The fire started in a recreational centre when a heating boiler reportedly exploded.
Around 60 people had gathered in the centre on Saturday night for a card tournament.
One of those at the centre, Rui Abreu, told Jornal de Notícias that some people had fallen on top of each other on the stairs.
Dozens of fire-fighters were deployed and the flames were extinguished in about an hour.
The Tondela area was badly hit by forest fires last October and local officials described the latest deaths as a "new catastrophe".
Government officials said they were closely accompanying the situation, while some of the injured have been transported to larger hospitals in Lisbon and Porto.