Residence Permits Refused: The Rental Contract Issue

Author: Otávio Raupp

Introduction

In January 2025, around 108,000 residence permit applications in Portugal were rejected. One of the main reasons was the absence of proof that the rental contract had been reported to the Portuguese Tax Authority (Finances).

Given the relevance of housing requirements and the significant impact on immigrants, this article explains the legal framework, questions the legality of this practice, and outlines possible alternatives to reduce rejections.

The legal framework

The Portuguese Immigration Law (Law no. 23/2007) requires applicants to prove that they have housing in Portugal, but it does not specify the exact document needed. Until recently, the following were accepted:

• a certificate from the Parish Council (Parish Council Certificate);

• the original rental contract;

• loan-for-use (comodato) contracts or third-party declarations.

This approach was consistent with the law, which allows flexibility in proving housing conditions.

AIMA’s new practice

The Agency for Integration, Migration and Asylum (AIMA) now requires that the rental contract be reported to the Tax Authority (Finances).

The issues with this requirement are:

• It is not established in law;

• Under Article 60 of the Stamp Duty Code, the duty to report the contract falls on the landlord, not the tenant;

• The Portuguese Constitution (Article 266) states that the Public Administration must act strictly within the limits of the law.

  
  

Thus, AIMA appears to be exceeding its legal authority by imposing this condition.

Impact on immigrants

In practice, immigrants may face rejection of their residence permit even with a valid contract, simply because the landlord failed to comply with their tax duty.

This results in:

• legal uncertainty;

• excessive bureaucracy;

• social exclusion risks, as it prevents lawful immigrants from obtaining residence permits.

Reflections and possible solutions

While the measure may aim to reinforce tax compliance, it creates disproportionate barriers. Possible alternatives include:

• continuing to accept the Parish Council certificate;

• recognizing contracts with certified signatures;

• defining clear and objective guidelines on acceptable documents.

  
  

A residence permit system must be transparent, predictable, and consistent with the law, ensuring that immigrants are not penalized for obligations outside their control.

By Otávio Raupp