Everything you need to know about renting in Portugal

Costs vary depending on the option:

• Lawyer: between €150 and €300, plus consultation and VAT
• Free online templates: often outdated or non-compliant with current law
• Renda.app: €19.99, reviewed by a certified Portuguese lawyer and 100% NRAU 2025 compliant

For standard residential contracts, you don't need to pay a lawyer if you use a platform like Renda.app that already has the legal template validated.

From the landlord: NIF (tax number), tax address, banking details (IBAN), copy of the property's tax record (caderneta predial) and use license (licença de utilização).

From the tenant: NIF, current address, copy of ID/passport, proof of income (payslips or IRS) and IBAN for direct debits.

The contract itself does not need to be registered at a notary - both parties simply sign (with optional witnesses) and the landlord registers it with Finanças.

Yes. Portuguese law does not require a lawyer or notary for residential rental contracts. The contract is valid as long as it includes the mandatory NRAU clauses and is signed by both parties.

The risk of doing it without professional help is omitting mandatory clauses or using outdated templates. Renda.app generates the document based on up-to-date templates reviewed by a certified lawyer.

No. For residential rental, the contract is valid with simple signatures from both parties. It only needs to be registered with Finanças by the end of the month following the contract start.

Notary registration is only required in specific cases (e.g., contracts over 6 years involving the constitution of real rights).

The total process takes less than 5 minutes: 11 form steps, €19.99 payment (MB WAY, card, Multibanco) and the contract arrives in your email in under 2 minutes.

By comparison, with a lawyer you can expect 3 to 10 business days for the final document.

You receive two files by email:

• PDF (official) - final formatted version, ready to print and sign. This is the one you register with Finanças.
• Word / DOCX (editable) - same version in Microsoft Word format, in case you want to adjust details before printing (typo in a name, custom clause, etc.).

Both formats are generated from the same data and have the same legal content. The Word file opens in Microsoft Word, Google Docs or free LibreOffice.

Yes, and at no extra cost for 7 days. Two options:

1. Small typo (misspelled name, wrong NIF, wrong date): open the Word file, fix it directly, re-export to PDF if needed. No need to come back.
2. Bigger change or you want the "official Renda.app" version corrected: the email contains a link like renda.app/edit/abc123. Click it, the form reopens with your data pre-filled, you correct, and the new contract arrives in your email in seconds. All free for up to 7 days after purchase.

After 7 days, contact hello@renda.app - small corrections remain free, but substantial changes may require a new purchase.

NRAU stands for Novo Regime do Arrendamento Urbano (Law 6/2006). It is the legislation regulating all residential and non-residential rental contracts in Portugal.

It has been updated several times since 2006: Law 31/2012, Law 13/2019 and amendments in 2024 regarding coefficients and termination periods. It defines mandatory clauses, minimum terms, rent update rules and the rights of both parties.

According to article 1070 of the Civil Code and the NRAU, the contract must include:

1. Full identification of both parties (landlord and tenant)
2. Property identification (address, tax article, fraction)
3. Rental purpose (permanent housing or otherwise)
4. Term type (fixed or indefinite) and duration
5. Rent amount and payment method
6. Security deposit, if applicable
7. Annual rent update clause
8. Place and date of signature

Omitting mandatory clauses can render the contract partially invalid.

Main 2025 changes include:

• INE coefficient: 2.16% for 2025 (compared to 2.72% in 2024 and 6.94% in 2023)
• Termination periods: adjustments for long-term contracts
• Rent support programs: expanded eligibility criteria
• Eviction: BNA (National Rental Counter) rules maintained

Renda.app generates contracts already compliant with all these updates.

Yes. For residential contracts, the NRAU requires written form. Verbal contracts are technically invalid and cannot be registered with Finanças - meaning the landlord cannot declare income and the tenant cannot deduct rent on their IRS.

The deposit cannot exceed the equivalent of 2 months' rent (article 1076 of the Civil Code). For example, with rent of €800/month, the maximum deposit is €1,600.

The landlord may also require, instead of (or in addition to) the deposit, a guarantor or rent insurance - though typically not all simultaneously without justification.

The deposit must be refunded at the end of the contract, within 30 days of returning the keys and the property inspection.

The landlord may deduct:

• Rent in arrears or other unpaid amounts
• Damage to the property beyond normal wear and tear
• Unpaid expenses (water, electricity, condominium fees if the tenant's responsibility)

The landlord must justify any deductions in writing, with photos and quotes when applicable.

No. The law distinguishes between normal wear and tear (landlord's responsibility) and damage caused by the tenant (deducted from deposit).

Small wall scratches, furniture marks, paint fading or floor wear from normal use cannot be deducted. Only significant damage (broken windows, damaged bathrooms, holes in walls) is eligible.

In case of dispute, the tenant can resort to small claims courts (Julgado de Paz) or regular courts.

Only if the landlord agrees - it's not a tenant's right. In practice, some landlords accept splitting the deposit into 2 or 3 monthly installments at the start, especially if the tenant has a strong financial profile.

If agreed, this installment plan must be expressly written into the contract.

Yes, but only once per year using the coefficient published annually by INE. For 2025, the coefficient is 2.16% (published in October 2024).

The landlord must notify the increase in writing with at least 30 days notice. Without this notice, the increase has no effect.

For contracts with a no-update clause, the landlord is bound to the initial rent for the entire duration.

2.16% - published by INE in October 2024 and applicable to contracts updated in 2025.

Recent history:

• 2025: 2.16%
• 2024: 2.72%
• 2023: 6.94%
• 2022: 1.02%

Applied to current rent - e.g., €800 × 1.0216 = €817.28 in 2025.

In case of non-payment, the landlord can:

1. Charge default interest (legal: 4% per year + adjustments)
2. Apply 20% indemnity on rent in arrears (article 1041 CC), after 30 days of delay
3. Terminate the contract after 3 months of non-payment or 4 late payments in 12 months
4. Resort to BNA (Balcão Nacional do Arrendamento) for the special eviction procedure

The tenant can avoid termination by paying all overdue rent + indemnity within 1 month of being notified.

The payment method is set in the contract. Most common are:

• Bank transfer (most recommended - leaves a clear trail)
• Direct debit authorized by the tenant
• MB WAY (increasingly common)
• Cheque (rare nowadays)
• Cash with written receipt (not recommended)

The landlord is required to issue an electronic rent receipt (Finanças model) by the 5th business day of the following month. The receipt is mandatory even for cash payments.

By default, condominium fees are the landlord's responsibility. However, the contract may stipulate that the tenant pays them - in that case, the value should be clearly itemized.

The same applies to IMI (property tax): by default it's the landlord's, but it can be passed on contractually. Whenever payment is passed on, this must be expressly written in the contract.

A guarantor (fiador in Portuguese) is a person who takes joint and several responsibility for the tenant's obligations. If the tenant doesn't pay rent or causes damage, the landlord can demand payment from the guarantor.

The guarantor signs the contract as such and remains liable for the entire duration (including automatic renewals, unless otherwise specified).

No. Guarantors are not mandatory by law. They are an additional guarantee landlords may request, especially when:

• The tenant is a student or young person without credit history
• The tenant is a foreigner newly arrived in Portugal
• The tenant has variable or unstable income (freelance, self-employed)
• The rent-to-income ratio exceeds 33%

Alternatives include rent insurance (Tranquilidade, Fidelidade, etc.) or higher security deposit.

Any individual or legal entity with proven financial capacity. Landlords typically require:

• NIF and copy of ID/passport
• Recent payslips (last 3 to 6)
• IRS tax declaration
• Certificate of no debt to Finanças and Social Security
• Proof of address

The guarantor cannot be the tenant themselves nor live in the same household (except for parents in some cases).

Only with the landlord's express agreement, or when:

• The tenant is replaced (and the new tenant has another guarantor)
• The contract is terminated or ends
• The guarantor dies (the guarantee does not transfer to heirs)

For automatic renewals, the guarantee continues unless the contract states otherwise. The guarantor can object to renewal by notifying the landlord with the required notice.

Yes. Multiple guarantors are allowed and are jointly responsible for the tenant's obligations. In practice it's rare - the norm is one guarantor.

If you wish, you can add a guarantor in the Renda.app form at step 3.

For permanent housing, the minimum duration is 1 year (Law 13/2019). Fixed-term contracts can run up to 30 years.

For non-permanent housing (holidays, specific purposes), there is no minimum. For students, contracts can be made for academic periods.

Yes, unless one party objects. Fixed-term contracts renew automatically for successive minimum periods of 3 years (unless the contract specifies another period).

To prevent renewal:

• Landlord: must give 240 days notice (contracts < 6 years) or 365 days (contracts ≥ 6 years)
• Tenant: 120 days (contracts < 6 years) or 240 days (contracts ≥ 6 years)

Notice must be in writing with proof of receipt.

There are 3 ways:

1. Expiry - reaches the end of term without renewal
2. Notice - opposition to renewal with required notice
3. Resolution - termination for breach (rent in arrears, serious damage, non-use, etc.)

The tenant can also do early termination (unilateral) after 1/3 of the contract duration (minimum 4 months), with notice of 30 to 120 days depending on contract length.

No. The landlord can only terminate early in specific cases:

• Own residence - with 6 months notice; cannot rent to others for 2 years afterwards or pays indemnity
• Major works that make the property temporarily uninhabitable
• Tenant breach (rent arrears, damage, use different from contract)
• Demolition or structural works authorized by city hall

Outside these cases, the contract continues until the agreed term, even if the landlord wants to retake the property to sell.

Yes, it's mandatory. The landlord must communicate the start of the contract to Finanças by the end of the month following the rental start.

Without registration:

• The landlord faces fines from €100 to €3,750
• The tenant cannot deduct rent on their IRS
• In case of breach, the BNA does not accept the special eviction procedure

The landlord registers via the Portal das Finanças:

1. Access Portal das Finanças with NIF + password
2. "Imóveis" menu → "Contratos de Arrendamento" → "Comunicar Contrato"
3. Fill in property, tenant, dates and rent amount details
4. Pay the stamp duty (10% of one month's rent) via Multibanco reference
5. Submit

The proof of registration is for the landlord's records (IRS declarations) and may be requested in legal cases.

The stamp duty on rental contracts is 10% of one month's rent (not annual).

Example: rent of €800/month → stamp duty = €80 (one-time payment at contract start).

The duty is paid by the landlord, but can be passed on to the tenant if specified in the contract. Some people split it 50/50.

Yes. The landlord must report the contract end to Finanças by the end of the following month. Also report:

• Rent increases
• Tenant changes
• Assignments or sublets

All in the same Portal das Finanças menu.

Property income (IRS category F) is taxed at 25% by default, but can be aggregated with global income if more favorable.

Reductions for long-term contracts:

• 5 to 9 years: 15%
• 10 to 19 years: 10%
• 20+ years: 5%

Property-related expenses (maintenance, condominium, IMI) can also be deducted up to a legal limit.

Yes. The tenant can deduct 15% of rent paid during the year, with a maximum limit of €600/year (or €800 for families in lower income brackets).

To deduct, it's essential that:

• The contract is registered with Finanças
• Rent payments are reported on e-fatura
• Electronic receipts are issued by the landlord

Without contract registration, no deduction is possible.

IMI (property tax) is always paid by the owner (landlord) per the law. However, it's common practice (and legal) for the contract to stipulate that IMI is passed on to the tenant, divided across the year's months.

Example: Annual IMI of €360 → €30/month added to rent. This must be expressly written in the contract and the tenant should receive proof of payment to the landlord.

Yes. The electronic rent receipt has been mandatory since 2015. It's issued by the landlord on Portal das Finanças and emailed to the tenant by the 5th business day of the month following payment.

Without a receipt:

• The landlord faces fines
• The tenant cannot deduct on IRS
• The landlord cannot justify income

No, residential rentals are VAT-exempt in Portugal. Only IRS (category F) applies.

For non-residential rentals (shops, offices), VAT may apply depending on the landlord's option (waiver of exemption is possible).

No. The tenant has the right to peaceful and full enjoyment of the property. The landlord can only enter:

• With prior authorization from the tenant (inspections, works, sale viewings)
• In emergencies (imminent ruin, serious leaks) with witnesses
• By court decision in specific cases

Entering without authorization constitutes home invasion, a crime under article 190 of the Penal Code.

By default, the law does not prohibit pets. However, the contract may include a clause prohibiting or restricting them (e.g., "small pets only").

If the contract is silent, pets are allowed provided they don't cause:

• Material damage to the property
• Serious nuisance to neighbours (constant barking, etc.)
• Hygiene problems

In extreme cases, the landlord can request the pet's removal but cannot automatically terminate the contract.

It depends:

• Small improvements (paint walls the same colour, change lightbulbs, etc.) - generally allowed
• Significant works (knocking down walls, changing flooring, etc.) - require written authorization from the landlord
• Drilling holes for fixtures (TVs, shelves) - depends on contract; some landlords prohibit

Unauthorized works may require restoration to original state at the tenant's expense and, in serious cases, contract termination.

By default, consumption bills (water, electricity, gas, internet, TV) are the tenant's responsibility, with contracts in the tenant's name.

Condominium and IMI are by default the landlord's, but can be passed on to the tenant if the contract so states.

Fire insurance is mandatory and falls on the owner. The tenant may opt to subscribe to contents insurance covering personal belongings.

The general rule is in article 1074 of the Civil Code:

• Structural and maintenance repairs: landlord (roof, plumbing, electrical systems)
• Small repairs from normal use: tenant (dripping taps, lightbulbs, small paint touch-ups)
• Damage caused by the tenant: tenant (always)

When in doubt: if essential for the property to function minimally, it's the landlord's. If for comfort/normal use, it's the tenant's.

The tenant can terminate at any time after 1/3 of the contract duration (minimum 4 months), with notice:

• Contracts < 1 year: 30 days notice
• Contracts 1 to 6 years: 60 days
• Contracts ≥ 6 years: 120 days

Before the minimum period, the tenant can leave by paying compensation equivalent to rent up to the minimum - unless the contract has more favorable clauses.

Notice must be in writing with proof of receipt (registered mail with receipt acknowledgement).

No. The landlord can only terminate/evict early in specific situations:

• Failure to pay rent (3 months or 4 late payments in 12 months)
• Unauthorized assignment or subletting
• Use for purpose other than contracted
• Serious damage caused intentionally or negligently
• Need for own residence (6 months notice)
• Authorized major works

In any case, eviction goes through legal procedure - not by force, lock changes or cutting utilities. These actions are crimes.

Depends on the route:

• Special Eviction Procedure (BNA): 4 to 6 months on average, for clear breach cases (verified rent arrears, end of term)
• Court action: 12 to 24 months, for contested cases
• Appeals: can extend to 3 years or more

BNA is significantly faster and is mandatory for contracts registered with Finanças. We always recommend registration.

Typical costs:

• BNA: 25 UC fee + notification costs (about €300-400 total)
• Lawyer: €500 to €2,000 depending on complexity
• Court costs in contested cases: €500 to €2,000
• Bailiff fees for forced property handover

If successful, the landlord can recover costs and even arrears. But the time lost rarely compensates - hence the importance of careful tenant selection and requiring deposit or guarantor.

Only with express written authorization from the landlord. Article 1088 of the Civil Code states that subletting without authorization is grounds for contract termination.

Even with authorization, the original tenant remains responsible for the original contract before the landlord.

No, unless expressly authorized by the landlord. Local Lodging (Alojamento Local / AL) is considered commercial use different from permanent housing.

Even with authorization, you need:

• AL registration with the city hall
• Compliance with legal requirements (safety, capacity, etc.)
• Tax on AL income (IRS category B, simplified regime)
• In containment areas (central Lisbon, Porto, etc.), specific licensing

Doing AL without landlord authorization is grounds for immediate contract termination.

Yes, as long as all occupants are identified in the contract. If flatmates aren't on the original contract, it may be considered room subletting - which requires authorization.

The best is to make a contract with multiple tenants (as Renda.app allows), ensuring everyone is jointly responsible for rent and obligations.

Yes, without any restriction. Foreigners (whether resident in Portugal or not) can freely rent property in Portugal, both as landlords and tenants.

Requirements are the same as for Portuguese citizens: NIF, valid identification (passport or EU citizen card) and proven financial capacity.

Yes. The NIF (Tax Identification Number) is mandatory for any financial transaction in Portugal, including rentals.

Foreigners can obtain a NIF for free:

• In Portugal: at any Finanças office or Loja do Cidadão
• Outside Portugal: through a fiscal representative (lawyer, accountant, or online services)
• EU/EEA citizens: don't need a fiscal representative
• Non-EU citizens: need a fiscal representative resident in Portugal

Landlords typically request:

• Portuguese NIF
• Passport or EU citizen card
• Proof of income: Portuguese employment contract, foreign payslips, or proof of substantial savings
• References from previous landlords (foreign landlords are accepted)
• Higher deposit - often 3 to 6 months to compensate for lack of Portuguese history
• Guarantor - often required if no Portuguese employment ties

Alternatives to a guarantor: rent insurance or paying several months in advance.

To be valid in Portuguese courts and registered with Finanças, the contract must be in Portuguese. An English version may be attached for convenience, but the Portuguese version prevails.

Renda.app always generates the contract in Portuguese (official version), but the form is available in English to facilitate completion by expats.

Yes. Non-resident landlords pay a fixed rate of 25% on gross rental income, with no possibility of aggregation with global income.

However, they can still deduct property-related expenses (maintenance, IMI, condominium) up to a limit. They must appoint a fiscal representative in Portugal.

Reductions for long-term contracts (15%, 10%, 5%) also apply to non-residents.