Explainer. House income may rise in 2027, but there are rules and limits

O rent value may increase, in principle, 2.56% in 2027, according to inflation data published on monday, by the National Institute of Statistics (INE). But, there are rules that must be complied with regarding how the increase should be communicated by landlords to tenants. 

According to the definitive data of the NSI, in the last 12 months until August the average variation in the price index, excluding housing, was 2.56%, a value that serves as a basis for the coefficient used for the annual updating of rents for the coming year, under the New Urban Rent Scheme (NRAU). This value still needs confirmation, and it is necessary to wait for the publication of definitive data.

There are rules to follow

O effective amount of rent update will then be published in Diário da República until October 30.

Only after publication in Diário da República will the owners be able to announce to the tenants the increase in income, whereas rise can only effectively occur 30 days after this warning.

This year’s rate, to apply in 2027, represents an acceleration compared to last year (applied to 2026), when it was fixed at 2.24%.

Up to 200€: After all, who is entitled to extraordinary income support?

The extraordinary income support consists of monthly, non-refundable, financial support up to a maximum of 200 euros, which corresponds to the difference between the effort rate effectively borne by the household with the income and a maximum effort rate of 35%, according to the information provided in the Housing Portal. 

Who has the right to receive? According to the same source, households that meet the following criteria may benefit from support:

• Have tax residence in Portugal;
• Are holders of first dwelling lease or sub-lease, registered in the AT and concluded until 15.03.2023;
• Whose effort rate with the rent payment charge is 35% or more;
• Whose annual income is equal to or lower than the 6th tier of the IRS (2023: 38 632) or,
  if you are not required to deliver the annual IRS declaration, the total monthly income of which is equal to or less than 1/14 of the 6th tier of the IRS ceiling on declared monthly income from social security or social benefits:
  – old-age, survivors', invalidity or social pensions;
  – unemployment or parental benefits;
  – Social income of inclusion, social benefit for inclusion or solidarity supplement for the elderly;
  – Sickness and occupational disease allowances (not less than 1 month) or support to the informal caregiver.

You should know that “extraordinary income support is allocated without the need to submit an application” and “households that meet the eligibility conditions for receiving extraordinary income support are informed by the AT of the amount of support allocated and the data considered for their clearance”.