Renting in Portugal now: costs and what the reform changes

"How much should I budget for a flat, and how much will they ask upfront?" These are the first two questions most people moving to Portugal ask. Here are the numbers, the rules that apply today and what the reform now in Parliament would change.

What rent costs

According to INE, the median rent for new leases was around €9.29 per square metre a month in 2025, about 9.7% more than a year earlier. For a modest one-bedroom outside the hotspots that means roughly €650 to €850 a month; in Lisbon, Cascais and much of the Algarve, considerably more. Porto, Braga and Aveiro tend to be 20% to 40% cheaper than Lisbon for a similar life.

Region is the biggest lever. To compare cities for your own household, use our rent calculator, and for a wider picture of prices see how much houses and rent cost in Portugal in 2026.

What a landlord may ask at signing today

Article 1076 of the Civil Code caps both the deposit (caução) and rent paid in advance at two months each. So the most a landlord may lawfully ask on a residential lease is five months' rent: the first month, up to two months in advance and up to two months of deposit. Only the deposit comes back at the end. Asking for more has no legal basis today, and you can say so in writing before you sign.

Two more things protect you: the lease must be registered with the Tax Authority (Finanças) by the landlord, and you should get an electronic rent receipt every month. No receipts usually means the lease is not declared, which weakens your proof of address. More on getting the deposit back in our guide to deposits and tenant rights.

How much the rent can rise in 2027

INE set the annual rent update coefficient for 2027 at 1.0256, a rise of 2.56% (Aviso 24199/2026/2). If your contract has no update clause, that is the maximum yearly increase under the legal rule, and the landlord must tell you in writing at least 30 days in advance. On €800 a month, that is up to €820.48.

What the rental law reform would change

In early October Parliament approved in general terms the Government's bill to change the urban lease regime. According to Lusa, the main proposals are:

• eviction could start after two months of unpaid rent, instead of three;
• landlords could ask for three deposits instead of two, with no cap on the amount;
• after a judge rules for eviction, the separate enforcement case would disappear, so eviction would come faster.

The details are now being negotiated in committee, so the final text can still change, and tenant groups have called a protest for 14 November. Until the law is published and in force, today's rules apply to every lease, including one you sign tomorrow.

What to do if you are looking now

• Budget from current figures, not old blog posts: rents rose almost 10% in 2025.
• Count the upfront money: up to five months' rent today, and possibly more once the reform is in force.
• Ask for the lease to be registered and for monthly electronic receipts.
• Pay rent on time and keep proof of every payment: under the reform, two months of arrears would be enough to start an eviction.
• Never pay a deposit for a flat you have not seen with someone who can prove they own or manage it. See how to avoid rental scams.

In short

Rents are high and still rising, the 2027 update is capped at 2.56% under the legal rule, and the reform would make deposits bigger and evictions faster. For now, the two-month limits still apply.

General information, not legal advice. Figures are indicative medians and the reform is still a bill; check the current text before you rely on it.