Portuguese Government to Pay Retroactive Rent Support to 129,000 Tenants Amidst Program Failures
The Portuguese government has announced that over 129,600 tenants will receive payments from the extraordinary rent support program, with the amounts being retroactive to January 2025. The payments are scheduled to be issued in September. However, the Ministry of Infrastructure and Housing also confirmed that payments for another 58,659 tenants will be suspended due to data inconsistencies.
This information was provided by the Ministry to the Lusa news agency, based on data from the Institute for Housing and Urban Rehabilitation (IHRU). The IHRU is the primary body managing the support program. Tenants whose payments are suspended will be notified and instructed to regularize their information through the official IHRU Citizen Consultation Portal.
The announcement follows a recent intervention by the Portuguese Ombudsman's Office, which formally requested an urgent review of the rent support program from the Secretary of State for Housing. The Ombudsman's action was prompted by a 'significant volume of complaints' detailing serious irregularities, including unexplained suspensions and reductions in support payments.
The Ministry of Infrastructure and Housing acknowledged the program's deficiencies, stating that the Extraordinary Rent Support Program (PAER), which was established in 2023 by the previous government, was 'poorly designed.' The Ministry attributed the problems to a failure to ensure interoperability between the five state entities responsible for cross-referencing data: IHRU, the Tax Authority, Social Security, the Caixa Geral de Aposentações, and the Foundation for Science and Technology.
The government has stated that a review of the program is planned 'for breve' (shortly) to address these operational issues and ensure its effective implementation. The objective of the PAER program is to provide financial assistance to tenants facing high rental costs relative to their income.
The Ombudsman's investigation into the matter revealed systemic failures. Between May 2023 and July 2025, it received approximately one thousand complaints. The findings concluded that the legal framework disregarded fundamental citizen rights, such as the right to information, notification of decisions, and a prior hearing. Citizens reported being sent from one agency to another without resolution.
Furthermore, the report described the IT platforms used for the program as 'fragile and inadequate,' contributing to severe delays. Complainants noted extreme morositeness in receiving the initial payment, and once payments began, only single monthly installments were made, with no clarity on when the retroactive amounts would be settled.
In some cases, citizens alleged that their financial situation worsened due to these state failures, leading to a profound distrust in the support mechanism. The Ombudsman noted that these systemic flaws had been previously highlighted in its last two annual reports to the Portuguese Parliament.
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