1. In Practice: What Does the 2.56 per cent Increase Mean?
To understand how the law applies in everyday life, let’s consider the case of Manuel (the landlord) and Maria (the tenant):
- Maria lives in a flat in Lisbon with a monthly rent of €800. The tenancy agreement began in January 2024 and the last rent review took place in January 2026.
- Following the publication of the INE’s adjustment coefficient for 2027 (1.0256), Manuel intends to adjust the rent from January 2027.
Simple calculation of the new rent:
€800 × 1.0256 = €820.48
The monthly increase is €20.48 per month. The landlord may not charge more than this limit set by law, unless improvement works are carried out with prior agreement.
2. Guide for Landlords: Mandatory Rules and Deadlines
The right to increase the rent is not automatic — it requires compliance with legal formalities, failing which the increase will be invalid. If you are a landlord, please note the following steps:
- Mandatory Written Notice: The increase must be notified by registered letter with acknowledgement of receipt or delivered in person against a signed receipt from the tenant. WhatsApp messages or telephone calls have no legal validity.
- Minimum Notice Period (30 Days): The letter must be received by the tenant at least 30 days before the date on which the new rent is due. For example, to take effect on 1 January, the letter must be delivered by 1 December.
- Essential Content of the Letter: The notice must expressly state the multiplier applied (1.0256), the current rent amount, the new calculated amount and the exact date on which it comes into effect.
- 12-Month Waiting Period: The rent may only be increased one year after the start of the tenancy agreement or one year after the last increase.
3. Guide for Tenants: How to Check and What to Do?
Upon receiving a rent adjustment letter, the tenant must check that all requirements have been met before proceeding to pay the new amount:
- Check the notice period: If the letter arrives with less than 30 days’ notice, the increase will only take effect in the month following the one specified.
- Check the calculation: Ensure that the percentage applied does not exceed the 2.56 per cent stipulated for 2027.
- Check for accumulated increases: If the landlord has not increased the rent in previous years, they may accumulate the percentage increases from those years, provided that no more than three years have elapsed.
- Objection or correction of errors: If the tenant identifies any error in the calculation or the deadline, they must respond in writing to the landlord within 30 days, pointing out the error.
4. Practical Summary: Landlord’s Obligations and Tenant’s Rights
As regards the maximum adjustment coefficient, the landlord must apply a coefficient of no more than 1.0256, corresponding to an increase of 2.56 per cent. For their part, the tenant must check that the calculation is correct and that the new rent amount complies with this limit.
As regards the method of notification, the landlord must notify the tenant of the increase by registered letter with acknowledgement of receipt or by hand-delivery, with a signed receipt. The tenant must request a formal written notice to provide proof of notification.
As regards the notice period, the landlord must send the notice at least 30 days before the date on which they intend the new rent to take effect. The tenant must check the date of receipt of the letter and confirm that this notice period has been observed.
As for the frequency of rent increases, the landlord must observe a minimum interval of 12 months between increases. The tenant must check whether a year has elapsed since the start of the tenancy agreement or since the last rent increase.
Finally, in the event of errors in the notice or in the calculation, the landlord must correct the notice and resend it in writing. The tenant, in turn, must also reply in writing, identifying any errors or inaccuracies detected.
5. Frequently Asked Questions (FAQ)
Does the increase apply to all tenancy agreements?
As a general rule, it applies to urban tenancy agreements for residential and non-residential (commercial) properties. However, agreements with specific adjustment rules or protected schemes may be subject to exceptions.
Is the landlord obliged to increase the rent?
No. The rent adjustment is at the landlord’s discretion, not an obligation. The landlord may choose to keep the rent at the current level or agree on a lower amount with the tenant.
What if the tenancy agreement is recent (less than 1 year old)?
For tenancy agreements entered into less than a year ago, the first rent increase may only take place once the agreement has been in force for 12 months.
What happens to new tenancy agreements entered into in 2027?
The law sets out specific rules for determining the initial rent in new tenancy agreements for properties that have been let in the last five years; it is therefore advisable to seek specialist legal advice before signing.
This article is for information purposes only and does not replace personalised legal advice. Legislation may change, so you should confirm the current position with a lawyer.