent update coefficient, the special eviction procedure and the transition rules for older leases. The latest amendment in the consolidated version of the Diário da República is Law 56/2023 (Mais Habitação).
• Elements of the lease: Decree-Law 160/2006 (Decreto-Lei) sets out what the lease agreement must contain and requires an occupancy permit.
• Mais Habitação (More Housing): Law 56/2023 amended the NRAU and other lease rules. Some of its measures were repealed in 2024 by Decree-Laws 57/2024 and 76/2024.

Residential or non-residential

An urban lease may be for residential or non-residential purposes (Art. 1067 of the Civil Code). The purpose must be stated in the agreement and be compatible with the property's occupancy permit: a lease for a purpose other than the licensed one is void (Art. 5(8) of Decree-Law 160/2006). The difference matters because terms, renewal and repairs follow their own rules in each case. In non-residential leases, the parties have more freedom to set the duration, termination by notice and repairs (Arts. 1110 and 1111).

Prohibition of discrimination

No one may be discriminated against in access to rental housing on grounds of, among other factors, nationality, territory of origin or language, and advertisements may not contain restrictions based on those categories (Art. 1067-A of the Civil Code).

An urban lease must be made in writing (Art. 1069(1) of the Civil Code). If the agreement was not put in writing for a reason not attributable to the tenant, the tenant may prove the lease by any means, showing that they use the property without objection from the landlord and have paid the monthly rent for six months (paragraph 2). Even so, an informal arrangement is a risk: without a written lease, it is harder to prove your address, request registration with the Tax Authority or dispute terms.

Mandatory content

Under Art. 2 of Decree-Law 160/2006, the lease agreement must state:

• the identification of the parties, with names, civil identification numbers and Portuguese tax identification numbers (NIF) and, where applicable, place of birth, date of birth and marital status;
• the landlord's domicile or registered office;
• the identification and location of the property or of the leased part;
• the residential or non-residential purpose and, for non-permanent housing, the reason for the temporary nature of the lease;
• the occupancy permit (number, date and issuing body) or a statement that none is required;
• the amount of the rent;
• the date the agreement was signed.

Optional content and annexes

• Where applicable, the agreement states the areas for private and common use, the property tax registration number (artigo matricial), the rent update regime, the term, the condominium rules and the agreed address for communications (Art. 3(1)).
• A document describing the condition of the property must be attached and signed. Without it, the property is presumed to have been delivered in good condition (Art. 3(2), and Art. 1043(2) of the Civil Code). For people arriving from Brazil, dated photos and an inventory of the furniture, signed by both parties, help avoid disputes when moving out.
• The absence of an element does not invalidate the agreement when it can be supplied under the general rules (Art. 4).

Occupancy permit

A property may only be leased if its suitability for the purpose of the lease is attested by an occupancy permit (licença de utilização), except for buildings constructed before 1951 (Art. 5 of Decree-Law 160/2006). If the lack of a permit is attributable to the landlord, the landlord is liable to an administrative fine of no less than one year's rent, and the tenant may terminate the lease with a right to compensation (paragraphs 5 and 7).

To have the lease in their own name, the tenant needs a Portuguese NIF. See how to obtain a NIF.

A residential lease may be entered into for a fixed term or for an indefinite period. If the parties say nothing, it is deemed to have been entered into for a fixed term of five years (Art. 1094 of the Civil Code).

Permanent housing

• Term: it may not be shorter than one year or longer than 30 years. If the agreement sets a shorter or longer term, it is automatically extended or reduced to those limits (Art. 1095(2)).
• Automatic renewal: unless otherwise agreed, the lease renews at the end of the term for periods equal to the initial one, or for three years if the initial term is shorter (Art. 1096(1)).
• Protection in the first three years: the landlord's objection to the first renewal only takes effect three years after the lease was signed. The exception is when the landlord or the landlord's children need the property as their home, subject to the legal requirements and compensation (Art. 1097(3) and (4)). In practice, a one-year lease generally lasts at least three years if the tenant wishes to stay.

Non-permanent housing or temporary purposes

• The one-year minimum term does not apply to leases for non-permanent housing or for special temporary purposes, such as work, study or tourism, provided the reason is stated in the agreement (Art. 1095(3)).
• In these leases, unless otherwise agreed, there is no automatic renewal (Art. 1096(2)).
• For each property, only one lease for temporary tourism purposes may be entered into per calendar year (Art. 1095(4), as worded by Law 82/2023).

Anyone arriving in Portugal who first rents temporary accommodation should check whether that lease serves their needs, for example as proof of accommodation in a residence application. A lease for a temporary purpose may not be enough (see the section on proof of address).

Non-residential leases

Duration, termination by notice and objection to renewal are freely agreed. Absent an agreement, the lease has a five-year term, and during the first five years the landlord may not object to renewal (Art. 1110 of the Civil Code).

People arriving from Brazil, with no rental history in Portugal, are often asked for several months' rent in advance or for a Portuguese guarantor. The law sets limits.

What the Civil Code says

• Rent paid in advance: with a written agreement, rent may be paid in advance for a period of no more than two months (Art. 1076(1) of the Civil Code).
• Security deposit: the parties may secure performance of the obligations by any legally permitted form of security, up to the amount of two months' rent (Art. 1076(2)).
• This wording was introduced by Law 24-D/2022 (2023 State Budget), in force since January 1, 2023.

Forms of security

When the law allows security to be provided without specifying its type, it may take the form of a cash deposit, debt securities, a pledge, a mortgage or a bank surety (fiança bancária); if none of these is possible, another type of suretyship is accepted, with the guarantor waiving the benefit of excussion (benefício da excussão) (Art. 623 of the Civil Code).

Guarantor

• The guarantor (fiador) is personally liable to the landlord, and the intention to act as guarantor must be expressly declared, in the form required for the contract (Arts. 627 and 628).
• If the tenant falls behind on rent and does not pay it within eight days, the landlord must notify the guarantor of the default and of the amounts owed within the following 90 days, and only then may claim payment from the guarantor (Art. 1041(2), (5) and (6)).
• Because the guarantor is liable with their own assets, anyone who agrees to act as guarantor should read the entire lease, especially the term and the renewals covered.

Alternatives for new arrivals

• A bank surety or a security deposit within the legal limit.
• Rent insurance policies available on the market, which some landlords accept instead of a guarantor (a commercial product, with no specific regime in the Civil Code).
• Documents showing ability to pay: employment contract, proof of income in Brazil or in Portugal, bank statements.

Requests for six or twelve months in advance exceed the two-month limit of Art. 1076. Before agreeing, talk to a lawyer about the consequences and about how to document the payment.

Notifying the Tax Authority of the lease

• The landlord (lessor) notifies the Tax and Customs Authority (Autoridade Tributária e Aduaneira, AT) of leases, their amendments and termination by the end of the month following the month in which the lease, amendment or termination began (Art. 60(1) and (2) of the Stamp Duty Code (Código do Imposto do Selo)).
• The notice is given on the Form 2 (Modelo 2) return, filed online on the Tax Authority portal (Portal das Finanças) (Arts. 2 and 3 of Ministerial Order 98-A/2015 (Portaria)).
• If the landlord fails to give notice, the tenant may do so, on the official form (Art. 60(4)).

Stamp Duty (Imposto do Selo)

The lease is subject to Stamp Duty (Imposto do Selo) of 10% of one month's rent (item 2 of the Stamp Duty General Table). The charge is borne by the landlord (Art. 3(3)(b) of the Stamp Duty Code), and the tax is assessed by the AT after Form 2 is filed (Art. 4 of Ministerial Order 98-A/2015). Arrangements that shift this tax onto the tenant deserve careful attention.

Electronic rent receipts

• A landlord who is an individual earning Category F (rental) income must issue an electronic rent receipt on the Portal das Finanças for all amounts received, including a security deposit or advance payment (Arts. 5 and 6 of Ministerial Order 98-A/2015).
• There are exemptions, for example for landlords aged 65 or over, or with low annual rental income and no electronic mailbox. In these cases, the landlord reports the rents to the AT in January of the following year (Arts. 5(2) and (3), and 8).

Why this matters to the tenant

• A lease that has been notified to the Tax Authority, together with the receipts, is the strongest evidence that you live in the property and pay rent.
• The special eviction procedure can only be used for leases on which Stamp Duty has been assessed or whose rents have been declared for personal income tax (IRS) or corporate income tax (IRC) (Art. 15(5) of the NRAU). The rule shows how much weight the law gives to registration.

If you are Brazilian and rent out your own property in Portugal

The obligations above become yours: notifying the lease, Stamp Duty, electronic receipts and declaring the rents (property income, IRS Category F). How the income is taxed and reported in Brazil depends on your tax residence. See tax residence between Brazil and Portugal and, if you have yet to buy the property, buying and selling real estate.

Annual update

• The parties may agree the update regime in writing. If they agree nothing, the rent may be updated once a year using the official coefficient, starting after one year of the lease, and the landlord gives written notice of the coefficient and the new rent at least 30 days in advance (Art. 1077 of the Civil Code).
• The coefficient reflects the change in the consumer price index excluding housing, as calculated by Statistics Portugal (INE), and is published by notice in the Diário da República by October 30 of each year (Art. 24 of the NRAU).
• For 2026, the coefficient is 1.0224 (Notice 23174/2025/2 (Aviso)). The coefficient for 2027 is due to be published by October 30, 2026.

Repairs and works

• The landlord is responsible for maintenance works, ordinary or extraordinary, required by law or by the purpose of the lease, unless otherwise agreed (Art. 1074(1)).
• The tenant may only carry out works when the lease allows it or with the landlord's written authorization (paragraph 2). The tenant may carry out urgent repairs, with a right to reimbursement, when the landlord is in delay or when the urgency does not allow waiting, informing the landlord at the same time (Art. 1036).
• The tenant must notify the landlord immediately of any defects in the property (Art. 1038(h)).
• If the landlord fails to carry out works for which the landlord is responsible and this compromises habitability, the tenant may terminate the lease (Art. 1083(5)). The tenant may also serve notice on the landlord to correct deficiencies that pose a serious risk to health or safety and request an inspection by the municipal council (câmara municipal) (Art. 13-B of the NRAU).
• When moving out, the tenant returns the property in the condition in which it was received, except for wear and tear resulting from prudent use, and repairs minor damage caused for their own comfort, unless otherwise agreed (Arts. 1043 and 1073).

Communications on termination, rent updates and works are made in a signed writing sent by registered letter with acknowledgment of receipt, or delivered by hand with a signed receipt on the copy (Art. 9(1) and (6) of the NRAU).

Tenant (fixed-term lease)

• To not renew at the end of the term, the minimum notice is 120 days (term of six years or more), 90 days (one to six years), 60 days (six months to one year) or one third of the term (under six months) (Art. 1098(1) of the Civil Code).
• To leave before the end, once one third of the initial or renewed term has elapsed, the tenant may terminate at any time, with 120 days' notice if the term is one year or more, or 60 days' notice if it is shorter (paragraph 3). Termination takes effect at the end of a calendar month (paragraph 5).
• If the notice period is not respected, the lease still ends, but the tenant pays the rent for the missing period, except in cases of involuntary unemployment, permanent incapacity or death (paragraph 6).

Landlord (fixed-term lease)

• To prevent renewal, the minimum notice is 240 days (term of six years or more), 120 days (one to six years), 60 days (six months to one year) or one third of the term (Art. 1097(1)).
• An objection to the first renewal only takes effect three years after the lease was signed, except where the landlord or the landlord's children need the property as their home (paragraphs 3 and 4).
• When the landlord objects to renewal, the tenant may leave earlier, with 30 days' notice (Art. 1098(4)).

Lease for an indefinite period

• The tenant may terminate after six months of the lease, with 120 days' notice (if the lease has already run for one year or more) or 60 days' notice (if it has run for up to one year) (Art. 1100).
• The landlord may only terminate for the landlord's own housing needs or those of the landlord's children, for demolition or major works, or with at least five years' notice (Art. 1101), subject to the requirements and compensation in Arts. 1102 to 1104.

Non-payment

In case of late payment, the landlord may claim, in addition to the rent, compensation of 20% of the amount owed, which ceases to be due if the arrears are cleared within eight days (Art. 1041(1) and (2)). Arrears of three months or more, or delays of more than eight days on more than four occasions within twelve months, allow the landlord to terminate the lease, under Arts. 1083 and 1084.

Visa, residence and AIMA

Granting and renewing a residence permit requires, among other things, that the foreign national has accommodation (Arts. 77(1) and 78(2) of the Foreigners Act, Law 23/2007 (Lei de Estrangeiros)). A written lease notified to the Tax Authority is the document most often used as that proof. A few precautions:

• The name on the lease must match the applicant's, and the NIF must be correct.
• The term of the lease should cover the period that AIMA or the consulate will assess. A short-term lease for a temporary purpose may be rejected or require another document.
• Keep the proof of notification to the AT and the rent receipts.

The list of accepted documents is set by AIMA and the consulates and varies with the type of visa. See D7 visa and residence permit.

Warning signs

• Payment before the viewing: a request for a down payment, deposit or "reservation" before you have seen the property or signed the lease, especially by transfer to a foreign or third-party account.
• A landlord who never shows up: the advertiser says they are abroad and offers to "send the key by mail."
• Unverified identity: there is no way to check that the person renting out the property is the owner or has authority to lease it. Ask for the land registry certificate and check the name; if it is an attorney-in-fact or a real estate agency, ask for the document granting them authority.
• Informal arrangement: refusal to sign a written lease, to notify it to the Tax Authority or to issue receipts.
• Amounts above the legal limit: a security deposit of more than two months' rent, or more than two months paid in advance.
• A price far below market and pressure to decide "today."

If you are still in Brazil, a review of the lease by a lawyer admitted in Portugal, before transferring any money, reduces these risks.

With lawyers admitted to the Brazilian Bar Association (OAB) and the Portuguese Bar Association (Ordem dos Advogados), and offices in São Paulo and Albufeira, Sene & Araújo acts directly in Portugal on lease agreements, for tenants or landlords.

1. Review of the property and the landlord: we check the land registry certificate, the occupancy permit and the authority of the person signing.
2. Review or drafting of the lease: we check the mandatory elements, the term, renewal, security deposit, advance payments, works and exit clauses.
3. Registration and documents: we advise on notification to the AT, receipts and the use of the lease as proof of accommodation in visa and residence applications.
4. During the lease: we prepare notices by registered letter (rent update, works, objection to renewal, termination) and handle disputes.
5. Brazilian owners: we structure the lease of your property in Portugal and coordinate the tax obligations in both countries.

Each case begins with a review of the documents. Based on that review, we set out the steps and the time frames for each stage.