Find a rental agreement in Portugal

How is the rental agreement in Portugal?

House or Apartment rental agreement terms in Portugal

For expats renting in Portugal, a rental house or apartment contract agreement in Portugal must have some key elements.

• Minimum lease duration is typically 1 year.
• The annual rent increase is determined by the government toward the end of the year.
• Landlords can only request up to 2 months' rent as a deposit.
• The maximum advanced rent payment period is two months.
• A 30-day minimum notice is required for any rent adjustments.

⚠️ However, there have been a few reports of landlords requesting payments up to one year in advance.

Key Components

Contract Duration

• Initial term 
• Renewal conditions
• Notice periods for termination

Financial Terms

• Monthly rent amount
• Payment due date
• Deposit amount (usually between 1 or 3 months)
• Utility responsibilities
• Annual update conditions

Property Details

• Complete address
• Property description
• Included furnishings/appliances
• Parking/storage spaces

What documents are required for a rental agreement in Portugal as an expat?

Whether you are a landlord or a tenant, the documents you'll need as an expat for renting in Portugal are as it follows.

As a tenant, you'll need:

• Your passport or valid ID
• Portuguese Tax Number (NIF)
• Recent pay slips (when requested)
• Latest tax return (when requested)
• Guarantor's ID and pay slips (when requested)

Your landlord must provide:

• Property Registration (Caderneta Predial)
• Housing License (Licença de Habitação)
• Energy Certificate (Certificado Energético)
• Building Registry Extract (Certidão de Teor)

Find a renting agreement template for houses in Portugal

A Portuguese rental house contract agreement template can be easily found on consumer websites, such as ComparaJá, but you can find the components needed to draft one below.

First Clause: Property Identification

• Property details
• Registration numbers
• Housing license details

Second Clause: Purpose

• Intended use (residential/commercial)
• Occupancy limits

Third Clause: Duration

• Start and end dates
• Renewal terms

Fourth Clause: Financial Terms

• Rent amount
• Payment method
• Deposit details
• Advance payments

Fifth Clause: Utilities

• Responsibility allocation (landlord or tenant)
• Payment procedures

Sixth Clause: Subletting

• Conditions and restrictions

Seventh Clause: Maintenance

• Responsibilities
• Repair procedures

Eighth Clause: Property Condition

• Initial state
• Maintenance obligations

Ninth Clause: Inventory

• List of furnishings
• Condition report

What if I want to rent out my property in Portugal?

If you're on the other side of the equation and looking to rent out your property in Portugal as an expat, there are several important legal and practical considerations to keep in mind.

For property owners, renting out your property in Portugal requires attention to legal requirements and tax obligations. Success in the Portuguese rental market often comes from understanding local regulations and maintaining clear communication with tenants.

Legal requirements

Registration

• Register your contract with the tax authority within 30 days.
• Submit through Portal das Finanças

Tax Obligations

• Declare rental income
• Issue monthly receipts
• Pay relevant taxes

Property Standards

• Valid Energy Certificate
• Updated Housing License
• Meet safety regulations

Documentation

• Prepare all required property documents
• Maintain inspection records
• Keep maintenance logs

Keep attentive to the best practices

• Screen tenants thoroughly
• Use written contracts only.
• Document the property's conditions.
• Keep detailed records
• Consider professional management (such as real estate agents or property management companies).

What are the fees or taxes to be paid to rent out your house in Portugal?

As a landlord, you have 30 days from the contract signing date to submit it to the Portuguese Tax Authority (Autoridade Tributária). You have two options to complete this registration:

1. In person at your local tax office (Finanças)
2. Online through the Tax Authority Portal (recommended)

If you choose to register online, here's the step-by-step process

Log in to Portal das Finanças (www.portaldasfinancas.gov.pt)

• Navigate to the "Arrendamento" (Rental) section
• Select "Comunicar Início Contrato" (Communicate Contract Start)
• Fill in the requested information:

1. Contract reference (your personal reference for the property)
2. Contract type (rental, subrental, or rental promise)
3. Purpose (permanent housing, non-permanent housing, or non-housing)
4. Start and end dates
5. Property details
6. Landlord and tenant information
7. Rent value and payment frequency

• Click "Guardar rascunho" (Save draft).
• Review all information
• Submit the contract

Remember to keep the submission confirmation for your records.

After registration, you'll need to pay the stamp duty (Imposto de Selo), which is 10% of one month's rent, within 30 days of the lease start date.

Besides that, at your annual IRS declaration, you'll need to pay the rental taxes. For contracts for up to 5 years, the tax is 25%, and it progressively decreases for longer periods, with 5 to 10 years having a 15% tax, 10 to 20 with 10%, and over 20 years with 5%. 

Renting vocabulary in Portugal