The Portuguese Government is preparing to publish a decree establishing the maximum percentage for rent increases, affecting both residential and commercial properties. The value, expected to be announced in September, is based on the average 12-month evolution of the Consumer Price Index (CPI) excluding housing.
According to data from the National Statistics Institute, the projected rent increase is 2.56%, up from 2.24% last year. This adjustment reflects rising inflation, which reached 3.3% in August. For a monthly rent of 500 euros, the increase would be 12.8 euros, amounting to 153.6 euros annually.
This legal limit, set by the New Urban and Rural Tenancy Regimes, applies to most contracts, including older ones and those receiving subsidies. However, contracts may stipulate higher increases if agreed upon by landlord and tenant. In the absence of specific clauses, the legal cap of 2.56% is the maximum allowed. Landlords can choose lower increases or none at all, with the possibility of recovering up to three years of missed increases.
