Portugal Politics Explained, Who Holds Power in 2026

PORTUGAL · POLITICS

Who Holds Power

Portugal is a unitary semi-presidential republic in which the prime minister serves as head of government and the president acts as a non-executive head of state with moderating powers. Executive power is exercised by the government, while legislative power rests primarily with the Assembly of the Republic.

This guide is part of The Rio Times series on European politics. See also our guides to Spain and Germany’s AfD debate.

As of October 25, 2026, Prime Minister Luís Montenegro heads the XXV Constitutional Government. António José Seguro, a former Socialist Party leader, has been president since March 9, 2026.

Finance Minister Joaquim Miranda Sarmento handed the 2027 budget proposal to Parliament on October 8. Parliament is due to debate it in general terms on October 27 and 28, with a final vote scheduled for November 24, according to Portuguese media.

Lisbon Mayor Carlos Moedas leads the capital where the protest camps were set up. Police, including officers with police dogs, carried out the removal of the Lisbon camp.

The Housing Crisis

Police cleared a housing protest camp in Rossio Square, central Lisbon, in the early hours of Sunday, October 25, 2026, the second clearance in a week. They moved in shortly after 2:00 a.m. local time after warning protesters to remove their tents or face dismantling and possible disobedience charges.

More than 100 tents had been erected after a march by thousands of people on Saturday, October 24. Police charged at demonstrators and made several arrests, with minor injuries reported, though Reuters said official figures were not immediately available.

The protests were driven by rising rents, house prices and a shortage of affordable housing. Protesters demanded the government withdraw a bill that would make evictions easier and end rent caps for new leases.

Parliament approved the government’s rental-law bill in general terms on September 30, 2026, with the Chega party abstaining. The measures would remove the 2% cap on rent increases for new contracts and allow faster evictions after two rather than three months of arrears.

The Council of Ministers approved inheritance-law changes on March 12, 2026 to speed up the division of undivided estates. The aim is to place more properties on the housing market.

The Bank of Portugal estimates a national housing shortfall of 300,000 homes. Housing prices have more than doubled since 2017, and rents for new leases have nearly doubled.

Political Reactions

Protests began in Porto on Saturday, October 10, and spread to Lisbon. Police first cleared the Lisbon camps early on Tuesday, October 20, detaining 55 people, and more than 1,000 people returned within days, according to Al Jazeera.

Left Bloc lawmaker Fabian Figueiredo called the police action “completely disproportionate” against a peaceful gathering. The government’s position is that increasing housing supply and reforming succession and rental rules are appropriate responses to the crisis.

Amnesty International has called for an investigation into the police intervention at the Porto demonstration on October 15. The protest movement says 39 people were injured, two of them seriously.

What It Means for US Readers

Portugal is a NATO member and European Union state whose political stability matters for transatlantic security and trade. The country’s semi-presidential system means the prime minister runs daily government, but the president retains moderating powers that can shape legislative outcomes.

For American travelers and investors, Portugal’s housing crisis reflects broader European affordability pressures but has not disrupted normal government functions. The government continues to hold cabinet meetings, approve legislation and prepare the 2027 budget.

The rental-law dispute could affect US citizens who own property in Portugal or are considering buying there. Proposed changes would give landlords more freedom to set rents for new contracts, while inheritance-law reforms aim to release more properties onto the market.

What Is Not Known

Official figures for arrests, charges and injuries in the Rossio operation on October 25 are not yet available. The 55 detentions reported by Al Jazeera relate to the earlier clearance of October 20.

The available sources do not establish President Seguro’s position on the housing bill or the precise parliamentary arithmetic supporting the government. They also do not show whether any formal confidence threat exists.

The PSD and Chega have agreed amendments to the rental bill for the committee stage, but it is not yet clear whether it will pass its final vote. The 2027 budget faces its first debate on October 27 and 28.

The circumstances of the October 15 Porto intervention are disputed. It is not known whether an official investigation has been opened.

Frequently Asked Questions

Who runs Portugal in October 2026?

Luís Montenegro is prime minister and head of the XXV Constitutional Government. António José Seguro has been president since March 9, 2026, a non-executive head of state with moderating powers.

Why are people protesting in Lisbon?

Protesters are demonstrating against rising rents, house prices and a shortage of affordable housing. They oppose a government rental-law bill that would end rent caps for new leases and speed up evictions.

What is Portugal’s political system?

Portugal is a unitary semi-presidential representative democratic republic. The prime minister is head of government, the president is a non-executive head of state, and legislative power rests primarily with the Assembly of the Republic.

Sources: Government of Portugal: Council of Ministers communiqué; Government of Portugal: Council of Ministers communiqué October 14, 2026; The Portugal Post: Lisbon mayor backs housing protests.