Firstly, in case there is a written agreement, the payment of rents which, according to the former wording of the Civil Code, could be advanced up to three instalments, will now only be possible up to two instalments, thus reducing the period for the advance payment of rents.

Secondly, the deposits agreed in urban property lease agreements, which value, according to the previous legal wording, was not limited, will now be limited to the amount corresponding to two rents, thus being imposed a maximum ceiling over those deposits.

Both alterations will have a great impact in the relation between tenants of urban leases and their respective landlords, revealing the legislator's intention to reinforce the protection of the negotiating position of the latter in this type of business.

These changes have been in effect since the entry into force, on 1 January 2023, of the Portuguese State Budget Law for the year 2023 (Law nr. 24-D/2022, of December 30), whose Article 274 determines that Article 1076 of the Civil Code will have the following wording:

«Article 1076 (Anticipation of Rents)

1 - The payment of the rent may be anticipated, with a written agreement, for a period not exceeding two months.

2 - The parties can guarantee, by any of the legally foreseen means, the fulfilment of the respective obligations, up to the value corresponding to two rents.»

The Commercial and Corporate Law Department at Belzuz Abogados will remain aware of changes, updates and new developments occurring in the urban property lease sector and is at your disposal to provide any clarifications or advice on these matters.

  João Dantas Velosa 

Commercial and Corporate Law department | (Portugal)

Belzuz Abogados SLP

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