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Rent Increase Calculator

Did your landlord send an update letter, or are you a landlord updating a rent in Portugal? In 2026, lease rents can be updated by the official coefficient of 1.0224, a 2.24% increase. This calculator applies the coefficient to your current rent and shows the new rent, the increase per month and per year, and the sum step by step, including the catch-up of coefficients from earlier years that were never applied.

Enter the current monthly rent and choose the update: the 2026 legal coefficient is 1.0224 (+2.24%). If the landlord skipped updates in earlier years, up to three coefficients can be applied at once. If the contract sets its own update criterion, choose "Another percentage" and enter the value.

New monthly rent
€817.92
Rent updated with the coefficient up to 2026 (+2.24% in total)
Increase per month
€17.92
Over 12 monthly rents, the increase adds up to €215.04.
Current monthly rent€800.00
After the 2026 coefficient (×1.0224)€817.92
Increase per month+€17.92
Increase over 12 months€215.04

The update is not automatic: the landlord communicates it by registered letter with acknowledgment of receipt, at least 30 days in advance, stating the coefficient and the new rent. It can only be demanded one year after the contract started or after the previous update.

The coefficients are the official INE ones, published by notice in the official gazette: 1.0224 for 2026, 1.0216 for 2025 and 1.0694 for 2024. The contract may set another update criterion, which prevails.

Estimate for lease contracts updated by the legal coefficient. Pre-1990 contracts still in the NRAU transition, supported (apoiada) rents and special regimes have their own rules and are out of scope.

Educational estimate, not advice. Confirm the coefficient and your contract's rules before sending or accepting a rent update.

What the rent update coefficient is

Absent an update criterion set in the contract, the rent can be updated once a year by the coefficient the INE (national statistics institute) publishes in the official gazette (article 1077 of the Portuguese Civil Code). The coefficient reflects the 12-month consumer price index variation, excluding housing, to August of the prior year. For 2026 it is 1.0224 (Notice no. 23174/2025/2), a maximum increase of 2.24%. It applies to residential and non-residential leases, urban and rural.

How the new rent is calculated

The sum is a multiplication: new rent = current rent × coefficient. An €800 rent updated with the 2026 coefficient becomes 800 × 1.0224 = €817.92, €17.92 more per month, or €215.04 over 12 months. The coefficient is a ceiling for the annual update under the legal regime: the landlord may apply less, and may only apply more if the contract sets another criterion.

The update is not automatic: letter and deadlines

To take effect, the landlord communicates the update to the tenant by registered letter with acknowledgment of receipt, or hand-delivered against receipt, at least 30 days in advance, stating the coefficient applied and the new rent. On top of that, the first update can only be demanded one year after the contract starts, and each following one a year after the previous update. Without the communication, the old rent stands.

Skipped years: up to three coefficients at once

If the landlord skipped the update in one or more years, those increases are not lost for good: the missed coefficients can be applied together with the current year’s one, multiplied by each other, up to three years of coefficients. With €800 not updated since 2023, the 2024 (1.0694), 2025 (1.0216) and 2026 (1.0224) coefficients take the rent to €893.58. What the landlord cannot do is charge past months’ differences retroactively: the catch-up only takes effect going forward.

The contract can set another criterion

The coefficient regime is the default: it applies when the contract is silent. The parties may stipulate another update criterion in writing, for example a fixed percentage, and in that case that criterion applies. For those contracts, choose the "Another percentage" option and enter the stipulated value.

What is out of scope

This calculator covers the annual update by the coefficient. Out of scope, because they follow their own rules: pre-1990 contracts still transitioning to the NRAU regime, whose rent follows a phased path; supported (apoiada) and social rents, calculated from the household’s income; and one-off extraordinary updates created by ad-hoc laws, like the 2% cap that limited the 2023 update. The income tax the landlord pays on rents is a different sum, the one in the rental income tax calculator.

Worked example

Imagine an €800 monthly rent, last updated in 2025. In 2026 the landlord can apply the 1.0224 coefficient: the new rent is 800 × 1.0224 = €817.92, €17.92 more per month, or €215.04 over 12 months, a 2.24% increase. If the rent had not been updated since 2023, the three coefficients could be applied at once: 800 × 1.0694 × 1.0216 × 1.0224 = €893.58, €93.58 more per month (+11.70%). Either way, the update only takes effect after the registered letter, sent 30 days in advance.

Frequently asked questions

How much can rent increase in Portugal in 2026?
Under the legal regime, the rent can be updated by the 1.0224 coefficient, a 2.24% increase (INE Notice no. 23174/2025/2). An €800 rent becomes €817.92. The contract may set another update criterion, and in that case that one applies.
How is the new rent calculated?
Multiply the current rent by the year’s coefficient: new rent = rent × 1.0224 in 2026. If coefficients from earlier years were never applied, they multiply together, up to three years at once.
Does the landlord have to give notice before increasing the rent?
Yes. The update is communicated by registered letter with acknowledgment of receipt, or hand-delivered against receipt, at least 30 days in advance, stating the coefficient and the new rent. Without this communication the update has no effect and the old rent stands.
Can the rent be updated twice in the same year?
No. The update is annual: the first one can only be demanded one year after the contract starts, and each following update a year after the previous one (article 1077 of the Civil Code).
What if the landlord skipped the update in recent years?
The missed coefficients can be recovered by multiplying them together with the current year’s, up to three years of coefficients at once. But the catch-up only takes effect going forward: past months’ differences cannot be charged retroactively.
Is the 2.24% increase mandatory?
No. The coefficient is the maximum the legal regime allows for the annual update: the landlord may apply a smaller increase or none at all. Increasing above the coefficient is only possible if the contract stipulates another update criterion.
Does the coefficient apply to shops and offices?
Yes. The annual coefficient applies to residential and non-residential urban leases, and to rural leases too, unless the contract stipulates otherwise.
Where does the coefficient come from?
It is computed by the INE from the 12-month consumer price index variation, excluding housing, to 31 August of the prior year, and published in the official gazette by 30 October. For 2026 it was set at 1.0224 (Notice no. 23174/2025/2, of 19 September 2025).

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Author: Thorben Rasmus Idel · Reviewed by: Nahar Geva · Last reviewed: 2026-07-10