Actors in the short-term rental sector are likely celebrating this change.

The new AL regime in Portugal has changed a lot. One of the big changes is the regulatory requirements to get the AL license for property owners who want to rent to tourists. Also the recent changes in the licensing rules for alojamento local al gave more legal stability and flexibility to property owners to enter the short-term rental market.

These rules also address the economic and urban impact on local economies and urban environments to give more legal certainty to property investors. The new regime also allows condominiums to approve or block AL units within the properties, especially in the case of horizontal property.

Municípios now can create their own rules for AL activities, including suspend new registrations in specific areas until new rules are implemented.

Summary of the new Regime

The new AL regime in Portugal, introduced by Decree-Law No. 76/2024, brings flexibility and stability to the short-term rental market.

This regime revoke previous restrictions on new registrations, so they can be done throughout the country, except in areas of contention. Municípios now can define these areas of contention and growth, where AL activities may have specific limitations. Also introduces updated capacity limits, giving more flexibility to AL operators to host guests.

This will simplify the operations and improve the overall guest experience in AL establishments.

Impact on the Market

The new regime will have a positive impact on the short-term rental market in Portugal.

By revoking previous restrictions on new registrations, the supply of short-term rentals will increase, and competition will grow.

This competition will drive down prices and up the quality of services in AL establishments.

Also the flexibility to host guests will allow AL operators to adapt to market demand, making the sector more attractive to investors. In general these changes will energize the short-term rental market, for everyone!

The future for AL in Portugal looks good under the new regime. The regime provides a more stable and predictable environment for short-term rentals, so it’s a good investment opportunity.

The flexibility to host guests and the updated capacity limits will allow AL operators to better adapt to market demand, to be more competitive.

Also the growth of tourism in Portugal will drive demand for short-term rentals. But it’s essential for investors to stay informed about local regulations and consult with experts to ensure compliance with the new regime.

This proactive approach will maximize the potential of AL in this changing market.

The short-term rental sector is celebrating this news.

After the August announcement we now have the confirmation of the changes proposed by the Portuguese government, most of them are lifting restrictions.

The role of the local accommodation ombudsman in managing disputes between residents, property owners and third parties is also highlighted, his function to evaluate complaints, mediate conflicts and provide guidelines for the operation of accommodation properties within the communities.

One of the expected positive impacts in the sector is the removal of the mandatory license renewal and the restrictions on new licenses.

This returns the decision power to the municipal councils, so they can better manage the local housing to match the demand.

Also the new decree-law eliminates the automatic expiration of inactive licenses and the planned review of licenses in 2030.

It also specifies the conditions under which a registration can be canceled, 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 have the legal tools to decide on the allocation, regulation, supervision and promotion of interventions in local accommodation units.

The new rules also affect lodging establishments, talking about capacity limits and conditions to operate in historical buildings.

Another big change is that condominiums can no longer cancel AL licenses without justification.

Also the government has restored the possibility to transfer a license when the property is sold.

The regulations also specify the maximum capacity for local lodging establishments, setting limits to the number of rooms and guests to ensure a structured approach that balances tourism growth and community sustainability.

Condominiums can no longer cancel AL licenses without justification. Government restored the ability to transfer a license when the property is sold.

The regulations also specify the maximum capacity for local lodging establishments, limits to the number of rooms and guests to ensure a structured approach that balances tourism growth and community sustainability.

If you have any questions about these changes to Portugal’s AL laws or how they might affect your property investments, please don’t hesitate to reach out to our team.

You can contact us via email at [email protected]. We stay up-to-date with all regulatory changes and can provide personalized guidance for your specific situation.