Art. 1038º al. c) — Código CivilArt. 1078º — Código Civil

Utility Transfers When Renting in Portugal: A Complete Guide

When renting in Portugal, utility contracts (electricity, gas, water) must be transferred or set up correctly. Learn who is responsible, how to transfer utilities, and what your lease should specify about utility obligations.

Legal Guide

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4 min read

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5 sections

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4 FAQs

1What Are Utility Transfers in a Rental Context?

When a tenant moves into a rental property in Portugal, the utility contracts — electricity (eletricidade), natural gas (gás natural), water (água), and sometimes telecommunications — need to be either transferred to the tenant's name or kept in the landlord's name with clear payment arrangements.

Portuguese law does not prescribe a single approach. The lease contract should specify who holds the utility contracts and who pays. However, under Art. 1038º al. c) of the Civil Code, the tenant is generally responsible for the cost of utilities consumed during the tenancy unless the contract states otherwise.

2The Legal Rules on Utility Responsibilities

Art. 1038º al. c) of the Civil Code establishes that the tenant must pay for goods and services supplied to the property related to its use. In practice, this means:

•Electricity and gas: The tenant pays for consumption. The contract holder can be either party.

•Water: Typically billed by the municipal water company. The contract holder varies by municipality.

•Condominium fees: Under Art. 1078º, ordinary condominium charges (cleaning, elevator maintenance, common area electricity) may be passed to the tenant if stipulated in the lease.

•Municipal property tax (IMI): Always the landlord's responsibility — it cannot be passed to the tenant.

•Waste collection fees: Often included in the water bill and typically paid by whoever holds the water contract.

The lease contract should clearly state: - Which utilities the tenant pays directly - Which utilities the landlord pays (with or without reimbursement) - How meter readings are recorded at move-in and move-out - What happens if utility debts are left unpaid at lease termination

3How to Transfer Utilities Step by Step

Electricity (EDP, Endesa, Galp, etc.): - Contact the electricity provider with the property's CPE code (Código de Ponto de Entrega — found on the meter or the previous bill) - Provide the tenant's NIF, identification, and the lease contract - Read and record the meter at the handover date - The transfer typically takes 3-5 business days

Natural gas: - Similar process to electricity, using the CUI code (Código Universal de Instalação) - Contact the gas provider (EDP Comercial, Galp, etc.) - Record the gas meter reading at handover

Water: - Contact the local water company (e.g., EPAL in Lisbon, Águas do Porto in Porto) - Water contracts are tied to the property address - Provide the tenant's NIF and lease contract - Some municipalities require the property owner to authorize the transfer

Important: Record all meter readings on the handover date and include them in the property condition report. This prevents disputes over consumption before or after the tenancy.

4Common Mistakes to Avoid

For landlords:

•Leaving utilities in your name without a clear reimbursement clause — you may end up paying for the tenant's consumption.

•Not recording meter readings at move-in — without baseline readings, you cannot prove what the tenant consumed.

•Failing to specify condominium fee responsibility in the lease — ambiguity leads to disputes.

For tenants:

•Not transferring utilities to your name — if bills remain in the landlord's name, disputes over consumption amounts are common.

•Leaving utility contracts open after moving out — you remain liable for charges until the contract is closed or transferred.

•Not checking for outstanding utility debts before signing — ask the landlord to provide recent utility bills to confirm there are no arrears on the property.

5How CompliantLease Handles Utility Obligations

CompliantLease generates a dedicated expenses and utilities clause in every contract, specifying which party is responsible for electricity, gas, water, condominium fees, and other property-related expenses. The property handover section includes fields for recording meter readings at move-in, creating a clear baseline for utility consumption tracking.

Legal References

Art. 1038º al. c) — Código Civil

Establishes the tenant's obligation to pay expenses related to the supply of goods and services to the property, unless otherwise agreed in the contract.

Art. 1078º — Código Civil

Addresses the allocation of condominium charges and property-related expenses between landlord and tenant.

This guide is for informational purposes. For specific legal advice, consult a Portuguese lawyer.

Frequently Asked Questions

Does the tenant or landlord pay utilities in Portugal?

Under Art. 1038º al. c) of the Civil Code, the tenant generally pays for utilities consumed during the tenancy. However, the lease contract should specify exactly who pays for what, including electricity, gas, water, and condominium fees.

How do I transfer electricity when renting in Portugal?

Contact the electricity provider with the property's CPE code (found on the meter or previous bill), your NIF, identification, and the lease contract. Record the meter reading at handover. The transfer takes 3-5 business days.

Can a landlord charge the tenant for condominium fees?

Yes. Under Art. 1078º of the Civil Code, ordinary condominium expenses (common area maintenance, elevator, cleaning) can be passed to the tenant if this is explicitly stated in the lease contract. Extraordinary condominium expenses (structural repairs) remain the landlord's responsibility.

What happens to utilities when a lease ends in Portugal?

Both parties should record final meter readings on the move-out date. The tenant must either close or transfer their utility contracts. Any outstanding consumption charges remain the tenant's responsibility. The landlord should verify all accounts are settled before returning the deposit.

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