•
by LUGGit Marketing Team
Published September 12, 2024
| |
Portugal has become a hotspot for tourists in recent years, driving a significant boom in the short-term rental market. If you're considering entering this market, understanding the regulations, licensing requirements, and tax obligations is essential. This guide provides information to help you launch your own short-term rental business in Portugal while complying with local laws.
In Portugal, short-term rentals are known as Alojamento Local, meaning “local lodging”. AL encompasses any establishment that provides temporary accommodation to tourists for a fee, as long as it doesn’t qualify as a touristic enterprise.
To legally operate a vacation rental business in Portugal, obtaining an AL license is mandatory. To register your property, you must submit a notification to the president of the municipality where the accommodation is located. This process is free of charge and is completed online through Balcão Único Eletrónico.
Once you make your request, the municipality has 10 days to object to the opening of the AL (or 20 days in the case of hostels). If no objections are raised, you will receive an AL registration number to legally operate the rental.
Operating or advertising an unregistered AL can lead to significant penalties. Individuals may face fines of up to €4,000, while companies can be fined as much as €40,000 for non-compliance with AL regulations.
The maximum capacity for Alojamento Local (AL) establishments is 9 bedrooms and 30 guests, with some exceptions. Hostels have no limit on the number of guests, while bedroom rentals are limited to a maximum of three bedrooms.
Additionally, the total capacity is determined by multiplying the number of bedrooms by two. For apartments and houses, an additional two guests can be accommodated in the living room. Each unit may also include up to two extra beds for children under 12 years old.
AL establishments must meet several requirements, including:
Additionally, each unit must:
All types of AL, except for “houses” must have an identification plaque next to the entrance of the establishment.
In recent years, the Portuguese government has introduced "containment zones" to manage the growth of AL and protect local communities in popular urban centers. These zones are designated by individual municipalities, which set specific regulations, and within containment zones, the issuance of new AL licenses is either strictly limited or entirely frozen.
These zones are most commonly found in central neighborhoods of Lisbon and Porto, where the concentration of AL establishments has been particularly high. In these areas, there’s a cap that limits each owner to a maximum of seven AL properties.
The main taxes you have to pay on an AL are the following:
Navigating the AL system may seem complex at first, but with the right steps, you’ll be set up for success. By staying informed and compliant, you’ll not only avoid fines but also offer a reliable experience for your guests. With the right preparation, your AL can become a rewarding venture in one of Europe’s most popular destinations.
LUGGit handles your guests' luggage before check-in and after check-out, giving them more time to explore the city. Partnering with us is free and you earn commissions every time your guests book our service!