--- title: "Recent Amendments to Portuguese Tenancy Law" description: "Key Changes and Implementation" url: "https://ivs.legal/en/articles/recent-amendments-to-portuguese-tenancy-law/" lang: "en" category: "Real Estate Law" author: "IVS Legal" datePublished: "2026-10-19T00:00:00.000Z" dateModified: "2026-10-19T19:51:00.000Z" --- # Recent Amendments to Portuguese Tenancy Law Key Changes and Implementation ## Proposed Amendments, Key Drivers, and Legislative Status Portugal’s urban leasing framework is once again at the center of political and legal debate. Following the restrictions introduced by the previous *Mais Habitação* package (Law no. 56/2023), the Government submitted a draft bill requesting legislative authorization from the Assembly of the Republic to revise key structural provisions of the Civil Code and the New Urban Lease Regime ([NRAU — Law no. 6/2006).](https://www.pgdlisboa.pt/leis/lei_mostra_articulado.php?nid=691\&tabela=leis) For both landlords and tenants, it is crucial to understand the drivers behind this initiative, the specific rules under review, and where the legislation currently stands. ## What Prompted the Changes? The housing access crisis, rising interest rates, and inflation placed significant pressure on the residential market. The 2023 policy response relied heavily on direct state intervention—most notably through the forced lease of vacant properties and strict rent caps on consecutive lease agreements. The market response led to counterproductive outcomes: 1. **Constrained supply:** Faced with reduced predictability and indirect rent freezes on new agreements, property owners withdrew units from the long-term rental market; 2. **Legal uncertainty:** Lengthy delays in resolving repeated defaults and administrative obstacles to reclaiming properties heightened the risk perceived by landlords. The proposed reform aims for a paradigm shift: rebuilding landlord confidence and introducing contractual flexibility to release private supply into the market, shifting the responsibility of protecting vulnerable tenants to the state (via public support and subsidies) rather than imposing it on the private sector. ## Key Amendments Under Consideration The proposal currently debated in parliament focuses on core aspects of the tenancy relationship: 1. **Repeal of the initial rent cap:** Abolishing the rule that restricted new contract rents from increasing by more than 2% compared to rates applied over the prior five years, thereby reinstating free-market pricing between consecutive agreements. 2. **Opposition to the first renewal:** Removing the mandatory three-year minimum lock-in period imposed on landlords under [Article 1096 of the Civil Code](https://diariodarepublica.pt/dr/legislacao-consolidada/decreto-lei/1966-34509075-122540650), allowing landlords to oppose renewal at the end of the contractually agreed initial term (e.g., at the end of a one-year lease). 3. **Termination for non-payment and default timelines:** Lowering the default threshold for lease termination from three to two months of unpaid rent, alongside updated criteria for repeated late payments (more than three delays within a 12-month period). 4. **Guarantees and communications:** Allowing up to three months of advance rent payments (up from two), providing broader flexibility in negotiating security deposits, and legally validating formal contract notices via email. 5. **Streamlined evictions and the BAS procedure:** Consolidating property repossession and the recovery of outstanding rental debt into a single, unified procedure handled by the Tenant and Landlord Desk (*Balcão do Arrendatário e do Senhorio* — BAS). ## Current Legislative Status: Are These Changes in Effect? No. These substantive amendments have not yet entered into force. The legislative process currently stands as follows: 1. **Current parliamentary stage:** The draft bill authorizing the Government to legislate passed its initial general vote in Parliament (*aprovação na generalidade*) and has moved to the specialized parliamentary committee. The detailed statutory wording and transitional provisions are being negotiated among parliamentary groups. 2. **Pending steps:** The measures will only take effect once the final overall vote (*votação final global*) passes in Parliament, followed by enactment (*promulgação*) by the President of the Republic, official publication in the *Diário da República*, and the expiration of the statutory implementation period (*vacatio legis*). Subsequently, the Government must also draft, approve, and publish the implementing decree-law (*decreto-lei*). Until the new legislation is formally enacted and published, any contract termination based on non-payment must strictly adhere to the three-month default threshold required by current law, and all existing tenancy agreements remain governed by the legal framework currently in force. *This text is for informational purposes only and does not constitute legal advice. The application of the cited regulations depends on the specific circumstances of each case and the legal framework in force.* ## Every situation has its own context. Talk to us about your question. 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