The new Short-Term Rentals (AL) rules were officially published on October 22 and will take effect from November 1. This Short-Term Rentals legislation update introduces significant changes to the sector, aimed at increasing flexibility in licensing and license transfers, as well as redefining the roles of municipal councils and condominium associations in the authorization process.
01 | Key Points of the Short-Term Rentals Legislation Update
Among the main changes is the possibility of licensing new ALs across the country, provided the authorization of the respective municipal council. This update also enables the transfer of AL licenses between owners, whether in cases of sale or rental, as long as the transfer receives the council’s approval.
Municipalities with over 1,000 ALs now have 12 months to establish local regulations. Until then, general legislation applies. For example, Lisbon has already established containment areas where both the licensing of new ALs and the transfer of licenses are prohibited. In Porto, the previous regulation may or may not apply, defining containment areas where licensing is restricted, except in specific cases such as unoccupied and fully renovated buildings. There are also sustainable growth areas where licensing is allowed, subject to specific rules and ratios. Similar regulations are expected in other municipalities.
This AL legislation update introduces substantial changes to the sector, officially revoking CEAL and the IMI surcharge, thus relieving significant financial burdens. Additionally, the requirement for condominium approval before licensing new ALs has been removed, which should expedite the process and resolve numerous pending cases, especially in Madeira, where this requirement hindered many initiatives.
To balance interests, the new law allows condominiums, with a two-thirds majority, to restrict the installation of new ALs within the building. Importantly, this decision will only affect future licenses, thereby preserving the rights of existing ALs. Finally, in cases of proven disturbance, condominiums may request the municipal council to revoke a specific license, a process that will continue to be mediated by the council itself.
This new legislation brings both opportunities and challenges for property owners and investors, fostering balanced sector growth that takes local community needs into account.
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