Portugal caps affordable rents from 224 to 2,066 euros across 308 municipalities

What the portaria sets

Portugal's government published a portaria on Tuesday, 13 October 2026, in the Diário da República, setting the maximum monthly rent for each typology in each of the country's 308 municipalities. The caps apply under the Regime Simplificado de Arrendamento Acessível (RSAA) and run from 224 euros for a T0 to 2,066 euros for a T5 in Lisbon. The regime was approved by Decree-Law no. 97/2026 of 20 May and has been in force since 1 September, but the rent limits were only now published. Owners who rent within the caps can benefit from tax relief, including exemption from IRS and IRC on rental income from covered contracts, and from IMT and IMI exemptions on purchases and on construction or renovation of homes for affordable rent.

How the caps are set

Each cap equals 80% of the median rent for the municipality, as published by INE, the national statistics institute. The calculation may be adjusted for homes with private parking or an energy performance rating of class A or higher. Limits also reflect gross floor-area limits for controlled-cost housing and values under Portaria no. 176/2019 of 6 June. The full tables sit on an electronic platform managed by the Institute for Housing and Urban Rehabilitation (IHRU), which also offers a tool for calculating applicable increases and limits for parts of a home.

Lisbon, Porto and the lowest caps

Lisbon has the highest ceilings in the country: 785 euros for a T0, 1,006 euros for a T1 and 1,309 euros for a T2, rising to 2,066 euros for a T5. In Porto a T0 is capped at 652 euros and a T2 at 1,118 euros. The lowest T2 figure, 392 euros, applies to dozens of municipalities, all in the interior, including Aguiar da Beira, Amarante and Bragança. Aguiar da Beira also has the lowest T0 figure, 224 euros. A Lisbon T0 rented at up to 785 euros keeps its owner exempt from IRS and IRC, according to the portaria's table.

Timing and rule changes

The portaria takes effect on Wednesday, 14 October, and until then the earlier maximum values can remain in force. From that date owners can update affordable rents to the new table. The new rules also drop the household income test, so caps depend only on municipality and typology rather than on the tenant's income and a 35% effort rate. Minimum contract lengths fall from five to three years for permanent residence and from nine months to three months for temporary residence.

Owners' response

The Associação Lisbonense de Proprietários (ALP) called the publication a late fulfilment of a legal obligation, almost four months after the deadline for the regulation. It noted the portaria appeared the day after the association sent the Government a formal request for clarifications on the missing rules, the operation of the regime and the protection of owners' rights. The association said obstacles remain, with the platform still not accessible to owners.

The simplification of administrative procedures and the tax advantage do not eliminate the risk of contract default.

An internal ALP survey carried out this week found that fear of contract default was the most cited factor in deciding whether to offer a property for rent, with 41% of responses. Another 27% pointed to the need for a fair solution for rents that remain frozen. The association argued that dropping the tenant effort-rate test removes a safeguard, since the previous programme kept rents between 15% and 35% of average monthly household income.

The Government has to ensure that owners can submit contracts and know, with certainty, the conditions for accessing tax benefits.

The platform, the association says, is still not accessible to owners.