The Short Term Rentals market in Portugal is witnessing a significant turnaround, with the new government announcing the repeal of measures that have profoundly affected the sector. This development comes in response to various challenges faced by owners and investors in this highly dynamic niche market.
01 | Measures to be revised by the new Government
Last year, the introduction of the Extraordinary Contribution on AL (CEAL) under the Mais Habitação program imposed an additional tax burden only on apartments intended for this type of accommodation. This contribution, which excludes properties in interior regions and those that qualify as own permanent housing for less than 120 days a year, will now be eliminated. At the same time, the subject of rental licenses is also being given a new direction. The expiration of licenses, a measure previously introduced to control the number of units available, will be abolished. This is a crucial step towards restoring investor confidence, allowing for greater predictability and stability for operators in the sector.
At the same time, the subject of rental licenses is also being given a new direction. The expiration of licenses, a measure previously introduced to control the number of units available, will be abolished. This is a crucial step towards restoring investor confidence, allowing for greater predictability and stability for operators in the sector.
In addition, the government intends to review other legal limitations that have restricted the operation and growth of the short-term rentals market in Portugal. For example, the requirement to prove the maintenance of the activity, under penalty of cancelling registrations, is one of the areas that could be adjusted. It is important to note that, despite the clear intention to reform, a specific timetable for the implementation of these changes has not yet been defined.
The promise to review these policies indicates a recognition of the vital role that short-term rentals plays in tourism and the Portuguese economy. With the Government taking steps to ease the pressure on AL owners and operators, now is an excellent time to re-evaluate and possibly expand your presence in this vibrant market. LovelyStay continues to stand by each partner, offering expert support and tailored strategies to maximize profitability and the business success of all our clients.
