Rent Increases in Portugal: What to Expect in 2025

Renters in Portugal could face rent increases of up to 2.16% starting January 2025, based on the latest inflation figures released by the National Statistics Institute (INE). The inflation rate, which serves as the basis for calculating annual rent adjustments across various lease types, including residential, reached 2.16% in August. While the final figures will be released on September 11th, landlords and tenants now have an idea of potential rent increases in euros. While the 2.16% coefficient applies uniformly to all contracts covered by law, the actual increase in euros will depend on the current rent value. For example, a rent of 250 euros will see an increase of 5.40 euros, reaching 255.40 euros. This adjustment applies to most existing rental contracts, including residential leases under free rent, supported rent (social housing), or conditional rent, as well as commercial, industrial, and professional leases. However, older leases dating back to before 1990 are exempt from this annual update, as they are subject to different rules.