Rental Security Deposit in Portugal: Limits, Return and Your Rights

The caução (security deposit) is the amount a tenant gives the landlord at move-in to cover possible damage or unpaid rent. Portuguese law does not set an absolute cap, but custom and case law limit what can be demanded.

How much can be charged?

There is no explicit statutory maximum in the Civil Code. In practice:

• The market standard is 2 months’ rent (1 month deposit + 1 month advance).
• Above 3 months starts to be abusive and is hard to defend in court.
• For tenants with a guarantor, landlords often waive the deposit or ask for just 1 month.

How it must be handled

The deposit remains the tenant’s property. The landlord is only the custodian. Good practice:

1. Written proof — receipt showing the amount and purpose.
2. Separate account — some contracts specify that the deposit sits in a dedicated account (not legally required, but recommended).
3. Interest — if the contract is silent, any interest earned belongs to the tenant.

Return at end of contract

The deposit must be returned within a reasonable period (interpreted by courts as within 30 days of handing back the keys), minus:

• Damage to the property beyond normal wear
• Unpaid rent or fees
• Water/electricity/gas bills not settled by the tenant

What CANNOT be deducted

• Repainting “just because” at the end of the lease (only if actual damage)
• Professional cleaning (unless the home is left in unusual condition)
• Wear on appliances from normal use
• Replacing already-used furniture

Move-in inspection — protect yourself

Before signing the contract, do (or insist on) an inspection report:

1. Dated photos of every room (including appliances and walls).
2. Written list of pre-existing defects signed by both parties.
3. Readings of water, electricity and gas meters.

Without this document, any damage alleged at the end is practically impossible to contest.

What if the landlord doesn’t return it?

Steps in escalating order:

1. Registered letter with acknowledgement of receipt — demanding return and setting a deadline (15–30 days).
2. Complaint to the Balcão Nacional do Arrendamento or via the Housing Portal (free mediation).
3. Injunção — simplified procedure for civil or commercial debts up to €15,000.
4. Court action — last resort, with possible legal aid.

Deposit vs. rent insurance

Some landlords accept, as an alternative to a deposit, a rent guarantee insurance taken out by the tenant. Typical cost: €15–40/month for cover of around 12 months of rent. Useful for tenants who lack the liquidity for 2–3 months of deposit upfront.

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Sources: Civil Code art. 1037 et seq.; rental case law. Educational content, not a substitute for legal advice. Verified for 2026.