How much can your landlord increase your rent in 2027?

Following the latest inflation figures confirmed by the National Statistics Institute (INE), tenants could see their rent increase by up to 2.56 percent next year.

By Kate Sreenarong, in News, Housing · 10 Oct 2026, 19:04 · 0 Comments

Credits: Supplied Image; Author: Client;

This figure is based on the average change in the consumer price index, excluding housing, over the 12 months to August, as indicated in the flash estimate published on 31 August.

As reported by INE, the 2.56 percent rate will be used to calculate the annual rent adjustment under Portugal’s New Urban Tenancy Regime (NRAU).

However, landlords cannot apply the increase at will.

Formal notice

The official coefficient must first be published in the Diário da República by 30 October.

Only after the figure is published can landlords formally notify tenants of the rent increase, and even then, they cannot charge the new amount immediately.

The tenant must receive at least 30 days’ notice before the increase takes effect.

The 2027 coefficient is higher than this year's, so rents could increase by 2.24 percent.

For example, a €1,000 monthly rent could rise by up to €25.60 under the 2.56 percent coefficient, bringing the new amount to €1,025.60, provided the landlord follows the applicable rules.

Support qualification

For households struggling with housing costs, an extraordinary rent support scheme is also available.

According to the Portal da Habitação, the monthly payment is non-refundable and can reach €200, intended to cover the difference between the household’s actual rent burden and a maximum effort rate of 35 percent.

Households must meet several conditions to qualify, including having their tax residence in Portugal and holding a registered first-home tenancy or subtenancy agreement signed by 15 March 2023.

The household must also have a rent effort rate of at least 35 percent.

However, there are also income limits: the household’s annual income must not exceed the maximum of the sixth IRS income bracket, which was €38,632 in 2023.

For people who are not required to submit an annual IRS tax return, the relevant monthly income limit is calculated using 1/14 of the maximum amount of that sixth bracket.

Furthermore, certain declared employment income and social security benefits are taken into account, such as old-age, survivors’ and disability pensions, unemployment and parental benefits, the social integration income benefit, the social benefit for inclusion, the solidarity supplement for the elderly, as well as sickness, occupational illness and informal career benefits.

Application requirements

Eligible households do not need to apply for extraordinary rent support.

As reported by the Portal da Habitação, the payment is granted automatically to those who meet the requirements.

For tenants, the date to watch is the publication of the 2027 rent coefficient in the Diário da República. Until that happens, the new annual rent increase cannot be formally notified under these rules.