Rents may rise by 2.56% in 2027: A guide for landlords and tenants
Anyone who owns a rental property or lives in one can already start doing the math for 2027.
According to the final inflation data released by the National Statistics Institute (INE), rents under current contracts may be updated by 2.56%, above the 2.24% applicable in 2026. Rent does not automatically increase with the start of the new year, but anyone who owns a rental property or lives in one can already begin calculating what 2027 may bring.
It should be recalled that the 2.56% figure results from INE data, but the coefficient has not yet been officially published. This is expected to occur in the Diário da República by the end of October. Only after that can a landlord wishing to apply it do so, provided the rules set out in the contract and in the law are complied with, explains Diana Longarito, lawyer at Dower Law Firm.
Questions and Answers Guide
Does rent increase automatically?
No. The landlord should first consult the contract. The law allows the parties to establish their own rent review mechanism in writing. If the contract is silent on the matter, or refers to the statutory coefficient, the general regime applies.
How much can rent increase?
Under the general regime, the landlord may apply the coefficient of 1.0256, corresponding to a maximum increase of 2.56%:
New rent = current rent × 1.0256
For example:
- A rent of €600 may increase to €615.36;
- A rent of €1,000 may increase to €1,025.60;
- A rent of €1,500 may increase to €1,538.40.
If the result contains more than two decimal places, it must be rounded up to the next euro cent.
When can the update be made?
Rent may be updated once per year. The first update can only be required one year after the beginning of the contract, and subsequent updates only one year after the previous update.
For this reason, not all rents can increase in January 2027. If a contract began in April 2026, the first update can only take effect from April 2027.
How should the landlord communicate the increase?
The landlord must send a written and signed notice stating:
- The coefficient applied;
- The current rent and the new rent amount;
- The calculation performed;
- The date from which the new rent becomes payable.
The notice must be sent by registered mail with acknowledgment of receipt to the rented property, unless the tenant has provided another address in writing. It may also be delivered by hand, provided that the tenant signs a copy indicating the date of receipt.
A simple email, SMS or WhatsApp message should not replace the formal notice, although it may be used as a supplementary means of communication.
What is the notice period?
The notice must reach the tenant at least 30 days before the date on which the new rent becomes payable. For certainty, the period should be counted from the date the notice is received and should take into account the rent due date established in the contract.
If the landlord is unable to apply the update in January, there is no need to wait until the following year. The update may be communicated later, with the new rent taking effect once the 30-day notice period has elapsed and provided that one year has already passed since the start of the contract or the previous update.
Is it possible to recover previous updates?
The landlord may not retrospectively claim differences relating to rent payments that have already fallen due.
However, coefficients that were not applied may be reflected in future rents, provided that no more than three years have passed since the date on which each update could have been required.
The coefficients must be applied successively through multiplication and not by adding percentages together. The notice must identify the coefficients used and include the full calculation.
What should the tenant check?
Upon receiving the notice, the tenant should verify:
- The regime set out in the contract;
- The contract commencement date or the date of the last increase;
- The coefficient and calculation used;
- Compliance with the 30-day notice requirement.
If an error is detected, the tenant should request a correction in writing. A disagreement regarding the update does not, in itself, justify stopping rent payments.
In summary: what should the landlord do?
Before updating rent in 2027, the landlord should:
- Check the contract and the date of the last update;
- Wait for the official publication of the coefficient;
- Calculate the new rent;
- Communicate the increase in writing and with 30 days’ notice;
- Keep the notice and proof of delivery.
These rules relate to the general regime governing urban tenancy agreements currently in force. Older contracts and tenancy agreements subject to special regimes should be analysed on a case-by-case basis.
