LISBON – The death of a tenant named on a decades-old lease can have significant consequences for old rental contracts in Portugal, particularly when another family member seeks to continue living in the property.

The issue has gained attention because many Portuguese households remain covered by rental agreements signed before the introduction of the modern urban tenancy regime. Some of these contracts continue to carry rents considerably below current market levels.

However, the death of the original contract holder can alter the legal circumstances surrounding the lease. Depending on who inherits the tenancy and whether that person meets the legal requirements for protection, landlords may gain greater scope to update the rent.

Old Rental Contracts in Portugal Face Different Rules After Tenant’s Death

The death of the person named in a rental agreement does not necessarily mean that the contract immediately comes to an end.

Portuguese tenancy legislation provides mechanisms through which certain relatives or other eligible household members may inherit the tenant’s contractual position.

The crucial issue is whether the person succeeding to the tenancy qualifies for the protections established by law.

Age, disability, family relationship, residence in the property and other legally relevant circumstances can affect how the contract is treated.

This means each case involving old rental contracts in Portugal must be assessed according to its individual circumstances rather than assuming that every inherited lease receives exactly the same protection.

Landlords May Gain Room to Update Old Rents

One of the most important consequences concerns the amount of rent charged.

Old leases have long been a sensitive issue in Portugal because some rents remain substantially below the values charged under newer agreements.

Special protections introduced over the years have prevented some older contracts from moving immediately into the general rental regime.

But those protections are not necessarily transferred unchanged when the original tenant dies.

If the tenancy passes to another person, landlords may in certain circumstances be able to initiate procedures that result in a rent adjustment.

The exact outcome depends on the type and date of the contract, the successor’s circumstances and the legislation applicable to the particular lease.

Portugal Still Has Thousands of Pre-1990 Leases

Portugal continues to have a significant number of properties covered by older rental agreements.

A government-backed study using the 2021 Census identified 151,620 primary-residence dwellings with rental contracts dating from before 1990. Tax Authority data analysed for the study also identified tens of thousands of individual tenants connected with pre-1990 contracts.

The figures help explain why changes affecting these leases can have consequences for both tenants and property owners.

For tenants, maintaining an old contract can provide housing stability and protection against sharp increases in housing costs.

For landlords, however, rents under some historic agreements can remain far below the amounts currently charged for comparable properties.

Succession Does Not Mean Automatic Eviction

The possibility of updating rent should not be confused with an automatic right to remove a tenant from the property.

When the original tenant dies, Portuguese law establishes conditions governing whether and how the lease may be transferred.

A qualifying successor can therefore continue to have tenancy rights.

Likewise, the landlord cannot simply impose any rent they choose. Any adjustment must follow the legal framework applicable to the contract.

For this reason, the death of a tenant in an old rental contract can mark the beginning of a new legal stage rather than automatically ending the lease.

Old Rents Remain a Sensitive Housing Issue

The debate surrounding old rental contracts in Portugal sits within a broader housing problem.

Portugal has spent years attempting to balance protection for long-standing tenants with the property rights and financial interests of landlords.

This balance becomes particularly complicated when a protected tenant dies and another household member inherits the contractual position.

The central question is then whether the protections attached to the previous tenant continue to apply to the successor.

Consequently, the death of the original leaseholder can open the door to a rent revision in some cases, but it does not mean every old rent can automatically be increased.

The applicable contract, the identity and circumstances of the successor, and the protections established under Portuguese tenancy law must all be considered before determining whether an increase is legally possible.