The Portuguese government has changed the holiday rental laws!
Earlier this year the Portuguese government announced big changes to the holiday rental laws. Many were wondering how this would help with the housing crisis in Portugal. We’re pleased to say that the Alojamento Local regulations have been modified, so now there’s clarity and relief for property owners and future investors.
So what are the main points of the new law?
AL license will be transferable again. Property owners with an existing license will be able to transfer their license to a new owner for continuous operation once the law is passed. This is good for AL properties as it ensures continuity of operation and maximizes guest capacity.
AL licenses will no longer expire after 5 years, so the expiration rule is gone.
The new law will decentralize the decision making to the municipalities, reducing the power of the condominiums to restrict or cancel AL licenses.
Currently no licenses can be granted to “propriedade horizontal,” otherwise known as apartments, but the municipalities will have the discretion to decide if they can grant new licenses.
António Leitão Amaro, Minister of the President, says these changes could be passed in a few weeks and will bring confidence back to a strained market.
These changes not only reduce the environmental impact of holiday rentals but also promote community development. And by implementing energy efficient measures property owners can maximize their rental income by reducing operational costs and attracting eco-conscious guests.
Property owners must make sure their rental property complies with these local regulations to avoid any negative impact on the community and keep a profitable rental property.
Energy Efficiency and Capacity
The new decree-law puts a big emphasis on energy efficiency on local accommodation. Property owners are encouraged to adopt energy efficient measures, such as installing solar panels or upgrading to energy efficient appliances.
These measures not only reduce the environmental impact of holiday rentals but also community development.
Local regulations may now require property owners to meet specific energy efficiency standards, in line with the European Union’s Energy Performance of Buildings Directive.
By investing in these measures property owners could be eligible for tax incentives or other benefits, so it’s a win-win for the environment and their property income.The decree-law also provides for fair and balanced solutions for property owners, residents and the local community.
For example local authorities can set rules for the maximum capacity of holiday rentals in residential buildings, taking into account noise levels and waste management.
So holiday rentals don’t harm the surrounding community and maintain a harmonious living environment.
Property owners must make sure their holiday rentals comply with these local regulations to avoid any negative impact on the community.
By promoting energy efficiency and community development the decree-law will create a responsible and eco-friendly holiday rental market in Portugal.
This balanced approach will grow the rental market while protecting the interests of residents and the local community.
Wondering how these exciting changes to Portugal’s holiday rental laws might affect your current property or future investment plans?
Our team of local real estate experts is ready to help you navigate these new regulations. Contact us today for personalized advice and discover how you can maximize your AL property’s potential under these favorable new laws.
