Each year, updates to the Portuguese housing market are guided by the regulations of the Novo Regime de Arrendamento Urbano (NRAU). For 2025, Notice No. 23099/2024/2, published on October 18th, has set the maximum allowable rent increase at 2.16%.
For example, a property rented for EUR 1,000 per month could see an increase of EUR 21.60.
It’s also worth noting that if a landlord has not adjusted the rent in the past three years, they may now apply a cumulative increase of up to 11%. This adjustment applies exclusively to ongoing rental agreements and is not mandatory. Landlords can implement the change at any point in 2025, provided they give tenants at least 30 days’ notice beforehand.
How Is the Annual Rent Adjustment Determined?
The rent adjustment coefficient is based on the variation in the Consumer Price Index (CPI) over the preceding 12 months, as measured by INE (Instituto Nacional de Estatística). This figure is calculated by August 31st each year and published in the Diário da República, Portugal’s Official Gazette, by October 30th.
Annual Rent Updates Over the Past Six Years
Here’s a record of rent adjustment coefficients for the past six years:
- 2019: 1.15%
- 2020: 0.51%
- 2021: -0.03%
- 2022: 0.43%
- 2023: 2%
- 2024: 6.94%
Does This Adjustment Apply Only to Housing Rents?
No, the adjustment applies to residential and commercial properties, as well as leased spaces in rural and urban areas.
What If My Tenant’s Rent Hasn’t Been Updated in Years?
If rent adjustments were not applied in recent years, landlords can apply the cumulative coefficient for up to three years. For 2023, 2024, and 2025, this totals approximately 11%. At least 30 days’ prior notice must be given to tenants before implementing the change.
How to Notify Tenants About a Rent Increase
Landlords must notify tenants of any rent increase in writing, either via:
- A registered letter with an acknowledgment of receipt.
- Hand delivery, requiring the tenant’s signature.
The notice should clearly state:
- The current rent amount.
- The new rent amount.
- The effective date of the increase.
Landlords can apply the adjustment one year after the start of the contract or the last update. If the calculation is disputed, tenants can contest the adjustment.
How Sansa Real Estate Can Help You Manage Your Property
Managing rental properties can be complex, especially for landlords living abroad. Sansa Real Estate provides a comprehensive range of property management services, including:
- Legal Compliance: Keeping landlords informed and ensuring adherence to Portuguese regulations to prevent legal complications.
- Tenant Management: From finding suitable tenants to managing day-to-day interactions, we streamline the process.
- Maximising Rental Income: With in-depth market knowledge, we help landlords optimise rental returns.
- Coordination of Services: From arranging utility inspections to preparing properties for new tenants, we handle essential logistics.
- Property Maintenance: Our team addresses maintenance issues promptly and efficiently, ensuring a hassle-free experience for landlords.
With Sansa Real Estate’s professional property management services, landlords can achieve peace of mind and maximise their property’s potential. Contact us today to learn more about our solutions.
