How much deposit can the landlord ask for?
Conditional, but since 2023 the deposit has a legal cap. The deposit is capped at 2 months' rent (Civil Code, art. 1076, amended by the 2023 State Budget) — before, there was no cap. Advance rent is also capped at 2 months. The landlord must report the contract to the Tax Authority (Stamp Duty Form 2) and pay Stamp Duty of 10% of one month's rent, by the end of the month after the lease starts. The electronic rent receipt is issued on the Tax Portal and is, by default, mandatory. The 2026 rent-update coefficient is 1.0224 (+2.24% max). The deposit is returned at the end, minus justified deductions. In short: deposit up to 2 months, with a registered contract.
📋 The rules
- Deposit capped at 2 months' rent (since 2023)
- Advance rent: also capped at 2 months
- Landlord registers the lease with the tax office (Form 2)
- Stamp Duty of 10% of one month's rent
- Electronic rent receipt mandatory (by default)
🔓 Exceptions
- Electronic receipt: waived if annual rent ≤ €838.44 or landlord 65+
- Deposit return: no strict legal deadline (~30 days in practice)
- Rural leases: their own rules
⚠️ Penalties & fines
There's no "fine" for the deposit itself, but there are limits and tax obligations. A deposit above 2 months is illegal. Failure to report the contract to the Tax Authority is fined €75 to €3,750 (art. 110-A RGIT), and non-issuance of receipts about €150 to €3,750. The deposit is returned at the end of the contract, minus justified amounts (unpaid rent, bills, damage beyond normal wear), with no strict legal deadline (in practice, ~30 days). Beware a myth: "Portugal has no deposit cap" — outdated; true before 2023, but since 1 January 2023 it's capped at 2 months. Brazil allows up to 3 months and Spain 1 — don't conflate. To protect your rights: check the deposit doesn't exceed 2 months, that the contract is registered, and that you get receipts.
📎 Official sources
❓ Frequently asked
How much deposit can the landlord ask for?
Since 1 January 2023, the deposit is capped at 2 months' rent. Advance rent is also capped at 2 months. Before this change, there was no legal cap. It's an outdated myth that Portugal has no deposit cap: today, the limit is 2 months.
Must the landlord register the contract?
Yes. The landlord must report the tenancy contract to the Tax Authority, via Stamp Duty Form 2, and pay the Stamp Duty, equal to 10% of one month's rent, by the end of the month after the lease starts. Failure to report is punished with a fine.
Is the rent receipt mandatory?
Yes, as a rule. The landlord must issue the electronic rent receipt on the Tax Portal. There are exemptions, for example if the annual rent is €838.44 or less and there's no mandatory electronic tax mailbox, or if the landlord is 65 or over. Non-issuance of receipts is punishable.
When do I get the deposit back?
The deposit is returned at the end of the contract, after deducting any justified amounts, such as unpaid rent, outstanding bills or damage beyond normal wear. There's no strict legal deadline, but in practice the return usually happens within about 30 days.
How much can the rent rise in 2026?
In 2026, the rent-update coefficient is 1.0224, i.e. a maximum increase of 2.24%. The update requires written notice at least 30 days ahead and can only be done once a year. The coefficient is set annually, based on INE data.
🔎 Common searches
What people search to land here:
- “rental deposit cap 2 months”
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