An audit carried out in 2024 by the General Inspectorate of Finance (IGF) found that 60% of tenants in Portugal do not have a registered lease agreement. Organisations such as the OECD also report that only 12% of families in Portugal live in rented housing, indicating the high prevalence of informal rentals.

“We are talking about widespread tax evasion. Tenants are unable to deduct rent for income tax purposes and enjoy the tax benefits to which they are entitled,” says the president of the Lisbon Tenants Association (AIL), Pedro Ventura, quoted by ECO, who suggests the creation of a “supervisory or regulatory authority” to monitor the sector, as well as a “platform” for registering rent agreements.