On 1 October, Notice No. 24199/2026/2 of the National Statistics Institute (INE) was published in the Portuguese Official Gazette (Diário da República), setting the annual rent adjustment coefficient for urban and rural leases at 1.0256 for 2027. In practical terms, landlords may increase rents by up to 2.56%.
If the lease agreement contains a written clause governing rent adjustments, that clause shall prevail. The INE coefficient applies where the agreement is silent on the matter or refers to the statutory coefficient, both for residential and non-residential leases.
Rent increases not implemented in previous years may still be applied, provided that no more than three years have elapsed since the date on which the relevant adjustment could have been made.
For rural leases, the same coefficient applies unless otherwise agreed, subject to written notification to the tenant. In this case, the law does not require notification by registered letter or compliance with a 30-day notice period. Nevertheless, we recommend using a method that provides proof of receipt.
Before sending any notification, each lease agreement should be reviewed to verify the rent adjustment clause, the date of the last adjustment and any outstanding adjustment coefficients that may still be applied.
