Portugal moves to accelerate evictions in rental market overhaul

Housing Minister Miguel Pinto Luz argued that the measures prioritize contractual freedom, suggesting that current legal uncertainty keeps property owners from participating in the rental market. The government’s plan significantly tightens the rules for tenants: the threshold for eviction due to rent arrears drops from three months to two, and landlords gain the power to terminate contracts if payments are repeatedly delayed by more than eight days. Furthermore, the reform permits landlords to block the first automatic lease renewal and accelerates the sunset of rent caps, moving the deadline for limiting increases to 2% up to the end of 2026.

The strategy specifically targets older, low-rent contracts that currently dominate the market, where over 23% of leases are at least two decades old. Under the new rules, tenants under 65 with higher incomes will see the expiration of protections tied to pre-1990 leases, enabling landlords to adjust rents to reflect current property values. Antonio Machado, head of the Lisbon Tenants' Association, labeled the move morally questionable, maintaining that the policy ignores the structural roots of a crisis that has seen new-lease rents nearly double since 2017. With the bill heading to parliament, the government must now secure support from either the Socialist party or the Chega faction to pass these contentious changes.