Last Wednesday, our Head of Property Management, attended a workshop organized by ALEP on the latest AL legislation changes. These Local Accommodation (AL) Regulations Updates in Portugal mark a significant shift in managing short-term rentals nationwide.
On November 1st, 2024, the AL legislation 76/2024 took effect, introducing new rules to reshape the sector. Replacing the “Mais Habitação” measures, these changes focus on sustainability, urban housing, and fostering better relations between AL operators, authorities, and communities.
While some details remain unclear, experts expect a transition period. This post highlights key updates to help property owners and managers adapt effectively to the evolving landscape.
Local Accommodation (AL) Updates
1. New Role of Municipal Regulations
The most notable shift is that municipalities now hold increased power to regulate AL activities. Cities with over 1,000 AL registrations now have to decide within 12 months whether to create regulations, as required by Article 4 of DL 128/2014. These rules aim to control AL density and preserve urban planning goals. Each municipality will publish these local rules in its Boletim Municipal, so stay informed about your area’s specific guidelines.
2. Restriction Areas and Sustainable Growth Areas
Municipalities can now designate two types of special zones:
Restriction Areas: High-density AL zones where new registrations may be limited.
- Sustainable Growth Areas: Zones requiring special monitoring to prevent overload.
Municipalities may vary these restrictions and are not required to include all possible limitations. These various restrictions, include:
- Prohibiting new AL registrations;
- Setting AL-to-housing ratios;
- Implementing time-based limitations;
- Restricting registration transfers.
3. Temporary Suspension of New Registrations
These suspensions aim to control AL growth while municipalities design long-term solutions. Some cities have already taken action:
- Lisbon: Registrations are suspended across all parishes.
- Porto: Limited to high-density areas like the Historic Center and Bonfim.
- Cascais: Chose not to suspend registrations to maintain market stability.
- Mafra (Ericeira): A regulated system has been in place since 2018.
4. Changes to Registration Rules
Transferability Rules
The general non-transferability rule has been revoked nationally. However, municipalities can create restrictions in designated areas, applying only to houses and apartments with exceptions for inheritance, divorce, etc.
Expiry of Registrations
AL registrations no longer expire automatically. The previous requirement for reevaluation in 2030 has been removed.
5. Condominium Rules and AL Operations
New ALs no longer require prior authorization from condominiums, except for hostels. However, condominiums can still prevent ALs through:
- Prohibition in the condominium’s constitutive title;
- A 2/3 majority vote in the Condominium Assembly (not affecting existing ALs);
- Opposition due to disturbance, subject to mayoral decision;
AL operators must now:
- Display visible signage with noise regulation schedules;
- Provide contact information to the condominium administration;
- Maintain a multilingual handbook with building rules;
Tax Changes & Insurance Requirements
Tax Changes
The increased IMI (Municipal Property Tax) and CEAL have been cancelled retroactively to December 31, 2023. However, municipalities can still increase IMI for ALs through municipal assembly resolutions
Insurance Requirements
AL operators must now comply with stricter insurance rules:
- Upload valid insurance certificates to the Balcão do Empreendedor whenever policies are renewed;
- The insurance expiry date will be visible in RNAL;
- Municipalities can verify compliance with operators given three days to respond. Non-compliance may result in registration cancellation;
- The module is not yet available Balcão do Empreendedor. Once it is, there will be a “campaign period” where AL owners will be informed of this and a grace period before town halls start verifications.
The Local Accommodation (AL) regulations updates in Portugal represent a new era for local accommodation, that aims to balance the needs of the tourism industry with local housing concerns. Property owners should stay informed about their specific municipal regulations and ensure compliance with new requirements to continue operating successfully in Portugal’s AL market. Stay ahead by understanding and adapting to these changes, ensuring your operations align with the new regulations.
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