The Rental Guarantor in Portugal: What It Means and Alternatives

The fiador (guarantor) is the person who commits to paying the rent and any other amounts owed by the tenant if the tenant defaults. In Portugal it is common practice, especially for students, newcomers and foreigners without a local credit history.

What the guarantor really takes on

By signing the guarantor clause, the person becomes jointly and severally liable with the tenant. The landlord can demand payment directly from the guarantor, without first having to sue the tenant — unless there is an express waiver of the benefit of “excussão prévia” (rare).

The guarantor is liable for:

• Unpaid rent (every month falling due during the contract and renewals)
• Damage compensation for the property
• Court costs and late charges in enforcement actions
• Interest on overdue amounts

In contracts with automatic renewal, the guarantor stays liable through each renewal unless they expressly exit the guarantee.

How to exit the guarantee

The guarantee is not a life sentence, but exiting needs care:

1. End before renewal — the guarantor can notify the landlord by registered letter that they will not continue the guarantee after the current term, within the renewal-opposition window applicable to the contract.
2. Substitution by a new guarantor — only with the landlord’s agreement.
3. Termination agreement — with the tenant and landlord, in writing.

An informal message is never enough. Without a document, the guarantee stays in place.

Practical risks

• Credit score — an enforcement action for unpaid rent is recorded and can block the guarantor’s own credit applications.
• Wage garnishment — on default, the guarantor’s salary can be garnished (up to the legal protected threshold, usually two-thirds above the minimum wage).
• Full solidarity — with multiple guarantors, there is no “half” each; any of them can be called for the entire amount.

Alternatives to a guarantor

Increasingly accepted by institutional landlords and platforms:

1. Extended deposit

Instead of a guarantor, the tenant pays 3–6 months of rent as a deposit. More expensive upfront, but avoids involving third parties.

2. Rent guarantee insurance

Insurers such as Tranquilidade, Liberty Seguros or Allianz offer rent guarantee policies that cover 12–24 months. Typical cost: 4–8% of the annual rent. The tenant pays, the landlord is protected.

3. Bank guarantee

Deposit held at a bank, payable to the landlord on demand. More expensive (bank fees + capital tied up) but widely accepted.

4. Guarantee platforms (Garantia DOC and similar)

Commercial services that charge the tenant a monthly fee in exchange for guaranteeing rent to the landlord. Useful for students and people relocating.

Before signing as a guarantor

Minimum checklist:

• Read the whole contract, not just the guarantee clause.
• Confirm duration and renewals — auto-renewal extends your liability.
• Check for any explicit cap on the guarantee (e.g. on overdue rent).
• Negotiate a right to exit after X years, in writing.
• Assess the real financial capacity of the tenant you are guaranteeing.

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Sources: Civil Code art. 627 et seq. (guarantee); art. 655 (exit); Law 6/2006 (NRAU). Educational content, not a substitute for legal advice. Verified for 2026.