Actors in the short-term rental sector are likely celebrating this change.
Following the announcement made last August, we now have confirmation of the adjustments proposed by the Portuguese government, most of which involve lifting restrictions.
One expected positive impact on the sector is the removal of mandatory license renewals and restrictions on issuing new licenses. This shift returns decision-making power to municipal councils, enabling them to better manage local short-term rental availability to meet demand.
Additionally, the new decree-law eliminates the automatic expiry of inactive licenses and the planned reevaluation of licenses in 2030. It also specifies the conditions under which a registration can be canceled, addressing a gap from the previous regulations. These conditions include, among others, the absence of valid mandatory insurance and repeated, proven actions that disrupt the normal use of urban property. Under the new decree-law, municipalities are provided the legal tools to decide on the allocation, regulation, supervision, and promotion of interventions in local accommodation units.
Another significant change is that condominiums can no longer cancel AL licenses without justification. Furthermore, the government has restored the ability to transfer a license when the property is sold.
