Security Deposit Limits in Portugal: What Landlords and Tenants Must Know

In Portugal, a security deposit — known as a caução — is a sum of money the tenant pays upfront to guarantee the fulfilment of lease obligations. It covers potential unpaid rent, utility debts, or property damage beyond normal wear and tear. Unlike many other countries, Portugal has enacted specific legislation that strictly limits how much a landlord can demand.

Article 1076º of the Portuguese Civil Code (Código Civil), as amended by the State Budget 2023 (Lei 24-D/2022, effective January 1, 2023), sets a clear cap on the security deposit:

This limit applies to the base monthly rent amount (excluding utility charges or condominium fees). The same amendment also caps advance rent payments at 2 months.

For example, if the monthly rent is €1,000, the landlord can request at most €2,000 as a security deposit — whether the lease is for 6 months or 5 years. Demanding €3,000 or three months' rent would be illegal.

Before this 2023 amendment, Portuguese law did not set a specific cap on deposits. The new rule was introduced to protect tenants from excessive upfront costs that were acting as a barrier to housing access.

A deposit clause that exceeds the limits of Art. 1076º is considered void (nula) to the extent it exceeds the cap. The tenant has the right to refuse payment of the excess amount, or to demand its return if already paid.

In practice, many landlords — especially those renting informally or without professional advice — unknowingly charge deposits of 3 or more months' rent. This is non-compliant and can expose the landlord to legal disputes and difficulties enforcing the lease in court.

CompliantLease automatically validates the deposit amount against Art. 1076º based on the contract duration you specify. If you enter a deposit that exceeds the legal limit, the system warns you and explains why. The generated lease contract includes a fully compliant deposit clause with the exact legal citation, ensuring both parties are protected.

The deposit clause in your contract will reference: - The exact amount in euros - The legal basis (Art. 1076.º do Código Civil) - The conditions for return at lease termination - The timeline for deposit repayment