Rents in Portugal May Rise in 2027 – But What Can Your Landlord Legally Do?

Portugal’s annual rent update could allow landlords to increase existing rents by up to 2.56% in 2027.

For many tenants, particularly in places where rents have already risen sharply, even a relatively modest increase will be unwelcome. However, the percentage itself is only one part of a much larger issue.

What happens if a landlord demands 10%, 20% or more? Can a tenant refuse? Can the landlord then end the lease, change the locks or withhold the tenant’s belongings?

These are not theoretical questions for me.

My own experience with a landlord in Portugal

I once rented a home from a landlord who wanted to increase the rent by 20%. When I protested, I was locked out while I was away on holiday.

To recover my belongings, I eventually had to pay a total of €2,500. When my possessions were returned, some items were missing – apparently because the landlord considered them too good to give back.

The precise legal position in any dispute depends on the lease, the correspondence between the parties and the complete sequence of events. Nevertheless, my experience demonstrated how vulnerable a foreign tenant can become when a dispute escalates.

You may not speak Portuguese fluently. You may not understand the legal notices arriving in the post. You may have no family nearby, and you may be unfamiliar with the police, courts and public authorities.

This is why tenants need to understand the basic rules before a problem occurs.

How much can rents increase in 2027?

Portugal’s standard annual rent-update coefficient is calculated using the average consumer price index, excluding housing, for the 12 months ending in August.

The definitive inflation data published by Portugal’s National Statistics Institute, INE, indicate an update of 2.56% for 2027. The coefficient must still be formally published in the Portuguese official gazette, Diário da República, by 30 October.

If the coefficient is confirmed as 1.0256, the calculations will look like this:

• A monthly rent of €600 could rise to €615.36.
• A monthly rent of €800 could rise to €820.48.
• A monthly rent of €1,000 could rise to €1,025.60.
• A monthly rent of €1,500 could rise to €1,538.40.

The landlord does not have to apply the increase. They may apply a smaller adjustment or leave the rent unchanged.

The increase does not necessarily take effect on 1 January. The relevant date depends on when the lease began, when the rent was last updated and what the written agreement says.

The landlord must give written notice

Under the standard arrangement in Article 1077 of the Portuguese Civil Code, a rent can normally be updated once a year.

The first increase can generally be requested only after the lease has been in force for one year. Subsequent increases can normally take place one year after the previous update.

The landlord must inform the tenant in writing at least 30 days before the new rent becomes payable. The communication should state:

• the coefficient being applied
• the current rent
• the resulting new rent
• when the new amount becomes payable

A casual verbal demand or a message simply stating that next month’s rent will be higher should not be accepted without examination.

Ask the landlord to provide the calculation and legal basis in writing. Compare it with your contract and the official coefficient.

Can an increase exceed 2.56%?

In some circumstances, yes.

The 2.56% figure is not an absolute limit for every rental situation. It is the expected standard coefficient for a single annual update under the general statutory system.

A contract may contain its own written rent-review provisions. A higher amount may also be proposed as part of a genuinely new agreement or voluntary renegotiation.

Another important exception involves annual coefficients that the landlord was entitled to apply but did not use. Portuguese law allows certain unused coefficients from the previous three years to be applied later. A combined adjustment can therefore exceed 2.56%.

The landlord should identify each coefficient used and show how the new figure was calculated.

This does not generally mean that the landlord can retrospectively invoice the tenant for differences relating to months that have already been paid. Applying unused coefficients to a future rent and demanding retroactive payment are different things.

When the proposed increase is much greater than expected, obtain advice before agreeing, refusing or signing anything.

A proposed increase is not automatically a valid increase

A landlord may ask for 20% more. That does not necessarily mean the tenant is legally required to pay 20% more under the existing lease.

The landlord might instead be proposing a new contract, attempting to renegotiate the current agreement or planning not to renew it. Each situation involves different rules.

Two questions must be considered separately:

1. Is the requested rent increase valid under the existing lease?
2. Does the landlord have a legal right to end or refuse to renew the lease?

Rejecting an incorrect rent increase does not automatically terminate the tenancy. At the same time, the landlord may be able to oppose a renewal or end a lease if the contractual and statutory conditions are met and the correct notice is provided.

Never sign a “voluntary” departure agreement, termination notice or replacement lease under pressure without understanding its consequences.

Can a landlord enter the rented home?

Although the landlord owns the property, it is the tenant’s home during the tenancy.

A landlord may have a legitimate reason to inspect the condition of the property, arrange repairs or show it to prospective tenants near the end of a lease. This does not give the landlord an unrestricted right to enter whenever they wish.

Visits should be arranged with the tenant. A genuine emergency, such as a serious water leak or immediate danger, may justify urgent access, but that is very different from entering without permission as a matter of convenience.

Foreign tenants sometimes assume that ownership gives the landlord unlimited access. It does not.

Keep written records if the landlord repeatedly enters, attempts to enter or sends workers into the property without agreement.

Can a landlord simply change the locks?

A lawful eviction in Portugal must follow a formal procedure.

Depending on the grounds and circumstances, the landlord may use the Procedimento Especial de Despejo through the Balcão do Arrendatário e do Senhorio, or the matter may require court proceedings.

Physical repossession is handled through the legally authorised process. An enforcement agent or notary may, where the law permits, request police assistance to enter the property and change the lock.

That is not the same as a landlord personally deciding to change the locks while the tenant is away.

A lockout carried out without a completed legal eviction procedure is highly problematic. A dispute about rent does not give a landlord an automatic right to remove the tenant or seize the home.

If you return to find the locks changed, seek Portuguese legal assistance urgently. Contact the PSP or GNR if you have been denied access to your home or possessions. Do not force entry or take action that could worsen the situation.

What happens to belongings after a formal eviction?

Portuguese rental law also contains rules for possessions left inside a property during a formal eviction.

The tenant must be notified and given a legally defined period in which to remove the belongings. If the tenant fails to collect them after proper notification and the applicable deadline, the items may eventually be treated as abandoned.

This process does not give a landlord a general right to keep attractive possessions, use them as security or demand an arbitrary amount for their return.

If items are missing or being withheld:

• make a detailed list
• find photographs, receipts and serial numbers
• preserve every message and payment demand
• request their return in writing
• document any money paid
• obtain legal advice
• consider reporting missing property to the police

Proving what was inside the home can be difficult. A dated photographic or video inventory made when moving in is therefore valuable. Include furniture, electronics, artwork, jewellery and other significant personal possessions.

Avoid undocumented cash payments

Documentation can determine whether a tenant is able to defend a claim.

Pay rent by bank transfer whenever possible and include the relevant rental month in the payment reference. Ensure that you receive an electronic rent receipt – a recibo de renda – or another legally valid receipt.

Keep copies of:

• the signed tenancy agreement
• proof of the deposit
• rent receipts and bank statements
• letters, emails and messages
• the property inventory
• photographs taken at check-in
• inspection and damage reports
• any notice relating to rent or termination
• evidence of payments demanded during a dispute

If an important conversation takes place by telephone, send a calm follow-up email summarising what was discussed. This creates a contemporary written record.

If you feel compelled to pay money to regain access to essential possessions, try to obtain the demand in writing and use a traceable payment method. Record exactly what the payment was said to cover.

What should you do after receiving an excessive demand?

Do not ignore it, but do not immediately accept it either.

Ask the landlord in writing for:

• the contractual and legal basis of the increase
• the coefficient or coefficients being used
• a complete calculation
• the date of the previous rent update
• the date on which the new rent is intended to begin

Continue paying the undisputed rent on time while you obtain advice, unless a qualified Portuguese lawyer tells you otherwise. Stopping all payments can create a separate legal problem and potentially provide grounds for termination.

Reply factually and avoid threats or personal accusations. Your messages may later become evidence.

Where can tenants seek help?

A Portuguese lawyer experienced in arrendamento urbano – urban tenancy law – is often the safest option when the tenancy or access to the home is at risk.

Other possible sources of assistance include:

• DECO PROteste for consumer information
• the Balcão do Arrendatário e do Senhorio
• municipal housing or social services
• a local Julgado de Paz for eligible civil and tenancy disputes
• PSP or GNR where access, threats or missing property may involve a criminal matter
• Portugal’s legal-aid system, known as apoio judiciário

The Julgados de Paz can deal with several types of urban rental dispute and claims involving the return of movable property, subject to their jurisdiction and financial limit. They do not conduct eviction proceedings.

People who cannot afford legal costs may be eligible to apply for legal aid through Segurança Social.

Why foreign tenants may be particularly vulnerable

Portugal attracts residents from Britain, Ireland, Germany, France, the Netherlands, Scandinavia, Brazil and many other countries. Their legal status, income and command of Portuguese vary considerably, but many share the same disadvantage: they do not know how the Portuguese rental system works.

Some tenants have no written contract. Others pay in cash, receive no rent receipts or discover that the lease was never registered properly.

A dishonest landlord may insist that “this is how things are done in Portugal”. A tenant who fears losing the home may pay an unjustified amount or leave without challenging the demand.

Most Portuguese landlords behave responsibly, of course. However, the shortage of long-term rental homes – including in Caldas da Rainha and across the Silver Coast – can create a serious imbalance of power. A tenant may hesitate to defend their rights because finding another suitable home could take months.

Knowledge and documentation help reduce that imbalance.

A practical checklist for tenants in Portugal

Before moving into a rental home:

• insist on a written agreement
• read the clauses concerning rent updates, renewal and termination
• confirm the identity of the owner or authorised representative
• record the property’s condition with dated photographs
• prepare an inventory of furniture and valuable possessions
• clarify the deposit and the conditions for its return
• pay through a traceable method
• obtain official rent receipts
• keep copies outside the rented property
• save the details of a Portuguese lawyer or advice service before an emergency occurs

Store important documents securely online. If access to the property is suddenly denied, copies left only inside the home will not help.

A 2.56% adjustment is not permission to do anything

The proposed 2027 coefficient is an ordinary inflation-linked rent adjustment. For households already spending a large share of their income on accommodation, it may still hurt. But it is intended to be predictable and subject to formal rules.

It should not be confused with an arbitrary demand for a new market rent, pressure to sign another contract or an attempt to force a tenant out.

The landlord owns the property, but during the lease it is also the tenant’s home. Ownership does not remove the tenant’s rights to privacy, proper notice, their possessions and a lawful procedure.

My own experience was expensive and deeply unpleasant. The lesson I took from it is straightforward: put everything in writing, make traceable payments, photograph your possessions and seek help before the disagreement reaches the point where you are standing outside a locked door.

Sources: The Portugal News, Portugal’s Housing Portal, Portuguese Civil Code – Article 1077, DECO PROteste on eviction procedures, Julgados de Paz and Portugal’s legal-aid service. This article provides general information and is not individual legal advice. Rental rules and procedures may change, and a Portuguese legal professional should assess individual cases.