The rental market in Portugal is undergoing significant changes, as new laws and regulations are being introduced to protect the rights and interests of both landlords and tenants. These changes will affect various aspects of the rental process, such as rent increases, evictions, contracts, and taxes. In this article, we will highlight some of the important dates and events that landlords and tenants should be aware of in 2024, and how they will impact the rental market.
January 1, 2024: The Rent Increase Guideline Comes into Effect
One of the most important dates for landlords and tenants in 2024 is January 1, when the rent increase guideline for the year comes into effect. The rent increase guideline is the maximum percentage that landlords can raise the rent for their properties without having to justify it to the tenants or the authorities. The rent increase guideline for 2024 has been set at 3%, which is higher than the previous year’s guideline of 2%. This means that if you rent your property for 1000 euros per month, you will pay 1030 euros from January 1, 2024, an increase of 30 euros.
However, this percentage may vary depending on the type and duration of the rental contract. For example, for contracts signed before 1990, the rent increase guideline is 6.94%, which is the highest in the last 30 years. For contracts signed between 1990 and 2012, the rent increase guideline is 5.43%, which is the same as the consumer price index. For contracts signed after 2012, the rent increase guideline is 3%, unless the parties agree otherwise.
The rent increase guideline applies to both residential and non-residential properties, and it is calculated based on the average annual variation of the consumer price index, excluding housing, in the 12 months ending in August of the previous year. The rent increase guideline is published by the National Statistics Institute (INE) by September 30 of each year, and it is valid for the following year.
Income 2024: tax obligation dates for landlords and tenants
When you rent a house, whether you are a landlord or a tenant, there are tax obligations to comply with arising from the lease agreement signed. The increase in house rents in 2024 is a much talked about topic recently, but it is also important to know the key dates for landlords and tenants that can help them avoid unpleasant surprises.
For this reason, landlords and tenants must comply with the following dates regarding the lease:
In the case of tenants:
- Until February 15th
- On the Finance Portal website you should consult and, if necessary, update data on the composition of the household. It may be necessary to update contacts, email or IBAN to receive a refund from the IRS;
- As a tenant, you must indicate your rent expenses for permanent housing. You can have an IRS deduction of up to one thousand euros;
- Travel costs must be declared with rent resulting from the transfer of residence to an area in the interior of the country.
- Until February 25th: on the e-invoice portal you must check the 2023 invoices associated with family expenses.
- From April 1st to June 30th (IRS filling campaign):
- To declare rent with the IRS, it is mandatory to have the lease contract registered on the Finance Portal (only when covered by the Urban Lease Regime or the New Urban Lease Regime);
- Once all the calculations have been made regarding the rent paid in 2023 (sum of the electronic payment receipts delivered by the landlord) it will be necessary to complete Annex H of the IRS. You must enter code 654 relating to rent charges for a building intended for permanent housing, the Tax Identification Number (NIF) and the amount of rent;
- Finally, you need to check in Annex H whether the property information and the total property income value are correct;
- In April: this is the date to take into account if you want to apply for the Porta 65 Jovem program. Applications will take place again in May, September and December, with the dates published on the housing portal.
In the case of landlords
- Until February 15th: on the Finance Portal, landlords must notify the duration of rental contracts for long-term permanent housing (contracts of up to two or more years) and any termination thereof.
- From April 1st to June 30th: the IRS filling campaign begins. Landlords must also declare income in category F (property income) by filling out Annex F of the IRS. Anyone who has an open activity in Finance as a sole proprietor and issues invoices-receipts, the income declaration is made by filling out Annex B, relating to business and professional income.
Conclusion
The rental market in Portugal is facing many changes and challenges, as new laws and regulations are being implemented to balance the interests of landlords and tenants. In 2024, one of the main issues that will affect the rental market is the rent increase guideline, which will be higher than in previous years, and which will vary depending on the type and duration of the rental contract. Landlords and tenants should be aware of the important dates and deadlines related to rent increases, such as the notification, the response, and the entry into force. They should also be aware of other important dates and events related to the rental market, such as the income tax return, the long-term rental rules, and the rent increase guideline for 2025. By being informed and prepared, landlords and tenants can avoid conflicts and disputes, and enjoy a fair and stable rental relationship.
