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While Spain blocks evictions, Portugal forges on with bill to hasten them - Finance news and analysis from Global Banking & Finance Review
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While Spain blocks evictions, Portugal forges on with bill to hasten them

Published by Global Banking & Finance Review

Posted on September 30, 2026

3 min read

· Last updated: September 30, 2026

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Portugal Approves Bill to Speed Up Evictions, Contrasts with Spain's Ban

Portugal's Rental Market Overhaul and Regional Context

LISBON, Sept 30 (Reuters) - Portugal's parliament approved on Wednesday, in the first reading, a contentious rental market overhaul aimed at speeding up evictions and ending rent controls on new leases in what the centre-right government hopes will encourage landlords to put more homes on the market.

Contrasting Approaches: Portugal vs. Spain

The reform, criticised by tenants' associations as "savagery", sharply contrasts with developments in neighbouring Spain where the leftist government on Tuesday decreed a ban on evictions of vulnerable tenants until 2030, along with other measures, amid protests against evictions and rising rents.

Political Dynamics in Parliament

The general outline of the reform was approved after the far-right party Chega unexpectedly abstained after having expressed its objections during the debate, while all left-wing parties voted against.

Portugal's Housing Crisis and Stakeholder Reactions

Background: Housing Affordability and Market Challenges

       Portugal faces one of Europe's worst housing crises, with rents for new leases nearly doubling since 2017 and becoming unaffordable for many households.

      The government says more than 250,000 homes remain empty because legal uncertainty discourages owners from renting them out, but tenants' groups argue the reform would only deepen the crisis.

Tenants' Associations' Criticism

      "This reform proposal is sheer savagery," Antonio Machado, head of  the Lisbon Tenants' Association, told Reuters, saying that it would "further skew the rental market in favour of landlords" and only lead to higher rents rather than alleviate the housing affordability crisis.

     He also dismissed the government's plans to speed up evictions as "pure opportunism", arguing that cases involving tenants defaulting on rent are negligible. 

Chega Party's Position and Proposed Modifications

      Chega has said it wants to modify some provisions before the final vote that it said would create uncertainty for both tenants and landlords and called for "a more balanced solution".

Key Statistics and Reform Details

      The country of about 11 million people has around a million rented homes, with more than 23% of leases over 20 years old.

      The reform would speed up evictions by cutting the rent arrears threshold from three months to two months and allowing landlords to evict tenants who repeatedly pay their rent more than eight days late. It would also end a 2% cap on rent increases this year for properties rented out within the previous five years. 

Reporting Credits

(Reporting by Sergio Goncalves; editing by Andrei Khalip and Aurora Ellis)

Key Takeaways

  • Portugal aims to boost rental supply by cutting evictions thresholds and ending rent controls on new contracts, hoping landlords will return idle units to the market.
  • Tenants’ associations in Portugal condemn the reform as “savagery,” arguing it will favor landlords and worsen affordability, while Spain moves in the opposite direction by locking in protections until 2030.
  • Portugal’s housing stock includes many vacant or underused units—OECD data shows around 12 % of dwellings were vacant in 2022—highlighting potential if legal trust and stability are restored.

Frequently Asked Questions

What changes does Portugal's rental reform include?
The reform speeds up evictions, ends rent controls on new leases, and tightens rules for late rent payments.
How does Portugal's approach differ from Spain's?
Portugal is easing rules for landlords and evictions, while Spain has implemented a ban on evictions for vulnerable tenants until 2030.
Why are tenants' associations criticizing the reform?
Tenants' groups argue the reform favors landlords, could raise rents, and worsen the housing affordability crisis.
What new eviction thresholds does the reform introduce?
It lowers the rent arrears threshold from three months to two months and allows evictions for repeated late payments.
What is the government's goal with the reform?
The government aims to encourage landlords to rent out vacant homes by reducing legal uncertainties.

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