The tenancy agreement is the document that regulates the relationship between the landlord (owner) and the tenant (renter). More than just a simple agreement, it is a mandatory legal instrument that must meet various requirements set out in Portuguese law. In this article, we explain what a tenancy agreement should contain and what the law requires..
Is a written tenancy agreement mandatory?
Yes. According to Article 1069 of the Civil Code, the lease agreement must be made in writing. The absence of a written contract can have serious legal consequences for both parties, particularly in disputes related to rents, deposits, or evictions.
Mandatory elements in a lease agreement
1. Identification of the parties
- Full name, address and Tax Identification Number (also called NIF) of the landlord and the tenant.
2. Property identification
- Full address
- Property description
- Urban property matrix number and district name.
3. Purpose of the lease
- Indicate whether it is for permanent / non-permanent residence, or another purpose (e.g.: commercial).
4. Duration of the contract
- Fixed term or indefinite duration
- Start and end dates
- Conditions for renewal or termination.
5. Monthly rent value
- Monthly amount
- Payment method and payment terms
- Conditions for updating the rent.
6. Deposit and other guarantees
- Full amount of the deposit
- [Optional] Identification of the guarantors
- Other guarantees.
7. Charges and expenses included
- Indicate whether the rent includes expenses such as council tax, water, electricity, gas, or internet.
8. Condition and inventory
- Description of the condition
- List of included assets, such as furniture and appliances.
9. Signatures and date
- Signature of both parties (Landlord and tenant)
- Place and date of the contract signature.
Landlord's legal obligations after the contract
Communication to the Tax Authority (AT)
The landlord must communicate the contract to the Tax Authority within 30 days , through the Finance Portal.
Issuance of electronic rent receipts
The landlord is required to issue electronic monthly rent receipts through the Tax Authority Portal, unless exempted.
Income declaration in the IRS
All rental income received monthly must be declared annually in the IRS as property income of category F.
What happens if there is no written contract?
The lease continues to have effect, but it may be considered null or precarious.
The landlord loses legal protection in eviction proceedings.
The tenant cannot prove the right to occupation, nor deduct rents in income tax.
There is a risk of fines for not reporting to the tax authority and for tax evasion.
Conclusion
The tenancy agreement is a fundamental piece in the relationship between landlord and tenant. It is not merely an informal agreement, but a document with serious legal implications. Ensuring that all legal requirements are met is essential to avoid future problems and to safeguard the rights of both parties.
At Casa Match, we help landlords simplify property management, including the drafting of contracts in accordance with Portuguese law.
Do you need a ready-to-use and legally valid tenancy agreement?
Contact us at casamatch.pt/en_GB and have specialised support at every step.