Rent increases in Portugal 2027: the coefficient, the maths and the notice
Updated 5 September 2026 · Sources: INE (Statistics Portugal), official gazette (Diário da República), Housing Portal
Every year, landlords in Portugal may update the rent of ongoing leases by applying the annual update coefficient published by INE (Statistics Portugal). For 2027 the expected coefficient is 1.0256, a maximum increase of 2.56%, based on the flash estimate of August inflation released by INE on 31 August 2026; the definitive figure comes with the Notice in the official gazette by 30 October. For 2026 the coefficient in force is 1.0224 (+2.24%), set by INE Notice no. 23174/2025/2. This guide explains how to calculate it, which rules apply and how to notify the tenant without mistakes that would void the increase.
Where the coefficient comes from
The coefficient reflects the 12-month variation of the Consumer Price Index (CPI) excluding housing, measured with the data available on 31 August. INE publishes the figure in the official gazette by 30 October, and it applies throughout the following calendar year.
Coefficients in recent years
| Year | Coefficient | Maximum increase |
|---|---|---|
| 2027 | 1,0256 | +2,56% (expected, to be confirmed by the INE Notice by 30 October) |
| 2026 | 1,0224 | +2,24% |
| 2025 | 1,0216 | +2,16% |
| 2024 | 1,0694 | +6,94% |
| 2023 | 1,02 | +2%: extraordinary cap set by law |
How to calculate the new rent
Multiply the current rent by the coefficient. Example with a €1,000 rent:
The landlord may apply a smaller increase (or none at all): the coefficient is a ceiling, not an obligation.
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The 3 rules that make the increase valid
- One-year interval: the rent can only be updated one year after the start of the lease or the last update.
- Written notice, at least 30 days in advance: preferably by registered letter with acknowledgment of receipt, stating the new rent and the coefficient applied.
- No retroactivity: the new amount only applies to rents falling due after the notice takes effect; you cannot charge differences for past months.
The most common (and most expensive) mistake
Forgetting the update. A landlord who skips the update for three or four years loses that margin for good: it cannot be recovered retroactively. On a €1,400 two-bedroom flat in Lisbon, missing the 2024 coefficient (+6.94%) cost almost €1,200 a year, every year. The anniversary date of each lease is, quite literally, a date worth money.
Frequently asked questions
What is the rent update coefficient in Portugal for 2027?
The expected value is 1.0256, a maximum increase of 2.56%, derived from the flash estimate of August 2026 inflation released by INE on 31 August. It becomes definitive with the Notice published in the official gazette by 30 October 2026 and applies to updates taking effect in 2027.
And for 2026?
It is 1.0224, a maximum increase of 2.24%, set by INE Notice no. 23174/2025/2. It applies to updates taking effect during the 2026 calendar year.
Can a landlord raise the rent by more than the coefficient?
As a rule, no: for ongoing leases updated by the annual coefficient, this is the ceiling. Different amounts are only possible if the lease sets out another update mechanism, or in a new freely negotiated contract.
When can the increase be applied?
The rent can only be updated one year after the start of the lease or the last update, and written notice must be given at least 30 days in advance. Without a valid notice, the increase is not enforceable.
Is the update retroactive?
No. The new amount only applies to rents falling due after the notice takes effect; the landlord cannot claim differences for past months.
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Request a rent estimateThis guide is for information only and does not replace legal advice. Sources: INE Notice no. 23174/2025/2 (official gazette, Sept. 2025); Civil Code and NRAU; Housing Portal.