# Portugal Rental Reform: Rent Cap Scrapped, Deposits Uncapped

> Parliament's first-vote approval to end the 2% rent cap and uncap deposits now moves to committee, with a PSD-Chega deal still unresolved.

- Source: https://www.growinportugal.com/news/rent-cap-scrapped-deposits-freed-portugal-s-rental-reform-cl-2026-10-15
- Publisher: GrowIN Portugal (https://www.growinportugal.com)
- Published: 2026-10-15
- Last reviewed: 2026-10-15
- Language: en

> **Key figures — as of 2026-10-15:** Parliament approved the rental reform bill "na generalidade" (first reading) on **30 September 2026** — PSD, IL and CDS-PP in favour, Chega abstaining, all left-wing parties against — eviction for unpaid rent moves from a **3-month to a 2-month arrears trigger**; the **2% cap on rent increases** between contracts ends, three years ahead of its 2029 sunset; the proposed deposit ceiling (currently 2 months' rent) would be removed entirely, with advance rent rising from 2 to **3 months**; committee review must conclude "by the end of the year," per reporting on the PSD-Chega agreement.

## What actually happened on 30 September

Portugal's parliament gave its first-stage approval to a rewrite of the Novo Regime do Arrendamento Urbano, the law that governs most rental contracts in the country. The reform passed in its first reading, aimed at speeding up evictions and ending rent controls on new leases, with the centre-right government hoping it will encourage landlords to put more homes on the market.

The vote only passed because the far-right Chega abstained rather than voting against it. PSD, IL and CDS-PP voted in favour, Chega abstained, and PS, Livre, PCP, PAN, JPP and BE voted against. That abstention came at a price. The agreement, signed by Ventura and PSD parliamentary leader Hugo Soares, commits the parties to negotiate four areas: limits on advance rent and deposits; safeguards for elderly tenants on pre-1990 contracts; stronger housing support; and a distinction between deliberate non-payment and genuine inability to pay.

Crucially, none of this is law. The agreement does not settle what the final rules will be. The bill now sits with the Infrastructure, Mobility and Housing committee, where the details of Chega's changes are yet to be defined and the reforms must be voted on in committee by the end of the year.

## What foreign tenants should actually worry about

For expats, two provisions matter most: how much cash you need before you get keys, and how fast you could lose the flat if a payment slips.

On deposits and upfront costs, the original government text is blunt. Landlords may now require up to three months' rent in advance (up from two), and the legal ceiling on security deposits—previously pegged to the equivalent of two months' rent—has been removed. That's the clause Chega has flagged for softening, so the final number is genuinely unresolved.

**GrowIN analysis:** Here's what that could mean in cash terms. Today's legal maximum on a €1,500/month Lisbon flat is "2+2" — two months' advance rent plus a two-month deposit, capped at €6,000 total. If the bill passes as originally drafted and a landlord simply mirrors the old deposit norm at three months instead of removing it altogether, a tenant could face 3 months' advance plus a 3-month deposit — €9,000 upfront, a 50% jump in move-in cash for the same flat. Whether that actually happens depends entirely on where the PSD-Chega committee negotiation lands — which is exactly why the "uncapped" headline matters more as a warning sign than a confirmed number.

On evictions, the threshold is tightening either way. The reform would speed up evictions by cutting the rent arrears threshold from three months to two months and allowing landlords to evict tenants who repeatedly pay their rent more than eight days late. Tenants' groups have been scathing — the Lisbon Tenants' Association told Reuters the proposal was "sheer savagery" that would skew the market toward landlords.

Rent itself also loses its guardrail on turnover. The removal of the 2% cap on rent increases for new tenancy agreements brings forward, by three years, a change previously set for 2029. Older, pre-1990 contracts aren't off the table either: tenants with pre-1990 contracts who are 65 or over, or have a disability above 60%, stay as they are, unless household income is above €64,000 a year.

"The gap between what parliament approved in principle and what actually becomes law could be the difference between a four-month and a six-month move-in bill," notes GrowIN Portugal Editorial.

## Nothing changes for existing leases — yet

If you already have a signed contract, relax for now. The Government's official summary states existing contracts do not change — in future contracts, by agreement, rent can be paid up to 3 months in advance, and the deposit can be negotiated more freely. And until the decree-law is actually published, today's rules still bind every landlord: if a landlord asks for more than 2 months' deposit or 2 months in advance right now, today's legal cap applies — 2 months for each.

## What to watch next

The committee stage is where the real numbers get decided, and reporting suggests publication won't land before the 2027 State Budget debate wraps up. Watch for the specific figure Chega accepts on deposits — that single number will tell you whether this ends up a moderate tightening or the sharpest shift toward landlords since the old Socialist-era rent controls went in. If you're planning a move and budgeting your relocation costs, our [relocation](/relocation/) guide walks through what to set aside for a Portuguese tenancy under today's still-current rules.

For now, nothing is final, the headline "uncapped" is doing a lot of work it may not end up doing once the ink dries, and anyone signing a lease in the coming months should ask their landlord — in writing — which rules they're actually applying.

## Sources

- [Reuters (via Yahoo News)](https://www.yahoo.com/news/articles/portugal-parliament-backs-swifter-evictions-201539799.html)
- [Portugal Resident](https://www.portugalresident.com/portugals-controversial-rental-reforms-advance-after-psd-strike-deal-with-chega/)
- [Assembleia da República](https://www.parlamento.pt)
- [idealista/news Portugal](https://idealista.pt/en/news/property-for-rent-in-portugal/2026/07/28/76494-evictions-new-contracts-and-old-leases-changes-to-portugal-s-rental-market)

---

© GrowIN Portugal. Cite as: GrowIN Portugal, "Portugal Rental Reform: Rent Cap Scrapped, Deposits Uncapped", https://www.growinportugal.com/news/rent-cap-scrapped-deposits-freed-portugal-s-rental-reform-cl-2026-10-15