New Rental Rules in Portugal: What Tenants and Landlords Should Know in 2026
Rental housing in Portugal is governed by specific rules designed to protect tenants while also defining the rights and responsibilities of landlords. In 2026, rents may increase by up to 2.24%, tenants may deduct up to €900 in personal income tax, and landlords may benefit from reduced tax rates when entering into longer-term rental contracts.
What Is the NRAU?
The Novo Regime do Arrendamento Urbano, commonly known as NRAU, is the legal framework that regulates rental contracts in Portugal. It applies to both residential and commercial properties, setting rules on contract duration, rent updates, renewals, and the rights and duties of tenants and landlords.
The current framework is based on Law No. 6/2006, with amendments introduced by Law No. 56/2023, known as the Mais Habitação Programme. These updates introduced stronger protections for vulnerable tenants and new tax incentives for landlords.
Contract Duration and Renewal
Residential rental contracts in Portugal have a minimum duration of one year. If the contract does not state otherwise, it is automatically renewed for successive periods of three years.
This means that once the initial term ends, the contract continues to remain valid without the need to sign a new agreement, unless one of the parties acts within the legal deadlines to prevent renewal.
Why This Matters
For tenants, knowing the rules helps ensure greater housing stability and awareness of tax deductions and legal protections.
For landlords, understanding the framework is essential to manage properties correctly, apply rent updates lawfully, benefit from available tax incentives, and avoid contractual or legal risks.
At CYRC, we believe that professional property management starts with clarity, compliance, and informed decision-making. Whether supporting owners, investors, or tenants, a solid understanding of the rental framework is key to creating more transparent and reliable rental relationships.