Rent Increase in Portugal 2026: INE Coefficient +2.24%, Calculation and Deadlines

In 2026, landlords in Portugal can increase the rent on existing lease agreements based on the coefficient published by INE (Instituto Nacional de Estatística, Portugal's national statistics institute). But there are rules: a legal notice period, a mandatory registered letter and a specific way to calculate the new rent. This guide, written for landlords with property in Portugal, explains everything.

What is the rent update coefficient?

Every year, INE publishes a rent update coefficient based on the variation of the Consumer Price Index (CPI, known in Portugal as IPC). This coefficient sets the maximum amount a landlord can increase the rent each year.

For 2026, the coefficient is 1.0224, which corresponds to an increase of 2.24%.

How to calculate the new rent

Which contracts can be updated?

You can increase the rent on urban lease agreements under the following conditions:

• The contract has been in force for at least 1 year since the last increase (or since the start of the contract)
• The contract cannot be under Portugal's controlled or supported rent schemes ("renda condicionada" or "renda apoiada"), which follow different rules
• Contracts signed before 1990 have special protections, so confirm which regime applies

Notice period and how to notify

This is the part many landlords get wrong. The law (article 1077 of the Portuguese Civil Code) requires the tenant to be notified at least 30 days in advance of the date on which the new rent becomes due. The clock starts on the date the letter is received, not the date it is sent. In practice, we recommend sending 35 days in advance (30 legal days plus around 5 days for processing and CTT delivery).

The notification must be made by registered letter with acknowledgment of receipt (in Portugal, "carta registada com aviso de receção", or AR). The AR slip is signed by the tenant on delivery and is the legal proof of the date of receipt. An email, a text message or a verbal notice is not enough.

Timeline: when to notify

Concrete example: you send the letter on 30 March. CTT delivers it on 2 April (the date recorded on the AR slip). The 30 days count from 2 April and expire on 2 May, so the new rent can take effect from that date, on the date you state in the letter. In practice, many landlords choose the 1st day of the following month (for example, 1 June) to avoid pro-rating when the rent is due on the 1st. This is a practical convention, not a legal requirement.

History of the rent update coefficient (2017 to 2026)

Each year's coefficient is set by INE based on the CPI variation over the previous 12 months (August to July of the previous year). In 2024 it reached its highest value in decades, reflecting post-pandemic inflation.

Source: Diário da República (Portugal's official gazette). Years marked as expired can no longer be applied in 2026. The right expires 3 years after the date each update first became possible (article 1077 of the Portuguese Civil Code).

I never increased the rent. Can I recover the missed increases?

Yes, but with limits. The law allows you to apply accumulated coefficients in a single registered letter, but each coefficient expires after 3 years. In 2026, you can only apply the coefficients for 2023, 2024, 2025 and 2026. Coefficients from 2022 or earlier can no longer be recovered.

What you lose for good is the back pay: the past months in which you charged less than you were entitled to. That money is not recoverable. But you can correct the amount going forward with the coefficients that have not yet expired.

What happens if you miss the notice deadline?

The increase does not become invalid, but it is delayed. The new rent is only due 30 days after the tenant receives the letter, regardless of the date you state in it.

Example: you want the new rent to start in May. You send the letter on 10 April, but the tenant only receives it on 14 April. The 30 days expire on 14 May, so the new rent can only take effect from June, not May as you had planned. You lose one month of additional income.

What you can never do is charge retroactively for the months in which the new rent was not yet in force.

What must the letter contain?

The rent increase letter must include:

• Identification of the landlord (name and NIF, the Portuguese tax number)
• Identification of the tenant and of the rented property
• Current rent and new rent
• The coefficient applied (1.0224 for 2026)
• The date from which the new rent is due
• A reference to article 1077 of the Portuguese Civil Code (and to the coefficient under article 24 of the NRAU, the Portuguese urban lease law)
• Date and signature of the landlord

Can the tenant refuse the increase?

In general, no. The coefficient published by INE applies generally to residential lease agreements covered by the NRAU. As long as the landlord has respected the deadlines and the legal form, the tenant is obliged to pay the new rent.

There are, however, important exceptions:

• Contracts signed before 1990 under special protection regimes (tenants aged 65 or over, with a disability above 60%, or on low income) follow different transition rules
• Controlled or supported rent ("renda condicionada" or "renda apoiada", affordable housing programs) follows its own rules
• If the landlord did not send a registered letter with acknowledgment of receipt, the tenant has every right to refuse

Frequently asked questions