New regulations on rentals in Portugal : a minimum duration of one year and tenants better protected

If you live in Portugal and especially in Lisbon, then you know that it is becoming more and more difficult to find accommodation. However, Portugal seems to have taken the measure and helps tenants by protecting the duration of the contracts and the end of them. The Portuguese Parliament approved a measure proposed by the Socialist Party (PS), which provides for a minimum duration of one year for housing rental. Even contracts signed for a shorter period now have a minimum contract of one year. Portugal has been on the offensive for some time to protect the long-term rental of residents of Portuguese cities, such as Lisbon and Porto. The recent slowdown at Alojamento Local is not the only measure implemented to protect the inhabitants. This new law establishes a minimum duration of 12 months for any rental contract. What does this new measure imply? What does this new regulation say about long-term leasing? Bob, the expatriate's assistant in Portugal, tells you all about this new law on leasing.



New rules to stabilize the real estate market


The amendment to the law on rental contracts thus modifies the regime in force since 2012, with a maximum ceiling of 30 years for housing contracts. Another new rule is that any rental contract in Portugal, unless otherwise indicated by the owner or tenant (whether temporary or non-permanent), is renewed for another period of three years.


The new measure was approved with the support of the Communist Party and the Left Bloc following a vote in a parliamentary session Wednesday to address housing issues. The purpose of the new rules is to promote greater market stability, avoiding, on the one hand, that rents rise in an uncontrollable way compared to "normal" values and, on the other hand, that tenants be having to change housing constantly because they cannot keep up with rent increases or because homeowners have very short renewal periods.



Better protection for tenants


Among the amendments, the law also provides that during the first three years of the contract, the owner can not oppose the renewal if he does not need the house for himself or for his children. In the case of contracts for non-residential purposes, there is no mandatory minimum duration. However, who does not say a word agrees. It is assumed that they last five years and the contract is automatically renewed for the same period or at least five years. During this period, the owner can not oppose the renewal.

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