Rent Increase Limit in Portugal: 2.56% for 2027 and the Rules
Every autumn INE publishes the coefficient that caps the yearly rent update. The 2027 figure, how notice must be given and what tenants can do about a wrong increase.
In 2027, a landlord in Portugal can raise rent during a lease by at most 2.56%, the official update coefficient of 1.0256 published by the statistics institute INE. The increase needs written notice at least 30 days in advance and can be applied only once a year, unless the lease sets its own update rule.
The coefficient was published in the Diário da República on 1 October 2026 (Notice 24199/2026/2). It comes from consumer price inflation excluding housing over the 12 months to August. Everything below is as of November 2026 and is general information, not legal advice for a specific lease.
How much can my rent go up in 2027?
The default maximum is 2.56%. Multiply your current rent by 1.0256 to get the highest new rent your landlord can ask under the legal coefficient.
| Current monthly rent | Maximum 2027 update | New rent at most |
|---|---|---|
| €800 | €20.48 | €820.48 |
| €1,000 | €25.60 | €1,025.60 |
| €1,200 | €30.72 | €1,230.72 |
| €1,500 | €38.40 | €1,538.40 |
INE calculates the coefficient and must publish it by 30 October each year under article 24 of the urban lease law (NRAU). You can read the official 2027 notice in the Diário da República.
When can the landlord apply the increase?
Article 1077 of the Civil Code sets the default rule. If your lease says nothing else in writing:
- the rent can be updated once a year, using the coefficient in force;
- the first update can be asked for one year after the lease started, and each later one a year after the previous update;
- the landlord must tell you in writing at least 30 days in advance, stating the coefficient and the new rent;
- updates the landlord skipped are lost, though coefficients from up to three years back can still be applied later.
The last point means a landlord who did not update in 2025 or 2026 may sometimes combine those coefficients in a later update. Each year’s coefficient is published by INE in the Diário da República every autumn, so you can check every figure used. Ask for the calculation in writing if the new figure looks higher than 2.56%.
Can my lease set a different increase?
Yes. The Civil Code lets the parties agree in writing on whether and how rent is updated, and the coefficient applies only when there is no such clause. Read the update clause (atualização da renda) in your contract before you check the numbers. A clause might repeat the INE coefficient, set a fixed percentage or rule out updates altogether; if there is no written clause at all, the coefficient applies.
The coefficient also does not cover the rent for a new lease, which is negotiated freely. Leases signed before 1990 follow separate transition rules under the NRAU; tenants in those homes should get specific advice. Our guide to renting an apartment in Lisbon covers what to check in a new contract.
How should the notice reach me?
In writing. Lease communications under the NRAU are normally sent by registered letter with acknowledgment of receipt, unless the contract allows another channel. A text message or a verbal “the rent goes up next month” does not meet the 30-day written notice rule.
Once the new rent applies, the landlord’s electronic rent receipts on the Portal das Finanças should show the new amount. Those receipts feed the rent deduction in your annual IRS return.
What can I do if the increase is above the limit?
Start with a written reply. These steps keep a clear record:
- Check your lease for an update clause and check the date of the last update.
- Calculate the legal maximum with 1.0256 and compare it with the landlord’s figure.
- Reply in writing, citing article 1077 of the Civil Code and Notice 24199/2026/2, and state the amount you consider correct.
- Keep paying the rent you consider due on time, and keep proof of every payment. Arrears of three months or more are grounds for ending the lease under article 1083 of the Civil Code.
- If the disagreement continues, get advice from a lawyer, your Junta de Freguesia’s legal service if it offers one, or a tenants’ association.
People on low incomes can ask Social Security for legal aid (apoio judiciário), which can cover a lawyer’s fees. Our guide to tenant rights in Portugal covers notice periods and eviction rules.
Bottom line
The 2.56% figure is a ceiling for the default update, not an automatic raise: no written notice, no increase. Note your lease anniversary, because that date, not 1 January, usually decides when a 2027 update can start.
FAQ
Does the increase start on 1 January 2027?
Not necessarily. The coefficient applies from 2027, but each lease can be updated only one year after it began or after its last update, with 30 days’ written notice.
Do I have to agree to the update?
No signature is needed for a default update within the coefficient; the landlord’s written notice with 30 days’ warning is enough. Any larger increase without a contract clause needs your agreement, since the coefficient is the legal default.
Does the coefficient apply to shops and offices?
Yes, by default. The same coefficient applies to urban leases of all kinds that have no update clause, and the INE notice also covers rural leases under their own law.
Can I get help paying a higher rent?
Young tenants may qualify for Porta 65 Jovem, and some older leases receive the extraordinary rent support paid by Social Security. See our guide to Porta 65 and rent support.
