Portugal urban leasing and rental market reform

The Portuguese government has moved to reform the urban leasing regime to increase housing supply and stabilize prices.

Initially, the Portuguese Association of Property Developers and Investors (APPII) expressed support for proposed revisions to the New Urban Leasing Regime (NRAU), the Civil Code, and the Code of Civil Procedure. The association advocated for greater contractual freedom regarding lease terms, security deposits, and advance rents, while urging political leaders to avoid making the reform an “ideological trench”.

Following these developments, a new legislative and fiscal framework was officially implemented on September 1, 2026. This includes the Simplified Affordable Rental Regime (RSAA) and Rental Investment Contracts (CIA). The RSAA offers full tax exemptions from IRS or IRC to landlords who cap rents at 80% of the median rental value per square meter in their municipality. To maintain these exemptions, landlords must adhere to specific contract durations, such as a minimum of three years for permanent residences. The CIA mechanism was also introduced to support large-scale construction and rehabilitation projects dedicated to the housing market.