# Portugal Rental Reform Clears First Vote: Deposits, Evictions to Change
> Parliament backs ending the 2% rent cap and uncapped deposits; PSD-Chega deal to soften terms before final text — what foreign tenants and landlords should track.
- Source: https://www.growinportugal.com/news/rental-law-overhaul-clears-first-vote-psd-chega-deal-could-b-2026-10-10
- Publisher: GrowIN Portugal (https://www.growinportugal.com)
- Published: 2026-10-10
- Last reviewed: 2026-10-10
- Language: en
> **Key figures — as of 2026-10-10:** First reading passed **30 September 2026** (PSD, IL, CDS-PP for; Chega abstained; PS, Livre, PCP, PAN, JPP, BE against) — proposed eviction threshold drops from **3 to 2 months'** unpaid rent — proposed deposit cap removed entirely (currently capped at **2 months' rent**) alongside advance payments rising from 2 to **3 months** — the 2% annual rent-increase cap on new/renewed contracts would be scrapped. None of this is law yet; a four-point PSD-Chega deal sends the detail to committee ("especialidade") before year-end.
## What actually happened on 30 September
Portugal's parliament approved on Wednesday, in the first reading, a contentious rental market overhaul aimed to speed up evictions and end rent controls on new leases in what the centre-right government hopes will encourage landlords to list more homes. The vote wasn't close in numbers but it was dramatic in politics: the general outline of the reform was approved after the far-right party Chega unexpectedly abstained after having expressed its objections during the debate, while all left-wing parties voted against.
That abstention wasn't free. Hours before the floor vote, Chega's leadership made clear that one of the party's red lines in the rental rule changes would be ending the ceiling on how much can be charged as a security deposit — but the public deal that followed went the other way: PSD and Chega signed a pact promising to *rein in* exactly that provision at the next stage. According to the agreement text reported by Lusa, the changes cover limits on security deposits and advance rental payments, protections for older people with old rental contracts, an increase to the emergency housing fund, and a distinction between tenants who stop paying deliberately and those who are actually incapable of paying.
## The government's original numbers
The bill the Council of Ministers approved in July and tabled in August is still the working text until the specialty-stage rewrite lands. Under it: the most controversial amendment accelerates the eviction process, allowing landlords to initiate proceedings after just two months of unpaid rent, down from the current three-month threshold. On pricing, the government proposes eliminating the 2 per cent cap on rent increases for new contracts relative to previous agreements, allowing rents to adjust more closely to current market valuations upon lease renewal or turnover. On upfront cash, the package increases the maximum permitted security deposit from two months to three months, with no upper limit on the financial value, providing landlords with a larger buffer against potential damages or default — separate from the advance-rent change, which moves from two months to three.
The government's stated rationale: over 250,000 homes remain empty because legal uncertainties deter owners from renting them out, against a backdrop in which rents for new leases nearly doubling since 2017.
## GrowIN's number: what "uncapped" could mean for move-in day
Today, a tenant signing a standard lease faces a hard ceiling of four months' rent upfront — two months' advance rent plus a two-month deposit. On a €1,200/month Lisbon flat, that's €4,800 before you get the keys. Strip the caps as originally drafted — three months' advance rent plus a deposit with no ceiling — and a cautious landlord asking for, say, four months' deposit on top could push the upfront bill past **€8,400**, more than double today's maximum on an identical rent. That's the gap the PSD-Chega deal is now trying to narrow before the text becomes binding — and it's the single number worth watching for anyone relocating and budgeting a move.
## Why this matters if you're not Portuguese
Foreign tenants renting while an IFICI application, D7 or D8 visa clears tend to sign longer first-year contracts precisely because switching flats mid-process is a headache. A scrapped 2% cap means renewal-time rent jumps could be sharper and less predictable — something to factor into any visa budget on our visas hub. Foreign landlords letting out a second property face the opposite calculus: faster recourse on non-payers (two months instead of three, or after repeated short delays — eviction is possible if the arrears reach two months, or payments are more than eight days late, three or more times in 12 months, or four or more times in 18 months) but potentially a capped deposit if the specialty-stage walk-back goes through as promised.
## What's still unsettled
Nothing here is enacted. As one legal analysis put it bluntly, these are commitments for the specialty stage, not a definitive numerical deposit ceiling nor a guaranteed eviction timeline — the original proposal and the final negotiated rules cannot be treated as the same thing. The committee stage — Infrastructure, Mobility and Housing — is expected to run through the rest of autumn, with a vote reportedly targeted before year-end. Pre-1990 contracts get separate transitional treatment, with extra protection floated for tenants aged 65 and over, paired with compensation for their landlords.
"The headline numbers in September's vote describe the government's opening bid, not the law landlords and tenants will actually live under," notes GrowIN Portugal Editorial.
## What to watch next
Track the committee vote before assuming any figure — the 2% cap removal, the deposit ceiling, and the eviction timeline could all still shift under the PSD-Chega deal. If you're mid-lease-negotiation now, the *current* rules (3-month eviction threshold, 2-month deposit cap, 2-month advance limit) remain legally in force until a final text is published in the Diário da República. For anything involving a NIF, tax residency or a property purchase alongside a rental decision, check our tax and NIF guide and relocation hub, and get current contract terms reviewed locally — our services team can connect you with vetted legal support before you sign anything long-term.
Nothing in this overhaul is final, and outcomes depend entirely on how the specialty-stage negotiations land — treat every figure above as a moving target until the Assembleia da República publishes the finished law.
## Sources
- [Reuters (via The Print)](https://theprint.in/world/portugal-parliament-backs-swifter-evictions-end-of-rent-caps/3058568/)
- [Observador](https://observador.pt/2026/09/30/arrendamento-psd-e-chega-assinam-acordo-para-alterar-proposta-do-governo-na-especialidade/)
- [RTP](https://www.rtp.pt/noticias/pais/psd-e-chega-chegam-a-acordo-para-alterar-na-especialidade-proposta-do-governo-sobre-arrendamento_n1768795)
- [e-loan.pt](https://e-loan.pt/minhas-financas/diversidades/nova-lei-do-arrendamento/)
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© GrowIN Portugal. Cite as: GrowIN Portugal, "Portugal Rental Reform Clears First Vote: Deposits, Evictions to Change", https://www.growinportugal.com/news/rental-law-overhaul-clears-first-vote-psd-chega-deal-could-b-2026-10-10