Belion Partners  - Residency and Investment expert in Portugal

Changes in Residential Leasing Agreements for New Contracts

16 November 2023

Under the new Portuguese law nº 56/2023, which was published on the 6th of October, new measures have been introduced regarding leasing for residential purposes. The new law sets a growth limitation of 2% for new leases. 


This law applies to properties that have been leased for residential purposes in the last 5 years, and the monthly rent cannot exceed 2% of the last lease of the same property, as explained in Article 34º, item 1. 


However, there are some exceptions to this new law, which are as follows: 


  • The first exception applies to cases where the property lease does not exceed the general price limits by type and location, as set out in Portuguese decree nº176/2019, published on the 6th of June;
  • The second exception applies when the lease price has not been legally updated in the previous 3 years. In this case, the updated lease can increase from 2% to 5.43%, as explained in Article 34º, item 3. 


It is important to note that this new update applies only to residential leases and new contracts. It is also worth mentioning that the real estate market in Portugal is currently facing a crisis due to high demand and low supply. As a result, real estate prices have risen significantly, which has exceeded the purchasing power of the average Portuguese citizen.


If you need any help with renting, contracts, property search or other related issues, please contact us, we will be delighted to assist you.

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