caução

Published 3 November 2026, 17:05

A deposit on a flat, returned at the end of the contract if everything is intact. Since 1 January 2023 (Lei 24-D/2022, the 2023 budget), the deposit may not exceed two months' rent, and no more than two months' rent may be demanded in advance on top of it; previously, three or more was considered normal. A reform approved by the government on 9 July 2026 and submitted to parliament on 12 August proposes removing the cap on the deposit and raising advance rent to three months, but the law has not yet been passed.

Where you come across it. Signing a tenancy agreement; listings with wording such as “3 meses de caução, 2 meses de depósito”.

The caução and months of rent paid in advance are different things, even though listings lump them together into one sum; there should be a separate receipt for the deposit with the word caução on it. Whether the deposit counts as the landlord's income has been in dispute at the tax office and in the arbitration courts since 2023, and still is, so “it isn't declared on IRS” is not a fact but one side of the argument.

Guides

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