Interpretation of the automatic renewal regime in residential lease agreements.

The Lisbon Court of Appeal's ruling of April 23, 2026, decided that the three-year period stipulated in paragraph 1 of Article 1096 of the Civil Code for the automatic renewal of a fixed-term residential lease at the end of the term, when such renewal is not excluded by the parties at the time of signing the contract, is merely supplementary, and nothing prevents the stipulation of a shorter renewal period. This interpretation by that Court is the only one that allows combining that rule with the provisions of paragraph 3 of Article 1097 of that Code, which allows for the possibility of the landlord's opposition to the renewal of the contract taking effect three years after its signing.