Plans Laid for Long-Term Rental Contract Protections

Government proposes stable long-term leases with clear rent update rules.

On June 19, 2025, the Portuguese government submitted a legislative proposal aimed at introducing “secure long-term lease contracts,” a measure intended to provide greater security and predictability for tenants across the country. The proposal was part of a broader initiative to address Portugal’s ongoing rental housing crisis, where rising rents and limited availability have left many tenants vulnerable. These new contracts are expected to create a standardized framework that clearly outlines how rent increases are calculated, how and when leases can be renewed, and under what terms both landlords and tenants must operate.

The government's goal is to reduce the instability many renters face by mandating contract conditions that promote transparency, longer tenancy durations, and stronger protection against sudden or unjustified evictions. Tenant advocacy groups have praised the proposal as a necessary step toward combating the short-term rental pressures and speculative practices that have driven up costs, especially in Lisbon, Porto, and other high-demand regions.

If passed, the law could become a key turning point in rental housing policy in Portugal, aligning national legislation with tenant-friendly practices already implemented in other European countries. The proposed framework may also include enforcement mechanisms and penalties for non-compliant landlords, helping to ensure the rules are followed. As the bill moves through Parliament, housing advocates are watching closely, hopeful that this initiative will bring long-term stability and fairness to the rental market.
https://www.theportugalnews.com/news/2025-06-19/plans-for-stable-long-term-rental-contract-rules/98703