How Much Will Rent Increase in Portugal in 2026?

How much will house rent increase in Portugal in 2026? Stay informed about the annual house rent update for 2026.

If you are a landlord and have questions like: Can I raise my tenant's rent? How much can I increase the rent? This post is for you. And if you are a tenant, and you are worried about how much your landlord can raise your rent? What are the legal limits? These questions will be addressed shortly in this post as well.

Yes, you can. Each year, the Portuguese real estate market updates rental prices in accordance with the guidelines established under the Novo Regime de Arrendamento Urbano (NRAU).

Rents in 2026 may be adjusted in line with the legal update coefficient, resulting in an increase of 2.24%. This increase can be applied on 1 January 2026 or at any other time during the year. However, by law, landlords must notify tenants at least 30 days in advance.

If you have never raised your tenants' rent, you may be able to apply an increase greater than the 2.24% set for 2026. In this case, you can adjust the rent using the cumulative coefficient from the past three years, which exceeds 11%.

I'm a Commercial Landlord — Can I Apply This Rent Update Too?

Yes, you can. This adjustment applies to both residential and commercial rental properties, as well as other leased spaces, in rural and urban areas.

How Are Annual Rent Increases Regulated?

For 2026, Notice No 23174/2025/2, published on 19 September in Diário da República (Portugal’s official gazette), officially set the maximum rent increase at 2.24%. The notice states:

• “…It is hereby made public that the coefficient resulting from the provisions of Article 24(1) of Law No. 6/2006 of 27 February and Article 11(5) of Decree-Law No. 294/2009 of 13 October is 1.0224.”
  

How Are Annual Rent Increases Calculated?

The rent adjustment coefficient is determined by the variation in the Consumer Price Index (CPI) over the preceding 12 months, based on data available as of 31 August each year. This calculation is carried out by INE - Instituto Nacional de Estatística, Portugal’s equivalent of the UK’s ONS - Office for National Statistics, or the U.S. Bureau of Labor Statistics (BLS).

It is important to note that this house rent update is not mandatory. The landlord may choose whether or not to apply the rent increase.

It is advisable to consult the tenancy agreement to check whether there is a specific clause regarding rent updates. In the absence of such a clause, the newly published coefficient should be applied and communicated to the tenant, along with the updated rent amount, with at least 30 days’ prior notice.

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