RICARDO MARTINS ALVESA D V O G A D OBriefingContact

Renting: evictions at two months, uncapped deposits and pre-1990 rents — what the Government approved (and is not yet law) — Briefing, 6 August 2026

In short: on 9 July 2026 the Council of Ministers approved a reform of urban tenancy law. Underlined in red: it is not law yet — the proposal now goes to Parliament and may change. But the design is done, and it shifts the balance between landlords and tenants on three fronts.

1. Non-payment: termination at two months

Contracts may be terminated after two months of unpaid rent (currently three). Delays of more than eight days will also justify termination if they happen more than three times in twelve months or more than four in eighteen. And landlords get six months (instead of three) to exercise that right.

2. New contracts: more freedom

The 2% cap on the initial rent of new contracts replacing previous ones is eliminated; advance payment of up to three months of rent and deposits with no legal cap become possible; and landlords may oppose the first automatic renewal at the end of the initial term, without waiting three years.

3. Old rents (pre-1990 contracts)

Transition to the NRAU regime with rules based on age and income (threshold: 64,400 euros per year). Under 65 and below the threshold, the rent stays protected for five years; above the threshold, it may rise up to 1/15 of the property’s taxable value. At 65 or over, or with a disability of 60% or more, protection is kept — with State compensation to the landlord.

And also

A housing emergency fund was approved at the same time, with non-repayable support for situations of vulnerability.

What to do with this

Nothing, for now — and that is the advice. Landlords: do not apply rules that do not yet exist; prepare your templates for the day the law is published. Tenants with old contracts: measure the possible impact now (age, income, the property’s taxable value), because that defines your negotiating margin. We will follow the parliamentary debate and update this note once a statute is published.

General information note — it is not legal advice and does not replace an assessment of your specific case. Talk to us on WhatsApp or book a meeting.

RICARDO MARTINS ALVES · ADVOGADO · Bar ID 21507-L · rma@rmarma.com · +351 91 252 5737
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