Rentals news in Portugal

Real estate firm Grupo Mais announced that it has more than 700 residential units under construction in Portugal for the rental market. The portfolio follows a build-to-rent model designed to provide dedicated housing for university students and working professionals. The company said the developments aim to expand long-term rental supply in Portuguese urban centers.

Socialist Party (Partido Socialista or PS) secretary-general José Luís Carneiro called on the government to halt its planned revision of rental legislation, arguing the reform will spur evictions and harm vulnerable tenants. Portuguese Communist Party (Partido Comunista Português or PCP) secretary-general Paulo Raimundo joined the criticism in Porto, accusing the governing coalition and right-wing parties of acting on behalf of property speculators. Former minister Assunção Cristas defended her 2012 tenancy overhaul, while Carneiro demanded explanations from Prime Minister Luís Montenegro over broader living costs and urged the state to guarantee rental payments instead.

Median rent prices for new contracts have reached record levels, exceeding ten euros per square meter nationally in the second quarter. This represents a 10.2% increase compared to the same period last year, with the highest costs recorded in Lisbon, Madeira, and the Setúbal Peninsula.

The government has established an Emergency Housing Fund (Fundo de Emergência Habitacional or FEH) to support families facing housing vulnerability. The fund is available to tenants at risk of losing their homes due to the transition of pre-1990 rental contracts to the New Urban Lease Regime (Novo Regime do Arrendamento Urbano or NRAU).

The median value of new rental contracts in Portugal rose by 9.1% year-on-year during the first three months of 2026, reaching 9.46 euros per square meter. Experts warn that population growth may be exacerbating the housing deficit, which is estimated to be near 300,000 homes, amid concerns over overcrowding and illegal rentals.

The government has implemented a new tax package for housing, including a reduction in the value-added tax (Imposto sobre o Valor Acrescentado or IVA) on construction from 23% to 6% and a decrease in the personal income tax (Imposto sobre o Rendimento das Pessoas Singulares or IRS) on rental income to 10%. These measures, which aim to increase housing supply and support tenants, apply retroactively to the beginning of the year. Additionally, the annual deduction limit for rent paid under the IRS has increased from 700 to 900 euros.