8 min read
by Francisca Ribeiro, Marketing & Communication
Published March 01, 2023
| PROPERTY MANAGER | SHORT-TERM RENTAL | PARTNERS | PORTUGAL |
Long-term, the so-called "traditional renting" has become less popular among property owners in recent years as a result of the advantages of owning a local rental property. From small local private investors to large international institutions, many have chosen to invest in properties to put them on the market by renting them out to travellers temporarily.
Large cities like Lisbon and Porto experienced growth in local lodging, as have other tourist destinations, especially those along the lovely coastline. With the booming of short-term rental in the Portuguese market, in this three-part series, we will be covering just how you can successfully manage a property. In this first part, we will cover how to create an Alojamento Local in Portugal, from what exactly it is to the required documentation.
Local accommodation (AL) establishments are those that provide temporary accommodation services, namely to tourists, against remuneration, as long as they do not meet the requirements to be considered tourist resorts.
Every short-term rental property, known as Alojamento Local in Portugal, must apply for a license and be registered before being rented out. The process is relatively simple:
Firstly, a prior communication should be made in the Balcão Único Eletrónico, addressed to the Mayor of the Municipality where the AL is located. It should include:
You must also attach a copy of the Cartão de Cidadão, the Caderneta Predial (it is like the apartment ID) of the property, and a declaration of the beginning - or alteration - of the activity at the Finance Department, with the respective CAE.
You should also have a signed Termo de Responsabilidade, ensuring that the property is legally qualified to serve the activity.
After the communication has been made, the municipal council has ten days to oppose the opening of the establishment. In the case of hostels, this period is 20 days. If at the end of the period the municipality does not object, a registration number is attributed.
With the registration number, you have the only valid title to be able to open your accommodation to the public and advertise it. If you have your accommodation registered on electronic booking platforms (such as Airbnb or Booking), you must disclose the registration number. Within 30 days of submitting the prior communication with the deadline, the municipal council inspects the accommodation to verify whether it meets the conditions required by law.
Alojamento Local is an umbrella term that encapsulates:
These tourism businesses are subject to a legal regime known as the Regime Jurídico da Instalação, Exploração e Funcionamento dos Empreendimentos Turísticos. As a result, it applies to establishments that provide lodging in exchange for payment. For their operation, they must have an appropriate set of facilities, equipment, and complementary services.
The deadlines and authorisations required to open a local accommodation vary if the mode is a hostel. These establishments, for example, are the only ones that need prior permission from the condominium to operate.
To open the activity, you need to provide the following documents/information to the authorities:
According to the regulation, a property must meet certain criteria to be classified as a local accommodation establishment.
And that’s it! You already know all you need about how to become an AL owner. But what about the next steps? Do you know how to do your taxes as a property manager? Worry not and wait patiently for the next part in this series. At LUGGit, we don’t just want to help improve your guests' experience whilst travelling. We also want you to be the best property manager there is!