Portugal’s 2026 rental reform: what changes for landlords and tenants

Updated 8 August 2026 · Sources: Council of Ministers of 9 July 2026, Civil Code and specialised press

First things first: this is not law yet

The package was approved by the Council of Ministers on 9 July 2026 as a government bill (proposta de lei). It has not been voted by Parliament, has not been enacted and has not been published in the official gazette (Diário da República): there is no 2026 law or decree-law number attached to this package. Until that happens, today’s rules apply in full, including termination for non-payment only from 3 months of unpaid rent.

In July 2026 the Portuguese government presented the biggest overhaul of the rental regime in years: faster evictions, lease termination from 2 months of unpaid rent, a Housing Emergency Fund and the unfreezing of pre-1990 rents. If you own rental property in Portugal, this guide explains, measure by measure, what the bill proposes, what actually applies today and what you can (and cannot) do with your leases right now.

What the package is and exactly where it stands

The timeline is short, and each stage has different practical consequences:

9 July 2026: approval by the Council of Ministers as a government bill. A bill must be debated and voted by the Assembleia da República (the Portuguese Parliament) before it can become law.
29 July 2026: the government announces that the request for legislative authorisation covering the procedural side of evictions will reach Parliament before the summer recess, and reveals the most sensitive detail: eviction judgments would no longer require separate enforcement proceedings.
August 2026: no vote, no enactment, no publication in the official gazette. The bill’s formal entry into Parliament, with a number assigned, has not been publicly confirmed.
September 2026 (expected): Parliament returns from recess. The debate is expected, at the earliest, this month; committee stage, final vote, enactment and publication would follow.

The parliamentary journey looks contentious: the Socialist Party accuses the government of making evictions easier, tenant associations say the package crushes tenant rights, and landlord associations call the old-rents solution timid and partial. In practical terms for anyone managing leases: the final version may differ substantially from the July proposal, and no measure should be taken for granted.

Before and after: the key changes in the bill

The table compares the rule in force today with what the 9 July bill proposes. Everything in the right-hand column is a proposal, not law:

Topic	Rule in force today	What the bill proposes (not law yet)
Termination for unpaid rent	3 months of unpaid rent (article 1083 of the Civil Code)	2 months of unpaid rent
Repeated late payments	Payment more than 8 days late, more than 4 times, within a 12-month period	Payment 8 or more days late, 3 times in 12 months, or more than 4 times in 18 months
Landlord’s deadline to terminate	3 months from the breach that grounds the termination	6 months (extended deadline)
Eviction after a court ruling	The judgment still requires separate enforcement proceedings before the property is vacated	The judgment would by itself produce the effects needed to vacate the property (automatic court order); the tenant would keep the right to request a deferral for family or health reasons, or for lacking alternative housing
Rent arrears and repossession	May require separate procedural steps	Repossession of the property and recovery of unpaid rent combined in a single procedure
Tenant and Landlord Desk (BAS)	Special eviction procedure through the BAS (successor of the former Balcão Nacional do Arrendamento)	The bill mentions simplifying the special eviction procedure, but no reliable public detail is available to date
Housing Emergency Fund	Does not exist in this form	Fund managed by the IHRU (housing institute) with Social Security, for highly vulnerable households facing eviction: between €537.13 and €2,300 per month, for up to 6 months, with a response within 10 working days (figures from the bill, indicative)

Until the law is published in the official gazette, the middle column is the only one that matters for your leases.

The other measures in the package

The 9 July bill also includes, again as proposals only:

the end of the 2% cap on rent increases between consecutive new leases: the rent would be freely agreed;
more freedom in setting deposits and the possibility of up to 3 months of rent in advance;
the end of the rule that blocked the landlord’s opposition to the first renewal before 3 years;
electronic communications between the parties;
a review of the tenant’s right of first refusal;
the unfreezing of old rents (pre-1990 leases), with a safeguard for tenants aged 65 or over with an annual income below €64,400, accompanied by a social rent subsidy.

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What to do with your leases right now

No need to wait for September to get organised. Six practical steps, all based on the rules in force:

Do not apply the new rules: a termination letter sent today based on 2 months of arrears has no legal basis: the rule in force requires 3 months. Before any formal step against a defaulting tenant, follow the current procedure.
Review the notice clauses in your leases: confirm the agreed address for notices and use registered letters with acknowledgment of receipt. The electronic communications in the bill do not yet count as formal notice, and many eviction cases fail over badly served notices.
Map the dates of every lease: end of term, opposition-to-renewal window and the rent anniversary date. These are the dates the reform will touch, and the ones you need in hand to renew, oppose or renegotiate.
Update the rent under the current regime: the reform does not touch the annual coefficient update of current leases (the exception is pre-1990 old rents, covered above): in 2026 the ceiling is 2.24% (coefficient 1.0224) and updates you skip are lost for good.
Document payments and arrears from today: electronic receipts, payment records and archived notices are valid under the current law and will be under the future one. In a dispute, organised evidence saves months.
Mark September in your calendar: the parliamentary debate is expected, at the earliest, in September 2026. Only after publication in the official gazette do the new rules apply to your leases.

Dig deeper into each topic

What does NOT change

Until the bill is voted, enacted and published, all of this stays exactly the same:

Termination for non-payment: still requires 3 months of unpaid rent (article 1083 of the Civil Code).
Late payment and the 20% penalty: once the tenant is in arrears, the landlord may claim, on top of the rent, the legal compensation of 20% of the amount due (article 1041).
The 8-day grace period: paying less than 8 days late still prevents immediate termination of the lease.
The annual rent update: the 2026 coefficient stands (1.0224, a maximum increase of 2.24%; for 2027 INE points to 1.0256, +2.56%, to be confirmed by the October Notice), with the usual rules: one-year interval, written notice 30 days in advance and no retroactivity.
Renewal and opposition deadlines: the opposition-to-renewal notice periods (240, 120 or 60 days depending on the term, or one third of the term for leases under 6 months) and the 3-year block on opposing the first renewal remain in force. The bill wants to remove the block, but has not done so yet.
Self-help evictions: cutting water or power, changing locks or removing belongings remains illegal and may be a criminal offence; no version of the reform changes this.
Tax on rental income: category F taxation is not part of this package; the current rates stand.

Frequently asked questions

Is Portugal’s 2026 rental reform already in force?

No. It was approved by the Council of Ministers on 9 July 2026 as a government bill, but it has not been voted by Parliament, enacted or published in the official gazette. There is no law or decree-law number attached to this package.

Can I already terminate a lease with 2 months of unpaid rent?

No. The rule in force still requires 3 months of unpaid rent (article 1083 of the Civil Code). The 2-month rule is part of the bill and will only apply if and when the law is published in the official gazette.

When will the new rules take effect?

There is no date. The parliamentary debate is expected in September 2026 at the earliest, followed by the committee stage, the final vote, enactment and publication in the official gazette. The text can change at any of these stages.

What changes for old rents (pre-1990 leases)?

The bill proposes unfreezing these rents, with a safeguard for tenants aged 65 or over with an annual income below €64,400, together with a social rent subsidy. For now it is only a proposal, contested by tenant and landlord associations alike.

What is the Housing Emergency Fund?

A fund foreseen in the bill, managed by the IHRU (the public housing institute) together with Social Security, for highly vulnerable households facing eviction: between €537.13 and €2,300 per month, for up to 6 consecutive months, with a response within 10 working days of the request. The figures come from the bill and may change.

Can the bill still change in Parliament?

Yes, and it is likely. The Socialist Party contests the easing of evictions, tenant associations say the package crushes tenant rights, and landlord associations criticise the old-rents solution. The committee stage can change deadlines, amounts and even entire measures.

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This guide is for information only and does not replace legal advice. It describes a government bill approved by the Council of Ministers on 9 July 2026, not yet voted or published in the official gazette, based on official communications and the specialised press (ECO, Observador, idealista/news, DECO PROteste). Status verified on 8 August 2026; the page will be revised after the parliamentary vote. Rules in force cited: Civil Code (articles 1041, 1083 and 1084) and NRAU.