en 
According to a new law that still needs promulgation from the President of the Republic, any new contract that may be signed cannot exceed 2% of the value of the last rent, according to Jornal de Negócios.
For specialists in the sector, the limitation was not clear, but the Ministry of Housing explains that what is at stake is the building and not the owner. That is, even if there is a transfer of ownership, the limitation continues to apply to that property.
In practice, in addition to the investor having to “verify the existence of mortgages, liens, easements, leasing contracts [assets] or other encumbrances”, “he will have to verify whether there was any leasing contract in the last five years and what income was charged by the previous owner", since "with the expected publication of the Mais Habitação package, it will be obliged to respect the limit of 2% on the rent practiced in the last five years, even by another owner", explains Regina Santos Pereira, a specialist in leasing and real estate by SRS Legal.
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I am in a lease contract for my apartment in Lisboa which expires at the end of the year. I am currently paying €2100 per month. I have expressed interest in renewing my lease with my landlord. He wants to raise the rent €200 per month (9.5% increase). Is he bound by a 2% maximum (€42) increase?
By Dan Aberle from USA on 03 Aug 2023, 12:26
More crazy Socialist nonsense! If you can't charge a fair market rent, or evict a tenant easily to gain vacant possession of your property, then no-one in their right mind is going to want to be a landlord. That means it'll be far harder for tenants to find a rental, not the outcome any government should be aiming for. Trust in the free market, which gives both parties (buyer, seller) exactly what they want without this unnecessary government interference.
By Billy Bissett from Porto on 03 Aug 2023, 22:35
Economic illiteracy strikes again. Who in their right mind will want to let their property on these terms? 2% doesn't even cover inflation. The rental market in Portugal is already broken and with even more red tape it will simply get worse.
By James from Algarve on 04 Aug 2023, 06:10
So, as an investor into property I have zero motivation to take an old, badly designed, energy inefficient, near derelict house and upgrade it, renovate and install modern energy efficient systems, solar power and modernize the interiors.
Instead of providing jobs for local contractors and raising the value of the neighborhood and home, I just do nothing and keep local people into accepting sub-standard homes.
A great national strategy for investment, employment, modernization and keeping local people in bad accommodation!
I can do that for 2%, or I can create employment, upgrade property, and provide a high-standard, energy efficient (and therefore better for the renter), for 4%.
By Tony Williams from Other on 04 Aug 2023, 10:10
Dan. If you can wait to renew as this is not a law yet. If you sign now it can be raised. If you wait till this becomes law then your contract will be included. That is my understanding at least.
By John from Lisbon on 04 Aug 2023, 10:25
That is actualy not correct. it's 2% plus the inflation. Is the contract didn't have any inflation atualization in the last 3 years landlords can increse 2% plus inflation of the last 3 years. Also if the rent is under the limit estipulated by the PAA (program of acessible rent) rents can increase with no restriction until that limit or more.
By Luís Pessoa from Lisbon on 04 Aug 2023, 10:45
They tried a similar scheme (ie, limiting the % rent may increase) in Ireland and now, circa 80% og ALL property sales are landlords selling up as they can't even meet mortgage payments in some cases due to inflation and interest rates surpassing the value allowed to increase. I have just sold in ireland and had intended to invest in a couple of rental properies in Cabanas / Tavira. I was prepared for all the silly red tape and 'money-grabbing' but this is the last straw. My money's going under the mattress as no return at all seems better now than being screwed by another society that puts the tenant above the landlord and his long term investment in the market! Another 2 properties not available to the rental community ... Sad Sad Sad
By Robbie from Algarve on 04 Aug 2023, 15:14
As a long term Portugal Resident I am happy to hear foreigners saying they are not going to buy more properties to rent out. This is probably part of the goal.
Those of us who want to be able to buy here are now being priced out. Free markets are all great when locals can participate as well. Perhaps in your home counties it works because the average person makes more money comparatively to those of us who get paid peanuts in Portugal. If we can’t afford the rents and to buy is become even more of a dream we have no choice but to leave Portugal, as many already have. Other countries are also starting to push back against non residents buying properties.
It is a challenge to balance what is good for the working class in Portugal, and what rich foreigners want as they still see properties below other countries.
I do agree with one of the comments that buying a fixer upper to rent out, won’t make sense anymore.
But with the new laws on AirBNB conversions coming rents are probably coming down in the major metro areas as well.
By John from Lisbon on 04 Aug 2023, 19:57
We tried the same in Ireland. It's a disaster. Landlords cannot possible reduce rent ever now for good tenants as it blocks them from future earnings with other tenants. Every rent increase is always inflation plus max percent. So it's increased the problem. Nearly all small private landlords have left the market so now only large corporation's are landlords...which will never negotiate n can afford to wait for wealthier tenants or more willing to pay. It's completely backfired.
By Ray from Lisbon on 04 Aug 2023, 22:05
As a long term Portugal Resident I am happy to hear foreigners saying they are not going to buy more properties to rent out. This is probably part of the goal.
Those of us who want to be able to buy here are now being priced out. Free markets are all great when locals can participate as well. Perhaps in your home counties it works because the average person makes more money comparatively to those of us who get paid peanuts in Portugal. If we can’t afford the rents and to buy is become even more of a dream we have no choice but to leave Portugal, as many already have. Other countries are also starting to push back against non residents buying properties.
It is a challenge to balance what is good for the working class in Portugal, and what rich foreigners want as they still see properties below other countries.
I do agree with one of the comments that buying a fixer upper to rent out, won’t make sense anymore.
But with the new laws on AirBNB conversions coming rents are probably coming down in the major metro areas as well.
By John from Lisbon on 07 Aug 2023, 11:21
It’s amazing how non-Portuguese people come into a country and bring their sense of entitlement with them. Portugal belongs to the people of Portugal and a large proportion are being priced out of their own communities. These measures are the minimum needed to tackle the growing inequality in the housing market.
By Chris from Lisbon on 09 Aug 2023, 10:09
So, as an investor into property I have zero motivation to take an old, badly designed, energy inefficient, near derelict house and upgrade it, renovate and install modern energy efficient systems, solar power and modernize the interiors.
Instead of providing jobs for local contractors and raising the value of the neighborhood and home, I just do nothing and keep local people into accepting sub-standard homes.
A great national strategy for investment, employment, modernization and keeping local people in bad accommodation!
I can do that for 2%, or I can create employment, upgrade property, and provide a high-standard, energy efficient (and therefore better for the renter), for 4%.
By Tony Williams from Other on 25 Aug 2023, 16:37