Photo: Adobe Stock Author: Redaction Portugal’s residential rental market remained stable in August 2026, with an average price of €15.55/m². According to SUPERCASA’s house price evolution report , the figure was unchanged from July, following a 3.3% quarterly increase and 3.7% year-on-year growth. Lisbon retains highest rental prices Lisbon remained the most expensive area, at €19.82/m², up 0.9% month-on-month, 3.8% over the quarter and 2.8% year-on-year. Madeira followed at €16.34/m², while the Algarve recorded €15.30/m². At the other end of the scale, Guarda had the lowest price at €6.81/m², followed by Castelo Branco (€7.47/m²) and Viseu (€7.66/m²). Interior regions record strongest growth The largest monthly increases were recorded in Portalegre (+5.8%), Vila Real (+5.1%), Évora (+4.2%), Santarém (+3.2%) and São Miguel (+3.0%). Compared with August 2025, Bragança stood out with growth of 16.1%, followed by Beja (+7.3%) and Viana do Castelo (+5.9%). Algarve corrects after July peak The Algarve recorded the largest monthly decline, falling 3.6% from €15.87/m² in July to €15.30/m² in August. Coimbra fell by 2.2%, while Beja declined 1.7% both month-on-month and over the quarter. Viseu was the only district to record negative year-on-year growth, down 2.9%. August’s figures point to a stabilisation of the rental market following the increases recorded in June and July. At the same time, some inland markets are showing stronger growth, while areas such as the Algarve are showing signs of seasonal adjustment.
Photo: Adobe Stock Author: Redaction Parliament examines new tenancy rules The bill seeking to change tenancy rules will be put to a general vote in the plenary session of the Assembly of the Republic on 30 September. The legislation provides for changes to contracts, evictions due to non-payment and rent increases, including the removal of the 2% limit for new contracts. Bill No. 103/XVII/1st seeks to authorise the Government to amend the New Urban Tenancy Regime (NRAU). Its stated aim is to create conditions to increase the supply of housing available on the rental market. The initiative was approved by the Council of Ministers on 9 July and now enters the parliamentary legislative process. The general vote will be just one of the stages before the new rules could potentially come into force. Changes proposed for contracts and evictions Among the proposed changes is the removal of the 2% limit on rent increases for new tenancy agreements. The proposal also provides greater flexibility in negotiations between landlords and tenants. Advance rent payments could increase from two to three months, while deposits would no longer be subject to a limit. The reform also includes changes to procedures related to non-compliance. In cases of non-payment, the period before eviction proceedings can be initiated could be reduced from three to two months. The legislation also provides for the creation of new social support for tenants who are evicted. Rents under older contracts could also be subject to changes . Rent increases would depend on factors such as tenants’ age and their annual income. Proposal still has several legislative stages The 30 September vote does not mean the tenancy reform has been definitively approved. After consideration in general terms, the proposal will have to go through committee-stage discussion and voting, during which changes may be made to the text. This will be followed by the final wording of the legislation and, subsequently, a final overall vote in Parliament. If approved, the process will move towards converting the legislative authorisation into a decree-law. The new rules will therefore only come into force once the entire legislative process has been completed. Promulgation by the President of the Republic and publication in the Official Gazette could take place only after the discussion of the 2027 State Budget.
Photo: Adobe Stock Author: Redaction The new Investment Contracts for Residential Letting (CIA) and the Simplified Affordable Letting Scheme (RSAA) came into force on 1 September 2026, but are still awaiting regulations setting out the procedures and requirements needed for their implementation. The two housing programmes were created by the Government to encourage the supply of properties for rent through tax benefits and simplified rules. In the case of the CIA, contracts can run for up to 25 years and involve investors and the Institute for Housing and Urban Rehabilitation (IHRU). The RSAA, meanwhile, establishes conditions for affordable rental agreements, including minimum terms of three years for permanent residence and three months for temporary residence. Housing programmes await regulations The two housing programmes have been in force since September, but some of the rules required for their operation still depend on further regulation. Decree-Law No. 97/2026 established that the respective regulations should be approved within 30 days of its publication, a period that ended on 19 June. The regulations are expected to define, among other aspects, the procedures and requirements for submitting and approving CIA contracts, as well as other conditions set out in the new legal framework. What changes with CIA contracts The Investment Contracts for Residential Letting allow agreements to be established with the State, through the IHRU, for periods of up to 25 years. The scheme provides tax benefits for investments intended for residential letting. The projects covered must allocate at least 70% of their construction area to residential letting. Rents are subject to the limits established under the scheme, with the concept of moderate rent serving as a reference. The incentives include exemptions from Property Transfer Tax (IMT) and Stamp Duty , as well as benefits in terms of Municipal Property Tax (IMI), in accordance with the legislation. RSAA simplifies affordable letting The Simplified Affordable Letting Scheme aims to make it easier to provide properties for rent at affordable prices. To benefit from the scheme, contracts must comply with maximum rent limits based on 80% of the median rent per square metre published by the National Statistics Institute (INE). One of the changes concerns minimum contract terms. For permanent residence, the minimum term is three years, while contracts for temporary residence have a minimum term of three months. The scheme also provides tax benefits on rental income that meets the established conditions. When will the new rules be known? The practical implementation of the housing programmes depends on the publication of the regulations provided for in the decree-law. So far, the available information indicates that these regulations are still pending, despite the schemes already being in force since 1 September 2026. Until the regulations are published, investors and property owners interested in participating will have to wait for the additional rules needed to implement the procedures provided for under the CIA and RSAA.
Photo: Adobe Stock Author: Redaction 10% rate applies to residential leases A new tax rule allows landlords to benefit from a 10% autonomous income tax rate on certain rental income from residential lease agreements. The measure is set out in Article 45-C of the Tax Benefits Statute and applies to income received until 31 December 2029. The scheme covers agreements intended exclusively for residential use where the monthly rent complies with the limits set out in Decree-Law no. 97/2026. The measure aims to encourage the availability of properties for residential rental at values considered moderate. One of the issues clarified by the Tax and Customs Authority concerns cases where the agreement is signed with a company, but the property is specifically intended for an individual. Company can sign a residential lease The fact that the company is the formal tenant does not, in itself, prevent the landlord from accessing the tax benefit. For the property to retain its residential classification, it must be established who will occupy the home. In the case examined by the Tax and Customs Authority, the company intends to rent the property for use as the permanent residence of its managing partner. In this type of situation, the agreement must specifically identify the individual who will live in the property and establish that its use will be exclusively residential. The property cannot be used for commercial, industrial or service activities. Restrictions on subletting or transferring the contractual position must also be included to ensure compliance with the conditions of the scheme. Rent must comply with the legal limit In addition to exclusive residential use, the amount of rent is one of the conditions for applying the 10% rate. Decree-Law no. 97/2026 considers a monthly rent to be moderate when it does not exceed 2.5 times the minimum monthly wage set for 2026. Considering the €920 minimum monthly wage set for 2026, the limit corresponds to €2,300 per month. The conditions must continue to be met throughout the term of the agreement. If the property is subsequently used for a purpose other than residential, its tax treatment may be affected. Therefore, landlords who rent a home to a company can access the 10% rate when the agreement complies with the conditions established for residential leases, including identifying the person who will occupy the property, exclusive residential use and the applicable rent limit.
Photo: Adobe Stock Author: Redaction Four homes with reduced rents BragaHabit has opened a new application process for four homes included in the Municipal Affordable Rental Programme. Applications are open until 30 September and must be submitted online through the municipal companys Digital Desk. The offer includes two two-bedroom apartments on Rua dos Barbosas, with a maximum rent of €600 each, a three-bedroom apartment on Praça do Comércio, with a rent of up to €700, and a four-bedroom apartment on Rua Nova da Estação, with a maximum rent of €800. The set rents can be reduced by up to 30%, depending on the households gross monthly income. With the maximum discount, the two-bedroom apartments are available for €420, the three-bedroom apartment for €490 and the four-bedroom apartment for €560. How affordable rental works The programme aims to provide housing at more affordable prices for families facing current market rents but who do not necessarily meet the requirements for supported rental housing. Under this model, property owners hand over their homes to BragaHabit, which then sublets them to families. In addition to setting limits on the households effort rate, the programme allows contracts with greater stability to be signed. To apply, households must meet the criteria relating to income, family composition and suitability of the property type. They must also not own, hold usufruct over or rent another suitable home in the municipality. A draw determines the selected families The four homes will be allocated through a public draw among applicants who meet the requirements. Those who are not selected will remain on a ranked waiting list, which is valid for six months. The homes can be visited before applying, by appointment. For further information or to arrange a visit, applicants can contact BragaHabit by email at arrendamentoacessivel@bragahabit.pt or by phone on 253 268 666, option 1.
Photo: Adobe Stock Author: Redaction More families can access support Guimarães City Council has approved changes to the rental support regulations, allowing a larger number of households to benefit from this incentive. Under the new rules, families with gross monthly household incomes of up to around €2,100 will now be eligible. The previous limit was set at €650, which restricted access to households with significantly lower incomes. The change aims to adapt rental support to families’ current economic circumstances and address the growing difficulties associated with paying rent. Subsidy could reach 400 more families The expansion of rental support is expected to benefit around 400 families currently on the waiting list. The measure aims to strengthen the municipal response for households struggling to cover housing-related costs. The review of the rental support rules also comes amid pressure on the housing market, where rental costs can account for a significant share of household budgets. With the new income threshold, more households will meet the requirements to apply for rental support, increasing the pool of potential beneficiaries. Municipality strengthens public housing supply In addition to expanding rental support, Guimarães City Council is developing measures to increase the supply of public housing in the municipality. According to information released by the municipality, 75 new housing units are planned for next year. The measure complements rental support, aiming to increase housing availability for families. The strengthening of public housing supply and the expansion of rental support are therefore part of a broader municipal strategy to respond to the population’s housing needs.
Photo: Adobe Stock Author: Redaction Eviction process becomes simpler The review of the rental regime proposed by the Government introduces changes to the eviction process, with the aim of reducing the length and complexity of proceedings. One of the main changes concerns delays in rent payments. Currently, landlords can proceed with an eviction when rent has been unpaid for three months. The proposal reduces this period to two months. The rules on delays of more than eight days are also changing. Eviction proceedings may be triggered when this situation occurs more than three times, consecutively or intermittently, within 12 months, or more than four times within 18 months. The review of the rental regime also provides for fewer formalities in notifications and the consolidation of different stages of the process into a single procedure. Changes aim to provide greater security The changes to rental rules aim to speed up the recovery of properties in cases of non-compliance. Currently, the process may involve different stages, extending the time until the property is actually vacated. Under the proposed simplification, court proceedings and enforcement of the decision will be integrated into a single process. The measure aims to reduce bureaucracy and provide landlords with greater predictability. The Lisbon Landlords Association nevertheless considers that the changes may not be enough to restore confidence in the rental market. The organisation argues that other obstacles remain, making it difficult to place properties on the market. Renovation works have new conditions The proposal also changes the rules applicable when a landlord wishes to terminate a rental contract in order to carry out major renovation works requiring the tenant to leave the property. In these cases, the tenant will be entitled to compensation equivalent to two years rent or, alternatively, rehousing under similar conditions. For contracts signed before 1990, the proposed compensation rises to ten years rent. The change aims to simplify the use of this mechanism, although it may continue to represent a significant cost for landlords seeking to renovate properties. Older contracts will also change The new rental rules also cover contracts signed before 1990 , establishing different conditions for their transition to the New Urban Lease Regime. For tenants over 65 with annual incomes below €64,400, the rent set out in the old contract will remain in place. When income exceeds this amount, the rent may be increased up to a certain limit linked to the propertys taxable value. In other cases, contracts will move to a fixed-term regime lasting five years. When the tenants income is below €64,400, the previous rent may remain in place. The proposed changes therefore seek to balance tenant protection with the need to create greater predictability in the rental market, amid pressure on housing supply.
Photo: Adobe Stock Author: Redaction New housing development in Barcelos The Municipality of Barcelos has opened a scheme to allocate 36 affordable-rent homes in the parish of Tamel (São Veríssimo). Located on Avenida Central, the development is intended for permanent residence and includes nine one-bedroom apartments, 23 two-bedroom apartments and four three-bedroom apartments. The homes will be allocated by lottery among applicants who meet the conditions set out in the scheme. All units have private parking and will be delivered as new properties. The affordable rent offer aims to provide housing at prices below those charged on the local market. Rents were calculated based on 60% of the median value of new residential rents per square metre recorded in Barcelos. Rent values by property type Monthly rents vary according to property type. For a one-bedroom apartment, the affordable rent is €281, while a two-bedroom apartment has a monthly rent of €347. For three-bedroom apartments, the monthly rent is €447. The homes will be delivered with equipment for domestic hot water. However, the installation of the kitchen and the remaining furniture will be the responsibility of the future tenants. This housing solution forms part of the municipalitys housing policy and is covered by the 1st Right Programme. The measure aims to increase the supply of homes for households seeking an alternative to rents charged on the market. Applications close on 22 September Applications for affordable rent can be submitted from 9 September until 11:59 pm on 22 September. Applicants must be over 18, meet the requirements set out in the application rules and not fall under any of the specified exclusion criteria. Households must also be registered under Barcelos Local Housing Strategy. Applications should preferably be submitted through the Municipalitys Online Services platform. Alternatively, they can be submitted in paper form at the Balcão Único. Once the application period has closed, the applications will be assessed and a preliminary list of accepted and rejected candidates will be published. This will be followed by a period for interested parties to make representations and, subsequently, by the publication of the final list. The homes will be allocated by lottery, separately for each property type. The first nine T1 applicants, the first 23 T2 applicants and the first four T3 applicants will be called to sign a tenancy agreement. Selected applicants will have 10 working days to sign the rental contract.
Photo: Adobe Stock Author: Redaction Rental prices stabilise in August In August, the average asking price for houses and apartments for rent in Portugal stood at €15.51 per square metre, unchanged from the previous month. Despite the monthly stability, the figure is 2.5% higher than in May and 3.4% higher than in August 2025. The figures point to a market where prices remain above last years levels, although the trend varies across the different regions. Lisbon continues to have the highest prices Among the regions analysed, Lisbon has the highest average asking price, at €19.86 per square metre in August. The figure increased by 1.8% in one month and by 2.5% compared with the same period last year. If you are looking for a home in the capital, you can browse the properties currently available for rent in Lisbon and compare asking prices across different listings. Madeira follows, at €16.35 per square metre, while the Algarve records an average of €15.30 per square metre. In Porto, the average asking price stood at €14.40 per square metre, up 0.8% over the previous month and 1.7% compared with August 2025. See the properties currently available for rent in Porto . Some regions are seeing stronger increases Annual growth is particularly significant in some markets where average prices remain below those of the countrys main urban centres. Bragança recorded the strongest increase, with prices rising 15.6% over the past year to €7.78 per square metre. It was followed by Viana do Castelo, up 5.9%, Santarém, up 5.3%, and Beja, up 7.3%. Braga also recorded annual growth of 4.7%, while Setúbal increased by 4.2%. The figures show that price growth is not limited to the traditionally more expensive markets. Not all regions are seeing prices rise The trend is not the same across the country. In the Algarve, for example, the average asking price fell by 3.7% between July and August and by 0.5% over the previous three months, although it remains 1% above the level recorded a year earlier. In Viseu, the average price of €7.66 per square metre represents an annual decline of 3%. Aveiro, meanwhile, recorded annual growth of just 0.5%. These differences highlight the importance of analysing the market by location. National trends can hide very different developments across regions and municipalities. Check prices and available properties in your area For people looking for a home, knowing the average price in a particular area can help when comparing properties and understanding how prices are changing. The SUPERCASA Price Report provides average prices per square metre and monthly, quarterly and annual changes for different locations across Portugal. The data is provided by Infocasa, which aggregates real estate market information from public sources, identifies unique properties, removes duplicate listings and standardises the data to reflect asking prices in the market. Check the SUPERCASA Rental Price Report and see how rental prices are evolving in your area. If you are already looking for a home, you can also browse the properties currently available for rent on SUPERCASA .
Photo: Adobe Stock Author: Redaction Buying a home is becoming increasingly difficult Buying a home has become a more challenging goal for a significant part of the European population. Rising house prices, combined with slower wage growth, are extending the period during which many households remain in rented accommodation . The Forever Renter Global Index, which analysed 39 OECD countries, highlights significant differences between the various markets. Of the countries studied, 28 are European, providing a broad overview of the evolution of renting across the continent. Switzerland has the highest proportion of tenants, at 61.2%, while in Germany 55.4% of the population lives in rented accommodation. Denmark leads the global index, with a score of 67.2 out of 100, reflecting the significant role of renting in its housing market. Europe divided between homeowners and tenants Northern and Western European countries stand out for their high levels of renting. In Finland, 38.1% of the population lives in rented homes, while in Sweden the proportion reaches 38.9%. Despite this, these markets face high costs and problems related to a lack of space. Portugal presents a different picture. The homeownership rate stands at 72.1%, but access to housing remains constrained by the gap between prices and incomes. Since 2015, house prices have risen 48.8% faster than wages, increasing pressure on those looking to buy or enter the rental market. In Central and Eastern Europe, homeownership remains dominant. Slovakia has a homeownership rate of 93.5%, while Romania stands at 92.8%. However, a high homeownership rate does not necessarily mean better housing conditions. Overcrowding continues to affect a significant proportion of the population in countries such as Latvia and Bulgaria. Renting as a long-term solution The data shows that renting is no longer seen simply as a stage before buying a home. For many households, it represents a long-term housing solution, particularly among younger generations. This shift also highlights differences between European property markets. While some countries have a strong culture of homeownership, others are showing greater acceptance of renting as a permanent option. Outside Europe, the picture also presents challenges. The United States, Canada, Australia and New Zealand have between 30% and 40% of their populations living in rented accommodation. High purchase costs, large deposits and lending conditions make buying a home difficult for many young people. The study therefore shows that the future of housing involves an increasingly complex balance between buying and renting. As affordability becomes a central concern, renting could play an even more important role in European property markets.
Photo: Adobe Stock Author: Redaction Alert reaches thousands of landlords The Tax and Customs Authority (AT) sent alerts in August to 33,381 taxpayers with tenancy agreements registered as active and non-renewable, whose term had already expired. The messages inform landlords that they should check the situation on the Tax Portal and, where necessary, report the termination or correct the contract details. The deadline given by the AT to respond to the alert is 30 September . The aim is to update the information available in the system, as some tenancy agreements appear as active even though their term has already ended. Some contracts have already been terminated However, some owners contacted following the alerts say they had already reported the termination of their tenancy agreements several years ago. In some cases, the properties have since been sold, while in others new agreements have been signed for the same properties. Even so, the system continues to show the previous agreement as active. The AT acknowledges that this type of situation may occur due to the time between data collection and the sending of the alerts. Therefore, taxpayers who have already reported the termination should check the Tax Portal to ensure that the information was correctly recorded. If the agreement continues to appear as active, the details must be checked and corrected accordingly. If the termination has already been properly reported, no further action is required. What should landlords do? Reporting changes to or the termination of tenancy agreements is a tax obligation for landlords. Under the rules currently in force, both the start and end of a tenancy must be reported to the AT within the defined deadlines. In the case of termination, the notification must be made by the end of the month following the month in which the agreement ended. The same deadline applies to changes that occur during the term of the agreement. In response to the alert, landlords should therefore consult the Tax Portal and confirm that their tenancy agreements are correctly registered. This check makes it possible to identify any errors and prevent outdated information from remaining in the tax system. Tenancy agreements that ended before 1 April 2026 were included in the group analysed by the AT for this notification, provided they were still registered as active and non-renewable when the data was extracted.
Source: Adobe Stock Author: Redaction Participation remains conditional The new Simplified Affordable Rental Scheme (RSAA) came into force on 1 September, but its practical implementation still depends on several steps. One of the outstanding elements is the ministerial order that is expected to establish the maximum rent levels for each type of housing. Without these limits, property owners are still unable to determine precisely whether their properties can be included in the scheme and how much rent they may charge. Participation also depends on the launch of the electronic platform of the Institute for Housing and Urban Rehabilitation (IHRU). The aim of the RSAA is to make it easier to place properties on the rental market at below-market rates, through a simpler process than the one provided under the previous Rental Support Programme (PAA). What changes for landlords and tenants? One of the main changes concerns the duration of tenancy agreements. For permanent housing, the minimum term is reduced from five to three years. For agreements intended for temporary residence, the minimum duration is three months, with the possibility of renewal. The new scheme also removes the requirement for some insurance policies that were mandatory under the PAA. Once an eligible agreement has been signed, the landlord will be responsible for registering it on the IHRU platform. The information will then be sent to the Tax and Customs Authority so that the landlord can benefit from the tax incentive. The measure provides for an exemption from personal or corporate income tax for property owners who rent out their properties at a value no higher than 80% of the median rent per square metre published by the National Statistics Institute (INE) at municipal level. However, the maximum amount allowed under each agreement will be determined according to several factors, such as the propertys type, its energy certification and the existence of additional spaces. The IHRU platform is still unavailable Although the new scheme is already in force, landlords and prospective tenants are still unable to register through the platform intended for this purpose. The Ministry of Infrastructure and Housing has stated that the necessary ministerial order is in the process of being published, but has not provided a specific date for the IHRU platform to become available. For now, this situation limits the effective implementation of the new rules. Without access to the maximum rent levels and the registration system, interested property owners still do not have all the tools needed to proceed. Less bureaucracy, but launch still pending The RSAA was presented as a simpler alternative to the previous rental support programme, whose uptake fell short of expectations. The aim is to reduce procedures and encourage a greater supply of homes with more affordable rents. However, the lack of regulation and an operational platform means that the new scheme remains in a transitional phase. For property owners, understanding the specific rules will be essential before deciding whether joining the scheme is worthwhile. The effective launch of the Simplified Affordable Rental Scheme will therefore depend on the completion of the mechanisms required for its implementation.
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